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This set of Accounting for Management Multiple Choice Questions & Answers (MCQs) focuses on Accounting For Management Set 4
Q1 | Cash flow statement is a statement which describes inflows and outflows of……
- cash
- cash and cash equivalents
- working capital
- all of these
Q2 | Cash, according to cash flow statement comprises of ……………
- liquid cash only
- cash in hand
- cash in hand and demand deposits with banks
- none of these
Q3 | ………are short term , highly liquid investments that are readily convertibleinto known amounts of cash and which are subject to an insignificant risk of changes in value.
- cash equivalents
- short term investments
- marketable securities
- all of these
Q4 | Flow of cash is said to have taken place when any transactions makeschanges in the amount of ………….before happening of the transactions.
- cash
- cash equivalents
- both of these
- none of these
Q5 | Which among the following are examples of cash flow from operatingactivities ?
- cash receipts from sale of goods
- cash receipts from royalties
- cash payments to suppliers
- all of these
Q6 | Which among the following is not an example of cash flow from operatingactivities ?
- cash payments of insurance premiums
- cash payments of income taxes
- cash payments to employees
- cash receipts from disposal of fixed assets
Q7 | The essence of marginal costing is that ……………… cost is considered onthe whole as separate.
- fixed
- variable
- both of these
- none of these
Q8 | ………….cost represents the amount of any given volume of output by whichaggregate costs are changed if the volume of output is increased by one unit.
- variable cost
- marginal cost
- fixed cost
- none of these
Q9 | ………. Is the increase or decrease in total cost which results from producing or selling additional or fewer units of a product or from a change in the method of production or distribution such as the use of improvedmachinery, addition or exclusion of a product or territory or selection of an additional sales channel.
- variable cost
- marginal cost
- fixed cost
- none of these
Q10 | …………cost is defined as the aggregate of variable costs or prime costs plusvariable overheads.
- variable cost
- marginal cost
- fixed cost
- none of these
Q11 | Marginal costing is a …………… of costing
- system
- method
- technique
- all of these
Q12 | Under marginal costing, ……… Costs are regarded as costs of the products.
- variable costs
- fixed costs
- both of these
- none of these
Q13 | Under marginal costing, …………… costs are treated as period costs andcharged to profit and loss account for the period for which they are incurred
- variable costs
- fixed costs
- both of these
- none of these
Q14 | Under marginal costing, stocks of finished goods and work-in-process arevalued at …………….. costs only
- variable costs
- fixed costs
- marginal cost
- none of these
Q15 | ………………..is the excess of sales over marginal cost of sales
- profit
- margin
- loss
- contribution
Q16 | ………………..cost remains constant per unit of output irrespective of thelevel of output and thus fluctuates directly in proportion to changes in the volume of output
- variable costs
- fixed costs
- marginal cost
- none of these
Q17 | …………..costs are the increase or decrease in total cost that result fromproducing additional or fewer units or from the adoption of an alternative course of action.
- variable costs
- fixed costs
- marginal cost
- differential cost
Q18 | Marginal cost and differential cost are the same when ……..costs do notchange with change in output
- variable costs
- fixed costs
- semi variable cost
- none of these
Q19 | ………………is the practice of charging all costs, both variable and fixed, tooperations, processes, or products
- marginal costing
- absorption costing
- differential costing
- none of these
Q20 | In absorption costing, managerial decision making is based upon …………..
- profit
- contribution
- costs
- none of these
Q21 | Given sales = 150000, Fixed costs = 30000, Profit = 40000.The variablecost is………….
- 110000
- 80000
- 120000
- 10000
Q22 | The Profit/Volume ratio or marginal ratio expresses the relation of …………to sales.
- profit
- marginal cost
- contribution
- none of these
Q23 | Which of the following measures helps to increase the P/V Ratio ?
- increasing the selling price per unit
- reducing the variable or marginal cost
- changing the sales mixture
- all of these
Q24 | Given sales = 100000, Profit = 10000 , variable cost = 70%.The salesrequired to earn a profit of Rs.40000 is ………………………
- 1500000
- 100000
- 200000
- none of these
Q25 | Marginal cost is the ……….cost of producing an additional unit of output
- variable
- fixed
- semi variable
- none of these