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Created on April 04, 2026 By

CA Sonal Saboo

CMA Final

Final Cost and Management Audit PN-17 Quiz 2

This quiz is based on the CMA Cost and Management Audit paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA CMAD concepts.

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Category: Cost and Management Audit PN-17

1. Idle capacity is the difference between .

a. Installed capacity and Actual Capacity Utilisation

b. Installed capacity and Normal Capacity

c. Abnormal Idle capacity and Normal Capacity

d. Installed capacity and Normal Capacity

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Category: Cost and Management Audit PN-17

2. Which of the following is not forming part of Cost of transportation?

a. Cost of transport

b. Transit insurance

c. Demurrage Charge

d. Local Octroi charges

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Category: Cost and Management Audit PN-17

3. The foreign exchange component of imported material is converted at the rate on .

a. Date of Payment

b. Date of Delivery

c. Date of Transaction

d. Date of Use

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Category: Cost and Management Audit PN-17

4. CAS 21 deals with .

a. Cost of service cost centre

b. Quality Control

c. Capacity determination

d. Cost classification

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Category: Cost and Management Audit PN-17

5. CAS-17 deals with .

a. Royalty and Technical Knowhow fee

b. Material Cost

c. Research & Development Cost

d. Interest & Financing charges

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Category: Cost and Management Audit PN-17

6. Which of the following particulars relating to wages and salaries be included in Cost Auditor’s Report to the Director of the company?

a. Total wages and salaries paid

b. Total man-days of direct labour available and actually worked

c. A brief explanation for variances in item

d. All of the above

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Category: Cost and Management Audit PN-17

7. Which of the following persons shall not be appointed as auditor of a company?

a. A person who has been appointed as auditor of the company

b. A spouse of a director of the company

c. A body corporate

d. All of the above

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Category: Cost and Management Audit PN-17

8. Which of the following persons shall NOT be appointed as cost auditor of a company:

a. A person who has been appointed as auditor of the company for the respective period

b. A person who is, or at any time during the preceding three years was a director, officer or in the employment of a director

c. Both A&B

d. None

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Category: Cost and Management Audit PN-17

9. The cost auditing standards deal with the of the cost auditor.

a. Efficiency

b. Effectiveness

c. Qualifications

d. Responsibility

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Category: Cost and Management Audit PN-17

10. The cost auditor is for forming and expressing an opinion on the cost statements.

a. Responsible

b. Reasonable

c. Irresponsible

d. Assessing

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Category: Cost and Management Audit PN-17

11. Cost audit is to be conducted by a cost auditor who is a/an .

a. Any indian resident

b. Qualified Chartered accountant

c. Qualified Company secretary

d. Qualified cost and management accountant

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Category: Cost and Management Audit PN-17

12. Relatives of any partner of the firm holding any security of or interest in the company of face value exceeding ` lakh can not be appointed as the Cost Auditor of that company.

a. One

b. Two

c. Three

d. None of the above

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Category: Cost and Management Audit PN-17

13. The cost auditor to be appointed within------- days of the beginning of the financial year

a. 90 days

b. 180 days

c. 6 months

d. 270 days

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Category: Cost and Management Audit PN-17

14. Which of the following is not a Professional Misconduct as per the First Schedule of The CWA Act, 1959, in relation to the Cost Accountants in Practice?

a. Pays or allows or agrees to pay or allow, directly or indirectly, any share, commission or brokerage in the fees or profits of his/her professional work, to any person other than a member of the Institute or a partner or a retired partner or the legal representative of a deceased partner

b. Enters into a partnership, in or outside India, with any person other than a Cost Accountant in Practice or such other person who is a member of any other professional body having such qualifications as may be prescribed

c. Advertises his/her professional attainments or services or uses any designation or expression other than Cost Accountant on professional documents, visiting cards, letter heads or sign boards, unless it is a degree of a University established by law in India or recognised by the Central Government or a title indicating membership of The ICAI or any other institution that has been recognised by the Central Government or may be recognised by the Council

d. Expresses his/her opinion on cost or pricing statements of any business or enterprise in which, he/she, his/her firm or a partner in his/her firm has substantial interest

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Category: Cost and Management Audit PN-17

15. Which one of the following is not a professional misconduct in relation to Cost Accountants in Practice as per the Second Schedule of The CWA Act, 1959?

a. He/she fails to invite attention to any material departure from the generally accepted procedure of costing and pricing applicable to the circumstances

b. He/she does not exercise due diligence or is grossly negligent in the conduct of his/her professional duties

c. He/she fails to report a material misstatement known to him/her to appear in a cost or pricing statement with which he/she is concerned in a professional capacit

d. In the opinion of the Council, he/she brings disrepute to the Profession or the Institute as a result of his/her action whether or not related to his/her professional work

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Category: Cost and Management Audit PN-17

16. Any casual vacancy in the office of a cost auditor, shall be filled by the Board of Directors within days of occurrence of such vacancy.

a. 180

b. 90

c. 30

d. 60

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Category: Cost and Management Audit PN-17

17. Cost auditor to report fraud under section of Companies Act, 2013.

a. Section 140(12)

b. Section 148(2)

c. Section 144(10)

d. Section 143(12)

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Category: Cost and Management Audit PN-17

18. A cost accountant who fails comply with the provisions of sub- section (12) of Sec. 143 of the Companies Act, 2013, shall be punishable with fine of maximum ` .

a. 5.00 lakhs

b. 25.00 lakhs

c. 1.00 lakhs

d. 10.00 lakhs

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Category: Cost and Management Audit PN-17

19. The appointment of Cost Auditor is defined under section of the Companies Act, 2013.

a. Section 148(2)

b. Section 148(3)

c. Section 144(3)

d. Section 139

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Category: Cost and Management Audit PN-17

20. Cost Information the organization to structure the cost, understand it and use it for communicating with the stakeholders.

a. Enables

b. Disables

c. Useful

d. None of these

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Category: Cost and Management Audit PN-17

21. As per the CAS 23, the activity of Overburden Removal that benefits the identified component of an ore to be mined by the entity is called as ......

a. Mining Activity

b. Overburden Remova

c. Stripping Activity

d. Advance Stripping

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Category: Cost and Management Audit PN-17

22. Which one of the below is not a regulated industry

a. Fertilizers

b. Aluminium

c. Sugar

d. Petroleum products

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Category: Cost and Management Audit PN-17

23. The cost audit report under CCRA – Rules, 2014 is to be submitted in ---------------

a. Form – 3

b. Form – 4

c. Form – 1

d. Form – 2

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Category: Cost and Management Audit PN-17

24. The CCRA – Rules, 2014 is not applicable to

a. MSME

b. Export oriented unit

c. Private limited companies

d. Units operating from SEZ

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Category: Cost and Management Audit PN-17

25. The provisions related to maintenance of cost records were introduced in the year by amendment to the Companies Act, 1956.

a. 1960

b. 1965

c. 1966

d. 1970

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Final PN-17 Cost and Management Audit Quiz 2

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