Saturday, February 26, 2011

Management Accounting - 9

Management Accounting - 9


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


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/-

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


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



Match The Following
Question- Correct Answer

Advantageously applicable in similar industries -Scope of uniform costing
Spirit of mutual -trust Requisite for uniform costing


Avoids cut throat competition- Advantage of uniform costing

Treatment given to research and development costs- Fields covered by 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


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



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



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

Multiple Choice Multiple Answer
Question From the following, select intangible assets:
Correct 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

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


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


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


Select The Blank
Question Marginal costing is also known as ________.
Correct Answer Variable 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/-


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/-

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


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


Match The Following
Question- Correct Answer

Operating income -Cash Sales

Non-Operating income -Issue of shares

Plan of investment in fixed assets- Capital Expenditure

Plan for surplus/shortage of cash- Cash Budget Capital


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

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


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

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


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

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


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


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

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


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


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

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


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

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

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

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


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


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/-

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


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)

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


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/-


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





Management Accounting - 8


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


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


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


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


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



Match The Following
Question -Correct Answer

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

Debit side of bank book is overcast- 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

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


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

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


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

Multiple Choice Single Answer
Question Balance sheet is statement of
Correct 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


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

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

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


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/-

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/-


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/-

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

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


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

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



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


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

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

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/-

Match The Following
Question- Correct Answer

Sunk Cost- Historical Cost


Cost Centre- Facilitate the fixation of responsibility


Cost Control -Process of controlling costs of operations

Differential 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

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/-


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


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


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



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



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/-


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


Multiple Choice Multiple Answer
Question Different types of tenders are :
Correct Answer Singly 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/-

Multiple Choice Single Answer
Question Basic objective of Uniform Costing is . . .
Correct Answer comparison


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)


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

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


Management Accounting - 7


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



Multiple Choice Multiple Answer
Question Contents of Uniform Cost Manual are
Correct 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.


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


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




Match The Following
Question -Correct Answer

Book-Keeping - Books of Accounts

Financial statement - Profitability statement & Balance-sheet

Accounting - Process of analyzing & interpretation

Profitability statement -Indicates the amount of profit earned

Balance-sheet - 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



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



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


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


Match The Following
Question - Correct Answer

Sunk Cost - Historical Cost

Cost Centre - Facilitate the fixation of responsibility

Cost Control - Process of controlling costs of operations

Differential 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


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


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


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


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


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

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



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


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



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


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


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


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


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


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



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


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


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


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


Multiple Choice Multiple Answer
Question Management accounting is concerned with the following activities :
Correct 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


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%


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


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


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


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


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



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



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

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