MCQOPTIONS
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MCQOPTIONS
This section includes 2081 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 501. |
A bilateral RFP is preferred to an invitation to bid when: |
| A. | Supplier and terms are specified |
| B. | The product or service is relatively low value and readily available |
| C. | The product or service has high value and is unique |
| D. | The product or service has high value, but is easy to obtain |
| Answer» D. The product or service has high value, but is easy to obtain | |
| 502. |
The total of direct material, direct labour and direct expenses is known as……….. |
| A. | Works Cost |
| B. | Prime Cost |
| C. | Cost of Production |
| D. | none |
| Answer» C. Cost of Production | |
| 503. |
Non-cost items are those which are …………….. from the cost. |
| A. | Excluded |
| B. | Included |
| C. | Partly included |
| D. | none of the above |
| Answer» B. Included | |
| 504. |
Direct expenses are also known as ……………..expenses. |
| A. | Indirect |
| B. | Productive |
| C. | Chargeable |
| D. | none |
| Answer» D. none | |
| 505. |
The expenses which can be directly charged to jobs, products, processes, cost centers or costunits is termed as |
| A. | Direct Cost |
| B. | Indirect Cost |
| C. | Committed Cost |
| D. | Reduction of cost |
| Answer» B. Indirect Cost | |
| 506. |
Maintaining prompt and accurate records of all goods received, issued and returned is theduty of …………….. |
| A. | Inspection clerk |
| B. | Goods receiving clerk |
| C. | Storekeeper |
| D. | none |
| Answer» D. none | |
| 507. |
……………….is concerned with ascertainment of cost. |
| A. | Cost Accountancy |
| B. | Costing |
| C. | Cost Accounting |
| D. | Management control |
| Answer» C. Cost Accounting | |
| 508. |
……………………….guides to the purchase manager in knowing what he has to buy. |
| A. | Purchase budget |
| B. | Purchase price |
| C. | Purchase Cost |
| D. | Purchase Amount |
| Answer» B. Purchase price | |
| 509. |
In which stage of the negotiation meeting are points of concession identified? |
| A. | probing |
| B. | closure |
| C. | agreement |
| D. | scratch bargaining |
| Answer» E. | |
| 510. |
………………………….is of extreme importance particularly to a manufacturing concern. |
| A. | Purchasing |
| B. | Selling |
| C. | Costing |
| D. | none |
| Answer» B. Selling | |
| 511. |
Basic objective of the effective …………………..is to ensure continuity of supply of requisite quality of material. |
| A. | Purchase Control |
| B. | Responsible Centre |
| C. | Cost Centre |
| D. | none |
| Answer» B. Responsible Centre | |
| 512. |
The Purchase…………….is a contractual document which authorizes the supplier to supply thematerial. |
| A. | Note |
| B. | Requisition |
| C. | Order |
| D. | none |
| Answer» D. none | |
| 513. |
An opportunity cost is a……….. |
| A. | Direct expense |
| B. | Indirect expense |
| C. | Variable expense |
| D. | Fixed expense |
| Answer» B. Indirect expense | |
| 514. |
The term………… is the one which is identifiable as belonging exclusively to a particularprocess, product, and unit. |
| A. | Direct Cost |
| B. | Indirect Cost |
| C. | Standard Cost |
| D. | none |
| Answer» B. Indirect Cost | |
| 515. |
Which type of warranty is enacted if a service or product does not meet the level of qualityspecified in the contract? |
| A. | Implied warranty of merchantability |
| B. | Implied warranty of specified quality |
| C. | Express warranty |
| D. | none of the above |
| Answer» D. none of the above | |
| 516. |
……………….is a master requisition which lists all the materials required for the completion ofa job. |
| A. | Bill of Material |
| B. | Purchase Requisition |
| C. | Material Requisition |
| D. | none |
| Answer» B. Purchase Requisition | |
| 517. |
Which of the following is not an inventory? |
| A. | Machines |
| B. | Raw material |
| C. | Finished products |
| D. | Consumable tools |
| Answer» B. Raw material | |
| 518. |
Despite the development of Management Accounting as an effective discipline to improve the managerial performance, it has some limitations. Which of the following is a limitation of management accounting? |
