( LAFA - 01 )

QUESTION PAPER

LIMITED DEPARTMENTAL COMPETITIVE EXAMINATION - 2008

FOR THE POST OF CHARGEMAN-GR.II (T) & (NT)

SUBJECT: LABOUR ACCOUNTING & FACTORY ACCOUNTING CODE: 8.00 / 331

Sr. No. … … … … … … … … … … … … … ROLL NO.

Signature of the Invigilator … … … … … … … … … … … … … … …

Date: 19.10.2008 Duration : 3 Hours.

Time: 09:00 Hrs to 12:00 Hrs. Max. Marks : 100

Instructions: Please read the following instructions carefully before writing your answers:
1) All Questions in Part – A, B & C are compulsory.
2) Each Questions in Part - A & B carries 1 mark and that in Part - C carries 5 marks.
3) There are four options - (A), (B), (C), (D) given against each question in Part - A out of which
only one is the most appropriate answer.
If (A) is correct, round on the correct option like (A) .
4) The discarded answer if any, must be crossed properly and supported by initial of the
candidate.
5) In Part – A & B, for each wrong answer 0.25 marks will be deducted. If more than one
options are marked, it will also be considered as wrong answer.
6) Use only blue or black ball pen. Use of Pencil is not allowed.
7) No sheet from the Question Paper / Answer Book should be detached.
8) You may do rough work, if required, on the blank sheets.
9) Please DO NOT repeat DO NOT write your name anywhere on the Question Paper /
Answer sheet. If name or any other symbolic notation are found marked on the
Question paper / Answer sheet, this will render the candidate disqualified.

For Examiners only

Part - A & B
Correct Wrong No Total
Answers Answers Answers (80)
Part - A
60 Marks
Part - B
20 Marks
Part – C
Q.81 Q.82 Q.83 Q.84 Total
(5) (5) (5) (5) (20)

SUMMARY OF MARKS OBTAINED

Part - A & B Part - C Total
Marks (100)
(80) (20)
Obtained
 ( LAFA - 02 )

PART - A
(Each question carries 1 mark)

Q.1. The following is a classification of worker:

(A) Learner (B) Trade Apprentice
(C) Entrepreneur (D) None of these
Q.2. The record of all workmen entering or leaving the factory will be maintained by:
(A) Labour Office (B) Time Keeping Office
(C) Security Office (D) Labour Bureau
Q.3. A roll that is prepared from workmen’s tickets, overtime notes, gate passes, injury
reports etc is called:
(A) Attendance roll (B) Acquaintance roll
(C) Appraisal roll (D) Muster roll
Q.4. Duty pay is also called:
(A) Time wage (B) Basic pay (C) Overtime wage (D) None of these

Q.5. Following is not entitled for payment of paid holidays:

(A) Piece workers (B) Partly piece, partly day worker
(C) Day worker (D) None of these
Q.6. The pay for a day for the paid holiday to entitled category is calculated on the basis of
daily rate as below:
1 1
(A) x (Basic monthly pay + DA) (B) x (Basic monthly pay + DA)
N N? S
1 1
(C) x Basic monthly pay (D) x Basic monthly pay
N ? (S ? H ) N? S

Q.7. Disbursement Certificate is prepared in the form:

(A) IAFZ 1860 (B) IAFZ 1957 (C) IAFZ 1827 (D) IAFZ 1929
Q.8. The % rate DA/HRA/CCA to be absorbed to cost of production is calculated on the basis
of last _______ months in the beginning of each financial year in each shop:
(A) 3 (B) 6 (C) 9 (D) 12
Q.9. Manufacture and Material warrants are issued based on:
(A) Spot Estimates (B) SWOD
(C) Standard Estimate (D) Work orders
Q.10. Syllabus of Work Order is:
(A) a list of code numbers against various services in the Main work order /
Classification indentor
(B) List of codes for particulars of work
(C) List of codes for controls
(D) List of codes for warrants
Q.11. The technique of “Marginal Costing”is employed while quoting for ______ trade:
(A) Defence (B) PSU (C) Civil (D) All of these
Q.12. The code serial number for conversion of timber in the Syllabus of Work Order:
(A) 03 (B) 05 (C) 08 (D) 10
 ( LAFA - 03 )

