All Practice Assignment Q & A (1st semester) Assignment Practice (UNIT 1-5)

MBA-Finance-SUBJECT: Accounting for Decision Making

UNIT-1

Q1. ____________ concept of accounting records only monetary transactions.

Accounting Period Concept

Going concern

Separate Entity

Money Measurement Correct Answer

Q2. According to _____________, "Accounting is the process of identifying, measuring and

communicating economic information to permit informed judgments and decisions by users of the
information."

Indian Accounting Standard

Indian Accounting Association

American Accounting Association Correct Answer

American Accounting Advertisement

Q3. Accountant should report only what is material and ignore insignificant details while preparing their
final accounts and Balance Sheet that concept is known as______.

Consistency

Full disclosure

Conversation

Materiality Correct Answer

Q4. The ______ is interested in the financial statements of business enterprises on account of taxation,
labor and corporate laws.

Investors

Employees

Government Correct Answer

Auditors
Q5. __________________may be defined as the process of collecting, recording, summarizing and
communicating financial information.

Book-keeping

Accounting Correct Answer

Managing

Analyzing

Q6. Accounting records only ______ transactions.

Non-monetary

Monetary Correct Answer

Credit

All of the above

Q7. _________audit is required to be done because of the provisions of law.

Statutory Correct Answer

Internal

External

Balance Sheet

Q8. ________is primarily concerned with preparation of profit and loss account and Balance sheet

Cost Accounting

Financial Accounting Correct Answer

Management Accounting

Tax Accounting

Q9. Properly maintained accounting records will help a business entity to fetch a proper price in the
event of _____ the business.

Sale Correct Answer

Profiteering

Purchase

Licensing

Q10. Any organized knowledge based on certain basic principles is a '________'.

Art

Sociology

Psychology

Science Correct Answer

Q11. _________ are the persons who extend credit to the company.

Creditors Correct Answer

Debtors

Employee

Owners
Q12. According to __________________convention, accounting practices should remain unchanged for
a long time and should not be changed unless it becomes essential to change them.

Full disclosure

Conversation

Consistency Correct Answer

Materiality
Q13. The ______ are interested in financial statements and accounts of various profit-sharing and bonus
schemes.

Customers

Investors

Government

Employees Correct Answer

Q14. In a sole proprietary business and partnership concerns, usually the proprietors are the _______.

Managers Correct Answer

Assistant

Accountant

Employee

15. _________ in public practice offer their services for conducting financial audits, cost audits, designing
accounting systems and rendering other professional services for a fee.

Auditors

Accountants Correct Answer

Scientist

Artist

UNIT-2

Q1. Rates and taxes are levied by the ________ bodies in order to meet public expenditure; they are
indirect expenses and are debited to the profit and loss account.

Municipal Correct Answer

Governmental

Non-profit Organizations

Railway

Q2. _________ duty is paid on goods manufactured and consumed in the country.

Excise Correct Answer

Dock

Import

Export
Q3. __________ is an expense due to wear and tear, lapse of time, exhaustion of assets used in the
business.

Deduction

Depreciation Correct Answer

Commission

Appreciation

Q4. _________ expenses are also called sundry expenses or petty expenses.

Manufacturing

Direct

Non-operating

Trade Correct Answer

5. _________ made for the sale of goods is charged to the profit and loss account.

Packing Correct Answer

Labelling

Warehousing

Barcoding

Q6. ________ is a direct expense and is debited to the trading account.

Customs

Dock Charges

Wages Correct Answer

Trading

Q7. ______ charges are levied on ships and their cargo when entering or leaving ports.

Loading

Weighting

Dock Correct Answer

Levying

Q8. __________ expenditure is a heavy expenditure of revenue nature incurred for getting the benefit
over a number of years.

Revenue

Deferred Revenue Correct Answer

Capital

Total Income

Q9. Final accounts, viz., trading and profit and loss account and balance sheet, are prepared from the
balances appearing in the trial balance at the _______ of an accounting period.

Beginning

Middle

End Correct Answer

Quarter

Q10. In case the debit side exceeds the credit side, the difference is put on the credit side, and it is
termed as ______ loss.

Gross Correct Answer

Net

Normal
Abnormal

Q11. _______ account is the account which shows the result of trading, i.e. buying and selling of goods
during a trading period.

Profit & Loss

Trading Correct Answer

Receipt and Payment

Balance Sheet

Q12. ________ duty is paid on the import and export of goods.

Dock

Import

Trading

Customs Correct Answer

Q13. Partner’s salary is shown separately in the profit and loss account as it requires special treatment at
the time of _______ assessment.

