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MCQs on Cost Audit 2

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Every company shall maintain cost records in form

a)

CRA-1

b)

CRA-2

c)

CRA-3

d)

CRA-4

2.

The cost records shall be maintained on regular basis in such manner as to facilitate calculation of per unit cost of production or cost of operations, cost of sales and margin for each of its products and activities for every financial year on monthly or quarterly or half-yearly or annual basis.

a)

True

b)

False

3.

The cost records shall be maintained to exercise, as far as possible for

a)

Control over the various operations

b)

Control over the costs to achieve optimum economies

c)

Utilisation of resources

d)

All of the above

4.

Cost records shall also provide necessary data which is required to be furnished under these rules.

a)

True

b)

False

5.

The Company is engaged in the production of the goods or providing services, specified in the tables and have an overall turnover from all its products and services of rupees___________

a)

35 Crore

b)

350 Crore

c)

25 Crore

d)

15 Crore

6.

Nothing contained in this cost records rule shall apply to a company which is classified as a

a)

Micro enterprise

b)

small enterprise

c)

both a and B

d)

None of these

7.

Cost Audit shall be done by a

a)

Senior Accountant

b)

Chief Accountant

c)

Cost Accountant

d)

Financial Accountant

8.

Consent Letter and Eligibility Certificate shall be provided by

a)

Cost Auditor

b)

Board of Directors

c)

Cost Accountants

d)

Court of Law

9.

No person appointed under section _________as an auditor of the company shall be appointed for conducting the audit of cost records

a)

149

b)

139

c)

159

d)

169

10.

Cost Auditor shall be appointed by the Board within ________days from the commencement of financial year.

a)

190

b)

150

c)

180

d)

90

11.

Remuneration of Cost Accountant shall be determined by the

a)

Board of members

b)

Cost Auditor

c)

Shareholder

d)

Directors

12.

The cost statements, including other statements to be annexed to the cost audit report, shall be approved by the

a)

Cost Auditors

b)

Cost Accountants

c)

Board of Directors

d)

Audit committee

13.

The report on the audit of cost records shall be submitted by the cost accountant to the Board of Directors of the company within a period of

a)

90 Days

b)

120 Days

c)

180 Days

d)

190 Days

14.

A company shall within _________ days from the date of receipt of a copy of the cost audit report shall furnish the Central Government with such report along with full information and explanation on every reservation or qualification contained therein.

a)

45

b)

30

c)

90

d)

180

15.

Every cost auditor appointed as such shall continue in such capacity till the expiry of _______days from the closure of the financial year or submission of cost audit report, for the financial year for which he has been appointed.

a)

45

b)

30

c)

90

d)

180

16.

Every company specified in item (A) of rule 3 shall get its cost records audited if the overall annual turnover of the company from all its products and services during the immediately preceding financial year is

a)

30 Crore

b)

50 Crore

c)

100 Crore

d)

80 Crore

17.

CRA-1 is used for

a)

Appointment of cost auditor

b)

Format of cost audit report

c)

Format of Cost Audit Report

d)

Submission of Report

18.

CRA-2 is used in

a)

Format of cost audit records

b)

Appointment of cost auditor

c)

Format of cost audit report

d)

Submission of cost audit report

19.

Cost and Works Accounts belong to

a)

1959

b)

1969

c)

1979

d)

1939

20.

Cost accountant can be

a)

an individual

b)

a firm

c)

limited liability partnership

d)

All of the above

21.

Duly signed report on the cost records examined and cost statements known as

a)

Auditor's report

b)

Cost Audit Report

c)

General cost report

d)

Auditors opinion

22.

Books of account relating to utilisation of materials, labour and other items of cost known as

a)

Cost Statement

b)

Cost Records

c)

Cost Accounting

d)

Cost Book Keeping

23.

CARO stands for

a)

Company Authorized Report Order

b)

Company Auditors Report Order

c)

Client Authentication Report Order

d)

Company Authentication Reorder

24.

Latest CARO is

a)

CARO 2020

b)

CARO 2019

c)

CARO 2016

d)

CARO 2021

25.

Which one is not the element of CARO

a)

Details of tangible and intangible assets

b)

Details of inventory and working capital

c)

Details on Financial Debts

d)

Funds raised and Utilisation