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FINAL EXAMINATION
Syllabus 2016
Paper 19: COST AND MANAGEMENT AUDIT (CMAD)
Time Allowed: 3 Hours Full Marks: 100
There are Sections A, B, C and D to be answered subject to instructions given against each.
Section A 20 X 1
You are required to answer all the questions. Each question carries 1 mark. = 20
Instructions: Each question is followed by 4 Answer choices and only one is correct. You are required to Marks
select the choice which according to you represents the correct answer.
1.
a. Cost Accounting Standard 8 is a Cost Accounting Standard on ________________ .
(i) Employee Cost
(ii) Utilities Cost
(iii) Pollution Control Cost
(iv) Selling and Distribution Cost
b. Constitution of Audit Committee by the Board of Directors is mandatory for ______________ .
(i) All companies
(ii) All listed companies only
(iii) All listed companies and those prescribed under the Companies (Meetings of Board
and its Powers) Rules only
(iv) All public companies having turnover of Rs. 100 crore or more only
c. The useful life of an intangible asset, like amount paid on technical knowhow, shall not exceed
_________ from the date it is available for use.
(i) 5 years
(ii) 8 years
(iii) 10 years
(iv) 12 years
d. According to the Companies (Cost Records and Audit) Rules, 2014, which one of the following is
not a regulated industry?
(i) Fertilizers
(ii) Cement
(iii) Sugar
(iv) Petroleum products
e. Comptroller & Auditor General (C&AG) has right to direct the manner in which the company’s
accounts shall be audited by the auditor and to give such auditor instructions in regard to any
matter relating to the performance of his functions as per section ______________.
(i) 138 of the Companies Act, 2013
(ii) 143 of the Companies Act, 2013
(iii) 173 of the Companies Act, 2013
(iv) 134 of the Companies Act, 2013
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f. Which one of the following KPIs is used to measure productivity & efficiency of a machinery?
(i) Percentage of Idle time to total available time
(ii) Machine downtime ratio
(iii) Production per man hour
(iv) Contribution per unit of material used
g. Kaizen Costing and Lean Manufacturing (Management Accounting Tool) are used as ________ .
(i) Cost Reduction Tool
(ii) Cost Computation Tool
(iii) Performance Measure Tool
(iv) Control Tool
h. Quantity of output from any process, which will be needed to get one unit of final output is
called as _________________ .
(i) Utilities
(ii) Return on Net Worth
(iii) Capital Employed
(iv) Waste Multiplier
i. Target costing is used for the purpose of ___________________ .
(i) Cost Computation
(ii) Cost Reduction
(iii) Pricing and decision making
(iv) Cost Control
j. Cost of self-generation utilities for own consumption shall comprises of _______________.
(i) Administrative overheads
(ii) Distribution cost
(iii) Factory overheads
(iv) None of the above
k. Which section of the Companies Act, 2013 deals with Internal Audit?
(i) Section 138
(ii) Section 148
(iii) Section 139
(iv) Section 192
l. Royalty paid on sales Rs. 30,000; Royalty paid on units produced Rs. 20,000, Hire Charges of
equipment used for production Rs. 2,000, Design charges Rs. 15,000, Software development
charges related to production Rs. 22,000. The Direct Expenses amount is:
(i) Rs. 88,000
(ii) Rs. 89,000
(iii) Rs. 98,000
(iv) Rs. 99,000
m. Operational Audit can lead to better management with the focus on _________________ .
(i) Transaction-based analysis for Fraud Prevention
(ii) Compliance of Rules
(iii) Risk Identification, Process Improvement
(iv) Budget Monitoring
FINAL EXAMINATION
Syllabus 2016
Paper 19: COST AND MANAGEMENT AUDIT (CMAD)
Time Allowed: 3 Hours Full Marks: 100
There are Sections A, B, C and D to be answered subject to instructions given against each.
Section A 20 X 1
You are required to answer all the questions. Each question carries 1 mark. = 20
Instructions: Each question is followed by 4 Answer choices and only one is correct. You are required to Marks
select the choice which according to you represents the correct answer.
1.
a. Cost Accounting Standard 8 is a Cost Accounting Standard on ________________ .
(i) Employee Cost
(ii) Utilities Cost
(iii) Pollution Control Cost
(iv) Selling and Distribution Cost
b. Constitution of Audit Committee by the Board of Directors is mandatory for ______________ .
(i) All companies
(ii) All listed companies only
(iii) All listed companies and those prescribed under the Companies (Meetings of Board
and its Powers) Rules only
(iv) All public companies having turnover of Rs. 100 crore or more only
c. The useful life of an intangible asset, like amount paid on technical knowhow, shall not exceed
_________ from the date it is available for use.
(i) 5 years
(ii) 8 years
(iii) 10 years
(iv) 12 years
d. According to the Companies (Cost Records and Audit) Rules, 2014, which one of the following is
not a regulated industry?
(i) Fertilizers
(ii) Cement
(iii) Sugar
(iv) Petroleum products
e. Comptroller & Auditor General (C&AG) has right to direct the manner in which the company’s
accounts shall be audited by the auditor and to give such auditor instructions in regard to any
matter relating to the performance of his functions as per section ______________.
(i) 138 of the Companies Act, 2013
(ii) 143 of the Companies Act, 2013
(iii) 173 of the Companies Act, 2013
(iv) 134 of the Companies Act, 2013
, !" #
f. Which one of the following KPIs is used to measure productivity & efficiency of a machinery?
(i) Percentage of Idle time to total available time
(ii) Machine downtime ratio
(iii) Production per man hour
(iv) Contribution per unit of material used
g. Kaizen Costing and Lean Manufacturing (Management Accounting Tool) are used as ________ .
(i) Cost Reduction Tool
(ii) Cost Computation Tool
(iii) Performance Measure Tool
(iv) Control Tool
h. Quantity of output from any process, which will be needed to get one unit of final output is
called as _________________ .
(i) Utilities
(ii) Return on Net Worth
(iii) Capital Employed
(iv) Waste Multiplier
i. Target costing is used for the purpose of ___________________ .
(i) Cost Computation
(ii) Cost Reduction
(iii) Pricing and decision making
(iv) Cost Control
j. Cost of self-generation utilities for own consumption shall comprises of _______________.
(i) Administrative overheads
(ii) Distribution cost
(iii) Factory overheads
(iv) None of the above
k. Which section of the Companies Act, 2013 deals with Internal Audit?
(i) Section 138
(ii) Section 148
(iii) Section 139
(iv) Section 192
l. Royalty paid on sales Rs. 30,000; Royalty paid on units produced Rs. 20,000, Hire Charges of
equipment used for production Rs. 2,000, Design charges Rs. 15,000, Software development
charges related to production Rs. 22,000. The Direct Expenses amount is:
(i) Rs. 88,000
(ii) Rs. 89,000
(iii) Rs. 98,000
(iv) Rs. 99,000
m. Operational Audit can lead to better management with the focus on _________________ .
(i) Transaction-based analysis for Fraud Prevention
(ii) Compliance of Rules
(iii) Risk Identification, Process Improvement
(iv) Budget Monitoring
