Costing

 As per the Institute of Cost Accountants of India, which one of the following is a quality of a
good internal auditor? (a) Loyalty towards the Management (b) Risk averter (c) Right attitude (d)
Loyalty towards the shareholders
 Which one of the following is NOT a type of cost audit? (a) Cost audit to assist management (b)
Cost audit on behalf of trade association (c) Cost audit on behalf of a customer (d) Cost audit to
assist an employee
 Which one of the following is NOT a function of a cost auditor? (a) Examining inventory (b)
Examining stores issue procedure (c) Physically verifying work-in-progress (d) Preparing capital
expenditure budget
 A person is NOT eligible for appointment as a cost auditor if he has business relationship with: 1.
the company. 2. a subsidiary of the company. 3. a holding company of the company.
 The verification of the correctness of cost accounts and of the adherence to the cost accounting
plan is termed as: (a) management audit. (b) internal audit. (c) cost audit. (d) cost control.
 The cost records shall be maintained in accordance with the: (a) Cost Accounting Principles and
Cost Accounting Standards. (b) Generally Accepted Accounting Principles. (c) Indian Accounting
Standards. (d) International Financial Reporting Standards.
 target costs of a product?. Target profit ,Target costing
 Service costing:- like hotels etc., Operating costing
 Budgeting:-Flexible budget ,Fixed budget, Functional budget, management techniques is / are
practised under budgetary control system?, principal budget factor, A perfect coordination and
unity of direction is achieved in all functional activities through budgetary plans by whom?,
Master budget is prepared when a) after preparation of all the functional budgets. (b) after
preparation of flexible budgets. (c) before preparation of the cash budget. (d) at the beginning
of all other budgets., Which one of the following is NOT a responsibility of a Budget
Committee, ,appropriation budgeting, programme budgeting, Production budget, Purchase
budget, Sales budget, Cash budget
 Absorption costing
 Quality assurance
 The Cost Auditor should verify which one of the following areas of work-in-progress? (a)
Quantity shown in job-cards of uncompleted work (b) Bin-card (c) Stock level (d) EOQ
 Altman’s multiple discriminate analysis of Z score
 Process costing :- Normal loss and abnormal loss(Charged to what?), questions
 Joint product and By product
 Activity based costing:- When increase in cost results because of increase the level of activity,
the differential cost is known as: (a) net relevant cost. (b) decremental cost. (c) incremental cost.
(d) conversion cost
 Meaning of total quality cost
 valid parameter for testing ERP system implementation, Which one of the following ERP
implementation costs is NOT considered a hidden implementation cost, role of the presentation
server in a multi-tier ERP architecture, technological risk of ERP, hidden cost of implementation
of ERP, SOAP in ERP stands for
 What is business intelligence application
 THE Maximal-Flow Problem can be defined as a project network in which?
 Balance score card developed by
 Zero-base budgeting
 manufacturing cycle efficiency and value added manufacturing time
 Multiple cost drivers are used in which method of costing
 Indifference level of output
 a motivating factor for downsizing?
 What is Data mining?
 What is Customer relationship management
 The process of planning expenditure that will influence the operation of a firm over a number of
years is called a) investment. (b) capital budgeting. (c) dividend valuation. (d) net present
valuation
 Iterms considered in cost records:- Which one of the following items of cost is NOT excluded
from cost records
 Meaning of (a)explicit cost. (b) opportunity cost. (c) unavoidable cost. (d) differential cost.
 Contract costing:- While calculating profits from an incomplete contract, 1/3rd of the notional
profit is transferred to the year’s Profit and Loss Account when the work completed is: (a) less
than 25%. (b) 25% and above but less than 50%. (c) 50% and above. (d) closer to 100%.,
Calculation of notional profit
 Companies (Cost Records and Audit) Rules, 2014
 Cost Accounting Records rules, 2011
 Companies Act, 2013:- Cost audit section. Paper 6-12-13-19
 In how many years cost of small assets purchased shall be written off as per the accounting
policy? (a) 5 years (b) In the period in which they were purchased (c) 7 years (d) Full life of the
asset
 Who among the following CANNOT be appointed as a Cost Auditor? (a) A cost accountant as
defined under Section 2(28) of the Companies Act, 2013 (b) A cost accountant who holds a valid
certificate of practice under sub-Section (1) of Section (6) of Cost and Works Accountants Act,
1959 (c) A firm of cost accountants (d) Any graduate certified by the Ministry of Corporate
Affairs
 Which of the following class / classes of company / companies shall be required to appoint an
internal auditor or a firm of internal auditors? 1. Every listed company with net worth exceeding
₹ 50 crore 2. Every listed company 3. Every unlisted company with paid up share capital of ₹ 10
crore
 Which one of the following is NOT a requirement of Cost Accounting (Records) Rules applicable
to various industries in India? (a) Records for by-products (b) Computation of variances (c)