| A. | Psychological Resistance |
| B. | Physiological Resistance |
| C. | Both of the above |
| D. | None of the above |
| Answer» B. Physiological Resistance | |
| 519. |
The primary objective of Management Accounting is to _______________. |
| A. | maximize profits |
| B. | minimize losses |
| C. | maximize profits or minimize losses |
| D. | All of the above |
| Answer» E. | |
| 520. |
In marginal costing, stock is valued at _________ |
| A. | Fixed Cost |
| B. | Variable Cost |
| C. | Inventory |
| D. | sales |
| Answer» C. Inventory | |
| 521. |
One of the following is not within the scope of Management Accounting |
| A. | Formulation of policies |
| B. | Classification and collection of costs |
| C. | Planning and co-ordinating the activities of the enterprise |
| D. | Decision making on alternative courses of action |
| Answer» C. Planning and co-ordinating the activities of the enterprise | |
| 522. |
Operating costing is applicable to: |
| A. | Hospitals |
| B. | Cinemas |
| C. | Transport undertaking |
| D. | All the above |
| Answer» E. | |
| 523. |
Which of the following factors does not affect Learning Curve |
| A. | Method of production |
| B. | Labour strike |
| C. | Shut down |
| D. | Efficiency rate |
| Answer» D. Efficiency rate | |
| 524. |
In Reconciliation Statements expenses shown only in financial accounts are: |
| A. | Added to financial profit |
| B. | Deducted from financial profit |
| C. | Ignored |
| D. | Added to costing profit |
| Answer» B. Deducted from financial profit | |
| 525. |
The difference between hours paid and hours worked is known as |
| A. | Labour rate variance |
| B. | Labour efficiency variance |
| C. | Idle time variance |
| D. | Net efficiency variance |
| Answer» D. Net efficiency variance | |
| 526. |
In a system whereby all activities are revaluated each time a budget is formulatedand starts with the assumption that requirement of funds does not exist is called |
| A. | Performance Budgeting |
| B. | Programme Budgeting |
| C. | Flexible Budgeting |
| D. | Zero- based Budgeting |
| Answer» E. | |
| 527. |
Method of pricing, when two separate pricing methods are used to price transfer of products from one subunit to another, is called: |
| A. | dual pricing |
| B. | functional pricing |
| C. | congruent pricing |
| D. | optimal pricing |
| Answer» B. functional pricing | |
| 528. |
Absorption Costing is also known as: |
| A. | Total Costing |
| B. | Committed Costing |
| C. | Target Costing |
| D. | Discretionary Costing |
| Answer» B. Committed Costing | |
| 529. |
When there are no opening or closing stocks, profit under marginal costing will be |
| A. | Greater than in absorption costing |
| B. | Less than in absorption costing |
| C. | Equal to absorption costing |
| D. | Greater, Lower or Equal depending on certain factors |
| Answer» D. Greater, Lower or Equal depending on certain factors | |
| 530. |
Management Accounting is an integral part of management concerned with_______information. |
| A. | identifying, presenting and interpreting |
| B. | identifying and presenting |
| C. | identifying |
| D. | None of the above |
| Answer» B. identifying and presenting | |
| 531. |
If budgets are prepared of a business concern for a certain period taking each andevery function separately such budgets are called _________. |
| A. | Separate Budgets |
| B. | Functional Budgets |
| C. | Both of them |
| D. | None of the above |
| Answer» C. Both of them | |
| 532. |
In a factory Standard rate per hour Rs. 4, Standard time per unit of output – 20 hours, Units produced - 500, Actual hours worked - 12,000. Compute Labour Efficiency Variance. |
| A. | Rs. 6000 (Favourable) |
| B. | Rs. 8000 (Adverse) |
| C. | Rs. 9,600 (Favourable) |
| D. | Rs. 8000 (Favourable) |
| Answer» C. Rs. 9,600 (Favourable) | |
| 533. |
The budgets are classified on the basis of |
| A. | Time |
| B. | Function |
| C. | Flexibility |
| D. | All of the above |
| Answer» E. | |
| 534. |
A large Margin of Safety indicates |
| A. | Over-Capitalization |
| B. | The soundness of business |