Sales Tax

Custom Duty

Deductions

Income -Tax Correct Answer

Q14. Rent of the office shop or showroom is an _________ expense and is debited to the profit and loss
account.

Fixed

Indirect Correct Answer

Direct

None of the above

15. When the wages account is grouped with that of ________, it is treated as an indirect expense and
is taken into the profit and loss account.

Loss

Profit

Salaries Correct Answer

Expenses
 UNIT-3

Q1. The full form of NAA is __________.

National Agents of Accountants

National Association of Assistants

Neglected Association of Accountants

National Association of Accountants Correct Answer

Q2. Direct costing makes a distinction between product costs and _____ costs.

Period Correct Answer

Podcast

Prime

Postal

Q3. While preparing a cost sheet, it is necessary to determine the cost of ______ material consumed.

Raw Correct Answer

Semi-Finished

Finished

Procured

Q4. According to CIMA, ______ is “the establishment budgets, standard costs, and actual costs of
operations, processes, activities or products; and the analysis of variance, profitability, or the social use
of funds”.

Labeling

Costing Correct Answer

Accounting

Establishing

Q5. In modern times, the ______ Data Processing has acquired significant stages in the growth of cost
accounting systems.

Electronic Correct Answer

Separated

Catalogued

Artificial Intelligence
Q6. ____ refers to all expenses incurred in producing a product or rendering service.

Demand

Chain

Supply

Cost Correct Answer

Q7. The stock of _____ goods refers to the stock of products on which all factory has been completed.

Purchased

Finished Correct Answer

Semi-Finished

Raw

Q8. Carriage _____, which is incurred on bringing the raw material purchased, should be added while
calculating the cost of raw materials.

Inward Correct Answer

Backward

Forward

Outward

Q9. It was around _____ century that the importance of overhead cost (non-manufacturing) was
recognized as one of the distinct elements of cost.

18th

19th Correct Answer

17th

15th

Q10. In cost accounting, expenses are changed according to the _____ rate. This process is known as the
absorption of overheads.

Floating

Flexible

Determined

Predetermined Correct Answer

Q11. In the first stage of development, cost accounting was concerned only with the three prime cost
elements, viz., direct material cost, direct labor cost and direct ______.

Profits

Sales

Purchases

Overheads Correct Answer

Q12. ____ is discarded material having some value, which is usually either disposed of without further
treatment or is introduced into the production process in the place of raw materials.

Old

Molded

Scrap Correct Answer

Garbage

Q13. Under ______ costing, all production costs (direct materials, direct labour, and factory over both
variable and fixed) are treated as product costs.

Direct

Indirect

Absorption Correct Answer

Rotational

Q14. According to _______, “Any activity for which a separate measurement of cost is desired”.

David Reeding

Henry Schwarzbach

Charles T. Hom green Correct Answer

Michael J. Edger

Q15. While posting the entries in the cost ledger, the _____ entry principle is followed, which enables
the preparation of the trial balance.

Single

Double Correct Answer

Triple

Quarter
 UNIT-4

Q1. The technique of standard costing is ______ to the ordinary costing system.

Historical

Relevant

Complementary Correct Answer

Supplementary

Q2. The ______ effect of discontinuing one product line is an increase in the allocated costs to the
remaining product lines.

Social

Mathematical

Political

Economic Correct Answer

Q3. If lost contribution is _____ than fixed costs, the decision should be to shut down the product line.

Less Correct Answer

More

Equal

significantly higher

Q4. Target costing as a new technique of controlling cost has been developed by ______ in the I 970s.

Japanese Correct Answer

Chinese

German

Spanish

Q5. ________ costing refers to the ascertainment and recording of actual costs after these have been
incurred.

Historical Correct Answer

Deferred

Differential

Discounted
Q6. The ____ graph is a simplified form of a break-even chart and, requires the same basic data for its
construction and suffers from the same limitations.

TV

PV Correct Answer

CV

RV

Q7. Operating and maintenance costs are not ________ from capital costs.

Independent Correct Answer

Interdependent

Dependent

affected

Q8. The operating and maintenance costs are _______ expenses as they cover all materials and labour to
maintain, repair and operate the asset.

Variable Correct Answer

Fixed

Semi-fixed

Management

Q9. _______ control is the process of evaluating performance and, if necessary, applying corrected
measures so that performance takes place according to plans.

Data

Digital

Fraud

Management Correct Answer

Q10. Shutdown point (a break-even point) =_____________.

