### Management Accounting Set 18

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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 18

Q1 | Given standard time per unit is 80 hours, standard time per hour @ Rs 1 per hour, actual time per unit is 90 hours and actual rate per hour @ Rs 1.10 per hour. Determine labour cost variance, labour rate variance and labour efficiency variance.

- Rs 11, Rs 22 and Rs 10 all unfavorable
- Rs 19, Rs 9 and Rs 10 all favorable
- Rs 19, Rs 9 and Rs 10 all unfavorable
- Rs 11, Rs 22 and Rs 10 all favorable

Q2 | The formula used for calculation of labour rate variance is

- Total standard labour cost of actual output - Total actual cost of actual output
- (Standard rate per hour - Actual rate per hour) * Actual Hours
- (Standard time - Actual time) * Standard rate per hour
- Abnormal idle hours * Standard hourly rate

Q3 | The data related to Production of T are for material X standard data and actual data are 40 kgs @ Rs 10 and 55 kgs @ Rs 9, respectively. The standard data and actual data for material Y are 50 kgs @ Rs 5 and 35 kgs @ Rs 7. Determine material usage variance.

- Rs 75 favorable
- Rs 75 unfavorable
- Rs 90 unfavorable
- Rs 90 favorable

Q4 | Material yield variance arises when

- Actual output > Standard output
- Actual output < Standard output
- Both a and b
- None of the above

Q5 | While calculating material mix variance, if revised standard quantity is greater than actual quantity, the variance is

- Unfavorable
- Favorable
- Neither favorable nor unfavorable
- None of the above

Q6 | To produce Product A 2 kg of material X at Rs 10 per kg is required . During February 800 units of Product, A were produced. Actual price paid for material X is Rs 9 per kg and total cost Rs 15,300. Determine material cost variance.

- Rs 700 favorable
- Rs 700 unfavorable
- Inadequate data
- None of the above

Q7 | In a manufacturing firm, the standard quantity of material was set at 10 kg and standard price was fixed at Rs. 2 per kg. The actual quantity consumed was 12 kg and the actual price paid was Rs 1.90 per kg. Determine material usage variance.

- Rs 4 favorable
- Rs 4 unfavorable
- Rs 2.80 unfavorable
- Rs 1.20 favorable

Q8 | Marginal Cost is the aggregate of all

- Fixed overheads
- Variable Costs
- Contribution Costs
- Work Cost

Q9 | The other name of Marginal Costing isâ€¦

- Direct Costing
- Variable Costing
- Incremental Costing
- All of the above

Q10 | While making make or buy decision under marginal costing, external purchase price of the articles must be compared with its

- Fixed Cost
- Total Cost
- Variable Cost
- Prime Cost.

Q11 | Shut down cost is:

- Avoidable Fixed Cost
- Unavoidable Fixed Cost
- Avoidable Variable Cost
- Unavoidable Variable Cost

Q12 | Profit volume ratio can be improved by

- Reducing variable cost
- Reducing the selling price
- Increasing the fixed cost
- Increasing the key factor

Q13 | When Profit is Rs.5000 and P/V ratio is 20%, Margin of Safety is---------

- 10000
- 25000
- 30000
- 50000

Q14 | When selling price of product A is Rs.25 and product B is Rs. 20 and respective variable cost is Rs. 23 and Rs.16. The fixed cost is Rs.750, which of the following sales mix of product A and product B should be adopted to maximize the profit.

- 250 units of A & 250 units of B
- 500 units of B only
- 400 units of A & 100 units of B
- 150 units of A & 350 units of B

Q15 | The breakdown of cost of a component of a company is Material Rs.275, Labour Rs. 175 ,other Variable costs Rs.50 and Depreciation Rs.125. At what price the product should be available in the market so that company should buy from the market.

- Rs. 575
- Rs. 600
- Rs.500
- None

Q16 | Costs Which ------------between different alternatives are to be ignored.

- Are differential costs
- Are incremental costs
- Are constant costs
- Are relevant costs

Q17 | When selling price is Rs.200 Per unit, Variable Cost Rs.150 per unit and Fixed Cost is Rs.50000 at which capacity level the cost per unit would be minimum.

- 50%
- 60%
- 75%
- 85%

Q18 | The profit volume ratio (P/V Ratio)

- 15%
- 20%
- 25%
- 30%

Q19 | The Break-Even Point sales are

- Rs.2000000
- Rs.2500000
- Rs.3000000
- Rs. 4000000

Q20 | The Variable Cost in 2018 are

- Rs.2800000
- Rs.3000000
- Rs.3200000
- Rs.3400000

Q21 | The Fixed Cost are

- Rs.200000
- Rs.300000
- Rs.400000
- Rs.500000

Q22 | If projected sales in the year 2020 to be Rs.6500000 find out the corresponding profit

- Rs. 700000
- Rs. 800000
- Rs. 900000
- Rs.1000000

Q23 | Balance sheet indicates the financial status of the business ____.

- For a day
- For a month
- For a year
- At given period

Q24 | __do not give the returns during the same period during which they are paid for

- Intangible assets
- Fixed assets
- Both (A) and (B)
- None of the above

Q25 | Following is (are) called the element(s) of Cost

- Material
- Labour
- Expenses
- All of the above