MCQ on Management Accounting 1

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Objective Questions and Answers of MBA: MCQ on Management Accounting 1

Subject: MCQ on Management Accounting 1

Part 1: List for questions and answers of Management  Accounting

 

Q1.Financial control report comes under

a) Dynamic financial reports

b) Static financial reports

c) Extensive Activity report

d) None of the above

 

Q2.A balance sheet is a form of

a) Dynamic financial reports

b) Static financial reports

c) Activity reports

d) None of the above

 

Q3.Analytical reports are based on the ______ comparison of results

a) Horizontal

b) Vertical

c) Symmetrical

d) None of the above

 

Q4.___________ are just income statements, wherein the results of one particular year are compared with the findings of past several years

a) Subsidiary trend reports

b) Analytical report

c) Activity reports

d) Master trend report

 

Q5.Which of the following is a kind of information report?

a) Trend reports

b) Analytical report

c) Activity reports

d) All of the above 

 

Q6.There are three departments A, B and C in a company, The sales of A, B and C are Rs 3,52,000, Rs 2,88,000 and Rs 1,60,000, respectively. The variable costs of A, B and C are Rs 2,40,000, Rs 1,76,000 and Rs 1,44,000 respectivelythe direct fixed costs of A, B and C are Rs 28,000, Rs 22,400 and Rs 12,800. Rank the different departments on basis of relative profitability

a) Rank 3, B- Rank 1 and C- Rank 2

b) A- Rank 2, B- Rank 1 and C- Rank 3

c) A- Rank 3, B- Rank 2 and C- Rank 1

d) Insufficient data

 

Q7.Volume variance arises when

a) There is rise in overhead rate per hour

b) There is decline in overhead rate per hour

c) There is decrease or increase in actual output compared to the budgeted output

d) None of the above

 

Q8.The type of standard that is best suited for cost control objective is

a) Normal standard

b) Basic standard

c) Expected standard

d) Ideal standard

 

Q9.The corrective actions after the analysis of variances has to be taken by

a) Cost accountant

b) Management

c) Both a and b

d) None of the above

 

Q10.When actual price is higher or lower than the standard price, then it is

a) Sales price variance

b) Sales volume variance

c) Sales mix variance

d) Sales quantity variance

 

Q11.Analysis of overhead variances can be done by

a) Two variance method

b) Three variance method

c) Four variance method

d) All of the above 

 

Q12.The capacity variance arises when

a) There are more working hours than the budgeted working hours

b) There are less working hours than the budgeted working hours

c) Both a and b

d) None of the above

 

Q13.If the actual output is more than the budgeted output, volume variance is

a) Favorable

b) Non-favorable

c) No impact

d) None of the above

 

Q14.Cash budget deals with historical data whereas Cash Flow Statement deals with future data

a) True

b) False

c) NA

d) NA

 

Q15.Sales margin variance due to sales quantities is measured as

a) Standard profit – Revised standard profit

b) Revised standard profit – Budgeted profit

c) Standard profit + Revised standard profit

d) Revised standard profit + Budgeted profit

 

Q16.The formula to estimate the sales margin variance due to sales mixture is

a) Standard profit – Revised standard profit

b) Revised standard profit – Budgeted profit

c) Standard profit + Revised standard profit

d) Revised standard profit + Budgeted profit

 

Q17.Sales margin variance due to volume can be classified into _____parts

a) 3

b) 2

c) 4

d) 5 

 

Q18.ABC Ltd is operating a system of standard costing with closing of books done every quarter. The budgeted overheads are Rs 2,55,000. Also, the overhead rate was pre-decided @ Rs 5.1 per labour hours and during a quarter actually used 52,000 labour hours, instead of 51,000 hours. The actual overheads resulted in a rate of Rs 4.9 per labour hours. What is volume variance?

a) Rs 5,100 favorable

b) Rs 5,200 favorable

c) Rs 5,100 unfavorable

d) Rs 5,200 unfavorable

 

Q19.In cash flow method for preparing cash budget, payment of dividends and prepaid payments are

a) Deducted from opening balance of cash

b) Added to opening balance of cash

c) Not included in cash budget

d) None of the above

 

Q20. A facility, the installed capacity of which is 1,00,000 units, has budgeted 70% level of activity as Materials Rs 1,05,000, Wages Rs 1,40,000 Variable overheads Rs 70,000 and Fixed overheads Rs 20,000. Production is now proposed at 80,000 units. Determine Marginal cost p.u., Differential cost, and Differential cost p.u.

a) Rs 2, Rs 20,000, Rs 4.5

b) Rs 4.5, Rs 45,000, Rs 4.5

c) Rs 5, Rs 50,000, Rs 5

d) None of the above

 

Part 1: List for questions and answers of Management Accountings

 

Q1. Answer: a

Q2. Answer: c

Q3. Answer: a

Q4. Answer: d

Q5. Answer: d

Q6. Answer: b

Q7. Answer: c

Q8. Answer: c

Q9. Answer: b

Q10. Answer: a

Q11. Answer: d

Q12. Answer: c

Q13. Answer: a

Q14. Answer: b

Q15. Answer: b

Q16. Answer: a

Q17. Answer: b

Q18. Answer: c

Q19. Answer: a

Q20. Answer: b