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This set of Accounting for Management Multiple Choice Questions & Answers (MCQs) focuses on Accounting For Management Set 5
Q1 | Profit Volume ratio is the ratio of ……………. To sales
- contribution
- profit
- sales
- none of these
Q2 | …………..is the angle caused by intersection of total cost line and totalsales line
- angle of contribution
- angle of incidence
- all of these
- none of these
Q3 | At Break even point contribution will be equal to …………….
- variable cost
- fixed cost
- profit
- none of these
Q4 | The ratio of contribution to ……………. Is called P/V ratio
- volume
- sales
- profit
- none of these
Q5 | Marginal cost is the aggregate of prime cost and ……………….
- fixed overheads
- variable overheads
- contribution
- none of these
Q6 | When fixed cost is deducted from contribution, the balance will be ……….
- variable cost
- profit
- total cost
- sales
Q7 | When sales are Rs.30000 and P/V ratio is 20% then contribution will be….
- 2000
- 4000
- 6000
- 8000
Q8 | When fixed costs are Rs.4000 and P/v ratio is 25%, then break even pointwill be …………..
- 40000
- 20000
- 16000
- 10000
Q9 | When profit is Rs.5000 and P/v ratio is 20% , Margin of safety is…………
- 10000
- 25000
- 30000
- 50000
Q10 | Fixed costs Rs.6000, Profit required Rs.4000 and P/v ratio is 50% , thensales required will be………….
- 6000
- 4000
- 10000
- 20000
Q11 | Variable cost ratio is 60% Sales Rs.20000 and fixed cst Rs.5000, thenprofit will be ……..
- 15000
- 12000
- 3000
- 10000
Q12 | Responsibility Accounting is also called ……………. Accounting
- profitability
- management
- all of these
- none of these
Q13 | In responsibility accounting the organization is divided into different………centers
- responsibility
- cost
- profit
- none of these
Q14 | A cost centre is a segment of the organization where the manager isresponsible for …………………..
- costs
- inputs
- a or b
- none of these
Q15 | Both costs and revenues are measured in ………………… centers
- cost
- profit
- revenue
- all of these
Q16 | A …………….is that factor which causes cost.
- cost driver
- profit driver
- all of these
- none of these
Q17 | cost driver for activities is called …………….
- activity driver
- expense driver
- driver
- none of these
Q18 | A centre where the manager is responsible for sales is …………..
- cost centre
- revenue centre
- investment centre
- none of these
Q19 | The performance of investment centre is based on ……………….
- cost of the centre
- profit of the centre
- profit and investment of the centre
- revenue of the centre
Q20 | Responsibility accounting is used for ……………….
- cost control
- planning
- decision making
- pricing
Q21 | ABC system is used for ………………
- material control
- wages control
- overhead allocation
- pricing decisions
Q22 | .A cost centre is …………………
- a production department where all production costs are aggregated
- an area of business accountable for both costs and revenues
- the part of the business where all costs are paid to suppliers
- an area for which costs are accumulated
Q23 | An investment centre is a responsibility centre where the manager hascontrol of ………………
- costs and profits
- cost profits and product quality
- costs profits and assets
- costs
Q24 | Responsibility accounting aims to …………….
- ensure that costs become the responsibility of a specific manager
- reduce the costs that a department incurs
- allocate costs to all areas of a business
- ensure that a manager is punished if things go wrong
Q25 | Prime costs may be defined as
- the total costs of manufacturing a product
- the total direct costs of manufacturing a product
- the cost of the first stage of manufacturing
- the total cost of production