Test 2: Overheads: Absorption Costing Method: answer key
This chapter-wise practice test covers Chapter 4: Overheads: Absorption Costing Method - Test 2 for CA Intermediate Group 2 students preparing for the January 2027 examination attempt. It carries 50 marks across 25 questions in case scenarios and standalone practical MCQs with a time limit of 60 minutes and no negative marking.
25 questions across 1 chapter, 50 marks and 60 minutes in the timed paper. Every answer below is shown with the working behind it and the authority it rests on.
Law and standards used: ICAI Study Material for CA Intermediate Paper 4: Cost and Management Accounting (relevant for 2027 attempt).
Questions
25
Marks
50
Time limit
60 minutes
Attempt
January 2027
Group
Group 2
Law basis
ICAI Study Material for CA Intermediate Paper 4: Cost and Management Accounting (relevant for 2027 attempt)
Question 1 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · medium
Scenario. Meridian Alloys Ltd has three production departments, A, B and C, and two service departments, Stores (S1) and Maintenance (S2). The primary distribution summary for June 2026 shows the following departmental overheads: A ₹4,80,000; B ₹3,60,000; C ₹2,40,000; S1 ₹1,60,000; S2 ₹1,20,000. The company follows the direct re-distribution method for secondary distribution, under which service department costs are apportioned only to production departments and services rendered by one service department to another are ignored. The apportionment bases agreed for the service departments are: S1 is apportioned to A, B and C in the ratio 50%, 30% and 20% respectively. S2 is apportioned to A, B and C in the ratio 40%, 35% and 25% respectively. The management wants to determine the total departmental overheads of each production department after secondary distribution so that a departmental overhead absorption rate can be computed. You are required to answer the following MCQs based on the direct re-distribution method.
Under the direct re-distribution method, what amount of Stores department (S1) cost is apportioned to production department A?
₹80,000 (correct answer)
₹64,000
₹96,000
₹48,000
Answer: A — ₹80,000
Explanation. S1 total cost is ₹1,60,000. Under the direct method, it is apportioned only to production departments. A receives 50% of S1. Amount to A = ₹1,60,000 × 50% = ₹80,000. Option b uses 40%, option c uses 60%, and option d uses 30%, each representing a wrong percentage share.
Where it goes wrong. Using the S2 percentage or another department share for S1.
Question 2 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · hard
What amount of Maintenance department (S2) cost is apportioned to production department C?
₹42,000
₹30,000 (correct answer)
₹48,000
₹36,000
Answer: B — ₹30,000
Explanation. S2 total cost is ₹1,20,000. C receives 25% of S2 under the direct re-distribution method. Amount to C = ₹1,20,000 × 25% = ₹30,000. Option a uses 35% (B share), option c uses 40% (A share), and option d uses 30%, a common wrong percentage.
Where it goes wrong. Interchanging the S2 percentage shares of A, B and C.
Question 3 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · medium
What is the total overhead of production department B after direct re-distribution of service department costs?
₹4,44,000
₹4,56,000
₹4,50,000 (correct answer)
₹4,38,000
Answer: C — ₹4,50,000
Explanation. B primary overhead = ₹3,60,000. S1 share to B = ₹1,60,000 × 30% = ₹48,000. S2 share to B = ₹1,20,000 × 35% = ₹42,000. Total B overhead = ₹3,60,000 + ₹48,000 + ₹42,000 = ₹4,50,000. Option a omits part of S2; option d uses 30% for S2.
Where it goes wrong. Using the wrong S2 share for B or omitting one service department apportionment.
Question 4 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · hard
What is the total overhead of production department A after direct re-distribution of service department costs?
₹5,60,000
₹6,00,000
₹6,24,000
₹6,08,000 (correct answer)
Answer: D — ₹6,08,000
Explanation. A primary overhead = ₹4,80,000. S1 share to A = ₹1,60,000 × 50% = ₹80,000. S2 share to A = ₹1,20,000 × 40% = ₹48,000. Total A overhead = ₹4,80,000 + ₹80,000 + ₹48,000 = ₹6,08,000. Option b omits S2; option c uses 60% for S1.
