COST & MANAGEMENT ACCOUNTING

Model exit Exam Question &answer

Cost Accounting Page 1

1. ……….provides information for income determination.
a) Financial accounting c) management accounting
b) cost accounting d) none of these

2 ---------helps in ascertaining
costs
beforehand. c) management accounting
a) Financial accounting d) none of these
b) cost accounting
3. The scope of cost accounting include…………..,…………… and……………
a) Cost ascertainment, cost presentation, cost control
b) tax planning, tax accounting, financial accounting
c) presentation of accounting information, creation of policy, day-to
day operation
d) none of the above
4. Cost accounting disclose …………….
a) The Financial position
b) profit/loss of a product, job or service
c) effect and impact of cost on business
d) none of these

5. ….is a post mortem of past costs.

a) Financial accounting c) both a & b
b) cost accounting d) none of these

Cost Accounting Page 2

6 aids in price fixation.
a) Financial accounting c) management accounting
b) cost accounting d) none of these

7 is the oldest branch of accounting.

a) Financial accounting c) management accounting
b) cost accounting d) none of these

8. includes financial and cost accounting, tax planning and tax

accounting.
a) Financial accounting c) management accounting
b) cost accounting d) none of these

9. In automobile, .............................. costing is used

a) Process c) multiple
b) batch d) job

10. Service costing is used in industries producing………………

a) Products c) both a & b
b) service d) none of these

11 -------- costing is applicable to printers.

a) Process c) multiple
b) batch d) job

12. Process costing is also known as.......................... costing.

a) Continuous c) multiple
b) batch d) job

13. Operating costing is also known as ........................ costing.

a) Service c) multiple
b) batch d) job

14. costing is a type or technique of costing.

a) Marginal c) multiple
b) batch d) job

15 costing is a type or technique of costing.

a) Absorption c) multiple
b) batch d) job

16 is not the scope of Cost Accountancy.

a) Ascertaining cost c) cost control
b) cost accounting d) tax planning

17. Cost Accounting has been developed becauseof .............................of

Financial Accounting.

Cost Accounting Page 3

 a) Limitations c) both a & b
b) advantages d) none of these

18. Cost Accountancy is the science, art and........................ of a costaccountant.

a) Practice c) hard work
b) exercise d) effort

19. The ordinary trading account is a locked storehouse of most valuable

information to which cost system is the……………….
a) Key c) house
b) lock d) none of these

20. Cost accounts deal partly with facts and figures and partly with………
a) Estimates c) income
b) costs d) revenue

21. Cost accounting provides data for managerial…………….

a) Decision making c) retrenchment
b) recruitment d) none of the above.

22. Cost accounting is based on .......................... figures.

a) Estimated c) actual
b) historical d) none of these.

23. Cost accounting provides detailed information about................................. of

various products, processes, services and operations.
a) Costs c) either a or b
b) income d) none of these.

24. Cost accounting records both monetary and ....................... units.

a) Physical c) both a & b
b) cost d) none of these.

25. The method of costing used in a refinery is ...................... costing.

a) Process c) multiple
b) batch d) job

26. costing is used in transport undertakings.

a) Process c) multiple
b) service d) job

27. The total variable cost.......................................in total proportion to output.

a) Increases c) decreases
b) does not increase d) none of these.

28. Variable cost per unit ……….…………...

a) Remains constant c) decreases
b) varies d) increases

Cost Accounting Page 4

29. Sunk costs are.............................for decision-making
(a) irrelevant (c) useful
(b) relevant (d) none of these.

30. Costing and cost accounting are …………...

a) Not the same c) not related at all
b) one and the same d) none of these.

31. Fixed cost ...................................in the same proportion in which output changes.
a) does not change c) increases
b) changes d) none of these.

32. Administration expenses are mostly……………….

a) semi-variable c) fixed
b) variable d) none of these.

33. Abnormal cost is …………………..

a) Uncontrollable c) fixed
b) controllable d) none of these

34. Cost of production is equal to ……………………

a) Works cost plus Administration Overheads
b) Prime cost plus Works cost
c) prime cost plus works overhead
d) works overhead plus administration overheads

35. Variable cost increases with.................. in output.

a) Increase c) increase or decrease
b) decrease d) none of these.