Q.13. Direct labour booked by the section for each process is obtained from%
(A) Labour estimate (B) Process estimate
(C) Standard estimate (D) Labour abstract
Q.14. Package Accounting is:
(A) Accounting of packing cases
(B) Accounting of stores in terms of packages without opening
(C) Inspection of stores by opening packages
(D) All of these
Q.15. Tools and Gauges of standard type of general shop use are manufactured & levied
against:
(A) Fixed overheads (B) Variable overheads
(C) Direct material charges (D) None of these
Q.16. For ‘Inter Factory Demands’which form of Extracts is used:
(A) Class - I (B) Class - II (C) Class - III (D) Class - IV
Q.17. The basic unit of time for recording the attendance in the muster roll is:
1 1
(A) Day (B) Hour (C) 1 Hour (D) All of these
32 2
Q.18. Work orders ( 01 and 02 series ) consists of:
(A) 5 digits (B) 9 digits (C) 10 digits (D) 14 digits
Q.19. Last two digits of the work order number indicate:
(A) Section code (B) Factory code
(C) Work code (D) Customer code
Q.20. The hourly rate for the overtime is ______ for work in Night Shift for Day worker:
(A) Same (B) Higher (C) Lower (D) None of these
Q.21. O.F.B. Budget is passed by:
(A) Parliament (B) Ministry of Finance
(C) Ministry of Defence (D) CC of A (Fys.)
Q.22. Life of Warrant is:
(A) 1 year (B) No fixed rule
(C) 6 months (D) Depends on factory procedure
Q.23. Standard Man Hours (SMH) is:
(A) Same as Estimated man hours
(B) Estimated man hours + Rest allowance
(C) Estimated man hours + 25 % allowance for profit
(D) Based on world standard
Q.24. For the purpose of calculation of duty pay and overtime of Industrial Employees,
standard working hours are:
(A) 48 hours / week (B) 44.75 hours / week
(C) 51 hours / week (D) As per actual hours worked
Q.25. If a piece worker is not able to earn his wages, he is supported by:
(A) Idle pay (B) Guarantee pay
(C) Warrant adjustment (D) Gang work
 ( LAFA - 04 )

Q.26. Overheads are fixed by:

(A) Ordnance Factory Board (B) Factory in consultation with LAO
(C) Planning Office (D) Local Accounts Office
Q.27. Under the Payment of Wages Act, 1936, total amount of deductions should not exceed
__________ of wage of the employed person in any wage-period if whole or part of the
deductions are meant for co-operative societies:
(A) 50 % (B) 75 % (C) 90 % (D) 10%
Q.28. Saturday Bonus is paid to:
(A) IEs (B) NIEs & IEs (C) IEs & NGOs (D) All of these
Q.29. Un-disbursed amount of IEs payment is deposited in the treasury:
(A) On the last day of the same month
(B) On the last day of the financial year
(C) On the last day of the quarter
(D) On the first day of the following month
Q.30. To allocate all expenditures of service sections, on production sections which method is
used ?
(A) Deferred Revenue (B) Overhead allocation
(C) Step - ladder (D) Budget allocation
Q.31. Piece workers are paid on the following basis:
(A) Attendance (B) No. of accepted pieces produced
(C) As certified by HOS (D) Both (A) & (B)
Q.32. ‘Time Study’is done for:
(A) Finalising the estimates (B) Trade Test
(C) Jigs & Fixtures (D) Tool Room items
Q.33. Which category of employees are entitled for Incentive Bonus ?
(A) Piece workers only (B) All IEs
(C) All skilled & semi skilled maintenance workers
(D) All maintenance workers
Q.34. Under absorption of overheads:
(A) is when overhead incurred is more than charged
(B) is when overhead incurred is less than charged
(C) shows that overheads estimated are higher than actual incurred
(D) both (B) & (C) are correct
Q.35. FOH & VOH are charged to cost of a job as:
(A) Percentage of total direct labour
(B) Percentage of total direct labour and direct material
(C) Percentage of all expenses other than direct labour
(D) Fixed value as per policy
Q.36. The Ledger rate is calculated:
(A) afresh, every time a new receipt occurs (B) at the end of month
(C) based on weighted average method (D) Only (A) & (C) are correct
Q.37. Depreciation is a:
(A) Cash expenditure (B) Non - Cash expenditure
(C) Capital expenditure (D) None of these
 ( LAFA - 05 )

