MCQOPTIONS
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MCQOPTIONS
This section includes 1375 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 101. |
Sales budget variance is subtracted from flexible budget amount to calculate |
| A. | tatic budget amount |
| B. | nstated amount |
| C. | onstant amount |
| D. | ariable amount |
| Answer» B. nstated amount | |
| 102. |
If sales budget variance for operating income is $68000 and static budget amount is $19000, then flexible budget amount will be |
| A. | 47,000 |
| B. | 57,000 |
| C. | 87,000 |
| D. | 97,000 |
| Answer» D. 97,000 | |
| 103. |
Subtracted flexible budget amount can form an actual result to calculate |
| A. | nstated budget variance |
| B. | lexible budget variance |
| C. | onstant budget variance |
| D. | tatic budget variance |
| Answer» C. onstant budget variance | |
| 104. |
If static budget is $208000 and flexible budget amount is $305000, then sales budget variance will be |
| A. | 67,000 |
| B. | 97,000 |
| C. | 57,000 |
| D. | 47,000 |
| Answer» C. 57,000 | |
| 105. |
If actual result is $26000, flexible budget amount is $13000, then flexible budget amount will be |
| A. | 39,000 |
| B. | 49,000 |
| C. | 13,000 |
| D. | 15,000 |
| Answer» D. 15,000 | |
| 106. |
If actual selling price is $500, actual result is $250 and actual units sold are 350, then selling price variance will be |
| A. | 87,500 |
| B. | 97,500 |
| C. | 67,500 |
| D. | 57,500 |
| Answer» B. 97,500 | |
| 107. |
Flexible budget variance for revenues of company is classified as |
| A. | elling price variance |
| B. | nvestment variance |
| C. | rofit variance |
| D. | rimary variance |
| Answer» B. nvestment variance | |
| 108. |
If actual result is $25000 and flexible budget amount is $11000, then flexible budget amount is |
| A. | 36,000 |
| B. | 46,000 |
| C. | 56,000 |
| D. | 14,000 |
| Answer» E. | |
| 109. |
Last step in developing operating budget is |
| A. | mplementing income |
| B. | mplementing decision |
| C. | fficient implementation |
| D. | ffective implementation |
| Answer» C. fficient implementation | |
| 110. |
If indirect manufacturing labour is $20000, power cost is $5000, maintenance and supplies are of $10000 then manufacturing budget will be |
| A. | 5,000 |
| B. | 35,000 |
| C. | 15,000 |
| D. | 45,000 |
| Answer» C. 15,000 | |
| 111. |
Cost influences by responsibility center manager who is considered as |
| A. | anager cost |
| B. | nfluential cost |
| C. | enter cost |
| D. | ontrollable cost |
| Answer» E. | |
| 112. |
Third step in developing operating budget is |
| A. | nalysis of batches |
| B. | nalysis of batches |
| C. | nalysis of products |
| D. | aking predictions about future |
| Answer» E. | |
| 113. |
An arrangement of line of authority within company is classified as |
| A. | ompany structure |
| B. | rganization structure |
| C. | ine of authority |
| D. | ine of responsibility |
| Answer» C. ine of authority | |
| 114. |
Variance, if used to alert managers before time of problem is called |
| A. | aried warning |
| B. | imes warning |
| C. | anagers warning |
| D. | arly warning |
| Answer» E. | |
| 115. |
Which of following is an example of revenue center? |
| A. | ales department |
| B. | nvesting center |
| C. | arketing department |
| D. | egment department |
| Answer» B. nvesting center | |
| 116. |
Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as |
| A. | ubunit center |
| B. | nstruction center |
| C. | esponsibility center |
| D. | ctivity segment |
| Answer» D. ctivity segment | |
| 117. |
Budgeting method, which incorporates an improvement anticipated in budgeting period into budget numbers can be classified as |
| A. | nticipated budgeting |
| B. | umber budgeting |
| C. | redict budgeting |
| D. | aizen budgeting |