Where it goes wrong. Omitting one service department share or using S1 60% instead of 50%.
Question 5 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · medium
Scenario. Trident Foods Ltd operates two production departments, P1 and P2, and two service departments, S1 and S2. For July 2026, the primary distribution of overheads is: P1 ₹2,00,000; P2 ₹1,50,000; S1 ₹90,000; S2 ₹60,000. The company uses the step-ladder method of secondary distribution. The sequence has been determined on the basis of services rendered: S1 serves S2, P1 and P2 in the ratio 10%, 50% and 40% respectively. After receiving its share from S1, the total cost of S2 is apportioned only to the production departments in the ratio 60% to P1 and 40% to P2. No cost of S2 is apportioned back to S1. The accountant has to prepare a statement showing the redistribution of service department costs and the final overheads of P1 and P2. You are required to answer the following MCQs based on the step-ladder method.
Under the step-ladder method, what amount of S1 cost is apportioned to service department S2?
₹9,000 (correct answer)
₹18,000
₹6,000
₹12,000
Answer: A — ₹9,000
Explanation. S1 total cost is ₹90,000. S1 serves S2 to the extent of 10%. Amount apportioned to S2 = ₹90,000 × 10% = ₹9,000. Option b uses 20%, option c uses a wrong 6.67%, and option d uses 13.33%. The step method first recognises S1's service to S2.
Where it goes wrong. Ignoring S1's service to S2 or using the P1/P2 percentage instead.
Question 6 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · hard
What is the total cost of service department S2 after it receives its share from S1?
₹60,000
₹69,000 (correct answer)
₹72,000
₹66,000
Answer: B — ₹69,000
Explanation. S2 primary cost = ₹60,000. S1 apportions 10% of ₹90,000 = ₹9,000 to S2. Total S2 cost before apportionment to production departments = ₹60,000 + ₹9,000 = ₹69,000. Option a ignores S1's share; option c adds ₹12,000 instead of ₹9,000.
Where it goes wrong. Forgetting to add S1's apportionment to S2 before distributing S2.
Question 9 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · medium
Scenario. Quantum Precision Ltd has two production departments, P1 and P2, and two service departments, X and Y, which render services to each other. The primary distribution of overheads for August 2026 is: P1 ₹3,00,000; P2 ₹2,00,000; X ₹1,80,000; Y ₹1,20,000. The service department costs are mutually interdependent. X apportions its total cost as follows: 20% to Y, 50% to P1 and 30% to P2. Y apportions its total cost as follows: 20% to X, 50% to P1 and 30% to P2. The company uses the simultaneous equation method to resolve reciprocal services. The accountant has to determine the total cost of each service department after accounting for mutual services, and then apportion those total costs to the production departments. You are required to answer the following MCQs based on the simultaneous equation method.
Under the simultaneous equation method, what is the total cost of service department X after accounting for reciprocal services?
₹2,12,500 (correct answer)
₹2,04,000
₹2,20,000
₹2,00,000
Answer: A — ₹2,12,500
Explanation. Let X and Y be total costs. X = ₹1,80,000 + 0.20Y and Y = ₹1,20,000 + 0.20X. Substitute: X = ₹1,80,000 + 0.20(₹1,20,000 + 0.20X) = ₹2,04,000 + 0.04X. Thus 0.96X = ₹2,04,000, so X = ₹2,12,500. Option b is the numerator before dividing by 0.96.
Where it goes wrong. Ignoring the 20% reciprocal service from Y to X in the equation.
Question 10 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · hard
What is the total cost of service department Y after accounting for reciprocal services?
₹1,50,000
₹1,62,500 (correct answer)
₹1,70,000
₹1,56,000
Answer: B — ₹1,62,500
Explanation. Y = ₹1,20,000 + 0.20X. Using X = ₹2,12,500, Y = ₹1,20,000 + 0.20 × ₹2,12,500 = ₹1,20,000 + ₹42,500 = ₹1,62,500. Option a ignores the share from X; option c adds ₹50,000 instead of ₹42,500.
Where it goes wrong. Using 20% of primary X instead of 20% of total X.
Question 11 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · medium
What amount of service department X's total cost is apportioned to production department P1?
