On This Page

This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 3

Q1 | Which items are added in Current year profit to get Net profit before tax.I)Interim dividend II)Provision for tax III)Refund of tax IV)Transfer to reserves
  • All
  • Only III
  • Only II and IV
  • Only I,II and IV
Q2 | Which are financing activities?I)Issue of shares II)Interest Paid III)Dividend paid IV)Redemption of debentures
  • All
  • Only I,II and IV
  • Only I and IV
  • Only I,III and IV
Q3 | Which of the following is not the objective of budgetary control?I)ControlII)Danger of rigidityIII)MotivationIV)Based on estimates
  • Only II
  • Only II and IV
  • Only II,III and IV
  • All I,II,III and IV
Q4 | Which of the following is the limitation of Zero based budgeting.I)Resist new ideas II)Control on expenditure III)Requires proper training IV)Conflicts
  • All
  • Only I and IV
  • Only III and IV
  • Only I,III and IV
Q5 | The fixed administration expenses are Rs 50,000 at 10,000 units of production.What will be the per unit fixed cost at 8000 units?
  • Rs 5 per unit
  • Rs 8.33
  • Rs 6.25 per unit
  • Rs 10
Q6 | Labour Efficiency Variance is the sum total of I)Labour Mix variance II)Labour Cost Variance III)Idle time Variance IV)Labouryield variance
  • Only I and IV
  • All
  • Only II and III
  • Only I,III and IV
Q7 | Total Actual material is 1250 Kg.The Standard qty of Material A=800Kg and B=400Kg.What is the revised Std qty of A and Brespectively.
  • 825kg,425Kg
  • 950Kg,300Kg
  • 833Kg,417Kg
  • 750Kg,500Kg
Q8 | AQ=2500Kg ,SP=Rs 2.5,SQ=2400Kg,AP=Rs 3 .Calculate Material Cost variance.
  • 1500 F
  • 1500 A
  • 950 F
  • 950 A
Q9 | BE point=40,000 ,Fixed Cost=15,000.Calculate P/V ratio.
  • 3.75%
  • 0.38%
  • 26.66%
  • 37.50%
Q10 | Calculate Break Even Point in units if Fixed cost is 15,000 ,SP=15 and VC=12
  • 1000 units
  • 1250 units
  • 1500 units
  • 5000 units
Q11 | Calculate Profit if Mos=40%,P/v ratio=50% and Actual Sales=10,00,000.
  • 900000
  • 500000
  • 200000
  • 400000
Q12 | Variable cost ratio =80% and Mos=40%.Calculate P/V ratio and BEP(in Percentage) respectively.
  • 60%,60%
  • 20%,60%
  • 60%,20%
  • 20%,20%
Q13 | At Break even point,Contribution is equal to .
  • Profit
  • Variable Cost
  • Fixed Cost
  • Selling Price
Q14 | Which statement is true.I)Fixed budget assumes Changing business conditions. II)Flexible budget is prepared for only onelevel of activity.
  • None is true
  • Both are true
  • Only I
  • Only II
Q15 | Fixed cost=8000,Profit=5600 .Calculate Contribution.
  • 8000
  • 2400
  • 13600
  • 5600
Q16 | The wages due from Mar 20 ,Apr 20 and May 20 areRs8000,Rs9000 and Rs 10,000 respectively.There is delay in payment of wages of 2 months.What will be the wages paid in May
  • Rs 9000
  • Rs 8000
  • Rs 10000
  • Rs 27000
Q17 | Type of accounting which specialises in providing information about detailed cost of products?
  • Cost Accounting
  • Management Accounting
  • Financial Management
  • Financial Accounting
Q18 | What is included in scope of management accounting? I)Internal Control II)Budgeting III)Reporting to management IV)Office Services
  • Only II,III,IV
  • ALL I,II,III,IV
  • Only II and IV
  • Only I,II,IV
Q19 | Which of the following is the basis of difference between Financial and Management Accounting?
  • Publication and Audit
  • Periodic v/s Continuos reporting
  • Statutory Requirements
  • All of the above
Q20 | What are the objectives of Cost accounting?I)Cost Ascertainment II)Cost Control
  • Only I
  • Both I & II
  • Only II
  • None of the Above
Q21 | The status of management accountant is at what level as compared to cost accountant?
  • Lower
  • Equal
  • Higher
  • No status at all
Q22 | Which statement is true.I)Financial accounts are prepared according to Accounting Standards. II)Management Accounting reports are also prepared according to accounting standard.
  • Only II
  • Both I and II
  • Only I
  • None is true
Q23 | What indicate the relationship of different items of a financial statement with some common item by expressing each item as a percentage of the common item.
  • Comparative Statements
  • Ratio
  • Common size Statements
  • None of the Above
Q24 | Which is not the limitation of financial analysis?I)Effect of personal Bias II)Identify Trend III)Judge Efficiency IV)Different accounting policies
  • Only I
  • Only II and III
  • Only II , III and IV
  • Only I and IV
Q25 | Given inventory of 24,000, other current assets of 12,000 and current liabilities of 20,000, the acid test (quick ratio) will be:
  • 1.8 :1
  • 0.6 :1
  • 1.2:1
  • 1.6 :1