Management Accounting - 9

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Multiple Answer
Question The management of Horngreen Ltd. is deciding whether to continue working at loss or to temporarily shut down the factory. State the qualitative aspects that must be considered before arriving at a decision.
Correct Answer Loss of trained personnel , Loss of regular customers , Expenditure required to restart the factory
Your Answer Expenditure required to restart the factory

Multiple Choice Single Answer
Question The purchase budget for October is Rs.12,500/- and November is Rs.15,000/-. If the materials are purchased for cash the supplier is offering a rebate of 5%. If the materials are purchased on credit of 30 days, no rebate is offered. The company purchase
Correct Answer October- NIL, November- Rs.26,750/-
Your Answer October- Rs.14,250/-, November- Rs.11,875/-

True/False
Question Maintenance Department is a service cost centre.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Ram and Laxman are partners of Kush & Bros. As on 1st April, 2003 Ram's capital is Rs.50,000/- and Laxman's capital is Rs.80,000/-. If interest on capital is to be provided @ 10% p.a., what will be amount of capital of each of the partners as on 31st March, 2004, assuming there were no additions during this period? Also, state the treatment of this item in the Profit and loss account.
Correct Answer Ram's capital Rs.55,000/- , Laxman's capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account
Your Answer Laxman's capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account

Multiple Choice Single Answer
Question Rs.2,650/- were paid to ABC Ltd. for maintenance of machine; which account should be debited for this transaction?
Correct Answer Maintenance of machine account
Your Answer ABC Ltd.'s Account

Match The Following
Question Correct Answer Your Answer

Advantageously applicable in similar industries Scope of uniform costing Fields covered by uniform costing

Spirit of mutual trust Requisite for uniform costing Disadvantage of uniform costing

Avoids cut throat competition Advantage of uniform costing Requisite for uniform costing

Treatment given to research and development costs Fields covered by uniform costing Advantage of uniform costing


Select The Blank
Question Under the AB________ analysis, nuts and bolts used as material will be classified as category C.
Correct Answer C
Your Answer C

Select The Blank
Question If overhead absorbed i.e. overheads charged to units during the period is more than the overhead incurred, it is said that the overheads are ________.
Correct Answer Over-absorbed
Your Answer True and fair

Multiple Choice Multiple Answer
Question Identify the causes due to which the cost of labour may be high:
Correct Answer Excess staffing , Lack of experienced and efficient personnel , High labour turnover
Your Answer Lack of experienced and efficient personnel , High labour turnover , No idle time

Multiple Choice Multiple Answer
Question Identify the fixed expenses from the following.
Correct Answer Rent and taxes of the factory , Wages paid to indirect workers like cleaners, helpers,etc. , Salary paid to factory supervisor
Your Answer Rent and taxes of the factory , Wages paid to indirect workers like cleaners, helpers,etc. , Salary paid to factory supervisor

Multiple Choice Multiple Answer
Question From the following, select intangible assets:
Correct Answer Goodwill , Patents , Trade Marks
Your Answer Goodwill , Patents , Trade Marks

True/False
Question According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance of cost of asset after deduction of the depreciation previously charged.
Correct Answer True
Your Answer False

Select The Blank
Question Average stock = ________ + (Order size / 2)
Correct Answer Safety stock
Your Answer Reorder level

True/False
Question High time wages means necessarily high cost of production.
Correct Answer False
Your Answer True

Multiple Choice Single Answer
Question The integrated form of all functional budgets is known as :
Correct Answer Master budget
Your Answer Master budget

Select The Blank
Question Marginal costing is also known as ________.
Correct Answer Variable costing
Your Answer Indirect costing

Multiple Choice Single Answer
Question Purchased 200 shares of Bharat Forge Ltd. for Rs.850/- per share, which account should be debited?
Correct Answer Investment account - Rs.170,000/-
Your Answer Investment account - Rs.170,000/-

Multiple Choice Single Answer
Question For a bought out material item the following are the relevant data : Ordering cost Rs.512/- per order; holding cost is 40%; cost per item Rs.100/- and annual demand 1,000 units. The Purchase manager places 5 orders of equal quantity in one year, in order to avail the discount of 5% on the cost of the item. Work out the total cost to the organisation due to his ordering policy for this item.
Correct Answer Rs.101,360/-
Your Answer Rs.101,360/-

True/False
Question Due to compensating errors the arithmetical accuracy of the trial balance is affected.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question From the given information compute the total cost variance. Material cost variance -Rs.4,400/- (Favourable); labour cost variance -Rs.450/- (Adverse); fixed overhead cost variance -Rs.22,000/- (Adverse); variable overhead cost variance -Rs.6,000/- (adverse).
Correct Answer Rs.24,050/- (Adverse)
Your Answer Rs.32,850/- (Favourable)

Multiple Choice Single Answer
Question Advance tax account should appear in which of the final statement of accounts.
Correct Answer Asset side of the balance sheet
Your Answer Debit side of the profit and loss account

Match The Following
Question Correct Answer Your Answer

Operating income Cash Sales Cash Sales

Non-Operating income Issue of shares Issue of shares

Plan of investment in fixed assets Capital Expenditure Budget Cash Budget

Plan for surplus/shortage of cash Cash Budget Capital Expenditure Budget


Select The Blank
Question Furniture account will always have a ________ balance.
Correct Answer Debit
Your Answer Inflated

Select The Blank
Question Payment by ________ method lowers the cost of production through their impact on fixed costs.
Correct Answer Results
Your Answer Cash

Multiple Choice Multiple Answer
Question The objects of cost accountancy are . .
Correct Answer To ascertain cost and profitability , Cost Control , Presentation of Information
Your Answer To ascertain cost and profitability , Cost Control , To portray the financial status

Multiple Choice Multiple Answer
Question Select the various methods adopted for treatment of under or over absorbed overheads
Correct Answer Use of supplementary rates , Carrying over the amount to remaining period , Writing off to the Costing Profit and Loss Account
Your Answer Use of supplementary rates , Carrying over the amount to remaining period , Writing off to the Costing Profit and Loss Account

True/False
Question Absorption costing is more suitable for decision making than marginal costing
Correct Answer False
Your Answer True

Select The Blank
Question A low margin of safety indicates ________ fixed overheads.
Correct Answer higher
Your Answer higher

Multiple Choice Single Answer
Question Which of the following operations would normally be carried out first when preparing a master budget?
Correct Answer Determining the budget period
Your Answer Identifying the principal budget factor

True/False
Question Period cost is the cost assigned to the products.
Correct Answer False
Your Answer True

Select The Blank
Question Profit = Contribution per unit X ________.
Correct Answer Margin of safety (units)
Your Answer Sales (units)

Multiple Choice Multiple Answer
Question Which of the following aspects are mainly responsible for difficulty in application of Uniform costing system.
Correct Answer Capital investment , Plant size , Location
Your Answer Capital investment , Plant size , Loans taken

Select The Blank
Question As per the provisions of Section 209 of ________, all the company form of organisation is legally required to follow the mercantile or accrual system of accounting.
Correct Answer The Companies Act, 1956
Your Answer The Companies Act, 1956

Multiple Choice Single Answer
Question ABC Ltd. produces 10,000 units at 100% capacity utilization and its cost structure is as follows : Fixed cost Rs.50,000/-; variable costs Rs.30,000/- and semi-variable costs Rs.40,000/- (40% var
Correct Answer Rs.13.85
Your Answer Rs.11.85

Select The Blank
Question Loss of uninsured goods by fire was debited incorrectly to United India Assurance Company's account instead of debiting it to ________ account.
Correct Answer Goods lost by fire
Your Answer Goods lost by fire

Multiple Choice Multiple Answer
Question Management Accounting is…
Correct Answer Designed particularly for internal use , Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management
Your Answer Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management , A legal requirement.

