CA IntermediateCost & Management Accounting2025

CA Intermediate - Cost & Management Accounting (2025)

Download and solve CA Intermediate Cost & Management Accounting question paper for 2025. Free English medium medium difficulty paper with model answers and explanations on Plainscan.

Question Paper

Question 1

singleStep Fixed Cost
2 Marks
Which of the following costs is an example of a 'step fixed cost' (semi-fixed cost)?
A.Direct material cost per unit
B.Electricity cost with a minimum demand charge
C.Supervisor's salary (one supervisor can manage up to 50 workers, beyond which an additional supervisor is needed)
D.Commission paid to salesmen as a percentage of sales

Question 2

singleHigh-Low Method
2 Marks
If the total cost at 1,000 units is Rs.20,000 and at 1,500 units is Rs.27,500, the fixed cost component using the High-Low method is:
A.Rs.5,000
B.Rs.5,500
C.Rs.7,500
D.Rs.2,500

Question 3

singleBreak-Even Point
2 Marks
The Break-Even Point (BEP) in units is calculated as:
A.Fixed Cost / Selling Price per unit
B.Fixed Cost / Contribution per unit
C.Fixed Cost / Variable Cost per unit
D.Total Cost / Selling Price per unit

Question 4

singleAbnormal Loss
2 Marks
In a process costing system, 500 units are introduced in Process I. Normal loss is 10%. Actual output is 430 units. The number of abnormal loss units is:
A.20 units
B.50 units
C.70 units
D.30 units

Question 5

singleCost Driver - Machine Setup
2 Marks
Under Activity-Based Costing (ABC), the cost driver for 'Machine Setup Costs' would most appropriately be:
A.Number of units produced
B.Number of machine setups
C.Number of direct labour hours
D.Number of purchase orders

Question 6

singleMaterial Price Variance
2 Marks
The Material Price Variance is calculated as:
A.(Standard Price - Actual Price) x Actual Quantity
B.(Standard Price - Actual Price) x Standard Quantity
C.(Actual Price - Standard Price) x Standard Quantity
D.(Standard Quantity - Actual Quantity) x Standard Price

Question 7

singleNRV Method
2 Marks
In Joint Product costing, the 'Net Realisable Value (NRV) method' allocates joint costs based on:
A.Physical units produced
B.Market value at the point of separation
C.Final selling price minus further processing costs after split-off
D.Total variable cost of each product

Question 8

singleP/V Ratio - Target Profit
2 Marks
A company has a Profit-Volume (P/V) ratio of 40% and total fixed costs of Rs.2,00,000. The sales volume required to earn a target profit of Rs.1,00,000 is:
A.Rs.5,00,000
B.Rs.7,50,000
C.Rs.3,00,000
D.Rs.6,00,000

Question 9

singleOverhead Absorption Rate
2 Marks
Budget for the forthcoming period shows that for a production of 5,000 units, the variable overhead is Rs.75,000 and fixed overhead is Rs.50,000. The total overhead absorption rate per unit is:
A.Rs.15
B.Rs.25
C.Rs.10
D.Rs.20

Question 10

singleContribution Definition
2 Marks
The concept of 'Contribution' in Marginal Costing is defined as:
A.Sales Revenue - Total Cost
B.Sales Revenue - Fixed Cost
C.Sales Revenue - Variable Cost
D.Fixed Cost - Variable Cost

Question 11

singleBalanced Scorecard - Learning & Growth
2 Marks
In a balanced scorecard, the 'Learning and Growth' perspective primarily focuses on:
A.Customer retention rate
B.Employee training, skills, and organizational capacity to improve
C.Return on investment (ROI)
D.On-time delivery to customers

Question 12

singleLife Cycle Costing
2 Marks
In Life Cycle Costing, the phase that typically incurs the highest proportion of total lifecycle costs (even though cash is paid later) is:
A.Manufacturing phase
B.Design and development phase
C.Marketing phase
D.Disposal phase

Question 13

singleSpecial Order Decision
2 Marks
A company accepts a special order at a price below the normal selling price. Under Marginal Costing, the order is financially viable if:
A.The special order price exceeds total cost per unit
B.The special order price exceeds variable cost per unit (positive contribution)
C.The order uses less than 50% of spare capacity
D.The order price equals the existing market price

Question 14

singleFeatures of Good Budgetary Control
2 Marks
Which of the following is an essential feature of a good budgetary control system?
A.Budgets should be prepared only by top management
B.Budgets should be rigid and not subject to revision
C.Participation of all levels of management and regular comparison with actual results
D.Budgets should be prepared annually and reviewed every 5 years

Question 15

singleEquivalent Production Units
2 Marks
Equivalent Production Units in process costing are calculated to:
A.Calculate total output from a process
B.Convert work-in-progress at various stages of completion into fully completed units for cost allocation
C.Measure the efficiency of the production department
D.Calculate abnormal loss or gain

Question 16

singleLabour Cost Variance
2 Marks
The Total Labour Cost Variance is calculated as:
A.(Standard Cost for Actual Output) - (Actual Cost)
B.(Actual Cost) - (Standard Cost for Budgeted Output)
C.(Standard Hours for Actual Output - Actual Hours) x Standard Rate
D.(Standard Rate - Actual Rate) x Actual Hours

Question 17

singleProfit Recognition - Work Certified
2 Marks
In a contract costing scenario, if a contract is 60% complete by year end and the expected profit is Rs.5,00,000, the profit to be recognized in the current year under the 'work certified' method is:
A.Rs.5,00,000
B.Rs.3,00,000
C.Rs.2,00,000
D.Nil

Question 18

singleJust-In-Time (JIT)
2 Marks
Under the Just-In-Time (JIT) inventory system, the primary goal is to:
A.Maintain high levels of safety stock
B.Minimize inventory by procuring materials only when needed for production
C.Maximize production regardless of demand
D.Centralise all purchasing decisions

Question 19

singleEconomic Order Quantity (EOQ)
2 Marks
Economic Order Quantity (EOQ) minimizes the sum of which two costs?
A.Purchase cost and transportation cost
B.Ordering cost and carrying (holding) cost
C.Labour cost and material cost
D.Fixed cost and variable cost

Question 20

singleKaizen Costing
2 Marks
Kaizen Costing involves:
A.Setting a target cost at the design stage and working backwards from the market price
B.Continuous cost reduction through small, incremental improvements in existing production processes
C.Classifying activities as value-added or non-value-added
D.Absorption of all production overheads into product cost

Paper Details

  • Difficultymedium
  • LanguageEnglish

Mock Exam Settings

5 min25 max
CA Intermediate - Cost & Management Accounting (2025) | Plainscan