MCQ on Management Accounting 5

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Objective Questions and Answers of MBA: MCQ on Management Accounting 5

Subject: MCQ on Management Accounting 5

Part 5: List for questions and answers of Management Accountings

 

Q1.Which of the following statements are not true about Projected Balance Sheet Method?

a) It is good for long-term

b) It is appropriate for annual cash forecast

c) It is of extreme use for planning and control

d) None of the above

 

Q2.A budgeted balance sheet is prepared in Projected Balance sheet method and an estimate is made of the values of all assets including bank overdraft, cash balance and bank

a) True

b) False

 

Q3.Capacity ratio * Efficiency ratio = Activity ratio

a) True

b) False

 

Q4.The scare factors is also known as

a) Key factor

b) Abnormal factor

c) Linking factor

d) None of the above

 

Q5.A budgeting process which demands each manager to justify his entire budget in detail from beginning is

a) Functional budget

b) Master budget

c) Zero base budgeting

d) None of the above

 

Q6.If labour time is based on the maximum efficiency, the unit cost will be

a) Higher

b) Lower

c) -Equal

d) None of the above 

 

Q7.Which of the following statements are true about standard labour time?

a) Standard labour time indicates the time in hours needed for a specified process

b) It is standardized on the basis of past experience with no adjustments made for time and motion study

c) In fixing standard time due allowance should not be given to fatigue and tool setting

d) The Production manager does not provide any input in setting the labour time standards

 

Q8.The labour engaged in the making of a product is known as _______

a) Direct labour

b) Indirect labour

c) Temporary labour

d) None of the above

 

Q9.Determine amount of profit if Variable costs is Rs 1,20,000 Fixed costs is Rs 40,000 and sales is Rs 2,00,000

a) Rs 30,000

b) Rs 50,000

c) Rs 12,000

d) Rs 40,000

 

Q10.What will be the amount of profit if Fixed cost is Rs 20,000 Sales is Rs 1,60,000 and P/V ratio is 25%?

a) Rs 40,000

b) Rs 20,000

c) Rs 10,000

d) None of the above

 

Q11.Profit at any level of sales in units is measured as

a) Sales (units) * Cost per unit – Fixed cost

b) Sales (units) * Cost per unit + Fixed cost

c) Sales (units) * Cost per unit

d) None of the above

 

Q12.Profit at any level of sales in amount is measured as

a) Sales * P/V ratio – Variable cost

b) Sales * P/V ratio + Fixed cost

c) Sales * P/V ratio – Fixed cost

d) Sales * P/V ratio + Variable cost 

 

Q13.The profit at the level of existing sales is computed as

a) Sales – (Fixed cost + Variable cost)

b) Sales + (Fixed cost + Variable cost)

c) Sales – Variable cost

d) Sales – Fixed cost

 

Q14.In certain decision areas like plant closure and change in capacity, ________is more useful

a) Differential costing

b) Marginal costing

c) Absorption costing

d) None of the above

 

Q15.During trade recession, the goods are sold at

a) Depression price

b) Normal price

c) Minimum price

d) None of the above

 

Q16.Under some special circumstances, price may be fixed at below cost too

a) True

b) False

 

Q17.The problems associated with marginal costing are

a) Difficulties in divisions of costs

b) Problem of valuation of stocks

c) Ignores time elements

d) All of the above

 

Q18.Managers utilizes marginal costing for

a) Make or buy decision

b) Utilization of additional capacity

c) Determination of dumping price

d) All of the above

 

Q19.Which of the following are advantages of marginal costing?

a) Makes the process of cost accounting more simple

b) Helps in proper valuation of closing stock

c) Useful for standard and budgetary control

d) All of the above 

 

Q20.In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from

a) Operating activities

b) Financing activities

c) Investing activities

d) None of the above

 

Part 5: List for questions and answers of Management Accountings

 

Q1. Answer: c

Q2. Answer: b

Q3. Answer: a

Q4. Answer: a

Q5. Answer: c

Q6. Answer: c

Q7. Answer: a

Q8. Answer: a

Q9. Answer: d

Q10. Answer: b

Q11. Answer: a

Q12. Answer: c

Q13. Answer: a

Q14. Answer: a

Q15. Answer: a

Q16. Answer: a

Q17. Answer: d

Q18. Answer: d

Q19. Answer: d

Q20. Answer: a