FM11 Online Exam Assignment AIMA 2020

Subject Code: FM11

Subject Name: FINANCIAL AND MANAGEMENT ACCOUNTING

Component name: TERM END   Assignment Start Date: 01/07/2020

Assignment End Date: 10/07/2020

Question 1:- Which of the following is not a technique used in management accounting:       

1. a) Budgetary control
2. b) Marginal costing
3. c) Process Costing
4. d) Standard costing

Question 2:- Margin of safety can be improved by :         

1. a) Increase of variable cost per unit
2. b) Decrease of sale price per unit
3. c) Increase of fixed costs
4. d) Decrease of variable cost per unit

Question 3:- Zero based budgeting means:         

1. a) Taking zero as the starting point in calculating the forthcoming year`s overhead cost.
2. b) A budgeting system where variances are zero due to strict financial control.     
3. c) Preparing a budget of zero where any spending will result in an adverse variance
4. d) A budget including the activity level of zero.

Question 4:- Cost drivers are:    

1. a) Characteristics of an activity or event that causes costs to be incurred by that activity or event. b)    Accounting techniques used to control costs.                       
2. c) Accounting measurements used to evaluate whether or not performance is proceeding according to plan.     
3. d) Both (a) and (b) above

Question 5:- The difference between the budget amount and the best estimate is called:          

1. a) Variance
2. b) Contingency provision
3. c) Slack
4. d) Standard error

Question 6:- Material yield variance is favourable if the 

1. a) Standard quantity for the actual output exceeds actual quantity.
2. b) Standard output is more than actual output.
3. c) Actual output exceeds over standard output
4. d) Actual quantity exceeds standard quantity for actual output.

Question 7:- Vipin Ltd. provides you the following information pertaining to the first quarter ended June 30, 2019: Fixed expenses – Rs 22,500 ; Sales value- Rs 75,000; Profit – Rs 15,000. The margin of safety first quarter ended June 30, 2019 is:            

1. a) Rs 30,000
2. b) Rs 45,000
3. c) Rs 60,000
4. d) Rs 1,29,100

Question 8:- The budgeted per unit cost data of a toy manufacturing company is: Material- Rs 18; Labour- Rs 9; Variable cost- Rs 8; Selling price- Rs 50. The budgeted production and sales is 1,50,000 units. Fixed overhead incurred is Rs 4,00,000. The total profit if price is decreased by 25% and volume of sales increase by 30% is:        

1. a) Rs 87,500
2. b) Rs 42,900
3. c) Rs 55,600
4. d) Rs 61,900

Question 9:- Tanu Ltd. uses predetermined overhead rate of Rs. 15 per labour hour, the actual overhead cost is Rs. 85,000 and actual labor hour are 5,750. The under or over absorption of overhead is:       

1. a) Rs 1,250 (over)
2. b) Rs 1,250 (under)
3. c) Rs 1,000 (over)                    
4. d) Rs 1,000 (under)

Question 10:- The budgeted cost of electricity is Rs 62,500 for 5000 units of production per month and Rs 71,500 for 6,200 units of production per month. If the company manufactures 6,900 units in the month of May 2003, the budgeted amount of electricity for the month is:                    

1. a) Rs 74,360
2. b) Rs 76,750
3. c) Rs 77,770
4. d) Rs 79,572         

Question 11:- ADT Ltd. has furnished the following standard cost data per unit of output. Direct labor 10 hours at Rs 7.50 ,Rs 75. Direct wages paid Rs 4,07,000 for 55,000 hours worked per hour at Rs 8.50 per hour Rs 85. Actual output 4,900 units. The labor efficiency variance is:        

1. a) Rs 50,000 favorable
2. b) Rs 55,500 (favorable)
3. c) Rs 35,000 (Adverse)
4. d) Rs 45,000 (Adverse)

Question 12:- A contractor has to supply 8,000 paper cones per day to a textile mill. He finds that when he starts a production run he can produce 35,000 paper cones per day. The cost of holding a paper cone in stock for one year is 3 paise and setting up cost of production run is Rs. 20. The Economic Batch Quantity (EBQ) is:          

1. a) 62,397 units
2. b) 63,497 units
3. c) 64,567 units
4. d) 65,765 units

Question 13:- Following information is provided for the year 2019: P/v ratio- 30% ; Margin of safety- 40%; Sales- Rs 12,00,000. Compute the fixed cost.             