Multiple Choice Multiple Answer
Question The disadvantages of supplementary overhead rates are:
Correct Answer It can be determined only after the end of the accounting period , Defeats the basic concept of normal cost , Involves lot of clerical activity
Your Answer Defeats the basic concept of normal cost , Involves lot of clerical activity , It can be determined only in the beginning of the accounting period

True/False
Question GAIL having monopoly in the CNG (Compressed Natural Gas) market can implement the Uniform costing system.
Correct Answer False
Your Answer True

True/False
Question One of the main objection to the contribution approach of costing is that it ignores fixed cost.
Correct Answer True
Your Answer False

Multiple Choice Multiple Answer
Question Pre-requisites of Uniform Costing are . . .
Correct Answer Spirit of mutual trust , Free Exchange of ideas , No rivalry
Your Answer Spirit of mutual trust , Free Exchange of ideas , Tendency of withholding information

Select The Blank
Question Uniform costing is not a separate method of ________.
Correct Answer cost accounting
Your Answer costing

Multiple Choice Single Answer
Question Tom company has sales of Rs.200,000/- with variable expenses of Rs.150,000/-, fixed expenses of Rs.60,000/-, and an operating loss of Rs.10,000/-. By how much would Tom have to increase its sales in order to achieve an operating income of 10% of sales?
Correct Answer Rs.200,000/-
Your Answer Rs.251,000/-

True/False
Question An entry in the stores ledger is required for transfer of material from one job to another in the same department.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question For the month of November, a firm has budgeted sales of 20,000 units of X at a price of Rs.10/- and sale of 30,000 untis of Y at a price of Rs.6/- per unit. Actual sale during the month was 35,000 units of X at Rs.9/- per unit and 25,000 units of Y at Rs.8/- per unit. Calculate sales volume variance, sales mix variance and sales quantity variance.
Correct Answer Sales volume variance -Rs.120,000/- (Favourable) , Sales mix variance -Rs.44,000/- (Favourable) , Sales Quantity variance-Rs.76,000/- (Favourable)
Your Answer Sales volume variance -Rs.120,000/- (Favourable) , Sales mix variance -Rs.44,000/- (Favourable) , Sales Quantity variance-Rs.76,000/- (Favourable)

True/False
Question The purpose of the profit and loss account is to bring togethre information which relates to gross profit and the expenses for running the business.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question A firm has purchased a plant to manufacture a new product, the cost data for which is given below : Estimated annual sales 24,000 units. Estimated costs : Materials Rs.4/- per unit; labour Re.0.60 per unit; overheads Rs.24,000/- per year; administrative expenses Rs.28,800/- per year and selling expenses are 15% of sales; Calculate the selling price per unit if profit per unit is Rs.1.02.
Correct Answer Rs.9.20/-
Your Answer Rs.7.74/-

Multiple Choice Single Answer
Question A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit margin of cost which will achieve the required profit margin ?
Correct Answer 0.1765
Your Answer 0.15

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Posted in: Management Accounting (Set III)

Management Accounting - 8

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

True/False
Question Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited.
Correct Answer True
Your Answer False

True/False
Question The rates at which the depreciation is to be calculated are specified in the Income Tax Act 1961 and The Companies Act, 1956.
Correct Answer True
Your Answer True

Select The Blank
Question The various contents of a uniform cost manual are organisation, cost accounting system and ________.
Correct Answer presentation of information
Your Answer organisation structure

True/False
Question It is said that marginal costs are used primarily in guiding decisions that are yet to be made.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Select the examples of functional budgets:
Correct Answer Sales budget , Production budget , Research and development budget
Your Answer Sales budget , Production budget , Capital expenditure budget

Multiple Choice Single Answer
Question A business's telephone bill should nromally be classified into which one of the following categories?
Correct Answer Semi-variable cost
Your Answer Variable cost

Match The Following
Question Correct Answer Your Answer

Closed the account with State Bank of India Henceforth, there shall be no difference in overdraft balances Henceforth, there shall be no difference in overdraft balances

Debit side of bank book is overcast Overdraft as per bank book < Overdraft as per pass book Overdraft as per bank book = Balanceas per pass book

Interest on debentures directly credited by bank Overdraft as per bank book > Overdraft as per pass book Overdraft as per bank book = Overdraft as per pass book

Received sanction for a loan of Rs.10 lakhs Overdraft as per bank book = Overdraft as per pass book Overdraft as per bank book < Overdraft as per pass book


Multiple Choice Single Answer
Question The total production cost for making 20,000 units was Rs.21,000/- and the total production cost for making 50,000 units was Rs.34,000/-. Once production exceeds 25,000 units, additional fixed costs of Rs.4,000/- are incurred. The full production cost per unit of making 30,000 units is:
Correct Answer Re.0.98
Your Answer Re.0.68

Select The Blank
Question The process of finding the reasons for the difference in the balance as per bank book and pass book is known as ________.
Correct Answer Reconciliation
Your Answer Reconciliation

Multiple Choice Multiple Answer
Question State the features of these transactions : (i) Commission paid Rs.250/- was posted twice to Commission account (ii) Rs.5,000/- representing goods sold to A, was posted to the credit to commission received account (iii) Sold machine for Rs.8000/-, was credited to Sales account.
Correct Answer The debit side of the trial balance will be in excess by Rs.250/- , Involves an error of principle , Involves an error of commission
Your Answer The debit side of the trial balance will be in excess by Rs.250/- , Involves an error of principle , Involves an error of commission

Multiple Choice Single Answer
Question It is difficult to apply Uniform costing system for an industry which has labour intensive companies as well as capital intensive companies, because :
Correct Answer The cost structure is different
Your Answer The cost structure is different

Multiple Choice Single Answer
Question Balance sheet is statement of
Correct Answer All Assets and Properties
Your Answer All Assets and Properties

Select The Blank
Question The closing stocks should ________ the cost of the goods which sent on approval basis.
Correct Answer Be increased by
Your Answer Not get affected by

True/False
Question Under the Rowan plan bonus is a fixed percentage.
Correct Answer False
Your Answer True

True/False
Question Idle time variance is always favourable.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question Select the items which may be classified as selling and distribution overheads.
Correct Answer Delivery van expenses , Rent of finished goods warehouse , Sales research expenses
Your Answer Delivery van expenses , Rent of finished goods warehouse , Rent of raw material godown

Select The Blank
Question Information as to the cost and profit / loss associated with the firm's operations is provided to the ________ by Management accounting.
Correct Answer Management
Your Answer Cost

Multiple Choice Single Answer
Question Compute actual total cost based on the data given below: Total standard cost (standard material cost + standard labour cost) -Rs.19,633.33; labour rate variance-Rs.900/- (adverse); material price variance -Rs.90/- (Favourable); material yield variance -Rs.700/- (Favourable); labour yield variance -Rs.333.33 (Favourable).
Correct Answer Rs.19,410/-
Your Answer Rs.17,610/-

Multiple Choice Single Answer
Question The standard production for a particular work order is 20 units per day and piece rate wages is 60 paise per unit. Cost of material is 30 paise per unit. It is proposed to charge factory overheads equal to 100% of labour cost. Indicate the factory overhead per unit.
Correct Answer Rs.1.50/-
Your Answer Rs.1.30/-

Multiple Choice Multiple Answer
Question The suspense account has a debit balance of Rs.40,000/-. Select the transactions which are capable of nullifying this balance.
Correct Answer Conveyance expenses of Rs.25,000/- were posted on the wrong side of the account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as , The total of the purchase book was cast short by Rs.44,000/-
Your Answer Free samples worth Rs.40,000/- distributed during the year were credited to sales account , Conveyance expenses of Rs.25,000/- were posted on the wrong side of the account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as

Multiple Choice Single Answer
Question Panna Ltd. temporarily has excess production capacity. The idle plant facilties can be used to manufacture a low-margin item. The low-margin item should be produced if it can be sold for more than its:
Correct Answer Variable costs
Your Answer Variable costs

Select The Blank
Question Contribution represents pool of resources available for meeting all costs other than ________.
Correct Answer Variable costs
Your Answer Variable costs

Select The Blank
Question Goods returned to the suppliers from whom it was ________d is recorded in thePurchasereturn register.
Correct Answer Purchase
Your Answer Purchase

Multiple Choice Multiple Answer
Question From the available information calculate sales value variance and budgeted sales quantity of X.Actual sales of X -500 units; budgeted price per unit -Rs.12/-; actual price per unit-Rs.15/- and sales volume variance -Rs.1,200/- (Favourable).
Correct Answer Budgeted sales - 400 units , Sales value variance -Rs.2,700/- , The sales value variance is favourable
Your Answer The sales value variance is adverse

