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1. The cost associated with idle time due to a lack of raw materials is:

Recovered by increasing the raw material price. Recovered by raising the wage rate. Allocated to factory overheads. Charged to the costing profit and loss account.

2. Selling and distribution overheads are allocated based on:

A fixed rate per unit. A percentage of the works cost. A percentage of the selling price for each unit. Any of the above methods.

3. In an integrated accounting system, what entry is made for the purchase of stores on credit?

Debit Stores, Credit Creditors. Debit Purchases, Credit Creditors. Debit Stores Ledger Control Account, Credit Creditors. Debit Stores Ledger Control Account, Credit General Ledger Adjustment Account.

4. During the year 2016-17, 800 units were introduced into a process with a normal loss of 5%. If there are 100 units in closing work-in-progress that are 60% complete, the equivalent production for the period is:

760 units. 744 units. 540 units. 720 units.

5. Which of the following standards pertains to the principles and methods for determining production or operational overheads?

CAS-3. CAS-5. CAS-9. CAS-16.

6. A financial account shows a loss of Rs. 10,600, and donations not recorded in cost accounts amount to Rs. 6,000. What is the profit or loss according to cost accounts?

Loss of Rs. 16,600. Profit of Rs. 16,600. Loss of Rs. 4,600. Profit of Rs. 4,600.

7. A hotel with 100 rooms has an occupancy rate of 80% in summer and 25% in winter. If both seasons last for 6 months and each month has 30 days, the total occupied room days will be:

1,525 room days. 18,900 room days. 36,000 room days. None of the above.

8. A company has fixed expenses of Rs. 90,000, sales of Rs. 3,00,000, and a profit of Rs. 60,000. The P/V ratio for the company is:

10%. 20%. 30%. 50%.

9. The marginal costing technique classifies costs based on:

Element-wise. Function-wise. Behavior-wise. Identifiability-wise.

10. Which of the following is not considered a potential benefit of utilizing a budget?

Increased motivation among managers. Improved coordination of company activities. Enhanced communication between departments. More precise external financial statements.

Costing Paper 2017

The Number of MCQs are limited as per ICMAI Past Paper in Syllabus 2016