Management Accounting Set 4

Bachelor of Business Administration (BBA),

Bachelor of Banking and Insurance (BBI),

Bachelor of Commerce (B Com)

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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 4

Q1 | Quick assets do not include I)Prepaid Expense II)Advance Tax III)Marketable securities IV)Inventory
  • Only I,II and IV
  • Only III
  • All I,II,III,IV
  • Only II and III
Answer: Only I,II and IV
Q2 | If debt equity ratio exceeds ,it indicates risky position.
  • 1:01
  • 2:01
  • 1:02
  • 3:01
Answer: 2:01
Q3 | Which of these is false?
  • Working Capital=Current Assets-Current Liabilities
  • CL=CA-Working capital
  • Current Liabilities=Workin g capital -CA
  • Current Assets=Working capital+CL
Answer: Current Liabilities=Workin g capital -CA
Q4 | If average T/R are 1,00,000 ,Closing T/R are 3 times that of opening T/R .What is Closing T/R?
  • 200000
  • 75000
  • 150000
  • 50000
Answer: 150000
Q5 | A firm that issues stocks and bonds to raise funds results in in cashflow.
  • Decreased Cash
  • Increased Cash
  • Increased Equity
  • Increased Liabilities
Answer: Increased Equity
Q6 | Which are not Investing activity? I)Receipts from sale of fixed asset II)Interest received III)Dividend paid IV)Cash Payment to acquire share of other Companies
  • Only II and III
  • Only III and IV
  • Only III
  • All are not investing activities
Answer: Only III
Q7 | Which of the following is not the objective of budgetary control? I)Control II)Danger of rigidity III)Motivation IV)Based on estimates
  • Only II
  • Only II and IV
  • Only II,III and IV
  • All I,II,III and IV
Answer: Only II and IV
Q8 | Which statement is true.I)Fixed budget assumes Changing business conditions. II)Flexible budget is prepared for only one level of activity.
  • None is true
  • Both are true
  • Only I
  • Only II
Answer: None is true
Q9 | The wages due from Mar 20 ,Apr 20 and May 20 are Rs8000,Rs9000 and Rs 10,000 respectively.There is delay in payment of wages of 2 months.What will be the wages paid in May 20 in the Cash Budget.
  • Rs 9000
  • Rs 8000
  • Rs 10000
  • Rs 27000
Answer: Rs 8000
Q10 | Which of the following is/are the responsibilty centres.I)Cost centre II)Investment Centre III)Profit center IV)Revenue Centre
  • All
  • Only I,II and III
  • Only I and IV
  • Only II,III and IV
Answer: All
Q11 | Labour Efficiency Variance is the sum total of I)Labour Mix variance II)Labour Cost Variance III)Idle time Variance IV)Labour yield variance
  • Only I and IV
  • All
  • Only II and III
  • Only I,III and IV
Answer: Only I,III and IV
Q12 | 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 B respectively.
  • 825kg,425Kg
  • 950Kg,300Kg
  • 833Kg,417Kg
  • 750Kg,500Kg
Answer: 833Kg,417Kg
Q13 | SH=800 Hours,AR=Rs 7 ,SR=6,AH=750 Hours.Calculate labour rate variance(LRV).
  • 750 A
  • 300 F
  • 300 A
  • 750 F
Answer: 750 A
Q14 | Yr 2019 :sales 1,20,000 and Profit8,000 ;Yr 2020:Sales 1,40,000 an profit 13,000.Calculate P/v ratio.
  • 25%
  • 40%
  • 30%
  • 35%
Answer: 25%
Q15 | 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
Answer: 5000 units
Q16 | Actual Sales=40,000 and Break Even Point =25,000.Calculate Margin of safety(MOS).
  • 65000
  • 15000
  • 40000
  • 25000
Answer: 15000
Q17 | What are the sales required to earn a profit of 12,000 if Fixed cost are 22,000 and P/V ratio is 25%.
  • 136000
  • 40000
  • 8500
  • 2500
Answer: 136000
Q18 | Actual Sales=80,000,P/V ratio=20% and Fixed cost=10,000.Calculate Profit.
  • 16000
  • 3000
  • 5000
  • 6000
Answer: 6000
Q19 | The cost that tends to remain constant irrespective of the level of activity is called_______.
  • Variable cost
  • Fixed cost
  • Total cost
  • All of the above
Answer: Fixed cost
Q20 | Cost Accounting restrict itself with _______ transactions.
  • Financial
  • Spot
  • Historical
  • Administrative
Answer: Historical
Q21 | Following is (are) the method(s) of measuring labour turnover.
  • Replacement Method
  • Separation Method
  • Flux Method
  • All of the above
Answer: All of the above
Q22 | Following is (are) the example(s) of semi-variable overheads.
  • Maintenance cost
  • Electricity
  • Health and Accident Insurance
  • All of the above
Answer: All of the above
Q23 | _________ indicates the financial status of the business at given period.
  • Balance sheet
  • Accounting ledger
  • General ledger
  • All of the above
Answer: Balance sheet
Q24 | In Cash budget, Non operating cash inflow include(s)
  • Receipt of loan/borrowings
  • Issue of shares
  • Sale of fixed assets
  • All of the above
Answer: All of the above
Q25 | Sales Budget is a forecast expressed in -
  • Quantity
  • Money
  • Both (a) and (b)
  • None of the above
Answer: Both (a) and (b)
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