2. LIFO method of pricing of materials is more suitable when _________.

A) material prices are rising
B) material prices are falling
C) material prices are constant
D) material prices are fluctuating
✅ ANSWER: A
LIFO method of pricing of materials is more suitable when material prices are rising. LIFO method of pricing issues is suitable because materials are issued at the current market prices which are high. This method thus helps in showing a lower profit because of increased charge to production during periods of rising prices and lower profit reduces burden of income-tax.

6. The claims against the company not acknowledged as debts are shown as

A) Current liabilities
B) Loans and advances
C) Notes to balance sheet
D) Director’s report
✅ ANSWER: C
The claims against the company not acknowledged as debts are shown as notes to balance sheet. All claims which the company does not acknowledge as debts should be disclosed. Claims against the company by the labour union for additional wages, compensation, etc. come under this category.

33. An analysis and estimation method of cost, by classifying cost accounts as fixed or variable with respect for specific output level is considered as

A) manufacturing analysis method
B) price analysis method
C) unit analysis method
D) account analysis method
✅ ANSWER: D
An analysis and estimation method of cost, by classifying cost accounts as fixed or variable with respect for specific output level is considered as account analysis method. The account analysis method is a cost accounting method for estimating the different costs associated with producing a product.

31. Pick out the incorrect statement.

A) In a medical examiner’s report physical features like height, weight, blood pressure, etc need to be stated for proper risk assessment
B) If a proposal cannot be considered as a non-medical case for underwriting, a medical report is essential
C) There is no such thing as non-medical underwriting
D) Ration card is a non-standard proof of age
✅ ANSWER: C
Non Medical Life Insurance is for those who want the quickest possible coverage without going through a longer underwriting process. This product is a fully underwritten product which allows for rapid decision on available medical criteria.

29. In modern investment analysis, the risk for a stock is related to its_____________.

A) leverage factor
B) standard deviation
C) beta coefficient
D) coefficient of variation
✅ ANSWER: C
In modern investment analysis, the risk for a stock is related to its beta coefficient. In finance, the beta (β or beta coefficient) of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors.

5. Carriage inwards refers to the cost of transportation for

A) Purchase of materials
B) Sale of products
C) Returns outward
D) Return of unsold goods
✅ ANSWER: A
Carriage inwards refers to the cost of transportation for Purchase of materials. The carriage inwards costs are considered to be part of the cost of items purchased, since an asset’s cost is defined as all costs that are necessary to get the asset in place and ready for use.

24. Under Immediate annuity, the premium has to be paid

A) In regular instalments
B) In lumpsum
C) Both A & B
D) None of the above
✅ ANSWER: B
Under Immediate annuity, the premium has to be paid in lumpsum. An immediate annuity is an insurance product that gives the buyer a guaranteed stream of income in exchange for a lump sum of cash. Immediate annuities have several advantages, such as long-term stability, tax-deferred income, and monthly income payments for the rest of your life.