₹1,00,000
₹1,12,500
₹1,06,250 (correct answer)
₹1,08,000
Answer: C — ₹1,06,250
Explanation. X total cost after reciprocal services is ₹2,12,500. X apportions 50% to P1. Amount to P1 = ₹2,12,500 × 50% = ₹1,06,250. Option a uses primary cost ₹2,00,000 × 50%; option b uses ₹2,25,000 as X total.
Where it goes wrong. Apportioning primary X cost instead of total X cost after mutual services.
Question 12 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · hard
What is the final overhead of production department P2 after apportioning the total costs of X and Y?
₹3,00,000
₹3,06,250
₹3,20,000
₹3,12,500 (correct answer)
Answer: D — ₹3,12,500
Explanation. P2 primary = ₹2,00,000. Share from X = 30% × ₹2,12,500 = ₹63,750. Share from Y = 30% × ₹1,62,500 = ₹48,750. Total P2 = ₹2,00,000 + ₹63,750 + ₹48,750 = ₹3,12,500. Option a omits service shares; option b uses 25% of Y.
Where it goes wrong. Using primary service costs or incorrect percentages for P2.
Question 13 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · medium
Scenario. A company has service departments S1 and S2 with costs of ₹1,20,000 and ₹80,000 respectively. Under the direct re-distribution method, S1 is apportioned to P1 and P2 in the ratio 60% and 40%, while S2 is apportioned in the ratio 30% and 70%. What total service cost is apportioned to P1?
A company has service departments S1 and S2 with costs of ₹1,20,000 and ₹80,000 respectively. Under the direct re-distribution method, S1 is apportioned to P1 and P2 in the ratio 60% and 40%, while S2 is apportioned in the ratio 30% and 70%. What total service cost is apportioned to P1?
₹96,000 (correct answer)
₹90,000
₹1,04,000
₹88,000
Answer: A — ₹96,000
Explanation. From S1 to P1 = ₹1,20,000 × 60% = ₹72,000. From S2 to P1 = ₹80,000 × 30% = ₹24,000. Total to P1 = ₹72,000 + ₹24,000 = ₹96,000. Option b omits part of S2; option c uses 70% for S2 instead of 30%.
Where it goes wrong. Interchanging S2's percentages or ignoring one service department.
Question 14 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · hard
Scenario. Under the step-ladder method, S1 has a cost of ₹90,000 and is apportioned 10% to S2, 50% to P1 and 40% to P2. S2 has a primary cost of ₹60,000 and is apportioned 60% to P1 and 40% to P2. What is the total cost of S2 to be apportioned to production departments?
Under the step-ladder method, S1 has a cost of ₹90,000 and is apportioned 10% to S2, 50% to P1 and 40% to P2. S2 has a primary cost of ₹60,000 and is apportioned 60% to P1 and 40% to P2. What is the total cost of S2 to be apportioned to production departments?
₹60,000
₹69,000 (correct answer)
₹72,000
₹66,000
Answer: B — ₹69,000
Explanation. S1 apportions 10% of ₹90,000 = ₹9,000 to S2. S2 total = primary ₹60,000 + ₹9,000 = ₹69,000. This total is then apportioned to P1 and P2. Option a ignores S1's share; option c wrongly adds ₹12,000; option d adds ₹6,000.
Where it goes wrong. Not adding the step-down receipt from S1 before apportioning S2.
Question 15 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · medium
Scenario. In a repeated distribution method, S1 has a primary cost of ₹1,00,000 and S2 has ₹80,000. S1 apportions 20% to S2, 50% to P1 and 30% to P2. S2 apportions 10% to S1, 60% to P1 and 30% to P2. What amount is apportioned from S2 to S1 in the first round?
In a repeated distribution method, S1 has a primary cost of ₹1,00,000 and S2 has ₹80,000. S1 apportions 20% to S2, 50% to P1 and 30% to P2. S2 apportions 10% to S1, 60% to P1 and 30% to P2. What amount is apportioned from S2 to S1 in the first round?
