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- Management Accounting Test Questions - Set 14
MCQs 1: While preparing cash budget from Cash Accounting method, if there is no specific direction in respect of a particular item, it is assumed that payments or receipts will take place in
MCQs 2: If in any month, the amount of payment exceeds, it will be carried forward as opening balance in the next month.
MCQs 3: The total costs at 60% and 70% of activity are Rs 28,290 and Rs 30,348 respectively. Production at 60% level is 720 units and selling price is Rs 38 per unit. Determine Profit and Loss at 80% activity level.
MCQs 4: If variable and fixed costs at 60% capacity are Rs 12,000 and Rs 9,000 respectively, total cost at 80% capacity will be
MCQs 5: Idle time variance arises when
Only one grade of labour is used
Time is lost due to abnormal reasons
Both a and b
None of the above
MCQs 6: The formula used for calculation of labour rate variance is
Total standard labour cost of actual output - Total actual cost of actual output
(Standard rate per hour - Actual rate per hour) * Actual Hours
(Standard time - Actual time) * Standard rate per hour
Abnormal idle hours * Standard hourly rate
MCQs 7: Labour efficiency variance is also known as
MCQs 8: Management auditor should have a thorough knowledge of
MCQs 9: In profit center revenue represents a monetary measure of output emanating from a profit center in a given period irrespective whether
MCQs 10: Control reports and information reports are a part of
MCQs 11: Which of the following statements are false about management accounting?
A) Management accounting is concerned with historical events.
B) Management accounting is related only with such instances which can be expressed in monetary terms.
C) Management accounting is a part of Financial Management.
D) Management accounting information can be disclosed to outsiders.
MCQs 12: The form of balance sheet is
MCQs 13: The term current asset doesn’t cover
MCQs 14: P&L statement is also known as
MCQs 15: Required rate of return > Coupon rate, the bond will be valued at
MCQs 16: If the coupon rate is constant, the value of bond when close to maturity will be
MCQs 17: The lower turnover ratio highlights the under utilizations of the resources accessible at the disposal of the firm.
MCQs 18: Stock velocity establishes a relationship between
Cost of goods sold in a given period and the average amount of inventory held during that period
Cost of goods sold in a given period and the average amount of stock held during that period
Both a and b
None of the above
MCQs 19: Determine stock turnover ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales is Rs 3,20,000 and Gross profit ratio is 25% on sales.
MCQs 20: In the balance sheet of Praveen for 2013 and 2014, 4% debentures are Rs 5,00,000 and Rs 4,00,000, respectively. Profit on redemption of debentures in 2013 is nil while in 2014 is Rs 4,000. What is the amount of redemption for the purpose of funds flow statement?
MCQs 21: The balance of property at cost has been Rs 20,000 and Rs 17,000 in 2013 and 2014 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2014. Determine sale of proceeds from land.
MCQs 22: ABC Ltd had investment of Rs 68,000 as on 31.3.2013 and investment of Rs 56,000 as on 31.3.2014. During the year ABC Ltd sold 40% of its investments being held in the beginning of period at a profit of Rs 16,800. Determine cash flow from investing activities.
MCQs 23: Financing activities bring changes in
MCQs 24: For year 2013 Equity Share Capital is Rs 3,00,000 Preference Share Capital is 1,00,000 10% debentures is 2,00,000 and Share premium is 30,000. For year 2014 Equity Share Capital is Rs 4,00,000 Preference Share Capital is 60,000 10% debentures is 1,00,000 and Share premium is 40,000. Also given, Dividend paid on shares Rs 15,000 and Interest paid on debentures Rs 20,000. Determine net cash flow from financing activities.
Cash inflow of Rs 65,000
Cash outflow of Rs 65,000
Cash inflow of Rs 56,000
Cash outflow of Rs 56,000
MCQs 25: Under absorption costing, managerial decisions are based on
MCQs 26: If sales is less than production and there is no opening stock, it suggests there is closing stock. In such a scenario, profit under marginal costing will be less than the one shown by absorption costing.
MCQs 27: Minimum price is calculated as
Variable cost + Fixed costs
Marginal cost + Contribution
Marginal cost - Contribution
None of the above
MCQs 28: ABC Company manufactures and sells trucks at Rs 75,000 each made up of Direct Materials Rs 30,000, Direct Labour Rs 8,000 Variable Overheads is Rs 12,000, Fixed overheads is Rs 6,000, Variable selling expenses is Rs 3,000 Royalty is Rs 4,000 Profit is Rs 7,000. There is enough idle capacity. If the company decides to sell 4 trucks to ABC Company under the same management, what should be the minimum price to be charged?
MCQs 29: In the case of differential costing, ________ is the main criteria for decision making.
MCQs 30: Given fixed costs is Rs 1,00,000 selling price per unit is Rs 10 and variable cost per unit is Rs 6. If fixed cost increase by 10% , B.E.P will
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