| Answer» E. | |
| 118. |
Significant feature of Kaizen Budgeting is |
| A. | mployee suggestion |
| B. | ustomer suggestion |
| C. | ost suggestion |
| D. | rice suggestion |
| Answer» B. ustomer suggestion | |
| 119. |
System which measures budget, action and plan of each responsibility center is known as |
| A. | udgeted accounting |
| B. | ction accounting |
| C. | lanned accounting |
| D. | esponsibility accounting |
| Answer» E. | |
| 120. |
Manager who is responsible only for revenues of company can be categorized under the |
| A. | rofit center |
| B. | nvestment center |
| C. | ost center |
| D. | evenue center |
| Answer» E. | |
| 121. |
Difference between budgeted amounts and actual results is classified as |
| A. | tandard deviation |
| B. | ariances |
| C. | ean average |
| D. | eighted average |
| Answer» C. ean average | |
| 122. |
Costs of undertaken activities is to support individual products are known as |
| A. | xpected sustaining |
| B. | nput sustaining |
| C. | utput sustaining |
| D. | roduct sustaining costs |
| Answer» E. | |
| 123. |
Product which requires large amount of resources, but incur low per unit cost is classified as |
| A. | roduct under costing |
| B. | roduct over costing |
| C. | xpected under cost |
| D. | xpected over cost |
| Answer» B. roduct over costing | |
| 124. |
Hierarchy which is based on different types of cost allocation and drivers, is to categorize cost pool activity is classified as |
| A. | ost hierarchy |
| B. | rice hierarchy |
| C. | ctivity hierarchy |
| D. | urpose hierarchy |
| Answer» B. rice hierarchy | |
| 125. |
Manager who is responsible for investments of company, its costs and revenues is known as |
| A. | rofit center |
| B. | nvestment center |
| C. | ost center |
| D. | evenue center |
| Answer» C. ost center | |
| 126. |
An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as |
| A. | oordinating company effort |
| B. | ction plan |
| C. | ction accountability |
| D. | roject accountability |
| Answer» B. ction plan | |
| 127. |
Larger number of manager subordinates and higher level manager are termed as |
| A. | ctivity subordinates |
| B. | roader responsibility center |
| C. | roader subordinates |
| D. | ctivity ordinates |
| Answer» C. roader subordinates | |
| 128. |
A manager, who is responsible for both cost and revenues belongs to department of |
| A. | ost center |
| B. | evenue center |
| C. | rofit center |
| D. | nvestment center |
| Answer» D. nvestment center | |
| 129. |
Value, which measures that how large is value of standard error in relevance to value of estimated coefficient is termed as |
| A. | -value |
| B. | -value |
| C. | -value |
| D. | -value |
| Answer» B. -value | |
| 130. |
In dependent variable cost pool, relationship between individual cost items and cost drivers can be classified as |
| A. | o homogeneous relationship |
| B. | omogeneous relationship |
| C. | eterogeneous relationship |
| D. | n extreme relationship |
| Answer» B. omogeneous relationship | |
| 131. |
Vertical dashed line in graphical representation of cost function represents the |
| A. | ost representation |
| B. | rrelevant range |
| C. | elevant range |
| D. | raphical representation |
| Answer» D. raphical representation | |
| 132. |
Method which considers lowest and highest values of cost driver and cost within relevant range is called |
| A. | ow high method |
| B. | onstant equation |
| C. | ariable equation |
| D. | igh low method |
| Answer» E. | |
| 133. |
Slope coefficient of linear cost function is |
| A. | ero |
| B. | ne |
| C. | wo |
| D. | hree |
| Answer» B. ne | |
| 134. |
Worse fit between estimated cost and actual observations is shown on regression line with |
| A. | arger residual terms |
| B. | ero residual terms |
| C. | ariable residual terms |