₹8,000
₹20,000
₹10,000 (correct answer)
₹12,000
Answer: C — ₹10,000
Explanation. In the first round, S1 apportions 20% of ₹1,00,000 = ₹20,000 to S2. S2 total becomes ₹80,000 + ₹20,000 = ₹1,00,000. S2 then apportions 10% to S1 = ₹1,00,000 × 10% = ₹10,000. Option a uses 10% of primary S2 only; option b is S1's first apportionment to S2.
Where it goes wrong. Applying 10% to primary S2 cost instead of S2 cost after receiving S1's share.
Question 16 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · hard
Scenario. The following simultaneous equations relate to two service departments: X = ₹1,70,000 + 0.25Y and Y = ₹80,000 + 0.20X. What is the total cost of service department X?
The following simultaneous equations relate to two service departments: X = ₹1,70,000 + 0.25Y and Y = ₹80,000 + 0.20X. What is the total cost of service department X?
₹1,90,000
₹1,80,000
₹2,10,000
₹2,00,000 (correct answer)
Answer: D — ₹2,00,000
Explanation. Substitute Y into X: X = ₹1,70,000 + 0.25(₹80,000 + 0.20X) = ₹1,70,000 + ₹20,000 + 0.05X = ₹1,90,000 + 0.05X. Therefore 0.95X = ₹1,90,000 and X = ₹2,00,000. Option a is the numerator before dividing by 0.95.
Where it goes wrong. Forgetting to solve the equation and using the constant term as the answer.
Question 17 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · medium
Scenario. Using the data in the repeated distribution question where S1 primary is ₹1,00,000 and S2 primary is ₹80,000, S1 apportions 20% to S2, 50% to P1, 30% to P2; S2 apportions 10% to S1, 60% to P1, 30% to P2. What amount is apportioned from S1 to P1 in the second round?
Using the data in the repeated distribution question where S1 primary is ₹1,00,000 and S2 primary is ₹80,000, S1 apportions 20% to S2, 50% to P1, 30% to P2; S2 apportions 10% to S1, 60% to P1, 30% to P2. What amount is apportioned from S1 to P1 in the second round?
₹5,000 (correct answer)
₹10,000
₹4,000
₹6,000
Answer: A — ₹5,000
Explanation. First round: S1 to S2 = ₹20,000; S2 total = ₹1,00,000; S2 to S1 = ₹10,000. In the second round, S1 has only ₹10,000 received from S2 to apportion. S1 to P1 = ₹10,000 × 50% = ₹5,000. Option b is the amount received by S1, not P1's share.
Where it goes wrong. Using the original S1 primary cost again instead of only the amount received in the second round.
Question 18 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · hard
Scenario. Under the direct re-distribution method, S1 has a cost of ₹1,50,000 apportioned to P1, P2 and P3 in the ratio 40%, 35% and 25%. S2 has a cost of ₹1,00,000 apportioned in the ratio 50%, 30% and 20%. What total service cost is apportioned to P2?
Under the direct re-distribution method, S1 has a cost of ₹1,50,000 apportioned to P1, P2 and P3 in the ratio 40%, 35% and 25%. S2 has a cost of ₹1,00,000 apportioned in the ratio 50%, 30% and 20%. What total service cost is apportioned to P2?
₹75,000
₹82,500 (correct answer)
₹87,500
₹90,000
Answer: B — ₹82,500
Explanation. From S1 to P2 = ₹1,50,000 × 35% = ₹52,500. From S2 to P2 = ₹1,00,000 × 30% = ₹30,000. Total to P2 = ₹52,500 + ₹30,000 = ₹82,500. Option a uses 25% and 25%; option c uses 35% and 35% for both.
Where it goes wrong. Using P1's 40% share or P3's 25% share for P2.
Question 19 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · medium
Scenario. Under the step-ladder method, S1 has a cost of ₹50,000 and is apportioned 20% to S2, 10% to S3 and 70% to production departments. S2 has a primary cost of ₹40,000 and is apportioned 30% to S3 and 70% to production departments. S3 has a primary cost of ₹30,000. What is the total cost of S3 before it is finally apportioned to production departments?
