REVISIONARY TEST PAPER
DECEMBER 2012
INTERMEDIATE
GROUP - II
THE INSTITUTE OF COST ACCOUNTANTS OF
INDIA
12, SUDDER STREET, KOLKATA-700 016
Group-II : Paper-8 : Cost and Management Accounting 1
, INTERMEDIATE EXAMINATION
Paper-8 : COST AND MANAGEMENT ACCOUNTING
Q. 1. (a) Select the correct answer in each of the following:
(i) The forex component of imported material cost is converted:
(A) At rate on the date of settlement.
(B) At rate on the date of transaction.
(C) At rate on date of delivery.
(D) Non of the above.
(ii) Material cost variance is ` 550(A) and material price variance is ` 150(F), the material usage
variance should be :
(A) ` 400(A)
(B) ` 400(F)
(C) ` 700(A)
(D) ` 700(F)
(iii) Maximum possible productive capacity of a plant when no operating time is lost , is its
(A) Practical capacity
(B) Theoretical capacity
(C) Normal capacity
(D) Capacity based on sales expectancy
(iv) When production is below standard specification or quality and cannot be rectified by incurring
additional cost, it is called
(REVISED SYLLABUS - 2008)
GROUP - II
(A) Defective
(B) Spoilage
(C) Waste
(D) Scrap
(v) CAS 8 requires each type of utility to be treated as :
(A) separate cost object
(B) not part of cost as not include in material
(C) not part of cost as they do not form part of product (D) treated as administrative
overheads.
(vi) Selling and distribution overhead doesnot include:
,2 [ Revisionary Test Paper (Revised Syllabus-2008)
(A) Cost of warehousing
(B) Repacking cost
(C) Trasportation cost (D) Demurrage charges.
(vii) Joint costs are allocated :
(A) Based on a measure of the number of units, weight, or volume of joint products.
(B) Based on the values attributed to the joint products.
(C) Both of the above.
(D) None of the above.
(viii) When overtime is required for meeting urgent orders, overtime premium should be
(A) Charged to Costing Profit and Loss A/c.
(B) Charged to overhead costs.
(C) Charged to respective jobs.
(D) None of the above.
(ix) Credit is given to the process account at a predetermined value of the byproduct under the—
(A) Standard cost method
(B) Reserve cost method
(C) Opportunity cost method
(D) Sales value
(x) Exchange losses or gains after purchase transaction is complete is treated as:
(A) Product cost.
(B) Overhead cost.
(C) Purchase cost.
(D) Finance cost
Q. 1. (b) Fill in the blanks with appropriate word(s):
(i) In Cost Accounting, abnormal losses are transferred to .
(ii) Reorder level = .
(iii) The technical term for charging of overheads to cost units is known as .
(iv) In brick kiln, cost unit is .
(v) Under system, there is no need of reconciliation of cost and financial
accounts.
(vi) determines the priorities in functional budgets.
(vii) Gang composition variance is a sub variance of variance.
(viii) When P/V ratio is 30% and M/S ratio is 40%, the profit is % of sales.
(ix) In contract costing , work in progress certified is valued at while uncertified
work is valued at .
, (x) Cost sheet is a document which provides for assembly of the detailed cost of
a .
DECEMBER 2012
INTERMEDIATE
GROUP - II
THE INSTITUTE OF COST ACCOUNTANTS OF
INDIA
12, SUDDER STREET, KOLKATA-700 016
Group-II : Paper-8 : Cost and Management Accounting 1
, INTERMEDIATE EXAMINATION
Paper-8 : COST AND MANAGEMENT ACCOUNTING
Q. 1. (a) Select the correct answer in each of the following:
(i) The forex component of imported material cost is converted:
(A) At rate on the date of settlement.
(B) At rate on the date of transaction.
(C) At rate on date of delivery.
(D) Non of the above.
(ii) Material cost variance is ` 550(A) and material price variance is ` 150(F), the material usage
variance should be :
(A) ` 400(A)
(B) ` 400(F)
(C) ` 700(A)
(D) ` 700(F)
(iii) Maximum possible productive capacity of a plant when no operating time is lost , is its
(A) Practical capacity
(B) Theoretical capacity
(C) Normal capacity
(D) Capacity based on sales expectancy
(iv) When production is below standard specification or quality and cannot be rectified by incurring
additional cost, it is called
(REVISED SYLLABUS - 2008)
GROUP - II
(A) Defective
(B) Spoilage
(C) Waste
(D) Scrap
(v) CAS 8 requires each type of utility to be treated as :
(A) separate cost object
(B) not part of cost as not include in material
(C) not part of cost as they do not form part of product (D) treated as administrative
overheads.
(vi) Selling and distribution overhead doesnot include:
,2 [ Revisionary Test Paper (Revised Syllabus-2008)
(A) Cost of warehousing
(B) Repacking cost
(C) Trasportation cost (D) Demurrage charges.
(vii) Joint costs are allocated :
(A) Based on a measure of the number of units, weight, or volume of joint products.
(B) Based on the values attributed to the joint products.
(C) Both of the above.
(D) None of the above.
(viii) When overtime is required for meeting urgent orders, overtime premium should be
(A) Charged to Costing Profit and Loss A/c.
(B) Charged to overhead costs.
(C) Charged to respective jobs.
(D) None of the above.
(ix) Credit is given to the process account at a predetermined value of the byproduct under the—
(A) Standard cost method
(B) Reserve cost method
(C) Opportunity cost method
(D) Sales value
(x) Exchange losses or gains after purchase transaction is complete is treated as:
(A) Product cost.
(B) Overhead cost.
(C) Purchase cost.
(D) Finance cost
Q. 1. (b) Fill in the blanks with appropriate word(s):
(i) In Cost Accounting, abnormal losses are transferred to .
(ii) Reorder level = .
(iii) The technical term for charging of overheads to cost units is known as .
(iv) In brick kiln, cost unit is .
(v) Under system, there is no need of reconciliation of cost and financial
accounts.
(vi) determines the priorities in functional budgets.
(vii) Gang composition variance is a sub variance of variance.
(viii) When P/V ratio is 30% and M/S ratio is 40%, the profit is % of sales.
(ix) In contract costing , work in progress certified is valued at while uncertified
work is valued at .
, (x) Cost sheet is a document which provides for assembly of the detailed cost of
a .