36. Accounting provides information for cost control.

a) Financial c) Human Resource
b) Cost d) none of these.
37. ………is one which can be conveniently identified with
and charged to a particular unit of cost.
a) Direct cost c) Overhead
b) Indirect cost d) none of these

38. Cost centre and cost unit are……………………

a) not the same c) not related
b) the same d) none of these

39. Fixed cost per unit …………………… with rise in output and ……………
with fall in output.
a) Decreases, increases
b) increases, decreases
c) is constant, remains same
d) none of the above

Cost Accounting Page 5

40. Period costs charged to……………….
a) cost of production c) Period
b) Products d) none of these

41. Standard costs is…………………..

a) Predetermined cost c) Actual cost
b) budgeted cost d) none of these

42. ……………………are costs which have been applied against revenue of

particular accounting period.
a) Expenses c) loss
b) income d) none of these

43. is the smallest segment of activity or area or

responsibility for which costs are accumulated.
a) Cost Object c) cost driver
b) Cost centre d) none of the above

44. The primary emphasis of .......................... cost is on the planning function of

management.
a) Budgeted c) period
b) standard d) none of these

45. ……….cost is irrecoverable cost.

a) marginal c) Sunk
b) out of pocket d) none of these

46. ……is the value of a benefit where no actual cost is incurred.

a) Imputed c) out of pocket
b) sunk d) none of these

47. is the cost which involves payment to outsiders.

a) Out of pocket cost c) notional cost
b) Imputed cost d) none of these

48. ……………is the maximum possible alternative earning that might have been
earned if the productive capacity is put to some alternativeuse.
a) Opportunity c) alternative revenue
b) incremental revenue d) none of these
49. An item of cost that is direct for one business may be ...................... for another
business.
(a) Important (c) Indirect
(b) direct (d) none of the above.
50. The total of all direct expenses is known as .................... cost.
a) Prime c) Production
b) Works d) both a & b

Cost Accounting Page 6

 51................. costs are partly fixed and partly variable in relation to output.
(a) Variable (c) Semi-variable
(b) fixed (d) both a & b
52. An opportunity cost is …………………..
(a) the advantage foregone (c) the income
(b) the cost (d) none of the above.

53. Works cost is a total of………………

(a) Indirect material, Indirect labour
(b) Direct material, direct labour, direct or chargeable expenses and
works expenses
(c) Direct material, direct labour
(d) Indirect material, Indirect labour, Indirect expenses

54. An opportunity cost does not involve…………

(a) Cash outlays (c) indirect cost
(b) direct cost (d) none of the above
55. Variable costs change.................................. with change in output.
a) Proportionately c) Disproportionately
b) Inversely d) Sometimes
56. Fixed cost per unit ................................... with increase in output.
a) decreases c) changes
b) increases d) sometimes
57. Depreciation is ............................ expenditure.
a) fixed c) adjustable
b) variable d) Semi-variable

58. Out of pocket costs involve payment to …………………

a) Outsiders c) employees
b) self d) none of the above

59. Added value is the change in…………………

a) Market value c) income
b) cost d) none of the above.
60. Accounting is not only a positive science but also a
normative science because it includes techniques of budgetary controland
standard costing.
a) Financial c) both a & b
b) Cost d) none of these

61. Material control does not cover the following stage.

a) Purchase of materials c) issue of materials
b) storing of materials d) production

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62. Material control aims at achieving effective…………
a) Material management c) accounting of material
b) quality control d) material supply

63. Stores Ledger is maintained in the…………………

a) Store
b) finance department
c) cost accounting department
d) Both a & b

64. Stock verification sheets are maintained to record the results of ……….
a) Physical verification c) financial verification
b) financial control d) quality verification

65. Stock Adjustment Account is debited with ……….and credited with ………..
a) Surplus, shortage of stock
b) shortage of stock, surplus
c) excess, loss
d) none of these