Under the step-ladder method, S1 has a cost of ₹50,000 and is apportioned 20% to S2, 10% to S3 and 70% to production departments. S2 has a primary cost of ₹40,000 and is apportioned 30% to S3 and 70% to production departments. S3 has a primary cost of ₹30,000. What is the total cost of S3 before it is finally apportioned to production departments?
₹45,000
₹55,000
₹50,000 (correct answer)
₹60,000
Answer: C — ₹50,000
Explanation. S1 to S2 = 20% × ₹50,000 = ₹10,000; S1 to S3 = 10% × ₹50,000 = ₹5,000. S2 total = ₹40,000 + ₹10,000 = ₹50,000. S2 to S3 = 30% × ₹50,000 = ₹15,000. S3 total = ₹30,000 + ₹5,000 + ₹15,000 = ₹50,000. Option a omits S2's share.
Where it goes wrong. Omitting either the direct S1 share to S3 or the S2 share to S3.
Question 20 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · hard
Scenario. The following simultaneous equations relate to service departments X and Y: X = ₹2,30,000 + 0.20Y and Y = ₹75,000 + 0.10X. What is the total cost of service department X?
The following simultaneous equations relate to service departments X and Y: X = ₹2,30,000 + 0.20Y and Y = ₹75,000 + 0.10X. What is the total cost of service department X?
₹2,40,000
₹2,45,000
₹2,55,000
₹2,50,000 (correct answer)
Answer: D — ₹2,50,000
Explanation. Substitute Y into X: X = ₹2,30,000 + 0.20(₹75,000 + 0.10X) = ₹2,30,000 + ₹15,000 + 0.02X = ₹2,45,000 + 0.02X. Thus 0.98X = ₹2,45,000, giving X = ₹2,50,000. Option b is the numerator before division by 0.98.
Where it goes wrong. Dividing by 1 instead of 0.98 after substituting the reciprocal share.
Question 21 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · medium
Scenario. Service department X has a primary cost of ₹1,20,000 and service department Y has ₹60,000. X apportions 20% to Y and Y apportions 20% to X. Using the simultaneous equation method, what is the total cost of X?
Service department X has a primary cost of ₹1,20,000 and service department Y has ₹60,000. X apportions 20% to Y and Y apportions 20% to X. Using the simultaneous equation method, what is the total cost of X?
₹1,37,500 (correct answer)
₹1,32,000
₹1,40,000
₹1,25,000
Answer: A — ₹1,37,500
Explanation. X = ₹1,20,000 + 0.20Y and Y = ₹60,000 + 0.20X. Substitute: X = ₹1,20,000 + 0.20(₹60,000 + 0.20X) = ₹1,20,000 + ₹12,000 + 0.04X = ₹1,32,000 + 0.04X. Thus 0.96X = ₹1,32,000 and X = ₹1,37,500. Option b is the numerator.
Where it goes wrong. Ignoring the 20% mutual service or using 0.20 instead of 0.04 after substitution.
Question 22 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · hard
Scenario. Under the step-ladder method, S1 cost ₹60,000 is apportioned 20% to S2, 30% to S3 and 50% to production departments. S2 primary cost is ₹40,000 and is apportioned 40% to S3 and 60% to production departments. S3 primary cost is ₹30,000 and is apportioned fully to production departments. What is the total amount apportioned to production departments from all three service departments?
Under the step-ladder method, S1 cost ₹60,000 is apportioned 20% to S2, 30% to S3 and 50% to production departments. S2 primary cost is ₹40,000 and is apportioned 40% to S3 and 60% to production departments. S3 primary cost is ₹30,000 and is apportioned fully to production departments. What is the total amount apportioned to production departments from all three service departments?
₹1,25,000
₹1,30,000 (correct answer)
₹1,35,000
₹1,40,000
Answer: B — ₹1,30,000
Explanation. S1: to production = ₹60,000 × 50% = ₹30,000; to S2 = ₹12,000; to S3 = ₹18,000. S2 total = ₹40,000 + ₹12,000 = ₹52,000; to production = 60% = ₹31,200; to S3 = ₹20,800. S3 total = ₹30,000 + ₹18,000 + ₹20,800 = ₹68,800. Total to production = ₹30,000 + ₹31,200 + ₹68,800 = ₹1,30,000. Option a omits S3's receipt from S2.