| C. | Over Production |
| D. | None of the above |
| Answer» C. Over Production | |
| 535. |
In comparing a fixed budget with a flexible budget, what is the reason for the difference between the profit figures in the two budgets? |
| A. | Different levels of activity |
| B. | Different levels of spending |
| C. | Different levels of efficiency |
| D. | The difference between actual and budgeted performance |
| Answer» B. Different levels of spending | |
| 536. |
Which one of the following is not to be considered for preparing a productionbudget? |
| A. | The production plan of the organization |
| B. | The Sales Budget |
| C. | Research and Development Budget |
| D. | Availability of Raw Materials |
| Answer» D. Availability of Raw Materials | |
| 537. |
Contribution margin is equal to |
| A. | Sales - Fixed Cost - Profit |
| B. | Profit + Variable Cost |
| C. | Fixed Cost - Loss |
| D. | None of the above |
| Answer» D. None of the above | |
| 538. |
Management Accounting |
| A. | accumulates, summarises and analyses the available data. |
| B. | is primarily concerned with the requirements of the management. |
| C. | makes Corporate Planning and Strategy effective. |
| D. | All of the above |
| Answer» E. | |
| 539. |
Which of the following is not correct with regard to Margin of Safety (MOS)? |
| A. | MOS = Profit PV Ratio |
| B. | MOS = Total Sales – Sales at BEP |
| C. | MOS = × 100 Total Sales - Sales at BEP Total Sales |
| D. | MOS = PV Ratio × Sales – Fixed Cost |
| Answer» E. | |
| 540. |
Depreciation is an example of: |
| A. | Fixed cost |
| B. | Variable cost |
| C. | Semi variable cost |
| D. | None of the above |
| Answer» B. Variable cost | |
| 541. |
Marginal costing is also known as |
| A. | Direct costing |
| B. | Variable costing |
| C. | Both A and B |
| D. | None of the above |
| Answer» D. None of the above | |
| 542. |
Akash Ltd. is preparing its cash budget for the period. Sales are expected to be Rs. 1,00,000 in April, 2016; Rs. 2,00,000 in May 2016 Rs. 3,00,000 in June 2016 and Rs. 1,00,000 in July 2016. Half of all sales are cash sales and the other half are on credit. Experience indicates that 70% of the credit sales will be collected in the month following the sale, 20% the month after that and, 10% in the third month after the sale. The budgeted collection for the month of July, 2016 is: |
| A. | Rs. 1,30,000 |
| B. | Rs. 1,80,000 |
| C. | Rs. 2,60,000 |
| D. | Rs. 3,60,000 |
| Answer» C. Rs. 2,60,000 | |
| 543. |
Cost Price is not fixed in case of: |
| A. | Cost plus contracts |
| B. | Escalation clause |
| C. | De escalation clause |
| D. | All of the above |
| Answer» B. Escalation clause | |
| 544. |
Which one of the following is not considered as a method of Transfer Pricing? |
| A. | Negotiated Transfer Pricing |
| B. | Market Price Based Transfer Pricing |
| C. | Fixed Cost Based Transfer Pricing |
| D. | Opportunity Cost Based Transfer Pricing |
| Answer» D. Opportunity Cost Based Transfer Pricing | |
| 545. |
Which of the following is not an example of functional budget? |
| A. | Production budget |
| B. | Cost of production budget |
| C. | Materials budget |
| D. | None of the above |
| Answer» E. | |
| 546. |
The well known basic function of management is |
| A. | Motivating |
| B. | Leadership |
| C. | Decision making |
| D. | Communicating |
| Answer» D. Communicating | |
| 547. |
The most important element of cost is: |
| A. | Material |
| B. | Labour |
| C. | Overheads |
| D. | All the above |
| Answer» B. Labour | |
| 548. |
In cost accounting, purpose of variance analysis is to: |
| A. | understand reasons for variances. |
| B. | take remedial measures. |
| C. | improve future performance. |
| D. | All of the above |
| Answer» E. | |
| 549. |
Another name for the 'Learning Curve' is |
| A. | Exponential Curve |
| B. | Growth Curve |
| C. | Production Curve |
| D. | Experience Curve |
| Answer» E. | |
| 550. |
Planning and control are done by |
| A. | top management |
| B. | lowest level of management |
| C. | all levels of management |
| D. | None of the above |
| Answer» B. lowest level of management | |