Central Institute of Plastics Engineering & Technology Head Office: Guindy, Chennai – 600 032 Academic Cell Question Bank Course : PGD PPT Subject : Costing & Industrial Management

Semester: II UNIT I

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Cost accounting is useful for __________. (a) Internal people (b) External people Ans.: (a) Internal people Prime cost means __________. (a) Total of indirect cost (b) Factory cost Ans.: (c) Total of Direct cost

(c) Managers

(d) Promoters

(c) Total of Direct cost

(d) Material cost

Sales – cost of goods sold is equal to __________. (a) Direct cost (b) Factory cost (c) Profit or loss Ans.: (c) Profit or loss ABC analysis is also known as __________. (a) Total cost control analysis (c) Bad control analysis Ans.: (b) Selective inventory control

(d) Indirect cost

(b) Selective inventory control (d) Quantity control

5.

ABC analysis deals with ________ (a) analysis of process chart (b) flow of material (b) ordering job schedule (d) controlling inventory costs money Ans.: (d) controlling inventory costs money

6.

Costs are classified as __________. (a) Indirect cost (b) Factory cost Ans.: (c) fixed or variable

7.

(c) fixed or variable

Factory cost + Admn. Overheads are equal to __________. (a) Conversion cost (b) Cost of product (c) Cost of Sale Ans.: (b) Cost of product

(d) Labor cost

(d) Overheads

8.

What is Lead Time? (a) Time gap between initiation and completion of a production process (b) production time (c) delivery time (d) Realization time Ans.: (a) Time gap between initiation and completion of a production process

9.

ROL is also known as __________. (a) Re order load (b) Real Order Level (c) Run over load Ans.: (d) Re Order level

10.

(d) Re Order level

BEP stands for _________. (a) Break-even Product (b) Break-even Point (c) Break-even Price (d) Break-even Part Ans.: (b) Break-even Point

Costing & Industrial Management

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BEP is a point whereby we reach at _________. (a) Covering Fixed cost (b) No profit no loss (c) Covering Variable cost (d) Covering factory cost Ans.: (b) No profit no loss Break-even Analysis consists of _________ (a) fixed cost (b) variable cost (c) fixed and variable costs (d) operation costs Ans.: (c) fixed and variable costs

13.

Break-even Analysis shows profit when _________ (a) sales revenue > total cost (b) sales revenue = total cost (c) sales revenue < total cost (d) variable cost < total cost Ans.: (a) sales revenue > total cost

14.

In Break-even Analysis, total cost consists of _________ (a) fixed cost (b) variable cost (c) fixed and variable costs Ans.: (a) fixed variable costs

(d) operation costs

15.

Contribution per unit formula is _________ (a) Selling price per unit – Fixed cost (b) FC- VC (c) Selling price/ variable cost (d) Selling price per unit – variable cost Ans.: (d) Selling price per unit – variable cost

16.

BEP analysis is a _________ analysis (a) Short Term (b) Long Term Ans.: (a) Short Term

(c) Quick

(d) Medium term

17.

[Direct material + Direct expenses + Factory overheads] is known as ________ (a) Manufacturing cost (b) Conversion cost (c) Prime cost (d) Sunk cost Ans.: (b) Conversion cost

18.

[Direct materials cost + Direct labor cost] is known as _________ (a) Factory cost (b) Conversion cost (c) Prime cost Ans.: (c) Prime cost

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Which of the follow is not a Conversion cost? (a) Direct labor and related benefits and payroll taxes (c) Cost of raw materials Ans.: (c) Cost of raw materials

(d) Sunk cost

(b) Equipment depreciation (d) Factory rent

Overheads is a total of _________ (a) Direct costs (b) Fixed costs Ans.: (d) Indirect costs

(c) Variable costs

(d) Indirect costs

Carrying cost is also known as _____. (a) OC (b) CC Ans.: (b) CC

(c) TC

(d) FC

OC is also known as ______. (a) Offer cost (b) Other cost Ans.: (c) Ordering Cost

(c) Ordering Cost

(d) Objective cost

Costs that change in response to alternative courses of action are called: (a) Relevant costs (b) Differential costs (c) Target costs (d) Sunk costs Ans.: (b) Differential costs

Costing & Industrial Management

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24.

Bin card records Quantity while store ledger records _________. (a) Consumption (b) Material Issue only (c) Quantity with value (d) Material receipt only Ans.: (c) Quantity with value

25.

LIFO is ______ (a) Late In First Out (b) Last In First Out Ans.: (b) Last in First out

26.

