Organisation : The Institute of Company Secretaries of India
Subject : Cost and Management Accounting
Year: 2016
Document Type : Sample Question Paper
Website : http://www.icsi.edu/docs/WebModules/icsiweb/questionpapers.htm
Download Sample Question Paper : https://www.pdfquestion.in/uploads/10908-costaccounts.pdf
Cost & Management Accounting Question Paper :
Time Allowed : 3 hours
Maximum marks : 100
Total number of questions : 100
Related : Institute of Secretaries of India Company Law Model Question Paper : www.pdfquestion.in/10905.html
Instructions :
1. Candidates should use blue/black ballpoint pen ONLY to fill-in all the required information in OMR Answer Sheet and this Question Paper Booklet.
2. OMR Answer Sheet cannot be taken out from the Examination Hall by the examinees and the same is required to be properly handed over to the Invigilator/Supervisory staff on duty and acknowledgement be obtained for doing so on the Admit Card before leaving the Examination Hall.
3. Candidates are required to correctly fill-in the Question Paper Booklet Code and the Question Paper Booklet No. (as mentioned on the top of this booklet) in the OMR Answer Sheet, as the same will be taken as final for result computation. Institute shall not undertake any responsibility for making correction(s) at later stage.
4. This Question Paper Booklet contains 100 questions. All questions are compulsory and carry ONE mark each. There will be negative marking for wrong answers in the ratio of 1:4, i.e., deduction of 1 mark for every four wrong answers.
5. Seal of this Question Paper Booklet MUST NOT be opened before the specified time of examination.
6. Immediately on opening of Question Paper Booklet, candidates should ensure that it contains 100 questions in total and none of its page is missing/misprinted. In case of any discrepancy, the booklet shall be replaced at once.
7. Each question is followed by four alternative answers marked as A, B, C and D. For answering the questions including those requiring filling-in the blank spaces, candidates shall choose one most appropriate answer to each question and mark the same in the OMR Answer Sheet by darkening the appropriate circle only in the manner as prescribed in the OMR Answer Sheet.
8. Darkening of more than one circle corresponding to any question or overwriting/cutting any answer(s) shall be taken as wrong answer for computation of result. Ticking/marking/writing of answer(s) in the Question Paper Booklet shall not be considered in any circumstance for award of marks. The Institute shall neither entertain any claim nor be liable to respond to any of the query in the aforesaid matter.
9. Rough work, if any, should be done only on the space provided in this Question Paper Booklet.
10. The Copyright of this Question Paper Booklet and Multiple Choice Questions (MCQs) contained therein solely vests with the Institute.
Question :
1. Which of the following statements are true —
(i) Conversion costs and overheads are interchangeable terms
(ii) Notional cost and imputed cost means the same thing
(iii) Cost accounting is not needed by a non-profit organisation
(iv) Rent on owned building is included in cost accounts.
Select the correct answer from the options given below —
(A) (i) and (ii)
(B) (iii) and (iv)
(C) (ii) and (iv)
(D) All of the above.
2. XYZ Ltd. had 4,000 units of inventory in hand on 1st March, 2016, costing 4 per unit. Purchases and issues of material during the month were as follows
Date Purchase Issue
March 8 500 units @ 5 per unit — March 15 — 2,000 units March 20 6,000 units @ 6 per unit — March 28 — 4,000 units The cost of inventory as on 31st March, 2016 under FIFO and weighted average cost ethod will be —
(A) RS 27,000 and RS 24,498
(B) RS 27,000 and RS 23,625
(C) RS 22,000 and RS 23,625
(D) RS 22,000 and RS 24,498
3. What journal entry is to be passed in nonintegrated accounting system when finished goods are sold at cost —
(A) Debit General ledger adjustment account and Credit Costing profit and loss account
(B) Debit General ledger adjustment account and Credit Finished goods stock ledger account
(C) Debit Cost of sales account and Credit Costing profit and loss account
(D) Debit Cost of sales account and Credit Finished goods stock ledger control account.
4. Match the following industry/product with appropriate cost unit
Industry/ Cost unit Product
(i) Toy Industry (a) Per batch
(ii) Steel Industry (b) Tonne-kilometre
(iii) Chemical (c) Tonne
(iv) Transport (d) Gallon
Select the correct answer using the codes given below —
(i) (ii) (iii) (iv)
(A) (a) (c) (d) (b)
(B) (a) (b) (d) (c)
(C) (a) (d) (c) (b)
(D) (b) (a) (c) (d)
5. Which one of the following statements is false —
(A) Management accountant uses cost accounting tools and techniques for planning and decision making
(B) Management accounting is mostly historical in its approach and it projects the past
(C) Cost accounting system can be installed without management accounting
(D) Management accounting focuses on wealth maximisation.
6. 4,000 Kgs. of material is purchased @ Rs 2 per Kg. Normal wastage is estimated at the rate of 10%. The wastage has recovery value of Rs 1.10 per Kg. Calculate cost of material of work order of 600 units, if each unit requires 1.5 Kg. of material —
(A) Rs 1,260
(B) Rs 1,800
(C) Rs 1,620
(D) Rs 1,890
7. What is the treatment of unrealised profit in process costing —
(A) Transferred to profit and loss account
(B) Closing stock valued at transfer price
(C) Eliminated by creating stock reserve
(D) Treated as abnormal gain.
8. Cost-Volume-Profit analysis is based on several assumptions. Which one of the following is not one of these assumptions —
(A) Sales mix of the products is constant
(B) The behaviour of both sales and variable cost is linear throughout the relevant range
(C) Variable cost per unit will remain constant
(D) Productivity and operational efficiency will change according to output.