True/False
Question Depreciation, interest and property tax continue even when the operations are discontinued.
Correct Answer True
Your Answer True

Select The Blank
Question The balance of the suspense account will ________ after all the errors are
Correct Answer become zero
Your Answer become zero

Multiple Choice Multiple Answer
Question Management accounting is concerned with the following activities :
Correct Answer Decision making , Safeguarding assets , Planning and controlling activities
Your Answer Decision making , Planning and controlling activities

True/False
Question It is said that the income statement represents wealth increase /decrease for the organisation.
Correct Answer True
Your Answer False

Select The Blank
Question The difference between sales and prime cost is known as ________.
Correct Answer Gross Profit
Your Answer Gross Profit

Multiple Choice Multiple Answer
Question In which of the following situations, the flexible budget should be preferred?
Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity
Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity

Multiple Choice Single Answer
Question Debtors as on 31st March, 2004 stood as Rs.75,400/-. Out of this amount, Rs.15,884/- is receivable from ABC & Co. Also, Rs.21,555/- included in the creditors, indicates amount due to ABC & Co. Total creditors as on 31st March, 2004 = Rs.88,466/-. Find the amount of debtors and creditors that should be disclosed in the balance sheet as on 31st March, 2004.
Correct Answer Debtors - Rs.59,516/-; Creditors - Rs.66,911/-
Your Answer Debtors - Rs.53,845/-; Creditors - Rs.72,582/-

Match The Following
Question Correct Answer Your Answer

Sunk Cost Historical Cost Historical Cost

Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility

Cost Control Process of controlling costs of operations Process of controlling costs of operations

Differential Cost Increase or Decrease in cost Increase or Decrease in cost


Select The Blank
Question Cost volume profit analysis focuses attention on the ________ effect of a particular course of action.
Correct Answer short run
Your Answer short and long run

Multiple Choice Multiple Answer
Question The balance as per bank book as on 30th June, 2004 is Rs.10,298/- while the balance as per pass book as on the same date is Rs.10,123.60. Select the transactions representing the reasons for this difference.
Correct Answer Interest credited by bank, not entered in the bank book, Rs.125.60 , Cheques dishonoured not entered in the bank book Rs.200/- , Debit side of the cash book is overcast by Rs.100/-
Your Answer Interest credited by bank, not entered in the bank book, Rs.125.60

Multiple Choice Single Answer
Question Uniform costing system is useful in the following areas
Correct Answer Classification of cost accounts
Your Answer Preparing financial statements

True/False
Question Revenue expenditure indicates the amount of funds spent during a certain period with the intention to receive the returns in future.
Correct Answer False
Your Answer True

True/False
Question Price based on Uniform Costing may be taken to be reliable and representative of the whole industry.
Correct Answer True
Your Answer True

True/False
Question Cheque received from a client on 28th September, 2004 must be entered in the bank book only after it is credited in the pass book.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question The objectives of Uniform costing system are as follows :
Correct Answer To fix a common selling price for the industry as a whole , To compare efficiency of each unit against industry's overall performance , To compile reliable cost data for inter-firm comparison of costs
Your Answer To fix a common selling price for the industry as a whole , To compare efficiency of each unit against industry's overall performance , To compile reliable cost data for inter-firm comparison of costs

Multiple Choice Multiple Answer
Question Purchased goods worth Rs.6,450/- on 10th March, 2004. However the goods were delivered directly to the plant situated at Nagar and hence this transaction was not recorded in the purchase book, which is maintained at the corporate office. Analyse the impact of this transaction.
Correct Answer The gross profit will increase by Rs.6,450/-
Your Answer The purhases will increase by Rs.6,450/- , The closing stock will increase by Rs.6,450/- , The gross profit will increase by Rs.6,450/-

Select The Blank
Question Carriage charges paid for a new machine purchased if debited to carriage account would affect the ________
Correct Answer Machinery A/c and carriage A/c
Your Answer Carriage A/c

Multiple Choice Multiple Answer
Question Different types of tenders are :
Correct Answer Singly tender , Open tender , Global tender
Your Answer Multiple tender , Open tender , Global tender

Multiple Choice Single Answer
Question Purchased 200 shares of Bharat Forge Ltd. for Rs.850/- per share, which account should be debited?
Correct Answer Investment account - Rs.170,000/-
Your Answer Investment account - Rs.170,000/-

Multiple Choice Single Answer
Question Basic objective of Uniform Costing is . . .
Correct Answer comparison
Your Answer To control cost

Multiple Choice Multiple Answer
Question Select the entries which need to be rectified
Correct Answer Purchase A/c ......... Dr. to Damodar's A/c (Being furniture purchased from Damodar) , Gopal's A/c ........... Dr. to cash A/c (Being entry for payment of railway freight for goods purchased) , Cash A/c ............Dr. to Suresh's A/c (Being cash received from Suresh for goods sold to him for)
Your Answer Gopal's A/c ........... Dr. to cash A/c (Being entry for payment of railway freight for goods purchased)

Multiple Choice Single Answer
Question A new computer worth Rs.35,000 was purchased on 18th June, 2003. The company has 10 such computers costing Rs.20,000/- each. The depreciation is charged @ 18% p.a. Find the depreciation on computers to be charged for the year.
Correct Answer Rs.40,953.70
Your Answer Rs.36,000/-

Select The Blank
Question The varinace that attempts to ascertain the effect of change in sales volume on the difference between actual and budgeted contribution is known as ________ variance.
Correct Answer Sales margin volume
Your Answer Sales margin yield

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Posted in: Management Accounting (Set III)

Management Accounting - 7

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LIST OF ATTEMPTED QUESTIONS AND ANSWERS


 True/False
  Question      Credit balances in all the Personal & Real accounts appear on asset side.
  Correct Answer        False
  Your Answer   False


 Multiple Choice Multiple Answer
  Question      Contents of Uniform Cost Manual are
  Correct Answer        Organization , Cost Accounting system , Presentation of information
  Your Answer   Organization , Cost Accounting system , Presentation of information


 Multiple Choice Multiple Answer
  Question      Uniform Costing Methods may be advantageously applied to . . .
  Correct Answer        Single organization having number of branches. , Number of companies in same industry , Similar Industries such as cotton, jute etc.
  Your Answer   Single organization having number of branches. , Number of companies in same industry , Similar Industries such as cotton, jute etc.


 True/False
  Question      1) Financial statements are basically in two forms i.e. profitability statement and balance sheet.
  Correct Answer        True
  Your Answer   True


 Multiple Choice Multiple Answer
  Question      The process of accounting has three streams of accounting ---------------,--------and ----------------------.
  Correct Answer        Financial Accounting , Cost Accounting , Management Accounting
  Your Answer   Financial Accounting , Cost Accounting , Management Accounting


 True/False
  Question      Long term loan borrowed from financial institution comes under the heading of long term liabilities.
  Correct Answer        True
  Your Answer   True


 Match The Following
Question        Correct Answer  Your Answer

Book-Keeping    Books of Accounts       Books of Accounts

Financial statement     Profitability statement & Balance-sheet Profitability statement & Balance-sheet

Accounting      Process of analyzing & interpretation   Process of analyzing & interpretation

Profitability statement Indicates the amount of profit earned   Indicates the amount of profit earned

Balance-sheet   Financial status        Financial status



 Multiple Choice Single Answer
  Question      Judge the statement according to the criteria given : ' The accounting period for XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month of December, 2003 is paid on 15th January, 2004. "According to concept of matching expenses with the revenues, this expenditure should be recorded in the books of accounts in January,
  Correct Answer        The statement and its reason are both incorrect
  Your Answer   The statement is correct but its reason is incorrect


 Multiple Choice Multiple Answer
  Question      Features of money measurement concept are . . .
  Correct Answer        Only those transactions and facts are included expressed in terms of money are considered , Imposes severe restrictions on the kind of information available from financial statements , Works as a major drawback of financial accounting
  Your Answer   Only those transactions and facts are included expressed in terms of money are considered , Imposes severe restrictions on the kind of information available from financial statements , Works as a major drawback of financial accounting