66. Bin card is a record of .................. only.

a) Cost c) quantity
b) value d) expense

67. Bin card is maintained by the…………….

a) Cost accountant c) storekeeper
b) Clerk d) branch accountant

68. Material abstract is also known as ………………

a) Material issue analysis sheet
b) bill of materials
c) stores ledger
d) none of the above

69. Material should be issued by the store keeper against……………….

a) Material requisition c) both a & b
b) bill of materials d) none of these

70. First in first out method of valuing material issues is suitable in times
of…………
a) Rising prices c) fluctuating prices
b) falling prices d) none of these

71. Last in first out method is suitable in times of………………

a) Rising prices c) fluctuating prices
b) falling prices d) none of these

Cost Accounting Page 8

72. Average cost method of valuing material issues is suitable
when………….
a) Prices rise
b) prices fall
c) prices fluctuate considerably
d) none of these

73. Inflated price method of valuing material issues is suitable

when…………
a) Materials are subject to natural wastage
b) prices rise
c) prices fall
d) none of these

74. Specific price method of valuing material issue is used when………….

a) Materials are purchased for specific job or work order
b) materials are subject to natural wastage
c) prices fluctuate
d) none of these

75. Market price method is considered to be the best method

when…………..
a) Quotations have to be sent
b) prices fluctuate
c) materials are subject to natural wastage
d) none of these

76. A bill of material serves the purpose of…………………

a) Material requisition
b) stores ledger
c) material issue analysis sheet
d) none of these

77. A bill of material is prepared in case of a................................ job

a) Standard job c) both a & b
b) non-standardized job d) none of these

78. Stock verification sheets are maintained to record the results of………
a) Physical verification c) financial verification
b) financial control d) quality verification

79. The quantity of material to be ordered at one time is known as…………

a) Ordering quantity c) economic order quantity
b) commercial order quantity d) none of these

80. represents that quantity of material which is normally ordered when a

particular material reaches reordering level.
a) maximum level c) minimum level
b) re-order level d) Re-order quantity

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81. The principle types of inventories are raw materials and ,… ..........and
finished goods
a) Processed materials
b) Goods-in-progress
c) stored goods
d) goods for dispatch

82. Re-ordering level = Maximum consumption x …………………………

a) Average re-order period
b) Maximum usage
c) Maximum re-order period
d) Normal usage

83. Inventory turnover ratio = Cost of inventory consumed during theperiod

÷ Cost of .................................................... held during the period
a) Average inventory
b) minimum inventory
c) maximum inventory
d) none of these

84. Inventory turnover in days = Days during the period ÷………………..

a) Inventory turnover ratio
b) material consumed during the period
c) cost of average stock during the period
d) none of these

85. is a technique of material cost control which leads to low carrying cost as a
result of low investment in inventory
a) ABC Analysis
b) JIT Inventory System
c) VED Analysis
d) Perpetual Inventory System

86. ………………is a technique of stock control which leads to saving of time

of the management because attention is required to be paid only to some
of the items rather than on all the items.
a) ABC Analysis
b) JIT Inventory System
c) VED Analysis
d) Perpetual Inventory System

87. ……………….is used primarily for control of spare parts.

a) ABC Analysis
b) JIT Inventory System
c) VED Analysis
d) Perpetual Inventory System

88. Inventory turnover ratio = Cost of …………………..during the period ÷

Cost of average inventory held during the period.

Cost Accounting Page 10

 a) Inventory consumed c) maximum inventory
b) minimum inventory d) none of these

89. Re-ordering level = ........................................X Maximum re-order period

a) Average re-order period c) Maximum consumption
b) Maximum usage d) Normal usage

90. obviates the necessity for the physical checking of all items of stores
at the end of the year and thereby avoids dislocation ofproduction.
a) ABC Analysis
b) JIT Inventory System
c) VED Analysis
d) Perpetual Inventory System

91. ………………forms part of cost of production.

a) Abnormal waste c) both a & b
b) normal waste d) none of these

92. …………does not form part of production.

a) Abnormal waste c) both a & b
b) normal waste d) none of these

93. Material losses due to abnormal reasons should be transferred

to…………………
a) Profit and loss account
b) Costing Profit and Loss Account
c) Trading Account
d) none of these

