322 QUESTION PAPER BOOKLET CODE : A - ICSI

1 : 1 :3221/2017/CMAANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE PAPER BOOKLET code :AQuestion PAPER BOOKLET No. Roll No. : Time allowed : 3 hoursMaximum marks : 100 Total number of questions : 100 Total number of printed pages : 20 Instructions should use blue/black ball point pen ONLY to fill-in all the required information inOMR Answer Sheet and this QUESTION PAPER Answer Sheet cannot be taken out from the Examination Hall by the examinees and thesame is required to be properly handed over to the Invigilator/Supervisory staff on duty andacknowledgement be obtained for doing so on the Admit Card before leaving the are required to correctly fill-in the QUESTION PAPER BOOKLET code and the QuestionPaper BOOKLET No. (as mentioned on the top of this BOOKLET ) in the OMR Answer Sheet, asthe same will be taken as final for result computation.

2 Institute shall not undertake any responsibilityfor making correction(s) at later QUESTION PAPER BOOKLET contain 100 questions. All questions are compulsory and carry ONEmark each. There will be negative marking for wrong answers in the ratio of 1 : 4, , deductionof 1 mark for every four wrong of this QUESTION PAPER BOOKLET MUST NOT be opened before the specified time of on opening of QUESTION PAPER BOOKLET , candidates should ensure that it contains 100questions in total and none of its page is missing/misprinted. In case of any discrepancy, the bookletshall be replaced at QUESTION is followed by four alternative answers marked as A, B, C and D. For answeringthe questions including those requiring filling-in the blank spaces, candidates shall choose one mostappropriate answer to each QUESTION and mark the same in the OMR Answer Sheet by darkeningthe appropriate circle only in the manner as prescribed in the OMR Answer of more than one circle corresponding to any QUESTION or overwriting/cutting any answer(s)shall be taken as wrong answer for computation of result.

3 Ticking/marking/writing of answer(s)in the QUESTION PAPER BOOKLET shall not be considered in any circumstance for award of Institute shall neither entertain any claim nor be liable to respond to any of the query in theaforesaid work, if any, should be done only one the space provided in this QUESTION PAPER The Copyright of this QUESTION PAPER BOOKLET and Multiple Choice Questions (MCQs) containedtherein solely vests with the (SIGNATURE OF CANDIDATE)1/2017/CMAANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE EXAMINEDC ontd..A322: 2 :Space for Rough Work: 3 :3221/2017/CMAANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE The chief objective of cost accountingis to :(A) Earn more profit(B) Increase production(C) Provide information for managementfor planning and control(D) Fix the price2.

4 Cost accounting differs from financialaccounting in respect of :(A) Recording Cost(B) Ascertaining Cost(C) Control of Cost(D) Reporting of Cost3. A power house which generates and suppliespower is called :(A) Profit Centre(B) Production Centre(C) Cost Centre(D) Service Cost Centre4. Over-absorption of factory overheads dueto inefficiency of management should bedisposed by :(A) Use of supplementary rate(B) Transfer to costing Profit and Lossaccount(C) Carry forward to next year(D) Transfer to production account5. Costs which can be identified easily andindisputably with a unit of operation orcosting unit or cost centre is called :(A) Variable Cost(B) Direct Cost(C) Product Cost(D) Fixed Cost6. The following information relates to theproduction department of a factory :Materials used` 30,000 Direct labour` 20,000 Overheads` 5,000On an order carried out in the department,direct wages amounted to ` 3,000.

5 Find outthe overheads chargeable to this order onthe basis of direct wages :(A)` 700(B)` 650(C)` 800(D)` 7507. Salary of a foreman should be classifiedas a :(A) Fixed overhead(B) Variable overhead(C) Semi-fixed or semi-variable overhead(D) None of the above1/2017/CMAANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE EXAMINEDC ontd..A322: 4 costing method in which fixed factoryoverheads are added to the inventory is :(A) Direct Costing(B) Marginal Costing(C) Absorption Costing(D) Standard primary documents used for collectionof production overheads are :(A) Stores requisitions for indirect materials(B) Wages analysis sheet for indirect labour(C) Cash book for indirect expenses(D) All of the above10. Which of the following costs is not a factoryoverhead expense ?

