TasDia Network
TasDia Network

MCQs 1: Determine P/V ratio if Sales is Rs 80,000 and Variable cost is Rs 60,000.

40% 25% 50% None of the above
Answer Explanation

MCQs 2: Determine P/V ratio if Sales is Rs 1,00,000, Fixed cost is Rs 30,000 and Profit is Rs 20,000.

25% 50% 45% None of the above
Answer Explanation

MCQs 3: Determine P/V ratio if Sales per unit is Rs 10 and Variable cost per unit is Rs 7.

25% 50% 45% 30%
Answer Explanation

MCQs 4: Compute P/V ratio if variable cost ratio is 60%.

40% 50% 45% 30%
Answer Explanation

MCQs 5: In budgetary control_____ is used whereas in standard costing _________ is used.

Unit concept, Total concept Total concept, Unit Concept Marginal concept, Gross concept Gross concept, Marginal concept
Answer Explanation

MCQs 6: Which of the following statements are not true?

A) In standard costing standards relies on technical assessment whereas budgetary targets are based on past actual adjusted to future trend.
B) The scope of standard costing is much wider than budgetary control.
C) Budgetary control demands functional coordination whereas it is not the case with standard costing.
D) Standard costing prescribes a monetary limit which cannot be crossed.

A and B B and D C and D A and C
Answer Explanation

MCQs 7: The process of standard costing

Can be incorporated in accounting routine Helps in reaching variances from the accounting procedure Both a and b None of the above
Answer Explanation

MCQs 8: The process of budgeting helps in the control of

Cost of production Liquidity Capital Expenditure All of the above
Answer Explanation

MCQs 9: Budgets are based on plan estimates and therefore budgeting is an effective substitute for management.

True False
Answer Explanation

MCQs 10: Budgetary control does not depend on changing business situations like inflation and economic recession.

True False
Answer Explanation

MCQs 11: The payment of salary, wages, overheads, cash purchase and payment to creditors are form of

Cash payment for capital transaction Cash payment for non-operating expenses Cash payment for business operations None of the above
Answer Explanation

MCQs 12: The payment of income tax, dividend, interest, and donation are examples of

Cash payment for capital transaction Cash payment for non-operating expenses Cash payment for business operations None of the above
Answer Explanation

MCQs 13: In order to prepare a flexible budget, items of anticipated expenditures are classified into _______ classes.

Five Three Two None of the above
Answer Explanation

MCQs 14: Variable cost is also known as

Direct cost Proportionate cost Both a and b None of the above
Answer Explanation

MCQs 15: The sub-variance of material usage variance, known as Material mix variance is measured as

Total standard cost - Total actual cost Standard cost of revised standard mix - Standard cost of actual mix (Standard unit price - Actual unit price) * Actual quantity used (Standard quantity - Actual quantity) * Unit standard price
Answer Explanation

MCQs 16: While calculating material mix variance, if revised standard quantity is greater than actual quantity, the variance is

Unfavorable Favorable Neither favorable nor unfavorable None of the above
Answer Explanation

MCQs 17: If the total actual input of units and total standard input of units is equal, there is no need to calculate revised standard quantity.

True False
Answer Explanation

MCQs 18: Cost audit is a verification of cost records to estimate the ________ efficiency of a business.

External Internal Both internal and external None of the above
Answer Explanation

MCQs 19: The area of focus on responsibility center is

Quantum of sales Quantum of production Optimum utilization of resources All of the above
Answer Explanation

MCQs 20: _____________ may deal with actual figures against budgeted ones.

Accounting ratios Tabulated Information Formal Financial statements None of the above
Answer Explanation

MCQs 21: Management accounting assists the management

Only in control Only in direction Only in planning In planning, direction and control
Answer Explanation

MCQs 22: The 3 Ps, i.e. the three objectives of analysis and interpretation of financial statements are : Progress, Position and Prospects.

True False
Answer Explanation

MCQs 23: Which of the following statements are false?

A) When all the figures in a balance sheet are stated as percentage of the total, it is termed as horizontal analysis.
B) When financial statements of several years are analyzed, it is termed as vertical analysis.
C) Vertical Analysis is also termed as dynamic analysis.

Both A and B Both A and C Both B and C A, B, C
Answer Explanation

MCQs 24: Efficient frontier comprises of

Portfolios that have negatively correlated securities Portfolios that have positively correlated securities Inefficient portfolios Efficient portfolios
Answer Explanation

MCQs 25: Efficient portfolios can be defined as those portfolios which for a given level of risk provides

Maximum return Average return Minimum return None of the above
Answer Explanation

MCQs 26: What will be the Gross Profit if, total sales is Rs 2,60,000, cost of net goods sold is Rs 2,00,000 and sales return is Rs 10,000?

13% 28% 26% 20%
Answer Explanation

MCQs 27: If selling price is fixed 25% above the cost, the Gross Profit ratio is

13% 28% 26% 20%
Answer Explanation

MCQs 28: Gross Profit ratio should be adequate to cover

Selling expenses Administrative expenses Dividends All of the above
Answer Explanation

MCQs 29: Funds Flow Statement holds significance for

Shareholders Financiers Government All of the above
Answer Explanation

MCQs 30: Which statement is prepared in the process of funds flow analysis?

Schedule of changes in working capital Funds Flow Statement Both a and b None of the above
Answer Explanation

Related Topics

About Us | Contact Us | Privacy Policy
ABOUT US
Category
Who We Are

TasDia Network, this platform not only provides you the best educational stuff but besides this, we are creating thousands of new ideas to making your signature and planning much more on a single platform.

© 2020-2023, TasDia Network

All rights of the publication are reserved by tasdia.com.