Accounting For Management Set 4

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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