 Multiple Choice Single Answer
  Question      The installation and operation of ___________ accounting requires a very elaborate organizational structure and large number of rules & regulations
  Correct Answer        Management
  Your Answer   Management


 Select The Blank
  Question      ________account can be defined as the record of all the transactions pertaining to a person, asset, liability income or expenditure which have taken place in a specified period.
  Correct Answer        Ledger
  Your Answer   Trading


 Match The Following
Question        Correct Answer  Your Answer

Sunk Cost       Historical Cost Historical Cost

Cost Centre     Facilitate the fixation of responsibility       Facilitate the fixation of responsibility

Cost Control    Process of controlling costs of operations      Process of controlling costs of operations

Differential Cost       Increase or Decrease in cost    Increase or Decrease in cost



 Multiple Choice Multiple Answer
  Question      Which of the following transactions should be excluded while preparing a cost sheet ?
  Correct Answer        Interest on loan , Bad debts , Expenses on criminal law suit
  Your Answer   Sale of scrap material , Interest on loan , Bad debts


 True/False
  Question      In a Balance-Sheet right hand side is referred as assets side and left hand side is referred as liabilities.
  Correct Answer        True
  Your Answer   True


 True/False
  Question      Credit note is an intimation send to person dealing with the business that his account being debited for the purpose indicated therein.
  Correct Answer        False
  Your Answer   False


 True/False
  Question      Primary distribution is effected on the basis of service rendered to the service departments by the production departments.
  Correct Answer        False
  Your Answer   True


 Multiple Choice Multiple Answer
  Question      Marginal costing is found to be unsuccessful in the following situations :-
  Correct Answer        Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature
  Your Answer   Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature


 True/False
  Question      Debit Note is an intimation sent to person dealing with the business that his account is being credited for the purpose indicated therein.
  Correct Answer        False
  Your Answer   True


 Multiple Choice Multiple Answer
  Question      Labour efficiency variance arises due to:
  Correct Answer        Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material
  Your Answer   Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material


 True/False
  Question      Financial Accounting discloses the financial performance & financial statements of the business as a whole.
  Correct Answer        True
  Your Answer   True


 True/False
  Question      Balance sheet indicates the expenditure & income from the business.
  Correct Answer        False
  Your Answer   True


 Select The Blank
  Question      The indirect material cost, indirect labour cost and indirect expenses cost, collectively are termed as ________.
  Correct Answer        Overhead
  Your Answer   Overhead


 Select The Blank
  Question      A person in charge of a ________ may be held responsible for its proper functioning and cost control.
  Correct Answer        Cost centre
  Your Answer   Cost centre


 Multiple Choice Multiple Answer
  Question      The organization chart shows the following aspects :
  Correct Answer        Functional responsibility of different functional managers , Delegation of authority to various managers , Inter-functional relationships of these managers
  Your Answer   Functional responsibility of different functional managers , Delegation of authority to various managers , Inter-functional relationships of these managers


 True/False
  Question      Uniform costing system is a pre-requisite to an inter-firm comparison of firms belonging to the different industries.
  Correct Answer        False
  Your Answer   False


 True/False
  Question      P&L statement which is a period statement & relates to a certain period tells about results of operations.
  Correct Answer        True
  Your Answer   False


 Select The Blank
  Question      Depreciation charged on office furniture on straight line basis is an example of ________.
  Correct Answer        Administration overheads
  Your Answer   Administration overheads


 True/False
  Question      Under time rate system a worker is paid on the basis of production achieved by him in a given time.
  Correct Answer        False
  Your Answer   False


 Select The Blank
  Question      Information as to the cost and profit / loss associated with the firm's operations is provided to the ________ by Management accounting.
  Correct Answer        Management
  Your Answer   Management


 True/False
  Question      Danger level for inventory of materials means the safety stock of inventory.
  Correct Answer        False
  Your Answer   True


 True/False
  Question      The role of the budget committee may be taken as an advisory role to the Chief Executive.
  Correct Answer        True
  Your Answer   True


 Multiple Choice Multiple Answer
  Question      The main advantages of profit sharing are :
  Correct Answer        Employees try to increase productivity , Incentives are shared by all the employees , Augments emplyees' efficiency
  Your Answer   Employees try to increase productivity , Incentives are shared by all the employees , Augments emplyees' efficiency


 Select The Blank
  Question      ________ Accounting assists the management in establishing the plans to attain the economic objectives and take proper decisions for the attainment of its objectives.
  Correct Answer        Management
  Your Answer   Management


 Multiple Choice Multiple Answer
  Question      Which of the following is likely to be a contributory factor to the incidence of excess expenditure on material cost?
  Correct Answer        The level of control of the used of material in the production cycle , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores
  Your Answer   An increase in the maximum material inventory level , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores


 Multiple Choice Multiple Answer
  Question      Management accounting is concerned with the following activities :
  Correct Answer        Decision making , Safeguarding assets , Planning and controlling activities
  Your Answer   Decision making , Safeguarding assets , Planning and controlling activities


 Multiple Choice Multiple Answer
  Question      Features of double entry accounting system are . . .
  Correct Answer        Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit
  Your Answer   Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit


 Select The Blank
  Question      Under Differential Time Rate method payment is made at Rs. 1.40 per hour when the level of efficiency is between________.
  Correct Answer        90% to 100%
  Your Answer   90% to 100%


 True/False
  Question      Maintenance Department is a service cost centre.
  Correct Answer        True
  Your Answer   True


 True/False
  Question      The process of accounting split into three steams i.e. financial, cost, management accounting.
  Correct Answer        True
  Your Answer   True


 Select The Blank
  Question      The difference between sales and cost of sales is termed as ________.
  Correct Answer        Net Profit
  Your Answer   Net Profit


 Select The Blank
  Question      The final result disclosed by trading account is the ________profit earned by the organization.
  Correct Answer        Gross
  Your Answer   Gross


 Multiple Choice Multiple Answer
  Question      Select the accounts to be disclosed on the liability side of the Balance sheet.
  Correct Answer        Loan , Outstanding expenses , Creditors
  Your Answer   Loan , Outstanding expenses , Creditors


 True/False
  Question      Penalty paid for delay in payment to creditors represents uncontrollable cost.
  Correct Answer        False
  Your Answer   False


 Multiple Choice Single Answer
  Question      Which document facilitates estimating material cost of a particular job, before completion of that job?
  Correct Answer        Bill of material
  Your Answer   Material requisition note


 Multiple Choice Single Answer
  Question      Purchases returns of Rs.18,000/- were wrongly transferred to the sales returns account. Calculate its impact on net profit.
  Correct Answer        The net profit will not be affected
  Your Answer   The net profit will not be affected


 Multiple Choice Single Answer
  Question      It is said that adoption of uniform costing creates customer confidence because . . .
  Correct Answer        Prices are reliable
  Your Answer   Prices are reliable


 Multiple Choice Single Answer
  Question      An order for goods worth Rs.18,000/- was placed on 25th March, 2004. The goods were received on 1st April, 2004. Calculate the impact of this transaction on the final statements of accounts for the year ended 31st March, 2004.
  Correct Answer        The net profit will not be affected
  Your Answer   The net profit will not be affected

Read more »

Posted in: Management Accounting (Set III)

Management Accounting - 6

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


Select The Blank
Question Furniture account will always have a ________ balance.
Correct Answer Debit
Your Answer Nil


Multiple Choice Multiple Answer
Question Accounting is the art where transactions are …
Correct Answer Summarized , Classified , Recorded
Your Answer Summarized , Classified , Recorded


True/False
Question The phrase 'By Balance c/d.' written on the credit side of the rent account, indicates credit balance for this account.
Correct Answer False
Your Answer False


Select The Blank
Question The ________ variance is the difference between the actual variable overhead incurred and the standard variable overhead charged to production.
Correct Answer Total variable overhead
Your Answer Total variable overhead


True/False
Question Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts.
Correct Answer True
Your Answer True


Select The Blank
Question The selection of ________ may depend upon the various factors like characteristics of the business organisation, tax considerations, statutory requirements etc.
Correct Answer Accounting period
Your Answer Accounting period


