Paper 8 Cost Accounting | CMA Intermediate True or False with answer

 

CMA INTERMEDIATE EXAMINATION

Paper 8 Cost Accounting 



Paper 8 Cost Accounting True or False

A. State whether the following are True or False     

1) Bin card is maintained by the costing department. False

2) CAS-8 deal with the principles and methods of determining the direct expenses. False

3) FIFO method is followed for evaluation of equivalent production when prices are fluctuating. False

4) Profit Volume ratio remains constant at all levels of activity. True

5) The principal factor is the starting point for the preparation of various budgets. True


B. State whether the following are True or False

1) Factory overhead cost applied to a job is usually based on a pre-determined rate. True

2) CAS-19 deals with the principles and methods of determining the manufacturing cost of excisable goods. False

3) Cost ledger control account makes the cost ledger self-balancing. True

4) FIFO method is followed for evaluation of equivalent production when prices are fluctuating. False

        5) Standard costs and budgeted costs are inter-related and inter-dependent. False 


C. State whether the following are True or False

1) Multiple costing is suitable for banking industry. False

2) Slow moving materials have a high turnover ratio. False

3) Cost ledger control account makes the cost ledger self-balancing. True

4) There is inverse relationship between batch size and carrying costs. False

5)  Marginal costing follows the identifiability wise classification of costs. False


D. State whether the following are True or False

1) By-products may undergo further processing before sale. True

2) Materials which can be identified with the given product unit of cost centre is called as indirect materials. False

3) Increasing Labour Turnover increases the productivity of labour resulting in low costs. False

4) In case of materials that suffer loss in weight due to evaporation etc. the issue price of the materials is inflated to cover up the losses. True

5) Penalties and fines are included in cost accounts to determine the cost of production. False


E. State whether the following are True or False

1) Uniform Costing is a unique method of costing to determine costs accurately. False

2) When overtime wages are incurred due to the general policy of the company arising due to lack of capacity, normal wages are treated as direct labour cost and the premium on overtime wages is treated as factory overheads. False

3) In marginal and absorption costing, variable factory overhead is treated as direct cost. False

4) Operation Costing and Operating Costing are interchangeably used for the same technique of costing. False

5)  Standard Costs are costs that are estimated costs that are likely in the future production period. False