Q.38. Cost incurred on a warrant is reflected in:

(A) Warrant itself (B) Books of Accounts
(C) Computers of EDP section (D) Cost card
Q.39. Overtime payments under Factories Act is admissible for work done:
(A) Beyond 44 ¾ hours per week (B) Beyond 48 hours per week
(C) Beyond 9 hours a day (D) Beyond 48 hours/week or 9 hours/day
Q.40. Piece work rate is indicated in:
(A) Manufacturing warrant (B) Material warrant
(C) Allocation sheet (D) All of these
Q.41. Industrial Workers are not admissible for payment for 'Idle time' due to following cause:
(A) Failure of power supply (B) Break down of Plant & Machinery
(C) Temporary shortage of material (D) Union's strike
Q.42. Guarantee pay is equal to:
(A) Time wages + OT pay
(B) Time wages ? Incremental pay
(C) Time wages ? Incremental pay + OT pay
(D) (Time wages ? Incremental pay + OT pay) ? (PW earning + OT bonus)
Q.43. Direct material of insignificant value can be treated as Indirect material, if the
value does not exceed … … . % of total values:
(A) 5% (B) 2% (C) 1% (D) 0.5 %

Q.44. As per the Payment of Wages Act, 1936, the wage period shall not exceed:
(A) 15 days (B) 1 month (C) 3 months (D) 6 months

Q.45. Priced Store Ledger is maintained by:

(A) Stores section (B) Internal Audit cell
(C) Accounts Office (D) S.V. Group

Q.46. When rejection in the warrant is more than the normal rejection percent provided
for unavoidable rejection for the items:
(A) the cost of excess rejection is proportionately added to the total actual
expenditure of the warrant
(B) It is deducted from the actual expenditure of the warrant
(C) It is distributed in all the warrants issued by the factory in that financial
year
(D) None of these

Q.47. Army places the following document to place an order on Ordnance Factories:
(A) Extract (B) Purchase Order
(C) Indent (D) Order from Ministry
 ( LAFA - 06 )

Q.48. To purchase an item from Ordnance Factories, SWOD is placed by:

(A) Services other than Army (B) NAVY
(C) Proof Establishments under Defence Ministry
(D) Sister Ordnance Factories

Q.49. Which of the following is part of Fixed Overheads:

(A) O.T. Bonus (B) Wages to IEs
(C) Expenditure on welfare (D) Indirect material

Q.50. Expenditure other than direct labour and direct material is charged to cost of a
job as:
(A) Total expenditure divided by No. of jobs (B) Overhead %
(C) On actual basis (D) None of these

Q.51. ‘PSL’ in accounting stands for:

(A) Principal Store Ledger (B) Priced Store Ledger
(C) Priced Stock List (D) Principal Stock Ledger

Q.52. Semi statement is:

(A) Statement of completed Warrants (B) Statement of uncompleted Warrants
(C) Annual Accounts (D) All of these

Q.53. Extracts are of following types:

(A) 2 (B) 3 (C) 4 (D) 5

Q.54. Syllabus of Work Orders Part – I contains:

