1
Variable costs change . . . . . . . . with change in output.
A)
proportionately
B)
inversely
C)
disproportionately
D)
sometime
Answer & Solution
Answer: Option
A
2
In Contract Account, the work in progress consists of
A)
Cost of work certified
B)
Cost of work uncertified
C)
Cost of work certified and uncertified
D)
Cash received on work certified and cost of work certified
Answer & Solution
Answer: Option
C
3
Which of the following is not the limitation of budgetary control?
A)
Budgets are based on forecasts which may not be true
B)
Installation and operation of a system of budgetary control are costly
C)
Budget is a tool of management and not a substitute for management
D)
Budgets do not pinpoint the lack of efficiency or the presence of it
Answer & Solution
Answer: Option
D
4
Damage to material due to fire is considered-
A)
Overhead
B)
Direct expenditure
C)
General expenditure
D)
None of these
Answer & Solution
Answer: Option
B
5
. . . . . . . . budget is the preparation of budget starting from a clean state.
A)
Performance
B)
Zero Base
C)
Cash
D)
None of these
Answer & Solution
Answer: Option
B
6
Which of the following is a non-operating expense?
A)
Salary of managing director
B)
Depreciation
C)
Advertisement expenditure
D)
Interest on a loan
Answer & Solution
Answer: Option
D
7
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
B)
Job Cost Card
C)
Job Ticket
D)
Job Account
Answer & Solution
Answer: Option
B
8
What is the capital structure referred to as when equity shareholder's funds exceed the total of debentures and preference share capital?
A)
High geared
B)
Low geared
C)
Evenly geared
D)
None of these
Answer & Solution
Answer: Option
B
9
Match the items in
List-I with the items in
List-II .
List-I List-II
a. Debt equity ratio
1. $$\frac{{{\text{Net Profit before Interest and Tax}}}}{{{\text{Interest on Long-term Loan}}}}$$
b. Proprietary ratio
2. $$\frac{{{\text{Equity Share Capital}} + {\text{ Reserve}}}}{{{\text{Preference Share Capital }} + {\text{ Interest Bearing Finance}}}}$$
c. Interest coverage ratio
3. $$\frac{{{\text{Long-term Debts}}}}{{{\text{Shareholder's Funds}}}}$$
d. Capital gearing ratio
4. $$\frac{{{\text{Shareholder's Funds}}}}{{{\text{Total Assets}}}}$$
A)
a-1, b-2, c-3, d-4
B)
a-3, b-4, c-1, d-2
C)
a-3, b-4, c-2, d-1
D)
a-2, b-3, c-4, d-1
Answer & Solution
Answer: Option
B
10
Increases in the efficiency of workers-
A)
Time wise wage system
B)
Efficiency wage system
C)
Work wise wage system
D)
All of the above
Answer & Solution
Answer: Option
B