1. a) Rs 3,90,800
2. b) Rs 2,16,000
3. c) Rs 5,20,500
4. d) Rs 1,10,200

Question 14:- X company has furnished the following standard cost data per unit of output. Direct material 25 kg @ Rs 12 per kg Rs 300. The following information for the month of June 2005 is provided: Direct material used 1,25,000 kg at a cost of Rs 14,37,500; Actual output: 4,900 units. The material price variance is :          

1. a) Rs 62,500 favorable
2. b) Rs 57,000 adverse
3. c) Rs 60,000 adverse
4. d) Rs 65,000 favorable

Question 15:- ABM Ltd. has furnished the following information for Rs 4,000 units of a product for the year 2002-2003: Direct material Rs 2,50,000; Direct labor Rs2,00,000; Manufacturing overheads Rs 2,80,000 (40% fixed); Selling and administrative overheads Rs 2,70,000 (30% fixed). The total cost of 4,380 units is:

1. a) Rs 10,95,000
2. b) Rs 10,42,500
3. c) Rs 10,80,120
4. d) Rs 10,76,665

Question 16:- The monthly flexible overhead budget and activities of Forest Ltd. are as follows: Machine hours – 4,000; 5,200; 6,500 and Budgeted monthly overhead cost (Rs)- 98,000; 1,12,400; 1,28,000 respectively. The budgeted fixed overhead cost per month at the level of 6,800 machine hours is:                        

1. a) Rs 30,000
2. b) Rs 40,000
3. c) Rs 45,000
4. d) Rs 50,000

Question 17:- During the Financial Year 2019-2020, A Ltd purchased machinery worth. Rs.20 Lakhs from V Ltd. A Ltd. discharged the payment by issue of its Equity shares of Rs.15 Lakhs and balance payment was made in cash. It also sold another machinery for Rs. 10 Lakhs. Calculate the cash flows from Investing Activities.            

1. a) (-) Rs. 5 lakhs
2. b) 5 Lakhs
3. c) 10 Lakhs
4. d) (-)Rs.15 Lakhs              

Question 18:- Which of the given technique should be used to compare the performance of two businesses, one having Rs.100 crore turnover and the other having Rs. 25 crore turnover         

1. a) Ratio Analysis
2. b) Comparative Statements
3. c) Common Size Statement
4. d) Cash Flow Statement

Question 19:- Interest paid by a Finance Company will be Cash flows from…………..activity?    

1. a) Operating
2. b) Investing
3. c) Financing
4. d) Cash & Cash Equivalents

Question 20:- ABV Ltd. provides you with the following information: Provision for tax at the start of the year and at the end of the year was Rs.1,20,000 and Rs.1,50,000 respectively. The provision for tax made during the year was Rs.1,20000. What was the amount of tax paid during the year?             

1. a) 1,50,000
2. b) 90,000
3. c) 1,20,000
4. d) None of the above

Case Study

FG Utensils is in the manufacturing of household utensils for the last 10 years. At the year end, Mr. Kumar, the Finance Manager called the production manager Mr. Sohan and asked him about the details of the production and the expenses incurred for the year. Mr. Sohan the following details with the finance manager: The company follows standard costing system. During the year 5,000 units were produced and the direct material consumed was 20,500 kg. The price of raw material is Rs.2.60 per kg. The direct labour cost and variable overhead incurred were Rs. 57,750 and Rs.32,400 respectively. The variable overhead efficiency is Rs. 3,000 (unfavorable). Variable overheads are based on direct labor hours. There was no stock of raw material at the beginning of the month. The standard cost data per unit of output is Direct material 4 Kg@ Rs.2.50/ kg, Direct labor 2 hours @Rs.6/hour and Variable overhead 2 hours @Rs.3/hr.   

Question 21:- The variable overhead efficiency variance would be ?                      

1. a) 3,000 Favourable
2. b) 3,500 adverse
3. c) 3,000 Adverse      
4. d) 3,200 Adverse

Question 22:- The aggregate of total material, labor and variable overhead variance ?          

1. a) 3,500 Adverse
2. b) 3,450 Favourable
3. c) 3,550 Favourable
4. d) 3,450 Adverse

Question 23:- The material price variance is in excess of usage variance by ………….

1. a) 800 Adverse
2. b) 850 Favourable                  
3. c) 800 Favourable
4. d) 1,050 Adverse

Question 24:- The variable overhead budget variance would be 

1. a) 700 Adverse
2. b) 600 Adverse          
3. c) 900 Adverse
4. d) 650 Adverse

Question 25:- The aggregate of material cost and labor cost variance is ?              

1. a) 1100 Favourable
2. b) 1150 Favourable                   
3. c) 1050 Adverse
4. d) 1000 Adverse