(A) All the Work Orders
(B) All the Work Orders common to all factories
(C) All the Work Orders specific to particular factory
(D) All the above

Q.55. Which information is not found in the 'Piece-work Card':

(A) Ticket number of the piece worker
(B) Work order & Warrant number
(C) Quantity accepted (D) Extract number

Q.56. When a new factory is planned or new project is added to an existing factory,
expenditure is incurred on salaries and various other miscellaneous items. These
charges are carried forward till the production is established. These are called as:
(A) Preliminary Expenses (B) Capital Expenditure
(C) Revenue Expenses (D) Semi - Capital Expenses
 ( LAFA - 07 )

Q.57. Heavy normal repairs to plant and machinery required to maintain their working
capacity can be charged to the production during subsequent years are called:
(A) Deferred Revenue Expenditure
(B) Revenue Expenditure
(C) Capital Expenditure
(D) Has to be charged off during the same year

Q.58. An estimate of direct labour charges for the ensuing year is prepared by:
(A) Shop Budget Committee (B) R & E Section
(C) Works Office (D) Central Budget Committee

Q.59. A Labour Estimate will not have:

(A) Operation Description (B) Class of Labour
(C) Operation Time (D) Job Rate

Q.60. The payment of compensation to a worker under Workmen Compensation Act

is made by the:
(A) General Manager (B) Assistant Labour Commissioner
(C) Addl. Dist. Magistrate of State Govt. (D) Factories Inspector of State Govt.

PART ? B
There are two options - 'T' for True and 'F' for False given against each statement in this part.
If ‘T’is correct, round on the correct option like T . Each question carries 1 mark.

Q.61. Injury pay beyond 120 days is equal to leave salary during half pay leave. T / F

Q.62. Fixed Overheads leviable are absorbed on the current production. T / F

Q.63. Piece workers are not entitled for O.T Bonus upto and within 9 hours daily &
48 hours weekly. T / F

Q.64. The daily roll prepared by Gate office or Labour Bureau is passed on
weekly basis to LAO for audit. T / F

Q.65. All SWODs are pre-audited by A.Os. T / F

Q.66. The term workman & worker as used in Factories Act are synonymous. T / F

Q.67. Expenditure relating to salaries, depreciation etc. not appearing as T / F

labour or material, is booked in cost accounts through allocation sheet.

Q.68. While making semi statement, details of operations not performed are included. T / F

Q.69. Allowances for rest and minor breakdown are inclusive in standard estimate. T / F

Q.70. Authorization for additional labour operation not provided in standard T / F

estimate is called NRR.
 ( LAFA - 08 )

Q.71. The method of estimate used for one time / adhoc jobs is termed as T / F
spot estimate.

Q.72. Under absorption / Over absorption within 5% need not be accounted for. T / F

Q.73. Cost card is prepared by planning section. T / F

Q.74. Extract Number is not a part of the piece-work card. T / F

Q.75. Expenditure incurred in the administrative section is apportioned

to the production section. T / F

Q.76. Process Account is an account made for complete process of a product. T / F

Q.77. General Manager is the authority for sanctioning arrear wages for a period
exceeding 3 years and not exceeding 6 years. T / F

Q.78. The difference of actual cost on DA / HRA / CCA and that absorbed to
production is called Indirect Cost. T / F

Q.79. In case of injuries / sickness not arising out of work, the time spent upto a limit of
3 hours at a time will be treated as special leave with wages upto a maximum
limit of two occasions in a month. T / F

Q.80. Works cost is total of Prime Cost and Work overhead. T / F

PART - C
(Each question carries 5 marks)

Q.81. What is an Estimate and for what purposes it is utilised?

Q.82. Write a short note on "Expense Voucher" and "Nominal Voucher".

Q.83. What is:

i) Except System of Accounting
ii) Piece Work Profit

Q.84. Explain:
i) Syllabus of Work Order
ii) Unit Level Management Committee