6 (A) Depreciation of equipment used in theresearch department(B) Salary of quality control inspector(C) Overtime premium paid to direct labour(D) Machine maintenance labour cost11. A method of dealing with overheads involvesspreading common costs over cost centreson the basis of benefit received. This isknown as :(A) Overhead absorption(B) Overhead apportionment(C) Overhead identification(D) Overhead analysis12. Which of the following is not a meanswhereby factory overheads can be chargedout of production ?(A) Direct labour rate(B) Overtime rate(C) Machine-hour rate(D) Blanket rate13. An organisation is divided into number ofdepartments and overheads are collected,allocated or apportioned to respectivedepartments, is called :(A) Service departments(B) Divisionalisation(C) Departmentalisation(D) Classification14.

7 Ramya Ltd. furnishes the followinginformation :Production 10,000 units, Sales 10,000 units,Selling price ` 12 per unit, Variable cost` 6 per unit, Fixed costs ` 40,000 per annum(normal capacity of 10,000 units) Profit/Lossunder marginal costing method will be :(A)` 10,000(B)` 30,000(C)` 20,000(D)` 25,000: 5 :3221/2017/CMAANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE A manufacturer produces 2,00,000 units ofa product at a cost of ` per unit. Lateron he produces 2,75,000 units at a cost of` per unit, when its fixed overheadshave increased by 10%. The original fixedoverheads will be :(A)` 50,000(B)` 55,000(C)` 30,000(D)` 40,00016. Mr. Mahesh has a sum of ` 3,00,000 whichinvested in a business. He wishes 15% returnon his fund. It is revealed from the presentcost data analysis that variable cost ofoperation are 60% of sales and fixed costsare ` 1,50,000 On the basis of thisinformation, you are required to find out thesales volume to earn 15% return.

8 (A)` Lakhs(B)` Lakhs(C)` Lakhs(D)` Lakhs17. A radio manufacturer finds the while it costs` per unit to make component M-140and the same is available in the market at` each. Continuous supply is also fullyassured. The break-down cost per unit asfollows :Materials ` , Labour ` othervariable expenses ` , Depreciation andother fixed cost ` What would be yourdecision, if the supplier offered thecomponent at ` per unit ?(A) Make(B) Buy(C) Sell(D) None of the above18. In a purely competitive market, 10,000pocket transistors can be manufactured andsold and certain profit is generated. It isestimated that 2,000 pocket transistors needto be manufactured and sold in a monopolymarket to earn the same profit. Profit underboth the conditions is targeted at ` 2,00, variable cost per transistor is ` 100 andthe total fixed costs are ` 37,000.

9 You arerequired to find out unit selling price pertransistor under competitive condition.(A)` (B)` (C)` (D)` MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE EXAMINEDC ontd..A322: 6 :19. A firm has given the following data :Fixed expenses at 50% ` 15,000, Fixedexpenses when factory is close down` 10,000, Additional expenses in closingdown ` 1,000, Production at 50% capacity5,000 units, contribution per unit ` 1. Advisewhether to run the factory or close it down :(A) Close(B) Run(C) Continue(D) None of the above20. From the following data, P/V ratio willbe :YearSales ````Profit ````201550,00,0005,00,000201675,00,00010 ,00,000(A) 50%(B) 10%(C) 20%(D) 40%21. You are requested to report to topmanagement of Eastern India EngineeringCompany the point of sales in terms of rupeeto break-even.

10 For the purpose, you obtainthat :Fixed overheads remain constant at ` 12,000 Variable costs will rise zero to ` 12,000 Selling price is ` 600 per tonThe tonnage produced and sold is 30 tons.(A)` 36,000(B)` 32,000(C)` 30,000(D)` 38,00022. In a period sales amount to ` 2,00,000, netprofit ` 20,000 and Fixed overheads are` 30,000. If sales ` 3,00,000 profit willbe :(A)` 48,000(B)` 50,000(C)` 40,000(D)` 45,00023. Reliance Furniture House places before youthe following trading results :Year Units Total Costs Sales` `` `` `` `2015 10,00080,0001,00,0002016 12,00090,0001,20,000 Fixed cost will be :(A)` 15,000(B)` 10,000(C)` 30,000(D)` 60,00024. A factory engaged in manufacturing plasticbuckets is working at 40% capacity andproduces 10,000 buckets per annum.