94. Defectives are that portion of production which can be............................. at some
extra cost of re-operation.
a) Sold
b) rectified
c) purchased
d) none of these
95. Which among the following is not a management accounting technique.
a) Stard Costing c) Marginal costing
b) Project appraisal d) None

96. Marginal costing is a ................... of costing

a) system c) technique
b) method d) all of these

97. Under marginal costing, .............. Costs are regarded as costs of the products
a) variable costs (b c) both of these
(c)both of these d) none
b) )fixed costs

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 98........................ Under marginal costing,...................... costs are treated as period
costs and charged to profit and loss account for the period for which they are incured.
a) Variable cost
b) Fixed cost
c) both of these
d) none of these

99. Under marginal costing, stocks of finished goods and work-in-process are valued at
…………….. costs only
a) Variable cost c) Marginal cost
b) Fixed cost d) none of these

100. is the excess of sales over marginal cost of sales

a) Profit
b) Margin
c) Loss
d) Contribution

101. is the practice of charging all costs, both variable and fixed , to operations,
processes, or products.
a) Marginal costing c) Differential costing
b) Absorption costing d) none of the above

102. In time wage system, wages are paid according to the……………….

a) Production c) both a & b
b) time d) none of these

103. Under piece rate system of wage payment, payment is made according
to the…………………
a) Quantity of work done c) both a&b
b) time d) none of these

104. For a work order, standard time and time taken are 20 hours and 15
hours respectively. Time rate being Rs. 2 per hour, total wages payable
under Rowan Premium Plan will be……………….
a) 40 c) 35
b) 37.50 d) none of these

105. Taylors differential piece rate system provides for higher rate to …….workers.
a) Inefficient c) both a & b
b) efficient d) lazy

106. is most suitable when quality of work is of prime

importance.
a) Piece rate system c) both a & b
b) time wage system d) none of these

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107. Given sales = 150000, Fixed costs = 30000, Profit = 40000.The variable cost is
a) 110000
b) 80000
c) 120000
d) 10000

108. Under Merrick’s multiple piece rate system, 110% of the ordinary
piece rate is given to workers whose level of performance is between…….
of the standard output.
a) 83% and 100% c) 0% and 83%
b) 100% and 120% d) none of these

109. Under Merrick’s multiple piece rate system, 120% of the ordinary
piece rate is given to workers whose level of performance is
between… ........................of the standard output.
a) 83% and 100% c) 0% and 83%
b) 100% and 120% d) none of these

110. Under Merrick’s multiple piece rate system, ordinary piece rate is
given to workers whose level of performance is between ...........................of the
standard output.
a) 0% and 100% c) 0% and 83%
b) 0% and 120% d) none of these

111. In ............................................, two piece rates are set for each job.
a) Merrick’s multiple piece rate system
b) Rowan’s Premium Plan
c) Taylor’s differential piece rate system
d) none of these

112. Basis of apportionment of stores service expenses is ………………..

a) Value of materials consumed
b) units of material consumed
c) products produced
d) none of these

113. Basis of apportionment of welfare department expenses is…………..

a) Wages of each department
b) Number of employees
c) materials consumed
d) number of machineries

114. Basis of apportionment of crèche expenses is ……………..

a) Number of employees
b) number of female employees
c) number of male employees
d) both b&c

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115. Under step method of re-apportionment of costs of service
departments, the cost of last service department is apportioned only to
the …………..
a) Production departments
b) service departments
c) both a & b
d) none of these

116. Machine hour rate is obtained by dividing the total running expenses
of a machine during a particular period by the…………
a) Number of hours
b) number of products produced
c) number of workers
d) wages

117. is the amount by which the absorbed overheads fall short

of the actual amount of overheads incurred.
a) Over absorption of overheads
b) under absorption of overheads
c) overheads absorption
d) none of these.

118. is the excess of overheads absorbed over the actual amount

of overheads incurred.
a) Over absorption of overheads
b) under absorption of overheads
c) overheads absorption
d) none of these.

