Accounting for Management MCQs and Notes

M

Mr. Dubey • 52.30K Points
Coach

Q 11. Indirect costs are also known as

(A) direct cost

(B) overhead costs

(C) prime costs

(D) marginal costs

M

Mr. Dubey • 52.30K Points
Coach

Q 12. Direct costs are also known as:

(A) indirect cost

(B) overhead costs

(C) prime costs

(D) marginal costs

M

Mr. Dubey • 52.30K Points
Coach

Q 13. Which one of the following is not a recognised cost classification?

(A) time

(B) function

(C) performance

(D) type

M

Mr. Dubey • 52.30K Points
Coach

Q 14. Management accounting is said to meet:

(A) the internal accounting needs of the organization

(B) the needs of laws that govern company financial reporting.

(C) the regulatory requirements of the organization

(D) the external accounting needs of the organisation.

M

Mr. Dubey • 52.30K Points
Coach

Q 15. Direct labour costs will include……………

(A) all labor costs attributable to product

(B) direct labor costs plus any bonuses

(C) total direct labor hours at the normal hourly rate of pay

(D) direct labor costs plus any bonuses and overtime premium

M

Mr. Dubey • 52.30K Points
Coach

Q 16. The weighted average method of stock valuation would be most appropriate for ………….

(A) chemical manufacturer

(B) a food retailer

(C) a building contractor

(D) a motor components retailer

M

Mr. Dubey • 52.30K Points
Coach

Q 17. Which of the following best describes a fixed cost ?

(A) remains constant irrespective of the level of activity

(B) represents a fixed proportion of total costs

(C) increases proportionately with output

(D) has a direct relationship with output

M

Mr. Dubey • 52.30K Points
Coach

Q 18. Marginal cost is the ……….cost of producing an additional unit of output

(A) variable

(B) fixed

(C) semi variable

(D) none of these

M

Mr. Dubey • 52.30K Points
Coach

Q 19. Given sales = 100000, Profit = 10000 , variable cost = 70%.The sales required to earn a profit of Rs.40000 is ………………………

(A) 1500000

(B) 100000

(D) none of these

M

Mr. Dubey • 52.30K Points
Coach

Q 20. Which of the following measures helps to increase the P/V Ratio ?

(A) increasing the selling price per unit

(B) reducing the variable or marginal cost

(C) changing the sales mixture

(D) all of these