Management Accounting MCQs and Notes

A

Admin • 36.96K Points
Coach

Q 21. Cash from Operations is equal to:

(A) Net Profit plus increase in outstanding Expenses
(B) Net Profit plus increase in Debtors
(C) Net Profit plus increase in Stock
(D) Net Profit

G

Gopal Sharma • 38.32K Points
Coach

Q 22. 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

G

Gopal Sharma • 38.32K Points
Coach

Q 23. The process of budgeting includes

(A) Preparation of budget
(B) Budget Control
(C) Budget co-ordination
(D) All of the above

R

Rakesh Kumar • 28.44K Points
Instructor II

Q 24. Which of the following statement is correct ?

(A) Assets = Liabilities + Shareholders funds
(B) Assets = Total funds
(C) Assets = Funds of outsiders
(D) None of the above

G

Gopal Sharma • 38.32K Points
Coach

Q 25. An annual report is issued by company to its :

(A) Directors
(B) Auditors
(C) Shareholders
(D) Management

R

Ranjeet • 34.60K Points
Instructor I

Q 26. The Moore Corporation is considering the acquisition of a new machine. The machine can be purchased for $90000; it will cost $6000 to transport to Moore’s plant and $9,000 to install. It is estimated that the machine will last 10 years, and it is expected to have an estimated salvage value of $5,000. Over its 10-year life, the machine is expected to produce 2,000 units per year, each with a selling price of $500 and combined material and labour costs of $450 per unit. Federal tax regulations permit machines of this type to be depreciated using the straight-line method over 5 years with no estimated salvage value. Moore has a marginal tax rate of 40%. What is the net cash flow for the tenth year of the project that Moore Corporation should use in a capital budgeting analysis?

(A) $100000
(B) $91000
(C) $68400
(D) $63000

V

Vinay • 28.75K Points
Instructor II

Q 27. Regal Industries is replacing a grinder purchased 5 years ago for $15,000 with a new one costing $25,000 cash. The original grinder is being depreciated on a straight-line basis over 15 years to a zero-salvage value. Regal will sell this old equipment to a third party for $6,000 cash. The new equipment will be depreciated on a straight-line basis over 10 years to a zero-salvage value. Assuming a 40% marginal tax rate, Regal’s net cash investment at the time of purchase if the old grinder is sold and the new one purchased is

(A) $19000
(B) $15000
(C) $17400
(D) $25000

S

Shiva Ram • 30.44K Points
Instructor I

Q 28. Overhead Cost is the total of

(A) All Direct Cost
(B) All Indirect Cost
(C) All Specific Cost
(D) All Indirect and Direct Cost

V

Vikash Gupta • 33.56K Points
Instructor I

Q 29. Batch Costing is useful in determining:

(A) Maximum Quantity of output
(B) Minimum Quantity of output
(C) Economic Batch Quantity
(D) Profit of Batches

V

Vikash Gupta • 33.56K Points
Instructor I

Q 30. During the month of December actual direct labour cost amounted to $39,550, the standard direct labour rate was $10 per hour and the direct labour rate variance amounted to $450 favourable. The actual direct labour hours worked were:

(A) 3,955 hours
(B) 4,000 hours
(C) 3,910 hours
(D) 4,500 hours

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