(c) Late In First Off

FIFO is __________ (a) First In First Off (b) Fast In Fast Out Ans.: (d) First In First Out

(c) Fast In First Out

(d) Last In First Off

(d) First In First Out

27.

Two popular methods of wages payment are _______ (a) Monthly wages (b) Time rate and piece rate (c) Daily wages (d) Hourly wages Ans.: (b) Time rate and piece rate

28.

Time keeping records indicate ______. (a) Idle time only (b) Time spent by the person on the job (c) Time spent in Industry (d) Bunk time Ans.: (c) Time spent in Industry

29.

Time booking records indicate ________. (a) Idle time only (b) Working time only (c) Tea break (d) The time spent by employee on the job Ans.: (d) The time spent by employee on the job

30.

Piece rate system is a system where ___________. (a) Labor rate remains same (b) Labor rate changes (c) Labor rate decided by labor (d) Rates are high Ans.: (a) Labor rate remains same

31.

Indirect cost are treated as ________ (a) Prime cost (b) Overheads Ans.: (b) Overheads

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(c) Factory cost

(d) Cost of Product

BEP in units Formula is ________. (a) Total FC/VC (c) Total FC/ Contribution per unit Ans.: (c) Total FC/ Contribution per unit

(b) Total VC/FC (d) Total SVC/VC per unit

Total Fixed cost is equal to _______. (a) (S-V)Q (b) (FC-VC) Q Ans.: (a) (S-V)Q

(c) (S-V) FC

(d) (F-V) SVC

Unit II

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Overall and strategic planning is done by the (a) Top management (b) Middle level management (d) All of the above Ans.: (a) Top management Planning is a function of _____. (a) Workers (b) Management Ans.: (b) Management

Costing & Industrial Management

(c) Supervisory level management

(c) Supervisor

(d) Promoters

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Employees are motivated by the following _______. (a) Job security (b) Job in security (c) Job Stress Ans.: (a) Job security

(d) Job dissatisfaction

Staffing is a function of _________. (a) Employee (b) Manager Ans.: (d) Management

(c) Promoter

(d) Management

How many levels of Management have? (a) Four (b) Three Ans.: (b) Three

(c) One

(d) Two

Directing is a function of _______. (a) Promoter (b) Manager Ans.: (c) Management

(c) Management

(d) Employee

Fair compensation is necessary for ______. (a) Motivation (b) Industry Ans.: (a) Motivation

(c) Family

(d) Market

Selection and staffing are the functions of. (a) Sales Manager (b) Works Manager Ans.: (c) HR

(c) HR

(d) Director

42.

MBO stands for ___________. (a) Management by Objective (b) Manage by own (c) Manage by other (d) Manage by office Ans.: (a) Management by Objective

43.

Organizing is a function of _________. (a) Staff (b) Management Ans.: (b) Management

(c) Employee

(d) Salesman

44.

What is Management? (a) Management is an art of getting things done through other. (b) Management is an act of things done by other. (c) Management is a science of getting things done through other. (d) Management is a work of others. Ans.: (a) Management is an art of getting things done through other

45.

Job security is must for _________. (a) Development (b) Motivation Ans.: (b) Motivation

(c) Satisfaction

(d) demotion

46.

The era is scientific management is _________. (a) 1830 – 1880 (b) 1880 – 1930 (c) 1930 – 1980 (d) 1940 – 1980 Ans. (b) 1880 – 1930

47.

The number of persons reporting directly to a superior person is called _________. (a) Communicating (b) coordinating (c) span of control (d) control Ans.: (c) span of control

48.

Which one of the following can be delegated in management? (a) Authority (b) Responsibility (c) Power (d) None of the above Ans.: (a) Authority

Costing & Industrial Management

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49.

Top management functions are the most important because these take care of (a) Overall organization (b) specific problems (c) routine problems (d) extraordinary problems Ans.: (a) Overall organization

50.

A power given to a person to get work from his subordinates is called. (a) Authority (b) Responsibility (c) Power (d) System Ans.: (a) authority

51.

The amount of work expected of from a man by his superior is called _______. (a) Power (b) Responsibility (c) Production (d) Delivery Ans.: (b) Responsibility

52.

Management is basically ______. (a) an art & Science (b) science Ans.: (a) an art & Science

(c) art

(d) Social science

Controlling is a function of ___________. (a) Staff (b) Management Ans.: (b) Management

(c) Employee

(d) People

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Organizational design by __________ groups people into departments based on similar skills and expertise. (a) function (b) market (c) geography (d) matrix Ans.: (a) function

55.

