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1. Part C of the Annexure to the Cost Audit Report in CRA 3 pertains to which sector?

Manufacturing Sector Service Sector Regulated Sector Unregulated Sector

2. Cost Accounting Standard 8 relates to which aspect of cost accounting?

Employee Cost Utilities Cost Pollution Control Cost Selling and Distribution Cost

3. According to Generally Accepted Cost Accounting Principles, how is the cost of cane from an owned farm supplied to a sugar mill classified?

Direct Materials Cost Indirect Materials Cost Production Overhead Administrative Overhead

4. The formation of an Audit Committee by the Board of Directors is mandatory for which entities?

All companies Only listed companies Listed companies and those covered under Companies (Meetings of Board and its Powers) Rules Public companies with a turnover of ₹100 crore or more

5. Cost Auditing Standard 102 focuses on which aspect of cost auditing?

Planning an Audit of Cost Statements Cost Audit Documentation Knowledge of Process and Business Overall Objectives of the Independent Cost Auditor

6. Under the Central Excise Valuation Rules 2000, what is the assessable value of goods used for captive consumption?

Actual cost of production Marginal cost of production 110% of cost of production Market price of such goods

7. A cotton textile mill has cumulative waste percentages as follows: Blow Room 8%, Carding 6%, Drawing 4%, Simplex 4%, and Ring Frame 9%. If the input in the Blow Room is 1000 kg, what is the output at the Ring Frame?

730.27 kg 725.27 kg 742.27 kg 749.97 kg

8. Operational Audit enhances management effectiveness by focusing on:

Transaction-based analysis for fraud prevention Compliance with rules Risk identification and process improvement Budget monitoring

9. A shoe manufacturing plant has a capacity of 700 shoes per shift. Operating 3 shifts daily for 300 days per year, it produces 35.91 lakh shoes annually. What is the Normal Capacity Utilization percentage?

82% 76% 74% 78%

10. Propriety Audit in the context of Government Audit ensures:

Public funds are not misused for individual benefits Public officials exercise vigilance as they would with their own money No authority makes decisions benefiting itself directly or indirectly All of the above

June 2017 CMA Paper