| D. | maller residual terms |
| Answer» B. ero residual terms | |
| 135. |
Function which is used to measure decline in per unit cost of different business functions is classified as |
| A. | ixed curve |
| B. | xperience curve |
| C. | iscrete curve |
| D. | ixed curve |
| Answer» C. iscrete curve | |
| 136. |
If difference between costs linked to highest and lowest observation of cost driver is $36000 and observation of cost driver is 30 machine hours, then slope coefficient would be |
| A. | 1,200 |
| B. | 1,400 |
| C. | 1,600 |
| D. | 1,800 |
| Answer» B. 1,400 | |
| 137. |
Regression Analysis Method of quantitative analysis of cost function considers |
| A. | ll data points |
| B. | ne data point |
| C. | wo data points |
| D. | our data points |
| Answer» B. ne data point | |
| 138. |
An estimated coefficient, which indicates degree by which estimated values are affected by random factors is known as |
| A. | tandard error of estimated coefficient |
| B. | eighted error of estimated coefficient |
| C. | verage of estimated coefficient |
| D. | ariance of estimated coefficient |
| Answer» B. eighted error of estimated coefficient | |
| 139. |
If an unexplained variation is 456870 and total variation is 955000, then coefficient of determination will be |
| A. | 0.4528 |
| B. | 0.4783 |
| C. | 0.5216 |
| D. | 0.5425 |
| Answer» C. 0.5216 | |
| 140. |
Better fit between estimated cost and actual observations is represented by |
| A. | ariable residual terms |
| B. | maller residual terms |
| C. | arger residual terms |
| D. | ero residual terms |
| Answer» C. arger residual terms | |
| 141. |
In Regression Analysis, if an observed cost value is 85 and disturbance error is 25 then predicted cost value will be |
| A. | 10 |
| B. | 25 |
| C. | 0 |
| D. | 0 |
| Answer» D. 0 | |
| 142. |
Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called |
| A. | imes series method |
| B. | ime horizon method |
| C. | ggression method |
| D. | egression method |
| Answer» E. | |
| 143. |
In linear cost function which is y=a + bx, objective is to find the |
| A. | alues of a and b |
| B. | alues of x and y |
| C. | alues of a and x |
| D. | alues of b and y |
| Answer» B. alues of x and y | |
| 144. |
Within relevant range, cost function which cost does not change in narrow ranges of activity is called |
| A. | ixed cost function |
| B. | ariable cost function |
| C. | tep variable cost function |
| D. | tep fixed cost function |
| Answer» D. tep fixed cost function | |
| 145. |
In adjustment issues and data collection, inflation affects the |
| A. | ost driver and cost |
| B. | ost object and cost |
| C. | eterogeneous cost |
| D. | omogenous cost |
| Answer» B. ost object and cost | |
| 146. |
If difference in costs is $7000 and difference in machine hours of is $18000, then slope coefficient would be |
| A. | 0.571 |
| B. | 0.39 |
| C. | 0.2571 |
| D. | 0.39 |
| Answer» C. 0.2571 | |
| 147. |
In adjustment issues of costing, database must contain reliable measure of |
| A. | ixed cost driver |
| B. | ost driver and cost |
| C. | ost driver and object |
| D. | ixed cost driver |
| Answer» C. ost driver and object | |
| 148. |
In regression analysis, if observed cost value is 62 and predicted cost value is 29, then disturbance term would be |
| A. | 3 |
| B. | 1 |
| C. | 1 |
| D. | 3 |
| Answer» B. 1 | |
| 149. |
Factor used to predict dependent variable is named as |
| A. | ndependent variable |
| B. | unction variable |
| C. | valuation variable |
| D. | stimation variable |
| Answer» B. unction variable | |
| 150. |
Goodness of fit predicted values is also known as |
| A. | oefficient of determination |
| B. | oefficient of index |
| C. | oefficient of residual |
| D. | oefficient of prediction |
| Answer» B. oefficient of index | |