True/False
Question Standard costs are used for external reporting.
Correct Answer False
Your Answer False


True/False
Question It is said that the income statement represents wealth increase /decrease for the organisation.
Correct Answer True
Your Answer False


Multiple Choice Single Answer
Question Mr. Oak, materials manager, spends 40% time in the factory and the remaining in office. If his annual salary is Rs.500,000/-, what amount should be charged as office overheads ?
Correct Answer Rs.300,000/-
Your Answer Rs.200,000/-


Multiple Choice Multiple Answer
Question The factors to be considered while preparing the direct materials budget are :
Correct Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes
Your Answer Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes


Multiple Choice Multiple Answer
Question In which of the following situations, the flexible budget should be preferred?
Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity
Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production activity


Multiple Choice Multiple Answer
Question Techniques of management accounting include:
Correct Answer Marginal costing , Budgetary control , Standard costing
Your Answer Marginal costing , Cost control , Budgetary control , Standard costing


Match The Following
Question Correct Answer Your Answer

Profit and loss account Commission received Dividend paid

Manufacturing account Work in Progress Land & Building

Balance Sheet Land & Building Closing stock of finished goods

Trading account Closing stock of finished goods Work in Progress

True/False
Question While preparing the labour cost budget, factors such as overtime working or night shift working may be ignored.
Correct Answer False
Your Answer False


Multiple Choice Multiple Answer
Question If the sales forecast is less than the past sales but the top management insists upon a certain amount of additional profits, then following steps can be taken to achieve the target profit
Correct Answer Increase the selling price , Reduce cost of sales , Increase the selling efforts
Your Answer Increase the selling price , Increase the sales volume , Increase the selling efforts


Multiple Choice Multiple Answer
Question From the following, select intangible assets:
Correct Answer Goodwill , Patents , Trade Marks
Your Answer Patents , Trade Marks , Investments


True/False
Question Bank reconciliation statement must be prepared before the preparation of profit and loss account and balance sheet.
Correct Answer True
Your Answer False


Multiple Choice Single Answer
Question Find the budget which is inadequate as a cost control technique :
Correct Answer Fixed budget
Your Answer Fixed budget


True/False
Question Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices.
Correct Answer True
Your Answer True


Multiple Choice Single Answer
Question Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing stock Rs.1,47,750/-. Calculate the Gross Profit.
Correct Answer Rs.3,00,000/-
Your Answer Rs.3,00,000/-


Select The Blank
Question ________ is an example of intangible asset.
Correct Answer Goodwill
Your Answer Land


True/False
Question Accounting is an art of recording, classifying & summarizing in a significant manner.
Correct Answer True
Your Answer True


True/False
Question Goods sent to the customers on approval basis should be treated as sales.
Correct Answer False
Your Answer False


Multiple Choice Multiple Answer
Question Features of Sunk cost are . . .
Correct Answer Indicates historical cost , Not relevant in decision making process , Incurred in past
Your Answer Indicates historical cost , Incurred in past , Relevant in decision making process


True/False
Question Profitability statement indicates the amount of assets & liabilities.
Correct Answer False
Your Answer True


True/False
Question A business is an activity carried out with the intention of earning the profit.
Correct Answer True
Your Answer True


Multiple Choice Multiple Answer
Question Identify the steps involved in selecting the optimum product mix, when the limiting factor is number of labour hours and sales demand.
Correct Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour.
Your Answer For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum contribution per labour hour.


Multiple Choice Multiple Answer
Question Techniques of management accounting include:
Correct Answer Marginal costing , Budgetary control , Standard costing
Your Answer Marginal costing , Cost control , Budgetary control


True/False
Question The ideal budget period for a company engaged in generation and distribution of electricity is one year.
Correct Answer False
Your Answer False


Select The Blank
Question The ________ adjustment is necessary to relfect the cost for the use of fixed asset during the year.
Correct Answer Depreciation
Your Answer Depreciation


True/False
Question According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance of cost of asset after deduction of the depreciation previously charged.
Correct Answer True
Your Answer True


Select The Blank
Question Crane expenses should be apportioned on the basis of ________.
Correct Answer Number of hours crane worked in the department
Your Answer Number of hours crane worked in the department


Multiple Choice Multiple Answer
Question Essentials for effective implementation of budgetary control system are
Correct Answer Commitment of top management , Clearly defined objectives , Continous budget education
Your Answer Commitment of top management , Clearly defined objectives , Continous budget education


Multiple Choice Single Answer
Question Commission payable to General Manager is 10 % of the net profits. If the net profit before charging commission is Rs.29,200/-, then what will be the amount of his net profit after commission?
Correct Answer Rs.26,545.45
Your Answer Rs.29,200/-


Select The Blank
Question A forecast is mere estimate of what is likely to happen, but ________ is the action plan to be followed.
Correct Answer Budget
Your Answer Budget


True/False
Question A very wide scope of Management Accounting is the limitation by itself.
Correct Answer True
Your Answer True


Select The Blank
Question The combination in which different products are sold by a company is known as ________.
Correct Answer Sales mix
Your Answer Sales mix


Multiple Choice Single Answer
Question The reporting method used in the costing system should be based on the principle of
Correct Answer Management by exception
Your Answer Management by objectives


True/False
Question Balance sheet indicates the financial status of the business at given period.
Correct Answer True
Your Answer True


Multiple Choice Single Answer
Question The wages paid to maintenance department workers who do repair work principally for production departments but also on the vehicles in the distribuiton department shoud be charged as:
Correct Answer Service costs
Your Answer Service costs


Multiple Choice Single Answer
Question M/s Vivek Enterprises has paid rent relating to the residence of Mr. Vivek, proprietor of Vivek Enterprises. This payment should be treated as
Correct Answer Drawings
Your Answer Capital


Select The Blank
Question Measurement of ________ gives an idea of the degree of mobility of labour.
Correct Answer Labour turnover
Your Answer Labour turnover


Multiple Choice Single Answer
Question Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager of the company is entitled to commission @ 8% on net profits after charging commission. Find the amount of commission due to the manager.
Correct Answer Rs.8,279.63
Your Answer Rs.8,942/-


Match The Following
Question Correct Answer Your Answer

Total cost Cost of finished goods Cost of finished goods

Non operating income Profit on sale of investment Profit on sale of investment

Selling and distribution overheads Advertisement expenses Advertisement expenses

Factory overheads Repair for factory building Repair for factory building

True/False
Question Control on purchase of material is exercised by the storekeeper.
Correct Answer False
Your Answer True


Multiple Choice Single Answer
Question A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the profit margin of cost which will achieve the required profit margin ?
Correct Answer 0.1765
Your Answer 0.15


Select The Blank
Question Economical use of labour, materials and facilities can achieved with the help of ________.
Correct Answer Budgetary control
Your Answer Cost control

Read more »

Posted in: Management Accounting (Set II)

Techniques for Operations Efficiency - 15

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer
Question 5-S technique is useful to:
Correct Answer To all places including homes
Your Answer To all places including homes

Multiple Choice Single Answer
Question Empowerment means making best use of the firm's most valuable resource, namely:-
Correct Answer Human
Your Answer Human

Select The Blank
Question Number of defects in an individual component, like gear, shaft, wheel etc can be monitored through ________ type of control chart.
Correct Answer c-chart
Your Answer c-chart

Multiple Choice Single Answer
Question TQM is a way to improve quality of product and service :-
Correct Answer Continuously
Your Answer Continuously

Multiple Choice Multiple Answer
Question Best practices for standardization in implementing Seiketsu are :-
Correct Answer Create as many visual control systems as possible , Use colour code system for easy control , Fix one colour (e.g. Red) for danger zones/out of controls
Your Answer Create as many visual control systems as possible , Use colour code system for easy control , Display warning notices

True/False
Question JIT is not possible for each and every item held as inventory
Correct Answer True
Your Answer False

True/False
Question Customer wise outstanding is discussed in daily work management meeting by operations head.
Correct Answer False
Your Answer False

Select The Blank
Question Poka-Yoke devices under category 'locating pins' to eliminate cause of ________
Correct Answer Incorrect positioning
Your Answer Incorrect positioning

