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Past papers › Cost & Mgmt › May 2026

CA Inter Cost & Mgmt — Mock Test Paper (MTP) — May 2026

This page contains all 5 questions from the CA Inter Cost & Management Accounting Mock Test Paper (MTP) for the May 2026 attempt cycle, sourced from VSI Jaipur.

Q11Direct expenses identification and calculation
2 marks easy
The following expenditures were incurred in P.L. Ltd. for the month of March, 2025: (i) Product blueprint cost: ₹ 1,90,000 (ii) Paid for power & fuel: ₹ 3,00,000 (iii) Wages paid to factory workers: ₹ 80,000 (iv) Hire charges paid for machinery used: ₹ 50,000 (v) Commission paid to marketing manager: ₹ 35,000 (vi) Salary to office attendants: ₹ 45,000 (vii) Fee paid to technician hired in factory: ₹ 96,000 (viii) Administrative overheads: ₹ 89,000 Calculate the direct expenses for the month.
(A) ₹ 7,16,000
(B) ₹ 6,36,000
(C) ₹ 7,40,000
(D) ₹ 6,71,000
Q12Activity ratio calculation
2 marks easy
Standard hours required for doing a work is 100 hours and budgeted hours is 120 hrs. while the same work is actually completed by workers in 110 hrs. You are required to calculate the activity ratio:
(A) 109.09%
(B) 83.33%
(C) 90.90%
(D) 110%
Q13Service costing - cost per rupee of insured value
2 marks easy
BCIC Ltd. is an insurance company. It launched a new term insurance policy named as Protection Plus. The total cost for the policy during the year is ₹ 1,60,00,000. Total number of policies sold is 410 and total insured value of policies is ₹ 920 crore. What is the cost per rupee of insured value?
(A) ₹ 0.0017
(B) ₹ 0.18
(C) ₹ 575
(D) ₹ 2.24
Q14Joint cost allocation - NRV method
2 marks easy
ICT Ltd. belongs to pharmaceutical industries. The chemical process that ICT Ltd. operates converts one compound into three category of medicines viz. BetaTab, Folick and TegriCap. Though BetaTab and Folick are already converted to final product at split-off point, TegriCap needs further processing along with addition of new compound with it. The market for BetaTab and Folick is highly active, thus the production is sold at split-off point, however, TegriCap can be sold only after further processing. Following information is provided for the current year: BetaTab: 372 tons sold @ ₹ 7,500 per ton Folick: 1,054 tons sold @ ₹ 5,625 per ton TegriCap: 1,472 tons sold @ ₹ 3,750 per ton The selling price is expected to remain the same for coming years. Total joint manufacturing costs till split-off point: ₹ 62,50,000. Further processing cost for TegriCap: ₹ 31,00,000. Closing inventories (completed units): BetaTab: 360 tons; Folick: 120 tons; TegriCap: 50 tons. You are required to COMPUTE the joint cost allocated to BetaTab, Folick and TegriCap using Net Realizable Value (NRV) method.
(A) BetaTab- ₹ 15,65,481; Folick - ₹ 33,26,647 and TegriCap - ₹ 13,57,872
(B) BetaTab - ₹ 23,33,985; Folick - ₹ 28,07,478 and TegriCap - ₹ 11,08,537
(C) BetaTab - ₹ 19,27,533; Folick - ₹ 23,18,570 and TegriCap - ₹ 20,03,897
(D) BetaTab - ₹ 11,08,537; Folick - ₹ 28,07,478 and TegriCap - ₹ 23,33,985
Q15Economic Batch Quantity (EBQ)
2 marks easy
A company manufactures eye-glass frames at the rate of 1,200 frames per month. The company wants to determine the most economical production batch size to minimize total setup and holding costs. The following information is available: Setup cost per batch = ₹ 7,200; Cost per unit = ₹ 3,240; Carrying cost = 10% per annum (including storage, cost of capital, and obsolescence). What is the Economic Batch Quantity (EBQ)?
(A) 230 frames
(B) 566 frames
(C) 800 frames
(D) 1,200 frames