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Question 1 of 20
1. Question
A product sells 1000 units with contribution of ₹40 per unit and fixed costs of ₹90,000. What is profit/(loss)?
Correct
Total contribution = 1000 × ₹40 = ₹40,000. Profit/(loss) = contribution − fixed costs = ₹40,000 − ₹90,000 = ₹-50,000.
Incorrect
Total contribution = 1000 × ₹40 = ₹40,000. Profit/(loss) = contribution − fixed costs = ₹40,000 − ₹90,000 = ₹-50,000.
Unattempted
Total contribution = 1000 × ₹40 = ₹40,000. Profit/(loss) = contribution − fixed costs = ₹40,000 − ₹90,000 = ₹-50,000.
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Question 2 of 20
2. Question
Break-even point in units is:
Correct
At break-even, total contribution equals fixed costs and profit is zero. BEP units = fixed costs divided by contribution per unit.
Incorrect
At break-even, total contribution equals fixed costs and profit is zero. BEP units = fixed costs divided by contribution per unit.
Unattempted
At break-even, total contribution equals fixed costs and profit is zero. BEP units = fixed costs divided by contribution per unit.
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Question 3 of 20
3. Question
A product sells 1100 units with contribution of ₹30 per unit and fixed costs of ₹110,000. What is profit/(loss)?
Correct
Total contribution = 1100 × ₹30 = ₹33,000. Profit/(loss) = contribution − fixed costs = ₹33,000 − ₹110,000 = ₹-77,000.
Incorrect
Total contribution = 1100 × ₹30 = ₹33,000. Profit/(loss) = contribution − fixed costs = ₹33,000 − ₹110,000 = ₹-77,000.
Unattempted
Total contribution = 1100 × ₹30 = ₹33,000. Profit/(loss) = contribution − fixed costs = ₹33,000 − ₹110,000 = ₹-77,000.
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Question 4 of 20
4. Question
A firm has sales of ₹700,000 and variable costs of ₹385,000. Calculate the P/V ratio.
Correct
Contribution = sales − variable costs = ₹700,000 − ₹385,000 = ₹315,000. P/V ratio = contribution ÷ sales × 100 = 45.0%.
Incorrect
Contribution = sales − variable costs = ₹700,000 − ₹385,000 = ₹315,000. P/V ratio = contribution ÷ sales × 100 = 45.0%.
Unattempted
Contribution = sales − variable costs = ₹700,000 − ₹385,000 = ₹315,000. P/V ratio = contribution ÷ sales × 100 = 45.0%.
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Question 5 of 20
5. Question
Standard quantity for actual output is 380 kg, actual usage is 360 kg and standard price is ₹15/kg. What is material usage variance?
Correct
Material usage variance = standard price × (standard quantity − actual quantity) = ₹15 × (380 − 360) = ₹300. Positive is favourable; negative is adverse.
Incorrect
Material usage variance = standard price × (standard quantity − actual quantity) = ₹15 × (380 − 360) = ₹300. Positive is favourable; negative is adverse.
Unattempted
Material usage variance = standard price × (standard quantity − actual quantity) = ₹15 × (380 − 360) = ₹300. Positive is favourable; negative is adverse.
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Question 6 of 20
6. Question
Standard quantity for actual output is 500 kg, actual quantity used is 530 kg and standard price is ₹10/kg. Material usage variance is:
Correct
Usage variance = SP × (SQ − AQ) = ₹10 × (500 − 530) = −₹300, or ₹300 adverse due to excess usage.
Incorrect
Usage variance = SP × (SQ − AQ) = ₹10 × (500 − 530) = −₹300, or ₹300 adverse due to excess usage.
Unattempted
Usage variance = SP × (SQ − AQ) = ₹10 × (500 − 530) = −₹300, or ₹300 adverse due to excess usage.
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Question 7 of 20
7. Question
Standard quantity for actual output is 320 kg, actual usage is 300 kg and standard price is ₹15/kg. What is material usage variance?
