MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
An operating income is divided by revenues to calculate |
| A. | esidual income |
| B. | eturn on after-tax operating income |
| C. | eturn on sales |
| D. | eturn on investment |
| Answer» D. eturn on investment | |
| 2. |
Difference of current assets and working capital is equal to |
| A. | urrent liabilities |
| B. | ong-term liabilities |
| C. | esidual assets value |
| D. | et residual income |
| Answer» B. ong-term liabilities | |
| 3. |
Budget which is planned around a single output level is called |
| A. | arketing budget |
| B. | ethodological budget |
| C. | tatic budget |
| D. | aried budget |
| Answer» D. aried budget | |
| 4. |
Performance is evaluated only on basis of price variance, if performance evaluation is |
| A. | ositive |
| B. | egative |
| C. | ero |
| D. | ne |
| Answer» B. egative | |
| 5. |
An efficiency variance is 200 units and actual input quantity is 500 units, then budgeted input quantity will be |
| A. | 00 units |
| B. | 00 units |
| C. | 00 units |
| D. | 00 units |
| Answer» B. 00 units | |
| 6. |
In cost accounting, goal of variance analysis is to |
| A. | nderstand variance reason |
| B. | mprove future performance |
| C. | earning of improvement |
| D. | ll of above |
| Answer» E. | |
| 7. |
If a company uses large quantity of input than budgeted quantity for output level, then company is known to be |
| A. | ariable growth of company |
| B. | onstant growth of company |
| C. | ompany is inefficient |
| D. | ompany is efficient |
| Answer» D. ompany is efficient | |
| 8. |
If flexible budget variance is $95000 and an actual cost is $40000, then flexible budget cost would be |
| A. | 135,000 |
| B. | 45,000 |
| C. | 50,000 |
| D. | 55,000 |
| Answer» E. | |
| 9. |
An efficiency variance is subtracted from actual input quantity to calculate |
| A. | ctual quantity manufactured |
| B. | udgeted quantity manufactures |
| C. | udgeted quantity sold |
| D. | udgeted input quantity |
| Answer» E. | |
| 10. |
Flexible budget variance is subtracted from actual cost to calculate |
| A. | lexible budget cost |
| B. | lexible investment cost |
| C. | tatic budget cost |
| D. | tatic variable cost |
| Answer» B. lexible investment cost | |
| 11. |
Level of used input to achieve a determined level of output is termed as |
| A. | fficiency |
| B. | ffectiveness |
| C. | rowth evaluation |
| D. | erformance evaluation |
| Answer» B. ffectiveness | |
| 12. |
Static budget amount is subtracted from actual result to calculate |
| A. | tatic budget receipts |
| B. | tatic budget deviation |
| C. | tatic budget variance |
| D. | ultiple budget variance |
| Answer» D. ultiple budget variance | |
| 13. |
Budgeted input quantity is added in to efficiency variance to calculate |
| A. | ctual input quantity |
| B. | ctual output quantity |
| C. | ctual input price |
| D. | ctual output price |
| Answer» B. ctual output quantity | |
| 14. |
If budgeted price of input is $70, actual quantity of input is 250 units and allowed budgeted quantity of input is 90 units, then efficiency variance will be |
| A. | 23,800 |
| B. | 11,200 |
| C. | 12,200 |
| D. | 13,200 |
| Answer» C. 12,200 | |
| 15. |
If actual price input is $500, budgeted price of input is $300 and actual quantity of input is 50 units, then price variance would be |
| A. | 4,000 |
| B. | 6,000 |
| C. | 8,000 |
| D. | 10,000 |
| Answer» E. | |
| 16. |
If an actual result is $50000 and static budget variance is $25000, then static budget amount will be |
| A. | 75,000 |
| B. | 25,000 |
| C. | 35,000 |
| D. | 45,000 |
| Answer» C. 35,000 | |
| 17. |
If an actual input price is $70 and budgeted input price is $40, then price variance will be |
| A. | 120 |
| B. | 50 |
| C. | 110 |
| D. | 30 |
| Answer» E. | |
| 18. |
If static budget variance is $46000 and static budget amount is $15000, then an actual result would be |
| A. | 80,000 |
| B. | 71,000 |
| C. | 61,000 |
| D. | 31,000 |
| Answer» E. | |
| 19. |
If input used in manufacturing is smaller in quantity and output produced is greater in quantity, this will be categorized under |
| A. | esser effective |
| B. | reater efficiency |
| C. | maller efficiency |
| D. | reater effective |
| Answer» C. maller efficiency | |
| 20. |
Price variance for direct manufacturing labour is referred as |
| A. | irect variance |
| B. | ate variance |
| C. | abour variance |
| D. | anufacturing variance |
| Answer» C. abour variance | |
| 21. |
If price variance is $30 and budgeted input price is $80, then an actual price would be |
| A. | $110 |
| B. | $50 |
| C. | 110 |
| D. | 50 |
| Answer» D. 50 | |
| 22. |
An unfavourable variance in static budget is also known as |
| A. | avourable variance |
| B. | dverse variance |
| C. | dverse standard deviation |
| D. | nfavourable variance |
| Answer» C. dverse standard deviation | |
| 23. |
If price variance is $20 and budgeted input price is $70, then an actual price will be |
| A. | 90 |
| B. | 50 |
| C. | $50 |
| D. | 100 |
| Answer» B. 50 | |
| 24. |
An expected performance of company is also known as |
| A. | rice requirements |
| B. | upply requirements |
| C. | udgeted performance |
| D. | emand requirements |
| Answer» D. emand requirements | |
| 25. |
If actual payment to labour is $1200 and budgeted rate is $1000, then labour price variance would be |
| A. | ess than zero |
| B. | qual to zero |
| C. | avourable |