Where it goes wrong. Ignoring the step-down additions to S3 before its final apportionment.
Question 23 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · medium
Scenario. In the simultaneous equation method, the total costs of service departments X and Y are determined as ₹2,50,000 and ₹1,50,000 respectively. X apportions its total cost 40% to P1, 30% to P2, 20% to P3 and 10% to Y. What amount of X's total cost is apportioned to P3?
In the simultaneous equation method, the total costs of service departments X and Y are determined as ₹2,50,000 and ₹1,50,000 respectively. X apportions its total cost 40% to P1, 30% to P2, 20% to P3 and 10% to Y. What amount of X's total cost is apportioned to P3?
₹40,000
₹45,000
₹50,000 (correct answer)
₹60,000
Answer: C — ₹50,000
Explanation. X total cost is ₹2,50,000. P3 receives 20% of X's total cost. Amount to P3 = ₹2,50,000 × 20% = ₹50,000. Option a uses 16%; option b uses 18%; option d uses 24%. The 10% to Y is part of the reciprocal allocation already included in X's total.
Where it goes wrong. Apportioning only the production share or using primary X cost instead of total X cost.
Question 24 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · hard
Scenario. A company uses the direct re-distribution method. S1 cost is ₹80,000 apportioned to P1 and P2 in the ratio 70% and 30%. S2 cost is ₹60,000 apportioned to P1 and P2 in the ratio 40% and 60%. What total service cost is apportioned to P1?
A company uses the direct re-distribution method. S1 cost is ₹80,000 apportioned to P1 and P2 in the ratio 70% and 30%. S2 cost is ₹60,000 apportioned to P1 and P2 in the ratio 40% and 60%. What total service cost is apportioned to P1?
₹72,000
₹76,000
₹84,000
₹80,000 (correct answer)
Answer: D — ₹80,000
Explanation. From S1 to P1 = ₹80,000 × 70% = ₹56,000. From S2 to P1 = ₹60,000 × 40% = ₹24,000. Total to P1 = ₹56,000 + ₹24,000 = ₹80,000. Option a uses 60% for S2; option c uses 80% for S1. Direct method ignores inter-service services.
Where it goes wrong. Using S2's P2 share of 60% for P1 or applying step-down receipts.
Question 25 · 2 marks · Chapter 4: Overheads: Absorption Costing Method · medium
Scenario. The following simultaneous equations relate to service departments X and Y: X = ₹1,80,000 + 0.20Y and Y = ₹80,000 + 0.10X. What is the total cost of service department X?
The following simultaneous equations relate to service departments X and Y: X = ₹1,80,000 + 0.20Y and Y = ₹80,000 + 0.10X. What is the total cost of service department X?
₹2,00,000 (correct answer)
₹1,96,000
₹2,04,000
₹1,90,000
Answer: A — ₹2,00,000
Explanation. Substitute Y into X: X = ₹1,80,000 + 0.20(₹80,000 + 0.10X) = ₹1,80,000 + ₹16,000 + 0.02X = ₹1,96,000 + 0.02X. Therefore 0.98X = ₹1,96,000 and X = ₹2,00,000. Option b is the numerator before dividing by 0.98.
Where it goes wrong. Using the constant term as total cost or forgetting to divide by 0.98 after substitution.
What does this Chapter 4: Overheads: Absorption Costing Method - Test 2 practice test cover?
This practice test carries 50 marks across 25 questions covering core costing principles, cost accounting standards, formulas, mathematical models, and practical ICAI case scenarios.
How many questions are there and what is the time limit?
There are 25 questions carrying 2 marks each, giving a maximum score of 50 marks in 60 minutes with no negative marking.
Which study material and syllabus apply to these questions?
Questions strictly reflect the official ICAI Study Material for CA Intermediate Paper 4 Cost and Management Accounting for the 2027 examination sessions.
Can I sit this test in both exam and practice modes?
Yes. Practice mode gives immediate answers with mathematical step-by-step workings and trap explanations after each question. Exam mode simulates actual exam conditions with a live timer and issues a downloadable performance certificate.