Multiple Choice Single Answer
Question Customer's return is an indicators of the MUDA of :-
Correct Answer Defect
Your Answer Defect

Match The Following
Question Correct Answer Your Answer

Evolve standard operating procedure & implement. Seiketsu Seiketsu

Hidden faults come out while implementing. Cleaning yourself your equipments Seiso

Fix the place of items, tools as per frequency of use Seiri Seiton

Responsibility same from top to bottom Seiso shitsuke


Multiple Choice Single Answer
Question Accountability means :-
Correct Answer Responsibility of Business Results
Your Answer Responsibility Execution or Action

Multiple Choice Single Answer
Question Quality problem solving tool is used to :-
Correct Answer Improve quality
Your Answer Improve quality

True/False
Question Performance benchmarking does not involves comparison of financial ratios at the aggregate level.
Correct Answer False
Your Answer False

Multiple Choice Single Answer
Question Competitive benchmarking is usually conducted :-
Correct Answer Through third party research
Your Answer Through third party research

Multiple Choice Single Answer
Question Small groups forming a circle should consist of :-
Correct Answer Employees of different department related to the problem
Your Answer Employees of different department related to the problem

True/False
Question In cellular manufacturing system cell may consist of a single machine or more than one machine arranged in line.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Histograms are useful to :-
Correct Answer Measure the current pattern & extent of variation , Assess current conformance to specification & scope of improvement , Determine whether or not the process is in the state of control
Your Answer Measure the current pattern & extent of variation , Assess current conformance to specification & scope of improvement , Determine whether or not the process is in the state of control

True/False
Question Non-availability of files /document in time is a problem to be addressed by office TPM.
Correct Answer True
Your Answer True

Select The Blank
Question A control chart to exhibit counted data on number of defect is called ________.
Correct Answer c-chart
Your Answer c-chart

True/False
Question Fishbone analysis is used both in analysis & planning.
Correct Answer True
Your Answer True

Select The Blank
Question Inspection activity for semi finished & finished component should be ________ to reduce muda of transport .
Correct Answer Decentralized
Your Answer Decentralized

Multiple Choice Multiple Answer
Question Scatter diagram is used :-
Correct Answer To discover relationship between two associated sets of data , To display the relationship between two variables , To confirm anticipated relationship between two variables / associated sets of data
Your Answer To discover relationship between two associated sets of data , To display the relationship between two variables , To confirm anticipated relationship between two variables / associated sets of data

Select The Blank
Question U shape arrangement of layout provides the operator ________ degree of mobility.
Correct Answer 360
Your Answer 360

True/False
Question Chance causes can not be identified.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question During the steps of Deming cycle of PDCA what is important?
Correct Answer Plan unitedly for the target within reach , Make plan active by "doing it" i.e. everyone working , After some time check the results for success
Your Answer Plan unitedly for the target within reach , Make plan active by "doing it" i.e. everyone working , After some time check the results for success

Multiple Choice Multiple Answer
Question Benefits of Quality maintenance are :-
Correct Answer Reduction in customer quality complaints , Reduction in inspection time
Your Answer Reduction in customer quality complaints , Reduction in inspection time

Multiple Choice Multiple Answer
Question Causes of Muda of transport are :-
Correct Answer Faulty layout , Over production
Your Answer Faulty layout , Over production

Multiple Choice Multiple Answer
Question Types of Poka-Yoke are :-
Correct Answer Prevention type Poka-Yoke , Detection type Poka-Yoke
Your Answer Prevention type Poka-Yoke , Detection type Poka-Yoke , Standards type Poka-Yoke

Multiple Choice Single Answer
Question Pie chart is also called as :-
Correct Answer Angular diagram
Your Answer Angular diagram

Multiple Choice Multiple Answer
Question The aim of education & training under TPM is :-
Correct Answer To develop abilities to respond quickly to abnormalities , To develop abilities to discover analyze malfunction
Your Answer To develop abilities to respond quickly to abnormalities , To develop abilities to discover analyze malfunction , To have multiskilled employees in all departments

Multiple Choice Multiple Answer
Question Material Supply on DSL basis helps :-
Correct Answer To eliminate handling , To reduce transporting , To reduce inspection
Your Answer To eliminate handling , To reduce transporting , To reduce inspection

Select The Blank
Question Poka Yoke designed to help operators to know immediately ________ of the defeat called detection type Poka-Yoke.
Correct Answer On occurrence
Your Answer On occurrence

Multiple Choice Multiple Answer
Question Typical examples of process benchmark are :-
Correct Answer Procurement procedures , Budgeting , Recruitment
Your Answer Procurement procedures , Budgeting , Recruitment

Multiple Choice Single Answer
Question The area enclosed under normal distribution curve between mean +2standard deviation is :-
Correct Answer 0.9545
Your Answer 1

True/False
Question Daily work management can also be extended to non manufacturing areas like procurement, QA, HRD etc.
Correct Answer True
Your Answer True

Match The Following
Question Correct Answer Your Answer

4 th level in six sigma organization Green Belts Green Belts

1 st level in six sigma organization Champions Champions

2 nd level in six sigma organization Master Black Belts Master Black Belts

3 rd level in six sigma organization Black Belts Black Belts


Select The Blank
Question ________ PDCA cycle is the systematic approach towards meeting the target.
Correct Answer Kaoishikawa
Your Answer Deming

Select The Blank
Question ________is serve as a stepping stone to TQM
Correct Answer ISO-9000 quality standard
Your Answer TPM

Select The Blank
Question Histogram is a diagrammatic presentation of the ________ distribution of characteristics such as strength, diameter, etc.
Correct Answer Frequency
Your Answer Frequency

Multiple Choice Single Answer
Question Through continuous improvement in the process & procedures, kobetsu-kaizen is continuously improve utilization of :-
Correct Answer Worker, equipment & material
Your Answer Worker, equipment & material

Multiple Choice Single Answer
Question Frequencies, values, tabulated in the frequency table, can be represented pictorially in the form of bar graph & this graph of frequency is called as :-
Correct Answer Histogram
Your Answer Histogram

Multiple Choice Multiple Answer
Question Muda of waiting is due to :-
Correct Answer Interrupted flow of work , Delay in movement of raw material from stores
Your Answer Interrupted flow of work , Delay in movement of raw material from stores

Select The Blank
Question CFT ( cross functional team ) consisting of ________
Correct Answer Operators, supervisors from different departments
Your Answer Operators, supervisors from different departments

Select The Blank
Question In PDCA cycle for benchmarking 'Identification of performance gap' is done in ________.
Correct Answer Checking
Your Answer Checking

Multiple Choice Multiple Answer
Question Management skill includes :-
Correct Answer Leadership , Motivation , Performance appraisals
Your Answer Leadership , Motivation

Multiple Choice Single Answer
Question Zero loss concept means :-
Correct Answer Zero accident, zero defect, zero breakdown
Your Answer Zero accident, zero defect, zero breakdown

True/False
Question Flow charts are drawn to identify deviations by observing actual & comparing with running process.
Correct Answer False
Your Answer False

Read more »

Posted in: Techniques for Operations Efficiency(Set-5)

Techniques for Operations Efficiency - 14

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Select The Blank
Question Seiketsu is to ensure that ________ of first three 'S' i.e. Seiri, Seiton & Seiso.
Correct Answer Implementation
Your Answer Implementation

True/False
Question Benefits of DWN is faster response to customer needs.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question Recording of the entire setup operators focusing on hand, eye and body movements of the person doing the setting is done through :-
Correct Answer Video recording
Your Answer Video recording

Multiple Choice Multiple Answer
Question During SMED implementation, primary study consists of :-
Correct Answer Equipment analysis , Setup change analysis , Preparation items (storage place , method) analysis
Your Answer Equipment analysis , Setup change analysis , Preparation items (storage place , method) analysis

Select The Blank
Question Ideally the histogram will have a symmetrical ( i.e. also called as bell) shape tapering away on both sides from ________ value.
Correct Answer Average
Your Answer Average

Select The Blank
Question ________ is the critical element of TQM.
Correct Answer Focus on customer
Your Answer Focus on customer