| D. | nfavourable |
| Answer» E. | |
| 26. |
In budget hierarchy, material handling cost is |
| A. | ixed manufacturing cost |
| B. | atch level cost |
| C. | er unit cost |
| D. | actory overall cost |
| Answer» C. er unit cost | |
| 27. |
Costs that are not incorporated in accounting records, but are recognized in different situations are classified as |
| A. | ongruent costs |
| B. | mputed costs |
| C. | perating costs |
| D. | ransfer costs |
| Answer» C. perating costs | |
| 28. |
If current assets are $856000 and working capital is $654500, then current liabilities will be |
| A. | 501,500 |
| B. | 401,500 |
| C. | 201,500 |
| D. | 301,500 |
| Answer» D. 301,500 | |
| 29. |
In manufacturing companies, revenue and cost drivers are categorized under |
| A. | ariable costs |
| B. | osts of goods sold |
| C. | umber of units sold |
| D. | ll of above |
| Answer» D. ll of above | |
| 30. |
Quantity of manufactured goods are sold at which total cost equal, is known as |
| A. | reakeven point |
| B. | ost point |
| C. | evenue point |
| D. | uantity point |
| Answer» B. ost point | |
| 31. |
If fixed cost is $50000 and contribution margin percentage is 20%, then breakeven revenue will be |
| A. | 100,000 |
| B. | 150,000 |
| C. | 250,000 |
| D. | 225,000 |
| Answer» D. 225,000 | |
| 32. |
In a relevant range, variable cost per unit, selling price and total fixed costs are |
| A. | nknown and variable |
| B. | nown and variable |
| C. | nknown and constant |
| D. | nown and constant |
| Answer» E. | |
| 33. |
Selling price is multiplied to quantity of sold units to calculate |
| A. | evenues |
| B. | old quantity |
| C. | old price |
| D. | ulk price |
| Answer» B. old quantity | |
| 34. |
If fixed cost is $40000 and contribution margin per unit is $800 per unit, then breakeven of units will be |
| A. | 0 units |
| B. | 0 units |
| C. | 0 units |
| D. | 0 units |
| Answer» D. 0 units | |
| 35. |
Competitiveness can be best measured by |
| A. | ross margin |
| B. | ncome margin |
| C. | ales margin |
| D. | ost margin |
| Answer» B. ncome margin | |
| 36. |
If cost of goods sold is $8000, gross margin is $5000 then revenue will be |
| A. | 13,000 |
| B. | $13000 |
| C. | 3,000 |
| D. | $3000 |
| Answer» B. $13000 | |
| 37. |
If contribution margin percentage is 20% and selling price is $4000, then contribution margin per unit will be |
| A. | 200 |
| B. | 400 |
| C. | 600 |
| D. | 800 |
| Answer» E. | |
| 38. |
Fixed cost is added to target operating income and then divided to contribute margin per unit to calculate |
| A. | uantity of units required to sold |
| B. | elling of units |
| C. | old units |
| D. | ontributed units |
| Answer» B. elling of units | |
| 39. |
If gross margin is $2000 and revenue is $5000, then cost of goods sold would be |
| A. | $8000 |
| B. | 3,000 |
| C. | $3000 |
| D. | 8,000 |
| Answer» C. $3000 | |
| 40. |
Fixed cost is divided by break-even revenues to calculate |
| A. | ost margin |
| B. | ixed margin |
| C. | evenue margin |
| D. | ontribution margin |
| Answer» E. | |
| 41. |
System in an organization, which defines behavior standards and code of conduct is known as |
| A. | nteractive control system |
| B. | elief system |
| C. | oundary system |
| D. | iagnostic control system |
| Answer» D. iagnostic control system | |
| 42. |
After-tax average cost of funds used by company in long run is equal to |
| A. | eighted average cost of capital |
| B. | conomic value added |
| C. | fter-tax operating income |
| D. | et income |
| Answer» B. conomic value added | |
| 43. |
Target operating income is multiplied to tax rate and then subtracted from target operating income to calculate |
| A. | arget net cost |
| B. | arget net income |
| C. | arget net gain |
| D. | arget net loss |
| Answer» C. arget net gain | |
| 44. |
An effect of fixed cost to change in operating income is classified as |
| A. | ncertain margin |
| B. | ertain margin |
| C. | perating margin |
| D. | perating leverage |
| Answer» E. | |
| 45. |
Type of distribution, which consists of alternative outcomes and probabilities of events is classified as |
| A. | vent table |
| B. | utcome table |
| C. | ecision table |
| D. | robability table |
| Answer» D. robability table | |
| 46. |
Measures that analyze performance of a company, such as residual income, economic value added and customer satisfaction are collectively called |
| A. | nteractive control systems |
| B. | elief systems |
| C. | oundary systems |
| D. | iagnostic control systems |
| Answer» E. | |
| 47. |
Formal information systems, used in organizations to focus company's learning and attention given to most important strategic issues are known as |
| A. | nteractive control system |
| B. | elief systems |
| C. | oundary systems |
| D. | iagnostic control systems |
| Answer» B. elief systems | |
| 48. |
Return on sales is multiplied to investment turnover to calculate |
| A. | esidual income |
| B. | eturn on investment |
| C. | eturn on sales |
| D. | nvestment turnover |
| Answer» C. eturn on sales | |
| 49. |
If contribution margin is $13000, total variable cost is $7000 then total revenue will be |
| A. | 6,000 |
| B. | $6000 |
| C. | 20,000 |
| D. | $20000 |
| Answer» D. $20000 | |
| 50. |
If contribution margin percentage is 30%, selling price is $5000, then contribution margin per unit will be |
| A. | 900 |
| B. | 1,200 |
| C. | 1,500 |
| D. | 1,600 |
| Answer» D. 1,600 | |