CAT

T2
FREE ONLINE CBE BASED MOCK EXAM

20 Questions
Updated for
Exams in 2010
MINI MOCK EDITION

Prepared by | Hasaan Fazal

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The following data relates to Question # 1, 2 and 3

Paradigm Inc. is busy in producing “shifts” since 1870. To produce one unit of “shifts” they need 2 units
of “wisdom” and 1 unit of “vision”. “Wisdom” is supplied by “Learn & Experience Co.” and “Vision” is
supplied by “i-Think plc”.

The production budget of May states that Paradigm needs to buy 2000 units of wisdom and 1000 units
of vision. For the same, purchase order has been sent and goods have been received. Each unit of
wisdom cost $2 and vision costs $1.

Out of 2000 units of wisdom 140 are found faulty and are returned to the concerned supplier.

Every fortnight the unused material is returned by production facility to the stores department. In the
month of May only once the materials have been returned to stores department. The units returned
were 230.

Q.1
Which of the following document will be raised in respect of return of wisdom?

A. Debit note
B. Credit note
C. Delivery note
D. Invoice

Q.2
Which of the following document will be raised in respect of goods returned to stores by production
facility?

A. Material requisition note

B. Material return note
C. Material recovery note
D. Goods received note

Q.3
Who will raise the goods received note in respect of purchases?

A. Accounting department
B. Store
C. Production department
D. Purchase department

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Q4
Orgnizational structure DOES NOT help us in understanding:

A. Level of authority and responsibility

B. Reporting lines
C. Individual job responsibilities
D. All of the above

Q5
Which of the following is/are true?

I. Value of inventory on bin card is recorded exclusive of tax

II. The amount to be recorded in “CLCA for inventory” for inventory purchased will be gross of
sales tax invoice value
III. Bin card sometimes carry the info about the location of inventory

A. Only I
B. I, II and III
C. Only I and III
D. Only III

Q6
The accountant in headquarter receives the scanned copies of invoices of goods purchased during a
week which are stored on online hard drive. On Saturday afternoon he downloads all the copies from
the online drive on the local PC and process all the invoices using “ACE- Pro” – an accounting software
and updates the records in the mainframe computer placed in the basement of headquarter.

What kind of processing is that?

A. Online processing
B. Real-time processing
C. Batch processing
D. Multiprocessing

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Q7
Which of the following is/are true about “tailor” made softwares?

I. They can be implemented without beta testing

II. They are easy to install
III. They are designed to meet the needs of specific company
IV. They are more expensive then “off the shelve programs”

A. I only
B. II and III only
C. III and IV only
D. None of the above

Q8
Spreadsheet is an example of:

A. Operating system software

B. Application software
C. Utility software
D. ERP software

Q9
Company “Tech-Tel” has implemented a wireless network system in their offices at different locations.
Using this facility they have cut down on wiring installation & maintenance cost and has saved huge
annual overheads and still able to connect every equipment within the same office building.

What kind of network they have installed?

A. WAN
B. VAN
C. BAN
D. LAN

Q10
Bakdown – a limited liability company has two backup sites on their network namely
“Xenon” and “Helium”. The Xenon has reached critical level and is now near to get
overloaded. IT manager has asked you to suggest a best suitable process to transfer information from
Xenon to Helium.

Which of the following do you think is the best process for this?

A. Encryption
B. Backing-up
C. Archiving
D. Synchronizing

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Q11
Mega trends, a leader in providing most innovative products every time, is set to launch yet another
revolutionary product which will relieve the users of personal computer from carrying keyboards with
them all the time.

Company needs to establish sales strategy for which market information is required. What source of
information is most suitable according to you in this circumstance?

A. External source of information

B. Internal source of information
C. Primary source of information
D. Secondary source of information

Q12
Marketing department is an example of which responsibility centre?

A. Revenue Centre
B. Profit Centre
C. Management Centre
D. Cost Centre

Q13
Production manager of Department A is able to reduce cost by cutting down heavily on wastages.
However, he is concerned about wastages in Department B which under another manager’s supervision.
Wastage cost in department B for the manager of department A is:

A. Sunk cost
B. Unavoidable cost
C. Uncontrollable cost
D. Process cost

Q14
Bin card is maintained by:

A. Production department
B. Store
C. Purchase department
D. Accounting department

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Q15
Hash Corporation makes X & X. For this they require a raw material Z & Z. Co has 200 units of it in store
department and 50 units in production department. Production department has requisitioned additional
430 units out of which 200 have been sent and for the rest they have placed an order of 500 units with
the supplier.

What is free stock?

Q16
Standard working hours of each employee working in “Benchmark” Co. is 8 hours a day. One employee
has worked 12 hours and he is compensated at $8/hour. Overtime premium is paid at three-quarters of
normal pay.

What is overtime pay?

The following data relates to Q17, 18, 19 & 20

Pakistan Ordinance Factory POF is busy making world’s finest “corner shot” weapon codenamed EYE.
Each unit passes through several departments before it is finished.

Following is the budgeted and actual data related to this product.

Departments
A B C Total
Budgeted data
Overheads 100,000 200,000 300,000 600,000
Hours 20,000 30,000 40,000 90,000

Actual data
Overhead 123,000 185,000 360,000 668,000
Hours 22,000 25,000 46,000 93,000

Calculate:

Q17. Blanket overhead absorption rate for POF (rounded to 2 decimal places)
Q18. Overheads absorbed in department A based on departmental absorption rate
Q19. Departmental OAR for department B (rounded to 2 decimal places)
Q20. Under/over absorbed overheads for department C based on departmental overheads
[NOTE: For under absorption use “ “sign with your amount e.g. “- xxx”]

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