119. When …………………….is used on the basis of budgeted overheads

and the rate is applied to the actual base, the actual overhead expenses
may be different from the charged overheads.
a) A predetermined rate
b) actual rate method of absorption
c) both a & b
d) none of these

120. Expenses incurred during production other than direct materials and
direct labour are called…………..factory expenses; those charged to
production on estimated basis are called …………….
a) Actual, applied c) indirect, direct
b) applied, actual d) none of these

121. The per unit expense of the ……………portion factory overhead varies
with the volume of production while........................ portion remains the
same with volume.
a) Fixed, variable c) variable, semi-variable
b) variable, fixed d) none of these

Cost Accounting Page 14

122. ….expenses are excluded from cost.
a) Normal c) both a & b
b) abnormal d) none of these

123. Such expenses which are included (even though they are not incurred)
for taking managerial decisions are called………………
a) Notional expenses c) imputed
b) actual expenses d) none of these

124. ………expenses are partly fixed and partly variable.

a) All expenses c) fixed
b) variable d) semi-variable

125. Unsuccessful research expenditure should be .......................... cost

accounts.
a) Excluded from c) apportioned in
b) included in d) none of these

126. Salary paid to general manager is an item of ..................... expenses.

a) Fixed c) semi-variable
b) Variable d) estimated

127. Fancy packing is an example of .................. expenses.

a) Selling c) administration
b) Distribution d) factory

128. Telephone expense is ...................... expense.

a) Variable c) fixed
b) semi-variable d) none of these

129. Primary packing is an item of ………………

a) Selling overheads
b) prime cost
c) distribution overheads
d) factory overheads

130. The Profit/Volume ratio or marginal ratio expresses the relation of

………………
a) Profit c) Contribution
b) Marginal cost d) none of these

131. Which of the following measures helps to increase the P/V Ratio ?
a) Increasing the selling price per unit
b) Reducing the variable or marginal cost
c) Changing the sales mixture
d) All of these

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132. Credit and collection cost is an item of
a) Selling overhead c) prime cost
b) office overhead d) administrative overhead

133. Warehousing cost is an item of

a) Office overhead c) material cost
b) distribution overhead d) works overhead

134. In ................................ each job is a cost unit to which all costs are assigned.
a) Batch costing c) process costing
b) Job costing d) operation costing

135. Material Costs of each job are determined from……………

a) Material requisition notes c) both a & b
b) bill of materials d) none of these

136. Printers use ......................... costing.

a) Process c) job
b) Batch d) contract

137. Each job has a ..................... prepared for it that bears the job number and
which is used to collect all cost data relating to job.
a) Job Time Sheet c) Job Ticket
b) Job Cost Card d) Job Account

138. An automobile service unit uses ..........................costing.

a) specific order c) job
b) batch d) contract

139. Where the work is undertaken to Customers’ special requirements and

each order is of comparatively short-duration, it is
called .................. costing.
a) Job c) operation
b) batch d) output

140. Economic Batch Quantity is an important point to be determined in

industries where ..................... costing is employed.
a) Job c) operation
b) batch d) output

141. Economic Batch Quantity depends on ........................... and ................... costs.

a) Material, labour
b) set-up costs, carrying
c) transportation, carrying
d) warehousing, labour

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142. The ..................... costing is applied when a quantity of similar and identical
products are manufactured together as one Job.
a) Job c) operation
b) Batch d) output

143. The loss incurred on an incomplete contract is transferred to

………….account.
a) Costing profit and loss account
b) profit and loss account
c) trading account
d) deferred to next year.

144. When the completion stage of the contract is more than half, the profit
to be credited to Profit and Loss account will be equal to…………..
a) 1/3rd of Notional Profit x cash received
Work certified
b) ½ of Notional Profit x cash received
Work certified
c) 2/3rd of Notional profit x cash received
Work certified
d) full Notional Profit.

