Start learning →

CMA Inter Cost and Management Accounting — practice by topic

Browse 58 questions across 5 Cost and Management Accounting topics. Choose what you want to revise, then open a question to check its answer and worked solution.

Start learning CMA Inter with Quill →

Cost and Management Accounting topics

Cost Sheet (14)Marginal Costing (12)Standard Costing (12)Budgets and Budgetary Control (11)Process Costing (9)

Try a Cost and Management Accounting question

Prime cost is the total of which three elements?Read the answer and worked solution →Opening stock of material is 40,000, purchases are 2,10,000 and closing stock is 30,000. Material consumed isRead the answer and worked solution →Cost of goods sold is arrived at by adjusting cost of production forRead the answer and worked solution →Cost of production is 8,00,000, opening finished goods 60,000 and closing finished goods 90,000. Cost of goods sold isRead the answer and worked solution →

Worked practice questions

Prime cost is the total of which three elements?

  1. Direct material, direct labour and direct expenses
  2. Direct material, factory rent and admin salary
  3. Direct labour, selling cost and distribution cost
  4. Direct expenses, packing cost and works overhead
Show answer and solution

Correct answer: A. Direct material, direct labour and direct expenses

1. Prime cost collects only the directly attributable elements of cost. 2. Those are direct material cost, direct employee (labour) cost and direct expenses. 3. The total of each element is worked out separately and then added. 4. Overheads of any kind sit outside prime cost, so factory rent and admin salary do not belong. _Source: ICAI Cost and Management Accounting Ch6 'Cost Sheet', section 6.3.1_

Open this question →

Opening stock of material is 40,000, purchases are 2,10,000 and closing stock is 30,000. Material consumed is

  1. 2,50,000
  2. 2,20,000
  3. 2,80,000
  4. 1,80,000
Show answer and solution

Correct answer: B. 2,20,000

1. Direct materials consumed = opening stock plus purchases less closing stock. 2. Opening plus purchases = 40,000 + 2,10,000 = 2,50,000. 3. Deduct closing stock: 2,50,000 - 30,000 = 2,20,000. 4. Adding closing stock instead of deducting gives 2,80,000, which is the usual slip. _Source: ICAI Cost and Management Accounting Ch6 'Cost Sheet', section 6.3.1(i)_

Open this question →

Cost of goods sold is arrived at by adjusting cost of production for

  1. opening and closing stock of raw material
  2. opening and closing work in progress only
  3. opening and closing stock of finished goods
  4. selling and distribution overheads only
Show answer and solution

Correct answer: C. opening and closing stock of finished goods

1. Cost of production covers everything up to goods being ready for sale. 2. Goods sold in a period are not the same as goods produced in it. 3. So cost of production is adjusted by adding opening finished goods stock and deducting closing finished goods stock. 4. Raw material stock is already handled earlier, inside direct material consumed. _Source: ICAI Cost and Management Accounting Ch6 'Cost Sheet', section 6.3.3_

Open this question →

How to practise

  1. Choose a Cost and Management Accounting question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.