Correct
Material usage variance = standard price × (standard quantity − actual quantity) = ₹15 × (320 − 300) = ₹300. Positive is favourable; negative is adverse.
Incorrect
Material usage variance = standard price × (standard quantity − actual quantity) = ₹15 × (320 − 300) = ₹300. Positive is favourable; negative is adverse.
Unattempted
Material usage variance = standard price × (standard quantity − actual quantity) = ₹15 × (320 − 300) = ₹300. Positive is favourable; negative is adverse.
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Question 8 of 20
8. Question
A product has fixed costs of ₹95,000 and contribution of ₹25 per unit. What is its break-even output?
Correct
Break-even units = fixed costs ÷ contribution per unit = ₹95,000 ÷ ₹25 = 3,800 units. At this output, contribution equals fixed costs and profit is zero.
Incorrect
Break-even units = fixed costs ÷ contribution per unit = ₹95,000 ÷ ₹25 = 3,800 units. At this output, contribution equals fixed costs and profit is zero.
Unattempted
Break-even units = fixed costs ÷ contribution per unit = ₹95,000 ÷ ₹25 = 3,800 units. At this output, contribution equals fixed costs and profit is zero.
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Question 9 of 20
9. Question
Actual quantity of material is 100 kg, standard price ₹20/kg and actual price ₹22/kg. Material price variance is:
Correct
Variance = AQ × (SP − AP) = 100 × (20 − 22) = −₹200, i.e. ₹200 adverse because actual price exceeded standard price.
Incorrect
Variance = AQ × (SP − AP) = 100 × (20 − 22) = −₹200, i.e. ₹200 adverse because actual price exceeded standard price.
Unattempted
Variance = AQ × (SP − AP) = 100 × (20 − 22) = −₹200, i.e. ₹200 adverse because actual price exceeded standard price.
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Question 10 of 20
10. Question
Which statement distinguishes exempt supply from zero-rated supply?
Correct
Zero-rated supplies, such as exports, generally allow eligible ITC/refund treatment under the law. Exempt supplies ordinarily restrict ITC attributable to them, subject to applicable rules.
Incorrect
Zero-rated supplies, such as exports, generally allow eligible ITC/refund treatment under the law. Exempt supplies ordinarily restrict ITC attributable to them, subject to applicable rules.
Unattempted
Zero-rated supplies, such as exports, generally allow eligible ITC/refund treatment under the law. Exempt supplies ordinarily restrict ITC attributable to them, subject to applicable rules.
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Question 11 of 20
11. Question
Conversion cost generally includes:
Correct
Conversion cost is the cost of converting material into finished output and generally includes direct labour and manufacturing/production overheads.
Incorrect
Conversion cost is the cost of converting material into finished output and generally includes direct labour and manufacturing/production overheads.
Unattempted
Conversion cost is the cost of converting material into finished output and generally includes direct labour and manufacturing/production overheads.
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Question 12 of 20
12. Question
Deferred tax arises mainly because of:
Correct
Deferred tax reflects future tax consequences of temporary differences between an asset/liability’s carrying amount and its tax base. Permanent differences generally do not create deferred tax.
Incorrect
Deferred tax reflects future tax consequences of temporary differences between an asset/liability’s carrying amount and its tax base. Permanent differences generally do not create deferred tax.
Unattempted
Deferred tax reflects future tax consequences of temporary differences between an asset/liability’s carrying amount and its tax base. Permanent differences generally do not create deferred tax.
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Question 13 of 20
13. Question
Which deduction is specifically named in the JAIIB AFM Module D syllabus for royalty income of authors of certain books?
Correct
The syllabus specifically includes deduction under section 80QQB, associated with royalty income of eligible authors of certain books. The governing Act and conditions should be checked for the relevant tax year.
Incorrect
The syllabus specifically includes deduction under section 80QQB, associated with royalty income of eligible authors of certain books. The governing Act and conditions should be checked for the relevant tax year.
Unattempted
The syllabus specifically includes deduction under section 80QQB, associated with royalty income of eligible authors of certain books. The governing Act and conditions should be checked for the relevant tax year.