145. When the completion stage of a contract is less than ¼, the total
expenditure on the contract is transferred to .............................. account.
a) Work-in-Progress
b) Profit and loss account
c) miscellaneous account
d) none of these

146. If the amount of work certified is less than…......... of the contract price, then
no profit should be taken to Profit & Loss Account.
a) 20% c) 33 1/3%
b) 25% d) 40%

147. Contract costing is not used in one of the following industries.

a) Ship building c) Automobiles
b) Civil Construction d) Construction of Bridges

148. The sum of value of work certified and uncertified appearing in the
Contract Account is called ……………..
a) Work in Progress c) Work Completed
b) Work in Process d) Work done.

149. ….is the most suitable method in a transport industry.

a) Operation costing c) Process costing
b) Service costing d) Job costing

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150. Room/day is the cost unit used in…………………
a) Hotels c) schools
b) hospital d) none of these

151. Maintenance charges are in the nature of...............................expenses.

a) Fixed c) semi-variable
b) Variable d) none of these

152. In transport costing ...........................charges vary more or less in direct

proportion to kilometers run.
a) Running c) drivers salary
b) petrol d) tax

153. Service costing is called as ……………….

a) Operation costing c) multiple costing
b) Operating costing d) none of these

154. In electricity supply company uses ...................... as cost unit.

a) Kilo watt hour c) voltage
b) per household d) none of these

155. In transportation costing a composite unit such as.......................is used.

a) passenger mile/km or Ten kilometer
b) per km
c) per passenger
d) per stop

156. Boiler house costing is an example of ........................ costing

a) Operation c) service
b) process d) none of these

157. In service costing, fixed charges are also called as…………………..

a) Standing charges c) fixed charges
b) variable charges d) none of these

158. Service costing is not used in one of the following:

a) Electricity c) transport
b) Hospitals d) Electronics

159. If the present cost of the car is Rs.1,00,000 residual value at the end
of the 5th year is Rs.20,000, the monthly depreciation is…………
a) Rs.20,000 c) Rs.1,333
b) Rs.16,000 d) Rs.17,333

160. A bus carries 25 passengers daily for 25 days and its mileage per
month is 1000 kms. Its passenger miles are………………
a) 30,000 c) 20,000
b) 12,500 d) 25,000

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161. In ……………………costing where standardized goods or services result
from a sequence of repetitive and more or less continuous operations to
which costs are collected and averaged over the units produced during
the year:
a) Multiple c) Operation
b) Process d) single.

162. The method of costing applied in biscuit industries is ................... costing

and in steel industry ................. costing.
a) Job, process c) batch, multiple
b) job, contract d) process, operation

163. Average unit cost for each process is calculated by dividing the
………………..by…………………
a) Total cost, number of units
b) total process cost, number of units in process
c) Total process cost, number of finished goods
d) total cost, number of units produced

164. Where raw material is to pass certain stages, before it is converted

into finished goods, the method of costing used is…………………
a) Job costing c) Process Costing
b) Operating costing d) both b and c

165. When the actual loss is more than the estimated loss, the difference
between the two is considered to be………..
a) Abnormal loss c) loss
b) normal loss d) none of these

166. When actual loss is less than the estimated loss, the difference
between the two is considered to be……………
a) Abnormal gain c) normal loss
b) abnormal loss d) income

167. When actual loss is................ than the estimated loss, the difference
between the two is considered to be abnormal gain
a) More c) higher
b) less d) none of these

168. When actual loss is.......................... than the estimated loss, the difference
between the two is considered to be abnormal loss.
a) More c) both a & b)
b) less d) none of these

169. When 1000 units are 60% complete in a process, it is equivalent to

…………….completed units.
a) 60 c) 6000
b) 600 d) 1000

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170. Equivalent units represent the production of a process in terms of…..units.
a) Completed c) semi-finished
b) total production d) both a& c

171.............. ……….process loss should be transferred to costing profit & loss

account.
a) Abnormal c) both a& b
b) normal d) none of these

172. The cost of...................... process loss is absorbed in the cost of production of
good units.
a) Abnormal c) both a & b
b) normal d) none of these

173. In inter process profits, the output of one process is transferred from
one process to another not at …………….but at ……………….
a) Market price, actual cost
b) Actual cost, market price
c) both a& b
d) none of these

174. Where actual loss in a process is less than the anticipated loss, the
difference between the two is considered to be ………………..
a) Abnormal loss c) abnormal gain
b) normal loss d) normal gain