Multiple Choice Multiple Answer
Question Role of champions are :-
Correct Answer Approve six sigma projects , Remove road block in the path of six sigma implementation , Monitor progress of six sigma projects
Your Answer Approve six sigma projects , Remove road block in the path of six sigma implementation , Monitor progress of six sigma projects

Multiple Choice Multiple Answer
Question For 'Control on PPM and rework level;, checking points' will be :-
Correct Answer PPM level , Initiate corrective actions on rejection/rework , Initiate preventive action on rejection / rework
Your Answer PPM level , Initiate corrective actions on rejection/rework , Initiate preventive action on rejection / rework

Multiple Choice Single Answer
Question POP is :-
Correct Answer Process Oriented Management
Your Answer Process Oriented Management

True/False
Question TQM improves the quality by improving processes.
Correct Answer True
Your Answer True

True/False
Question Review is important step in problem solving.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question After finding out the solution & working on it, the equally important job is :-
Correct Answer Prepare for the presentation of your work , Explain the progress by presentation to steering committee , Convince committee for financial help for running the project
Your Answer Prepare for the presentation of your work , Explain the progress by presentation to steering committee , Convince committee for financial help for running the project

Match The Following
Question Correct Answer Your Answer

In scatter diagram, the strength of relationship can be determined By "correlation coefficient" By "correlation coefficient"

The scatter diagram provides the technique to establish The possible relationship between a pair of variables The possible relationship between a pair of variables

The scatter diagram displays The pair of data as a cloud of points The pair of data as a cloud of points

The scatter is also known as Correlation diagram Correlation diagram


True/False
Question In single card kanban system production greater than quantity withdrawn is permitted.
Correct Answer False
Your Answer False

Select The Blank
Question ________ is the root cause of the problems.
Correct Answer Variation
Your Answer Variation

Multiple Choice Single Answer
Question While assessing the current status during problem solving Go to Gamba and look at gembustu is :-
Correct Answer Essential
Your Answer Essential depends upon situation

Multiple Choice Multiple Answer
Question In absence of P-kanban the workman may :-
Correct Answer Carry out machine clean up , Work on improvement project. , Receive training
Your Answer Carry out machine clean up , Work on improvement project.

Multiple Choice Single Answer
Question The concept of quality circle was mooted by :-
Correct Answer Prof. Kaoishikawa
Your Answer Prof. Kaoishikawa

Select The Blank
Question ________ helps to generate creative ideas .
Correct Answer Brainstorming
Your Answer Brainstorming

Multiple Choice Single Answer
Question For small batch quality production, number of setups :-
Correct Answer Increases
Your Answer Increases

True/False
Question Process capability refers to ability of the process to meet the design specification for a product or a service.
Correct Answer True
Your Answer True

True/False
Question Kaizen looks at process as a part of quality & quantity as a part of process
Correct Answer False
Your Answer True

Select The Blank
Question ________ participants in monthly meeting(MRM)
Correct Answer GM, operation heads, corporate functional heads
Your Answer Department heads & supervisors

Multiple Choice Multiple Answer
Question Examples of Muda of defects are :-
Correct Answer Customer complaints , Poor material yield , Rejection and rework
Your Answer Customer complaints , Poor material yield , Rejection and rework

Multiple Choice Single Answer
Question Vilfredo Pareto had discovered a universal law as :-
Correct Answer "around 20% of the activity causes 80% of the effect"
Your Answer "around 20% of the activity causes 80% of the effect"

Multiple Choice Multiple Answer
Question Benefits from the standardized containers are
Correct Answer Minimization of transit damages , Ease in verification of quantity of parts , Automatic signal to supplier to replenish stock
Your Answer Minimization of transit damages , Ease in verification of quantity of parts , Automatic signal to supplier to replenish stock

True/False
Question TQM organizations also harness the goodwill and interest of the family members of the employees.
Correct Answer True
Your Answer True

Select The Blank
Question Technique involved in listing of setup task, establishing technological relationship between tasks, drawing arrow diagram is called as ________.
Correct Answer Network diagram
Your Answer Flow chart

Multiple Choice Multiple Answer
Question Kanban System may be :-
Correct Answer Single card kanban system , Double card kanban system
Your Answer Single card kanban system , Double card kanban system

Multiple Choice Single Answer
Question Bulk production, to reduce setup time is an example of :-
Correct Answer Over production
Your Answer Machine utilization

Multiple Choice Single Answer
Question SWOT analysis is an important step in :-
Correct Answer Deciding what to benchmark
Your Answer Deciding what to benchmark

Multiple Choice Multiple Answer
Question Remedial actions for error of misunderstanding is :-
Correct Answer Training , Checking in advance , Standardizing work procedures
Your Answer Training , Checking in advance , Standardizing work procedures

Select The Blank
Question ________ is a must in meeting of quality circles.
Correct Answer Brainstorming
Your Answer Brainstorming

Multiple Choice Single Answer
Question The Steering committee as apex body should be :-
Correct Answer Only one for all the groups in organization
Your Answer Only one for all the groups in organization

Multiple Choice Single Answer
Question Muda of transport can be eliminated significantly by :-
Correct Answer Self inspection by suppliers & operators
Your Answer Self inspection by suppliers & operators

Select The Blank
Question A histogram is a graphical display of distribution of measurements & reveals the amounts of ________ within the process.
Correct Answer Variation
Your Answer Variation

Multiple Choice Single Answer
Question Statistical process control is application of statistical technique to control :-
Correct Answer Process
Your Answer Process

Multiple Choice Single Answer
Question In India quality circle was first launched by :-
Correct Answer Hyderabad unit of BHEL
Your Answer Hyderabad unit of BHEL

True/False
Question A control chart is a chart with UCL & LCL placed at 6 Sigma distance on either side of the process average.
Correct Answer False
Your Answer False

True/False
Question Control limits of control charts should be revised from time to time as additional data is accumulated.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Examples of Muda of motion are :-
Correct Answer Lifting objects , Walking to reach object , Searching for object
Your Answer Lifting objects , Walking to reach object , Searching for object

True/False
Question Kanban signals are required when assembly work, subassembly work and manufacturing at parts is carried out at different locations.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer
Question Six sigma organization consists of :-
Correct Answer Champions , Black Belts , Green Belts
Your Answer Champions , Black Belts , Green Belts

Match The Following
Question Correct Answer Your Answer

LCLnp n p - 3 ( sq.root( n p( 1- p ))) n p - 3 ( sq.root( n p( 1- p )))

UCLp p + 3 ( sq.root( p ( 1 - p ) / n )) p + 3 ( sq.root( p ( 1 - p ) / n ))

LCLp p - 3 ( sq.root( p ( 1- p ) / n)) p - 3 ( sq.root( p ( 1- p ) / n))

UCLnp n p + 3 ( sq.root( n p ( 1- p ))) n p + 3 ( sq.root( n p ( 1- p )))


Multiple Choice Multiple Answer
Question Product benchmarking requires, comparison of product :-
Correct Answer Performance , Features , Cost
Your Answer Performance , Features , Cost

Select The Blank
Question JIT helps to ________ the waste in the purchasing process.
Correct Answer Eliminates
Your Answer Eliminates

Select The Blank
Question Poka Yoke is ________.
Correct Answer Simple technique
Your Answer Simple technique

Read more »

Posted in: Techniques for Operations Efficiency(Set-5)

Techniques for Operations Efficiency - 13

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


Select The Blank
Question Inspection activity for semi finished & finished component should be ________ to reduce muda of transport .
Correct Answer Decentralized
Your Answer Carry out in QA department


True/False
Question Concept of six sigma is not applicable for non manufacturing sectors.
Correct Answer False
Your Answer False


Multiple Choice Multiple Answer
Question Few main steps to construct a Histogram after deciding classes, class width & class boundaries are :-
Correct Answer Compute mid-point of the class (cell) & fill up the tally sheet determining the cell or class into which each value falls , Count the tally marks i.e. frequency in each class & construct a histogram by plotting a bar graph for each class , Analyze & conclude whether process is is meeting the requirement or not & take connective actions if needed.
Your Answer Compute mid-point of the class (cell) & fill up the tally sheet determining the cell or class into which each value falls , Count the tally marks i.e. frequency in each class & construct a histogram by plotting a bar graph for each class , Analyze & conclude whether process is is meeting the requirement or not & take connective actions if needed.


