Management Accounting Set 25
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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?
- Variable overheads
- Direct materials
- Fixed overheads
- 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 :
- Sundry Overhead
- Works Overhead
- Extra Overhead
- Total Overhead
Q4 | Expenditure over and above prime cost is known as ________.
- overhead
- 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- Use of old, outdated or faulty equipment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