175. In process costing, the abnormal loss is treated as............... cost and written
off to profit & loss account.
a) Unit c) future
b) period d) process

176. The process costing is not used in one of the following.

a) Chemical c) cement
b) textiles d) oil refining

177. arises where the actual process loss is less than the normal predetermined
process loss.
a) Normal loss c) abnormal gain
b) abnormal loss d) none of these

178. An input of 5000kg of material introduced into the process and the
expected loss is 8% and if the actual output from the process is 4300, the
abnormal loss is ................. kg
a) 400 c) 500
b) 300 d) 600

179. Budgeting system… ............. key managerial functions.

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 a) Dismisses c) discharges
b) integrates d) none of these

180. …….is a budget which is updated continuously by adding a further period (a

month/quarter) and deducting a corresponding earlierperiod.
a) Rolling budget c) annual budget
b) continuous budget d) both a & b

181. The budget relating to .................... must be prepared first and the other budgets
should be prepared in the light of that factor.
a) Limiting factor c) labour
b) materials d) production

182. …………………budget is the most important budget and it forms the

basis on which all the other budgets are built up.
a) Production c) cash budget
b) material d) sales

183. budget may be classified into material cost budget, labour cost budget and
overhead budget.
a) Cost of Production c) sales
b) purchase d) Cash

184. budget gives an estimate of the anticipated receipts and payment of cash
during the budget period.
a) Sales c) Cash
b) Production d) Master

185. is the consolidated summary of the various functional budgets.

a) Master Budget
b) Sales budget
c) Performance budget
d) Cash Budget

186. …………..budget is designed to remain unchanged irrespective of the volume of

output or turnover attained.
a) Master c) Flexible
b) Fixed d) all of these

187. budget gives differentbudgeted costs for different levels of activity.

a) Master c) Flexible
b) Fixed d) all of these

188. …………………budget is the preparation of budget starting from a

clean state.

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 a) Performance c) Cash
b) Zero Base d) none of these

189. is a summary of all function budgets in a Capsule form.

a) Master Budget
b) Sales budget
c) Performance budget
d) Cash Budget

************************************************* .

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 ANSWER KEYS

1. A 26. B 51. C 76. A

2. B 27. A 52. A 77. B

3. A 28. A 53. B 78. A

4. B 29. A 54. A 79. A

5. A 30. A 55. A 80. D

6. B 31. A 56. A 81. B

7. A 32. C 57. D 82. C

8. C 33. A 58. A 83. A

9. C 34. A 59. A 84. A

10. B 35. A 60. B 85. B

11. D 36. B 61. D 86. A

12. A 37. A 62. A 87. C

13. A 38. A 63. C 88. A

14. A 39. A 64. A 89. C

15. A 40. C 65. B 90. D

16. D 41. A 66. C 91. B

17. A 42. A 67. C 92. A

18. A 43. B 68. A 93. B

19. A 44. A 69. C 94. B

20. A 45. C 70. B 95. D

21. A 46. A 71. A 96. C

22. A 47. A 72. C 97. A

23. A 48. A 73. A 98. B

24. A 49. C 74. A 99. C

50. A 75. A 100.D
25. A

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101. B 128.B 155.A 82.D

102. B 129.B 156.C 183.A

103. A 130.C 157.A 184.C

104. B 131.D 158.D 185.A

105. B 132.A 159.C 186.B

106. B 133.B 160.D 187.C

107. B 134.B 161. C 188.B
108. A 135.C 162.A 189.A
109. B 136.C 163.B

110. C 137.B 164.C

111. C 138.C 165.A

112. A 139.A 166.A

113. B 140.B 167.B

114. B 141.B 168.A

115. A 142.B 169.B
116.A 143.B 170.A
117. B 144.C 171.A

118. A 145. A 172.B

119. A 146. B 173.B

120. A 147. C 174.C

121.A 148. A 175.B

122.B 149. B 176.C

123.A 150. A 177.C

124.D 151. C 178.B

125.A 152. A 179.B

126.A 153. B 180.D

127.A 154. A 181.A

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