Multiple Choice Single Answer
Question A drive for people involved should start with the :-
Correct Answer Study of staff attitudes
Your Answer Staff empowerment


Multiple Choice Single Answer
Question Poka-yoke for employee not performing work as per established method is :-
Correct Answer Implement work standard
Your Answer Implement work standard


Multiple Choice Multiple Answer
Question Implementation of TPM in Indian industries is difficult due to :-
Correct Answer Lack of knowledge of the TPM , Resistance to change , Fear to loss of job
Your Answer Lack of knowledge of the TPM , Resistance to change , Fear to loss of job


Multiple Choice Single Answer
Question Identifying key preventive operational functions and comparing these operational functions within the firm's own division & branches comes under :-
Correct Answer Internal benchmarking
Your Answer Functional benchmarking


True/False
Question "Display of safety posture & slogans" is an essential step of TPM.
Correct Answer False
Your Answer True


Multiple Choice Single Answer
Question Errors by armatures is :-
Correct Answer Lack of experience
Your Answer Lack of experience


Multiple Choice Multiple Answer
Question The purpose of Shitsuke is especially for :-
Correct Answer Maintaining the 4-S consistently , Develop discipline attitude in everyone , Any day throughout the year sustain the discipline
Your Answer Maintaining the 4-S consistently , Develop discipline attitude in everyone , Any day throughout the year sustain the discipline


True/False
Question Change of job titles can help to raise employee's morale.
Correct Answer True
Your Answer True


Multiple Choice Multiple Answer
Question Few steps to construct a flow chart are :-
Correct Answer Identify steps in the process & construct a draft of the flowchart , Review the draft & connect the changes as per review & name it & put the data & use it as 'Record' , Decide on the objective of flowchart & define boundaries of the process
Your Answer Decide on the objective of flowchart & define boundaries of the process , Identify steps in the process & construct a draft of the flowchart , Review the draft & connect the changes as per review & name it & put the data & use it as 'Record'


Select The Blank
Question In scatter diagram "________" relationship is said to exist when value of 'y' decreases as the value of 'x' increases.
Correct Answer Strong negative
Your Answer Strong negative


Multiple Choice Single Answer
Question Whatever you are doing you can do better by :-
Correct Answer Kaizen
Your Answer Kaizen


Multiple Choice Single Answer
Question Frequencies, values, tabulated in the frequency table, can be represented pictorially in the form of bar graph & this graph of frequency is called as :-
Correct Answer Histogram
Your Answer Histogram


True/False
Question Exercise to identify MURA, MUDA & MURI is not helpful to identify problems.
Correct Answer False
Your Answer False


Select The Blank
Question Kaizen projects are managed by ________
Correct Answer Cross functional team
Your Answer Management


Multiple Choice Single Answer
Question Number of Kaizen projects suggested and implemented is checking point for :-
Correct Answer Continual Improvement
Your Answer Continual Improvement


Match The Following
Question Correct Answer Your Answer

Flow chart are drawn to effect improvement in the process by Identifying non-value added activities Providing a documented description of the tasks involved

Flow chart are drawn to document a process by charting the tasks performed & the sequence in which tasks are performed Steps in a process by pictorial representation

Flow chart are prepared to enhance the employees understanding of the process by Indicating interrelationship within process charting the tasks performed & the sequence in which tasks are performed

Flow charts are drawn to identify deviations by Observing actual & comparing with documented process Indicating interrelationship within process

Multiple Choice Single Answer
Question Quality is the responsibility of :-
Correct Answer Everyone in the organization
Your Answer Everyone in the organization


Select The Blank
Question ________is serve as a stepping stone to TQM
Correct Answer ISO-9000 quality standard
Your Answer ISO-9000 quality standard


True/False
Question Generally time interval should be proportional to the average frequency of out of control conditions.
Correct Answer True
Your Answer True


Multiple Choice Multiple Answer
Question Advantages of JIT :-
Correct Answer Reduce inventory , Lower per unit cost , Reduce incoming inspection
Your Answer Reduce inventory , Lower per unit cost


Multiple Choice Multiple Answer
Question Flow chart is prepared when :-
Correct Answer Defining the problem , Trying to know the activities involved in the process , Identifying the root causes
Your Answer Defining the problem , Trying to know the activities involved in the process , Identifying the root causes


Multiple Choice Single Answer
Question Difference between the specification limits is called as :-
Correct Answer Design tolerance
Your Answer Design tolerance


Match The Following
Question Correct Answer Your Answer

Productivity performance measurement Turnover employee Turnover employee

Financial performance measurement Sales of the months Sales of the months

Customer satisfaction measurement Customer complaints per period Customer complaints per period

Staff attitude measurement Employee satisfaction index Employee satisfaction index

True/False
Question Shitsuke is most difficult out of all 5-S because it means to sustain all the first 4-S throughout the year.
Correct Answer True
Your Answer True


Select The Blank
Question Graphs convey a situation more ________ than summary of data or figures.
Correct Answer Effectively & clearly
Your Answer Effectively & clearly


True/False
Question Key element of JIT is continuous improvement.
Correct Answer True
Your Answer False


Select The Blank
Question Histogram is a diagrammatic presentation of the ________ distribution of characteristics such as strength, diameter, etc.
Correct Answer Frequency
Your Answer Frequency


Multiple Choice Single Answer
Question Control chart indicates :-
Correct Answer Trend of process
Your Answer Control on process


Select The Blank
Question Shitsuke means ________ all the previous 4-S throughout the month/year.
Correct Answer Sustaining
Your Answer Sustaining


Multiple Choice Single Answer
Question Competitive benchmarking is usually conducted :-
Correct Answer Through third party research
Your Answer Through third party research


Multiple Choice Single Answer
Question Ishikawa diagram is also known as :-
Correct Answer Cause & effect diagram
Your Answer Cause & effect diagram


Select The Blank
Question JIT helps to ________ the waste in the purchasing process.
Correct Answer Eliminates
Your Answer Eliminates


Select The Blank
Question To assess effectiveness of training ________ is essential.
Correct Answer Evaluation
Your Answer Evaluation


Multiple Choice Multiple Answer
Question Types of meetings held in DWM are :-
Correct Answer Daily PDCA meeting , Weekly PDCA meeting , Monthly PDCA meeting
Your Answer Daily PDCA meeting , Weekly PDCA meeting , Monthly PDCA meeting


Select The Blank
Question A 'Radar chart' is a combination of circle & ________ Graph.
Correct Answer Line
Your Answer Line


True/False
Question Kaizen looks at process as a part of quality & quantity as a part of process
Correct Answer False
Your Answer True


True/False
Question TQM improves manufacturing as well as clerical activities.
Correct Answer True
Your Answer True


Multiple Choice Single Answer
Question "Cause & effect" diagram was developed by :-
Correct Answer DR.Kaoru Ishikawa
Your Answer DR.Kaoru Ishikawa


Multiple Choice Single Answer
Question Japanese concept of good house keeping is for:
Correct Answer Good environment for quality products
Your Answer To reduce waste


Select The Blank
Question The process capability of the process =________(where sigma is the standard deviation of the population / lot.
Correct Answer 6 sigma
Your Answer 6 sigma


Multiple Choice Multiple Answer
Question 3M' is world class benchmarking ' candidates in the field of :-
Correct Answer Product development , Technology transfer , Environmental Management
Your Answer Product development , Environmental Management , Billing & collection


Multiple Choice Multiple Answer
Question Poka-Yoke devices which can help to avoid the defects are :-
Correct Answer Guide pins , Limit switches , Checklist
Your Answer Guide pins , Limit switches , Checklist


True/False
Question Gap analysis for production & dispatches is discussed in monthly meeting.
Correct Answer False
Your Answer False


Multiple Choice Multiple Answer
Question Actions to be taken to help staff to develop their careers are :-
Correct Answer Job rotation exercise , Preference to be given to employees during job vacancies , Encourage employees to improve their qualification
Your Answer Job rotation exercise , Preference to be given to employees during job vacancies , Encourage employees to improve their qualification

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Posted in: Techniques for Operations Efficiency(Set-5)