### Management Accounting Set 25

This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 25

Q1 | Which of the following costs is not relevant when considering the closure of a department within a factory?
• Direct materials
• Direct labour
Q2 | A Cost Unit is _____________
• The cost per machine hour
• The Cost per labour hour
• A unit of production in relation to which costs are ascertained
• A measure of work Output in a standard hour
Q3 | Factory Overheads are also called :
Q4 | Expenditure over and above prime cost is known as ________.
• factory cost
• cost of sales
• cost of production
Q5 | If the actual price input is $700, the budgeted price of input is$400 and the actual quantity of input are 50 units, then the price variance will be
• $15,000 •$13,000
• $11,000 •$9,000
Q6 | Return on capital employed shows the ________ of a firm.
• Profitability
• Overall efficiency
• Both
• Subjective matter
Q7 | A Company’s Quick Ratio is 1.5 : 1; Current Liabilities are ?2,00,000 and Inventory is?1,80,000. Current Ratio will be :
• 0.9 : 1
• 1.9 : 1
• 1.4 : 1
• 2.4 : 1
Q8 | Total revenue from operations ?27,00,000; Credit revenue from operations ?18,00,000; Opening Debtors ?3,20,000; Closing Debtors ?4,00,000; Provision for Doubtful Debts ?60,000. Trade Receivables Turnover Ratio will be :
• 7.5 times
• 9 times
• 6 times
• 5 times
Q9 | In a product mix decision, which is the most important factor to consider to try to maximise profit?
• Product unit selling price
• Contribution per unit of a scarce resource used to make the product
• Contribution per unit of the product
• Variable cost per unit of the product
Q10 | If the contribution margin per unit is $700 per unit and the break-even per unit is$40, then the fixed cost would be
• $35,000 •$28,000
• $17,500 •$82,000
Q11 | The budget which commonly takes the form of budgeted Profit and Loss Account and Balance Sheet is
• Cash Budget
• Fixed Budget
• Master Budget
• Flexible Budget
Q12 | Which of the following is not likely to be a reason of unfavourable direct labour efficiency variance?
• Increase in direct materials prices
• Frequent break downs during production process
• Lack of proper supervision
• Use of old, outdated or faulty equipment
Q13 | What is main component of operating expenses?
• Selling expenses
• Distribution expenses
• Production expenses
• None
Q14 | Comprehensive Machine Hour Rate includes :
• Machine Operators Wages
• Managing Directors Salary
• Income Tax
• Office rent
Q15 | The purpose of financial accounting is to provide information for ________.
• fixing prices
• controlling cost
• locating factors leading to wastages and losses
• assessing the profitability and financial position of the firm
Q16 | XYZ factory working for 50 hours per week employs hundred workers on a job work. The standard output is 200 units per gang hour and standard rate is Rs 1 per hour. During a week in June, five employees were paid @ Rs 1.20 per hour and ten employees were paid @ 80 paise per hour. Rest of the employees were paid @ standard hour rate. The actual number of units produced was 10,200. Determine labour cost variance
• Rs 100 favourable
• Rs 150 unfavourable
• Rs 150 favourable
• Rs 100 unfavourable