__________ is the symbolic structure of boxed titles and lines that represent positions and reporting relationships. (a) Organizational structure (b) Communication Channel (c) Flow Diagram (d) Directory Ans.: (a) Organizational structure

Unit III 56.

Behavioral groups can be classified as _____. (a) primary and secondary groups (b) small and large groups (c) Internal and external groups (d) none of these Ans.: (a) primary and secondary groups

57.

_________ is the transfer of information from a sender to a receiver (a) Implementation (b) Execution (c) Communication (d) Consultation Ans.: (c) Communication

58.

Entrepreneur is a person __________. (a) who joins a business (b) who starts a business (c) Who starts financing (d) Who takes loan Ans.: b) who starts a business

Costing & Industrial Management

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SWOT stands for: (a) Systems, Weaknesses, Origins, and Threats. (b) Strengths, Weaknesses, Opportunities, and Threats. (c) Strengths, Weaknesses, Origins, and Threats. (d) Strengths, Weaknesses, Opportunities, and Treaties. Ans.: (b) Strengths, Weaknesses, Opportunities, and Threats. The form of communication that typically involves interactions between individuals possessing equal power is best referred to as ______________ communication. (a) upward (b)downward (c) horizontal (d) vertical Ans.: (c) horizontal What type of control is most important for effective delegation? (a) Feed forward (b) Spontaneous (c) Feedback Ans.: (c) Feedback

(d) None of these

62.

_________ is a psychological state that reflects an intention to behave in certain way. (a) Preference (b) Habit (c) Motivation (d) Fear Ans.: (c) Motivation

63.

Abraham Maslow is noted with developing the motivational theory as __________ (a) One Factor Theory (b) Two-Factor theory (c) Three factor theory (d) None of these Ans.: (b) Two-Factor theory

64.

Need based theory of motivation invented by ____________ (a) Mc Gregor (b) Peter Drucker (c) Elton Mayo (d) Maslow Ans.: (d) Maslow

65.

Autocratic and Democratic are two styles of __________ (a) Leadership (b) Motivation (c) Management Ans.: (a) Leadership

66.

(d) Democracy

Persons who are able to influence others and who possess managerial authority are termed _______ (a) Managers (b) Leaders (c) Organizers (d) Visionaries Ans.: (b) Leaders

67.

Bureaucracy is considered most efficient system because (a) It insists in rules (b) it prescribes informal relationships (c) it emphasizes on human elements in the organization (d) it provides more freedom to action Ans.: (a) It insists in rules

68.

_____________ is obligation to do duty. (a) Leadership (b) Entrepreneurship Ans.: (c) Responsibility

Costing & Industrial Management

(c) Responsibility

(d) Authority

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69.

______ is a tried and tested method of work measurement for setting basic times and hence standard times for carrying out specified work. (a) Motion Study (b) Work study (c) Time study (d) Project study Ans.: (c) Time study

70. The eliminating wasteful movements and performing only necessary movements study is called ___________ (a) Motion study (b) Work study (c) Time study (d) Machine study Ans.: (a) Motion study 71.

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Two factor theory of motivation provides useful insights into the relationship between individual and situational or hygiene factors. Which of the following is a hygiene factor? (a) Achievement (b) Interpersonal relations (c) Recognition (d) Challenging work Ans.: (b) Interpersonal relations Which one of these is used for motivation? (a) job simplification (b) job rotation Ans.: (b) job rotation

(c) job enlargement

(d) job enrichment

Mr. Sunil works for “Energy Engineering Works.” Apart from the regular compensation, the company provides him with things such as tuition reimbursement, recreational opportunities etc. What is the name given to these things of value? (a) Incentives (b) Rewards (c) Benefits (d) Compensation Ans.: (c) Benefits

74.

Which one of the following is not an element of empowerment? (a) delegation of authority (b) goal setting (c) self – management (d) control mechanism Ans.: (b) goal setting

75.

Which one of the following is not an indicator of status of morale? (a) employees’ absenteeism (b) employee skills (c) accident rate (d) excessive wastage Ans.: (a) employees skills

76.

On which type of leadership, has the recent emphasis been put? (a) transformational leadership (b) transactional leadership (c) autocratic leadership (d) informal leadership Ans.: (b) transactional leadership Unit IV

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SSI stands for: (a) Small Scale Industries (c) State Sponsored Industries Ans.: (a) Small Scale Industries

(b) Small Size Industries (d) None of these

Small scale Industries provide ___________ for increasing employment. (a) Threat (b) Strength (c) Opportunity (d) Wealth Ans.: (c) Opportunity

Costing & Industrial Management

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79.

