-Fixed cost + Profit
C:-Both (1) and (2)
D:-None of these
Correct Answer:- Option-C
Question29:-Material usage variance is a combination of
A:-Mix variance and Yield variance
B:-Mix variance and Price variance
C:-Material cost variance and Yield variance
D:-None of these
Correct Answer:- Option-A
Question30:- is a method of budgeting where no reference is made to previous level of expenditure.
A:-PPBS
-Flexible Budget
C:-ZBB
D:-Fixed Budget
Correct Answer:- Option-C
Question31:- is a subsidiary objective of Auditing.
A:-Assess the system of internal control
-Detection and prevention of fraud
C:-Confirm existence of assets and liabilities
D:-Ascertain whether distinction has been made between capital and revenue items
Correct Answer:- Option-B
Question32:-Goods purchased for Rs. 10,000 is recorded in purchases day book as Rs. 1,000 is a type of error.
A:-Omission
-Commission
C:-Principle
D:-Compensating
Correct Answer:- Option-B
Question33:-Scheduling dates for interim and year end audit procedures is a goal of
A:-Audit Programme
B:-Audit Procedure
C:-Audit Planning
D:-Alll of these
Correct Answer:- Option-C
Question34:-Mistakes and Errors detected are recorded in
A:-Audit Note Book
B:-Audit Working Papers
C:-Audit evidence papers
D:-None of these
Correct Answer:- Option-A

Question35:- is an arrangement of duties allocated in such a way that the work of one person is automatically
checked by another.

A:-Internal audit
B:-Internal control
C:-Internal check

D:-Both (1) and (3)
Correct Answer:- Option-C

Question36:- is an investigation of business from the highest level downward in order to ascertain whether
sound management prevails throughout the company.

A:-Statutory audit
-Performance audit
C:-Propriety audit
D:-Management audit
Correct Answer:- Option-D

Question37:-When the auditor is satisfied with the fairness of the balance sheet and profit and loss account, he will give a
report.

Qualified report
B:-Unqualified report
C:-Adverse report
D:-None of these