MCQOPTIONS
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MCQOPTIONS
This section includes 16 Mcqs, each offering curated multiple-choice questions to sharpen your Cost Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Type of accounting which measures, reports and analyse non-financial and financial information to help in decision making is called: |
| A. | Financial Accounting |
| B. | Management Accounting |
| C. | Cost Accounting |
| D. | Green Accounting |
| Answer» C. Cost Accounting | |
| 2. |
Which one of the following is not to be considered for preparing a production budget? |
| 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 | |
| 3. |
The P/V ratio of a product is 0.4 and the selling price is Rs. 40 per unit. The marginal cost of the product would be, |
| A. | Rs. 8 |
| B. | Rs. 24 |
| C. | Rs. 20 |
| D. | Rs. 25 |
| Answer» C. Rs. 20 | |
| 4. |
The time taken for initial unit of a product is 100 hours. At 80% learning rate what is the total time for 4 units. |
| A. | 100 hours |
| B. | 80 hours |
| C. | 160 hours |
| D. | 256 hours |
| Answer» E. | |
| 5. |
Sales Rs. 4,00,000; Variable Cost Rs. 3,00,000; Fixed Cost Rs. 75,000; Investments Rs. 1,50,000 and desired 20% on investments. What is residual income? |
| A. | Rs. 25,000 |
| B. | Rs. 30,000 |
| C. | Rs. 20,000 |
| D. | Rs. (5,000) |
| Answer» E. | |
| 6. |
If standard hours are 400 @ Rs. 1 per hour and actual hours are 380 @ Rs. 1.25 per hour, the labour rate variance is: |
| A. | Rs. 20 (Favourable) |
| B. | Rs. 25 (Favourable) |
| C. | Rs. 100 (Adverse) |
| D. | Rs. 95 (Adverse) |
| Answer» E. | |
| 7. |
Sales in January month Rs. 3,00,000; Credit Sales are 80%; Credit period is 2 months. Amount collected in the month of March is |
| A. | Rs. 50,000 |
| B. | Rs. 2,40,000 |
| C. | Rs. 40,000 |
| D. | None of the above |
| Answer» C. Rs. 40,000 | |
| 8. |
Which of the following departments is most likely responsible for a price variance in direct materials? |
| A. | Warehousing |
| B. | Receiving |
| C. | Purchasing |
| D. | Production |
| Answer» D. Production | |
| 9. |
In a system whereby all activities are revaluated each time a budget is formulated and 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. | |
| 10. |
The management s time is saved by reporting only the deviations from the predetermined standards is called |
| A. | Management by objectives |
| B. | Budgetary Control |
| C. | Standard Costing |
| D. | Management by Exception |
| Answer» E. | |
| 11. |
Management Accounting is concerned with accounting information, which is useful to the management This definition is given by ______________. |
| A. | Robert N. Anthony |
| B. | Brown and Howard |
| C. | CIMA |
| D. | The Institute of Chartered Accountants of England and Wales |
| Answer» B. Brown and Howard | |
| 12. |
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 | |
| 13. |
A budget that gives a summary of all the functional budgets and projected Profit and Loss A/c is known as |
| A. | Master budget |
| B. | Flexible budget |
| C. | Performance budget |
| D. | Discretionary budget |
| Answer» B. Flexible budget | |
| 14. |
In a product mix decision, which is the most important factor to consider in order to try to maximize profit? |
| A. | contribution per unit of a scarce resource used to make the product |
| B. | contribution per unit of the product |
| C. | variable cost per unit of the product |
| D. | product unit selling price |
| Answer» B. contribution per unit of the product | |
| 15. |
Which of the following costs incurred by a commercial airline can be classified as variable? |
| A. | Interest costs on leasing of aircraft |
| B. | Pilots' salaries |
| C. | Depreciation of aircraft |
| D. | None of these three costs can be classified as variable |
| Answer» E. | |
| 16. |
If budgets are prepared of a business concern for a certain period taking each and every 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 | |