Statistical data (d) Records for promotion
 Which one of the following is NOT included in the meaning of “Turnover” in relation to the
Companies (Cost Records and Audit) Rules, 2014? (a) Realization made from sales (b) Realization
made on account of service rendered (c) Duties and taxes (d) Turnover from job work
 The term “Product” under Cost Accounting (Records) Rules includes: 1. tangible goods. 2.
intangible goods. 3. idea.
 “Manufacturing Activity” includes any act, process or method employed in relation to Cost
Accounting (Records) Rules; except: (a) harboring. (b) docking. (c) stripping. (d) recording.
 The Form CRA–1 requires cost records to be maintained under specified headings that do NOT
include:
 According to CAS – 2, what is the term used for the maximum productive capacity as per the
manufacturer’s specification of machines / equipment
 According to CAS – 6, the forex component of imported material cost shall be converted at the
rate on the date of
 According to CAS–7, which one of the following is NOT included in employee cost
 Which one of the following Cost Accounting Standard is related to “Pollution Control Costs”? (a)
CAS–3 (b) CAS–13 (c) CAS–14 (d) CAS–19
 According to CAS - 21, quality control cost shall NOT include
 The Cost Accounting Standard Board, in order to bring uniformity and consistency in the method
of determining Research and Development Cost, has issued detailed guidelines through Cost
Accounting Standard known as: (a) CAS 15 (b) CAS 16 (c) CAS 11 (d) CAS 18
 According to CAS–24 which one of the following is NOT an item of other operating revenue
 According to CAS – 11, which will form part of the administrative overhead
 For ascertainment of cost of any cost object, any subsidy, grant or incentive received or
receivable with respect to production or operation overhead shall be added to cost. (b) shall be
reduced from cost. (c) shall be ignored. (d) may be reduced or added on a case to case basis.
 Standard costing:- Material Variances, Variable overhead variances,Activity ration, Capacity
utilization ratio, Fixed overhead expenditure and volume variance, Labour variances
 EOQ, Reorder level, Safety stock, Maximum stock level, Relation between
Ordering/carrying/EOQ, Computation of average stock level, Material purchase requisition,
Material transfer note, Material inspection note, Bill of material. method of pricing of issue of
material for production, purpose of raising material requisition, JIT system, Components of
carrying cost of material, Danger level of inventory formula, Cost of marial consumed formula,
BIN card, Uses of (A)Stores requisition (b) Material slip (c) Stores slip (d) Bin card, Economic
Batch Quantity (EBQ)?
 Stock Valuation methods:- LIFO, FIFO, Simple average, Weighted Average and its benefits;
Components of valuation of closing inventory., perpetual inventory system
 Which of the following shall be absorbed in material cost? (a) Finance costs incurred in
connection with the acquisition of materials (b) Costs of spares which are specific to an item of
equipment (c) Losses due to evaporation before the material is received (d) Penalty levied by
transport
 Direct labour hour idle time questions
 As per CAS – 1, the opportunity cost of producing
 In PERT / CPM, ‘Forward Pass’ is a process moving from, CPM was developed by , The PERT gives
answer to the questions?, Features of PERT, In PERT/CPM the latest start time and latest finish
time for each activity is computed using, The slack in PERT is computed by comparing
 limitation of GANTT charts in a project management
 Life cycle costing, Under life cycle costing, which one of the following will NOT be considered as
the costs of a product?
 Marginal costing and BEP(Also cover angle of incidence) and Margin of Safety, MOS and DOL
relationship, BEP and shutdown point(Avoidable fixed cost concept)
 assumption(s) of the Cost-Volume-Profit analysis, Ranking on the basis of limiting factor, Make
or buy decisions
 Transfer pricing decisions, In determining transfer price, which one of the following is NOT
considered? (a) Centralization of decision (b) Goal congruence (c) High level of decentralization
(d) Sub-unit autonomy
 Which one of the following is NOT an objective of Responsibility Accounting?


FM

 Operating leverage, DFL, Interest Coverage ratio and cash coverage ratio, Operating profit
margin, Relationship between Degree of financial leverage and interest coverage ratio
 Stock Turnover ratio, Current and quick ratios, DPS and EPS, DU Pont analysis,
 NPV, PI, Payback period method, IRR and NPV Relation, Accounting rate of return, Decisions
based in IRR and required rate of return, MIRR and Required rate of return relation for decision
making, Debt service coverage ratio, ROI,
 Bailout Payback time :- (Includes Salvage value along with the IF)
 Trend Percentage Analysis (TPA)
 Which one of the following is NOT ordinarily related to capital budgeting decisions? (a) Time
value of money (b) Cost of capital (c) Employee turnover (d) Net cash flow
 Computing Net Cash Flow in NPV
 capital rationing
 . If the cash inflows are uniform over the life of the asset and life of the asset is fairly long,
payback reciprocal may provide an approximate value of: (a) payback period. (b) payback
profitability. (c) net present value. (d) internal rate of return.