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Question 14 of 20
14. Question
Which is a prime cost component?
Correct
Prime cost comprises direct material, direct labour and direct expenses. Factory overheads are added to prime cost to obtain works/production cost.
Incorrect
Prime cost comprises direct material, direct labour and direct expenses. Factory overheads are added to prime cost to obtain works/production cost.
Unattempted
Prime cost comprises direct material, direct labour and direct expenses. Factory overheads are added to prime cost to obtain works/production cost.
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Question 15 of 20
15. Question
Actual labour hours are 100, standard hourly rate is ₹21 and actual hourly rate is ₹19. What is labour rate variance?
Correct
Labour rate variance = actual hours × (standard rate − actual rate) = 100 × (₹21 − ₹19) = ₹200. A higher actual rate creates an adverse variance.
Incorrect
Labour rate variance = actual hours × (standard rate − actual rate) = 100 × (₹21 − ₹19) = ₹200. A higher actual rate creates an adverse variance.
Unattempted
Labour rate variance = actual hours × (standard rate − actual rate) = 100 × (₹21 − ₹19) = ₹200. A higher actual rate creates an adverse variance.
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Question 16 of 20
16. Question
A product has fixed costs of ₹110,000 and contribution of ₹35 per unit. What is its break-even output?
Correct
Break-even units = fixed costs ÷ contribution per unit = ₹110,000 ÷ ₹35 = 3,143 units. At this output, contribution equals fixed costs and profit is zero.
Incorrect
Break-even units = fixed costs ÷ contribution per unit = ₹110,000 ÷ ₹35 = 3,143 units. At this output, contribution equals fixed costs and profit is zero.
Unattempted
Break-even units = fixed costs ÷ contribution per unit = ₹110,000 ÷ ₹35 = 3,143 units. At this output, contribution equals fixed costs and profit is zero.
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Question 17 of 20
17. Question
A manufacturer budgets sales of 675 units, desired closing finished goods of 180 units and opening finished goods of 120 units. Required production is:
Correct
Production budget = sales + desired closing stock − opening stock = 675 + 180 − 120 = 735 units.
Incorrect
Production budget = sales + desired closing stock − opening stock = 675 + 180 − 120 = 735 units.
Unattempted
Production budget = sales + desired closing stock − opening stock = 675 + 180 − 120 = 735 units.
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Question 18 of 20
18. Question
A firm has sales of ₹625,000 and variable costs of ₹343,750. Calculate the P/V ratio.
Correct
Contribution = sales − variable costs = ₹625,000 − ₹343,750 = ₹281,250. P/V ratio = contribution ÷ sales × 100 = 45.0%.
Incorrect
Contribution = sales − variable costs = ₹625,000 − ₹343,750 = ₹281,250. P/V ratio = contribution ÷ sales × 100 = 45.0%.
Unattempted
Contribution = sales − variable costs = ₹625,000 − ₹343,750 = ₹281,250. P/V ratio = contribution ÷ sales × 100 = 45.0%.
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Question 19 of 20
19. Question
Normal process loss is generally:
Correct
Normal loss is expected under normal operating conditions and is usually absorbed by the cost of good units. Abnormal loss or gain is separately identified and analysed.
Incorrect
Normal loss is expected under normal operating conditions and is usually absorbed by the cost of good units. Abnormal loss or gain is separately identified and analysed.
Unattempted
Normal loss is expected under normal operating conditions and is usually absorbed by the cost of good units. Abnormal loss or gain is separately identified and analysed.
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Question 20 of 20
20. Question
At a particular activity level, variable costs are ₹100,000 and fixed costs are ₹100,000. Total cost is:
Correct
Total cost at the stated activity level = variable cost + fixed cost = ₹100,000 + ₹100,000 = ₹200,000.
Incorrect
Total cost at the stated activity level = variable cost + fixed cost = ₹100,000 + ₹100,000 = ₹200,000.
Unattempted
Total cost at the stated activity level = variable cost + fixed cost = ₹100,000 + ₹100,000 = ₹200,000.