Management Accounting MCQs and Notes

V

Vikash Gupta • 33.56K Points
Instructor I

Q 31. Cash flow example from an operating activity is

(A) Purchase of Own Debenture
(B) Sale of Fixed Assets
(C) Interest Paid on Term-deposits by a Bank
(D) Issue of Equity Share Capital

V

Vikash Gupta • 33.56K Points
Instructor I

Q 32. If break-even number of units are 120 units and the fixed cost is $62000, then the contribution margin per unit will be

(A) $74,400
(B) $7,440,000
(C) $516.67
(D) $51,667

G

Gopal Sharma • 38.32K Points
Coach

Q 33. Which of the following is incorrect about the statement of cash flows?

(A) It provides information about the cash receipt and cash payments of an enterprise.
(B) It reconciles ending cash balance with the balance as per bank statement.
(C) It provides information about the operating, investing and financing activities.
(D) It explains the deviation of cash from Earnings.

R

Rakesh Kumar • 28.44K Points
Instructor II

Q 34. In master budgeting, the cost drivers for manufacturing overhead costs are

(A) Direct manufacturing labour-hours
(B) Setup labour-hours
(C) Budgeted labour-hours
(D) Both 1 and 2

P

Priyanka Tomar • 35.28K Points
Coach

Q 35. The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.

(A) Rs 145
(B) Rs 150
(C) Rs 152
(D) Rs 140

R

Ram Sharma • 193.86K Points
Coach

Q 36. Factory overhead is Rs 3,00,000 and direct material cost is Rs 5,00,000 What is the overhead rate under direct material cost method?

(A) 25%
(B) 30%
(C) 60%
(D) 75%

V

Vikash Gupta • 33.56K Points
Instructor I

Q 37. Which of the following are the assumptions of marginal costing?
1) All the elements of cost can be divided into fixed and variable components.
2) Total fixed cost remains constant at all levels of output.
3) Total variable costs vary in proportion to the volume of output.
4) Per unit selling price remain unchanged at all levels of operating activity.

(A) A and B
(B) B and C
(C) A and D
(D) A, B, C and D

P

Priyanka Tomar • 35.28K Points
Coach

Q 38. An officer responsible for financial operations of organization is considered as

(A) Chief financial officer
(B) Chief manager
(C) Chief line function
(D) Chief staff function

V

Vinay • 28.75K Points
Instructor II

Q 39. To establish an effective system of standard costing it is essential that
1) The technical process of operation should be prone to planning
2) The cost of the products should be given
3) The process or operating costs of products should be provided
4) The standard costing should be consistent with the technical procedure of the production of the specific entity

(A) A, B and C
(B) A, C and D
(C) B, C and D
(D) D, C and A

R

Ranjeet • 34.60K Points
Instructor I

Q 40. An indirect setup labor costs, costs of setup and equipment maintenance and costs of indirect material can be categorized as

(A) Variable batch costs
(B) Fixed batch costs
(C) Variable setup costs
(D) Fixed setup costs

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