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- Management Accounting Test Questions - Set 13
MCQs 1: Who coined the concept of management accounting?
MCQs 2: Interpretation of accounts is the
Art and science of translating the figures
To know financial strengths and weaknesses of a business
To know the causes for the prevailing performance of business
All of the above
MCQs 3: The term ‘Financial Statement’ covers
Profit & Loss Statement
Balance sheet and Profit & Loss Statement appropriation account
Profit & Loss Statement and Balance sheet
None of the above
MCQs 4: There is no difference between the capital market line and security market line as both the terms are same.
MCQs 5: The value of a bond and debenture is
Present value of interest payments it gets
Present value of contractual payments it gets till maturity
Present value of redemption amount
None of the above
MCQs 6: Return on equity capital is calculated on basis of:
MCQs 7: While calculating Earnings per share, if both equity and preference share capitals are there, then
Preference share is deducted from the net profit
Equity share capital is deducted from the net profit
Both a and b
None of the above
MCQs 8: Turnover ratios are also known as
MCQs 9: The share capital of A Ltd. stood at Rs 20,00,000 in 2013 and at Rs 26 lac in 2014. As per records, the company bought asset of another company for Rs 6 lac payable in fully paid shares. These assets included Goodwill Rs 2,00,000 Machinery Rs 1,83,600 and Stock Rs 2,16,400. What is the fund from issue of shares?
MCQs 10: Debentures are Rs 2,50,000 and Rs 3,50,000 in the balance sheet of 2013 and 2014. 1000 of the debentures of Rs 100 each were issued at per in 2014 of which 400 debentures were issued to a supplier for the purchase of a machine. Determine amount of issue for debentures for the purpose of funds flow statement.
MCQs 11: Which of the following are cash flow from financing activities?
A) Interest received
B) Dividend received
C) Interest paid
D) Dividend paid
MCQs 12: Acquisition and disposal of long term assets is included in
Cash flow from investing activities
Cash flow from financing activities
Cash flow from operating activities
None of the above
MCQs 13: Which of the following statements represent example of cash flow from investing activities?
Cash advances and loans made by financial enterprises
Cash advances and loans made to third parties
Both a and b
None of the above
MCQs 14: Absorption costing is also known as
MCQs 15: Given production is 1,00,000 units, fixed costs is Rs 2,00,000 Selling price is Rs 10 per unit and variable cost is Rs 6 per unit. Determine profit using technique of marginal costing.
MCQs 16: Which of the following statements are true about absorption & marginal costing?
In absorption costing, cost is divided into three major parts while in marginal costing, cost is divided into two main parts
In absorption costing period is important and in marginal costing product is important
Both a and b
None of the above
MCQs 17: 4000 mobiles need to be made and sold in a monopoly market. The desired profit is Rs 2,00,000. The variable cost per mobile is Rs 100 and the total fixed costs are Rs 40,000. Find out unit selling price.
MCQs 18: When there is tough competition and price-cut is on war, the focus should be on
MCQs 19: Differential costs are obtained on the basis of
MCQs 20: Calculate sales in rupees for desired profit if fixed cost is Rs 10,000, selling price is Rs 20 per unit, Variable cost is Rs 15 per unit and desired profit is Rs 1 per unit.
MCQs 21: Determine sales in units for desired profit if Fixed cost is Rs 15,000, desired profit is Rs 5,000 Selling price per unit is Rs 20 and Variable cost per unit is Rs 16.
MCQs 22: What will be sales in units if fixed cost is Rs 50,000, Contribution per unit is Rs 60 and desired profit per unit is Rs 10.
MCQs 23: Given Break even sales is 40,000 Profit earned is Rs 2,000 and fixed cost is Rs 8,000. Determine actual sales.
MCQs 24: What will be the sales amount required to earn a profit of Rs 4,00,000, if fixed cost is Rs 80,000, direct material is Rs 5 per unit, direct labor Rs 2 per unit, direct overhead 100% of direct labor and selling price is Rs 12 per unit.
MCQs 25: Which of the following standards cannot be used for cost control?
MCQs 26: Which of the following statements are not true about normal standards?
Normal Standards are meant to smooth out fluctuations caused by cyclical and seasonal changes
Normal Standards can be applied for absorption of overheads for a long period of time
In establishing normal standards, allowance is given to normal fatigue and breaks, and normal waste and scrap
None of the above
MCQs 27: Standard costing committee is responsible for
Computation of variances
Linking the deviations with responsibilities
Setting all types of standards
All of the above
MCQs 28: ABC Company plans a sale of 96,000 units of TV product line in the first fiscal quarter, 1,20,000 TV units in second quarter, and 1,32,000 units and 1,50,000 units in third and fourth quarter, and 1,56,000 units in the first quarter of next year. Given that at the beginning of first fiscal quarter, the company has 16,000 units in stock. Also, at the end of each quarter, ABC Company wants to maintain an inventory equal to one-sixth of the sales for the next fiscal quarter. Determine units to be manufactured in first and second quarter of the year.
MCQs 29: Given the budgeted output in second quarter is 8,000 units. In the first quarter, Fixed overheads were Rs 40,000 Variable overheads were Rs 5 per unit ( Rs 40,000) and semi variable were 20,000 ( 60% varying @ Rs 3 per unit). Determine the total manufacturing overhead budget for the second quarter.
MCQs 30: In fixed budgets costs are classified according to their nature.
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