Risk taking is a quality of____________. (a) Job seeker (b) Entrepreneur Ans.: (b) Entrepreneur

(c) Promoter

80.

Who is an entrepreneur? (a) Someone who invests time and money to start a business. (b) Someone who makes a lot of money. (c) Someone who takes a risk to make a profit. (d) Both (a) & (c) Ans.: (a) Someone who invests time and money to start a business.

81.

Free Enterprise is: (a) a business taking a risk to make a profit (c) people in business trying to make a profit Ans.: (d) a business free of state control

82.

(c) Starter

(b) a program administered by the government (d) a business free of state control

Capital is: (a) money available to invest. (c) a guarantee that a company will be successful Ans.: (d) Both (a) & (b)

(b) prohibitive cost of entry. (d) Both (a) & (b)

83.

The following are included in a business plan: (a) Financial information, production plans, personnel policies (b) Goals of the business and how they will be achieved. (c) A step by step plan for the success of your business. (d) All of the above. Ans.: (d) All of the above

84.

Quality Control is defined as: (a) Controlling the cost of the product. (b) Controlling the number of pieces produced. (c) Producing & monitoring products so they are acceptable to the consumer. (d) Producing & monitoring products so they are acceptable to the workers. Ans.: (c) Producing & monitoring products so they are acceptable to the consumer.

85.

A market survey is important because it tells you: (a) How many & what types of people are shopping at a store. (b) Tells you what the customer will buy. (c) Tells you how much the customer will pay for the product. (d) All of the above Ans.: (d) All of the above

86.

An entrepreneur’s primary motivation for starting a business is: (a) to make money (b) to be independent (c) to be famous (d) to be powerful Ans.: (a) to make money

87.

Entrepreneurs are best as: (a) Managers (b) Venture capitalists Ans.: (d) Doers

Costing & Industrial Management

(c) Planners

(d) Doers

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Which one of them is not of importance to an entrepreneur? (a) Providing employment to the people (b) Providing self sufficiency (c) Creating wealth for the nation (d) Contributing towards research and development system Ans.: (d) Contributing towards research and development system Which one is not function of an entrepreneur? (a) Turning ideas into action (b) Feasibility study (c) Resourcing (d) Shutting down the existing business Ans.: (d) Shutting down the existing business

90.

While selecting of line a business, an entrepreneur must keep in his mind (a) Profitability (b) Risk involved (c) Profits (d) All the above Ans.: (d) All above

91.

An entrepreneur is a person _________. (a) who is creative and innovative (b) who is a financer (c) who works for himself (d) who gives idea only Ans.: (a) who is creative and innovative

92.

A small industry can be started by an entrepreneur in __________ (a) rented premises (b) own premises (c) Both (a) & (b) Ans.: (c) Both (a) & (b)

(d) None of these

Entrepreneurs are __________ (a) High risk takers (b) Moderate risk takers (c) Low risk takers Ans.: (b) Moderate risk takers

(d) None of these

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An organization’s specific environment ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ (a) is unique and changes with conditions (b) is the same regardless of the organization’s age (c) is determined by the top level management (d) is quantified to determine its objective. Ans.: (a) is unique and changes with conditions

95.

Quantitative forecasting applies a set of mathematical rules to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ (a) Develop predictions of outcomes from customer’s opinions (b) A series of past data to predict outcomes (c) Analyze what has happened in the past and determine when it will occur again (d) Estimate the number of products that should be produced at a given time Ans.: (b) A series of past data to predict outcomes

Costing & Industrial Management

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96.

Goods produced on small scale have (a) Perfectly elastic supply (c) Relatively inelastic supply Ans.: (c) Relatively inelastic supply

(b) Highly elastic supply (d) None of the above

97. ___________ means the willingness on the part of the employee to obey the rules and producers of the organization. (a) Discipline (b) Authority (c) Responsibility (d) Unity of command Ans.: (a) Discipline 98.

For the success of business plan the goals should be (a) Limitless (b) Generalized (c) Specific (d) Imaginary Ans.: (c) Specific

99.

Which of the following is NOT recognized as a misconception about entrepreneurship? (a) Successful entrepreneurship needs only a great idea. (b) Entrepreneurship is easy. (c) Entrepreneurship is found only is small businesses. (d) Entrepreneurial ventures and small businesses are different Ans.: (d) Entrepreneurial ventures and small businesses are different

100.

Positive external trends or changes that provide unique and distinct possibilities for innovating and creating value are called _____________. (a) Strengths (b) Opportunities (c) Weaknesses (d) Threats Ans.: (b) Opportunities

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