Fixed costs – Shutdown of Operations Costs/ Contribution per unit Correct Answer

Variable costs – Shutdown of Operations Costs/ Contribution per unit

Fixed costs – Opening of Operations Costs/ Contribution per unit

Fixed costs – Shutdown of Operations Costs/ Distribution per unit

Q11. In the words of _______, “Standard cost is the amount the firm thinks a product or the operation of
a process for a period of time should cost based upon certain assumed conditions of efficiency,
economic conditions and other factors.”

Philip K. Hotler

Jill Parson

Backer and Jacobsen Correct Answer

Henry Schwarzbach

Q12. The predetermined cost is compared to the ____ cost, and a variance between the two enables the
management to take necessary corrective measures.

Total

Actual Correct Answer

Manufacturing

Packing

Q13. The _____ process is best approached by separately considering the economic life of an asset.

Dependent

Equation

Solution Correct Answer

Memor

Q14. ________ costs that cannot be reduced when a product line is discontinued are reallocated to
continuing product lines.

Historical

Regular

Committed Correct Answer

Relevant

Q15. The word '______' means a benchmark or yardstick.

Derivative

Standard Correct Answer

Strict1

Sheldon
 UNIT-5

Q1. ________ cost analysis is the process of analyzing a particular decision-making situation considering
several alternative choices.

Differential Correct Answer

Flexible

Fixed

Constant

Q2. ______ overhead Efficiency Variance represents the difference between the standard hours allowed
and the actual hours used multiplied by the standard overhead rate.

Output

Input

Calendar

Combined Correct Answer

Q3. _______variance is that portion of the volume variance which arises due to increased or reduced
output because of more or less efficiency than expected.

Efficacy

Idle

Efficiency Correct Answer

Normal

Q4. Material Usage Variance can be calculated by the formula____________.

Material Value Variance + Material Yield Variance

Material Mix Variance + Material Yield Variance Correct Answer

Marginal Mix Variance + Marginal Yield Variance

Maximum Mix Variance + Maximum Yield Variance

Q5. A Sales _____ variance is the difference between budgeted sales and actual sales.

Mix

Value Correct Answer

Volume
Efficiency

Q6. ______ capacity variance is that part of overhead variance which arises due to the difference
between budgeted hours available and the actual hours worked multiplied by the standard fixed
overhead rate.

Current

Idle Correct Answer

Basic

Calendar

Q7. A sales price variance is that portion of sales value variance which arises due to the difference
between the ______ price specified and the actual price changed.

Discounted

Total

Profitable

Standard Correct Answer

Q8. _______often face the dilemma as to whether a variance is worth investigating or not.

Lawyers

Engineers

Managers Correct Answer

Operators

Q9. _______variance is the difference between the standard fixed overhead cost charged to production
and the budgeted fixed overhead cost.

Spending

Differential

Volume Correct Answer

Basic

Q10. ________ variance measures the difference between the budgeted overhead cost for actual hours
worked and the actual overhead incurred and includes both variable and fixed overheads.

Spending Correct Answer

Volume

Data
Label

Q11. Differential cost analysis is a very useful subject in _______ cost accounting.

Traditional

Modern Correct Answer

Scientific

Flexible

Q12. The full form of VOEV is ______________.

Variable Overhead Efficiency Variance Correct Answer

Variable Overhead Expenditure Variance

Vested Overhead Efficiency Variable

Variable Output Efficiency Variance

Q13. Standard Material Cost can be calculated by the formula____________.

Standard Product per unit x Standard Quality of materials

Standard price per labor x Standard Quantity of transportation

Standard price per unit x Standard Quantity of materials Correct Answer

Stranded Price per policy x Standard Quantity of materials

Q14. Volume Variance is entirely related to ______ overheads.

Fixed Correct Answer

Flexible

Operational

Expenses

Q15. The Labor Rate of Pay Variance can be calculated by____________.

Total time (Standard Rate – Actual Rate).

Actual time (Standard Rate – Actual Rate). Correct Answer

Actual time (Suitable Rate – Actual Rate).

Actual time (Still Rate – Prompt Rate).

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TABLE OF CONTENT

MBA-FINANCE - ACCOUNTING FOR DECISION MAKING

UNIT 1

UNIT 2

Practice Test

Assessment

Ebook

Notes

Pages: 86

Study Guide

Notes

Pages: 17

Pre-Learning : FAQ

Notes

Pages: 2
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Pre-Learning : Misconceptions

Notes

Pages: 2

Web Resources

Video

Duration: 1 Hrs 30 Mins

Practice Assignment

Notes

Pages: 1

UNIT 3

UNIT 4

UNIT 5

CASE STUDY

ASSIGNMENT 1

ASSIGNMENT 2

DISCUSSION FORUM

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