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This set of Advanced Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Advanced Management Accounting Set 1
Q1 | The business environmental factors are _________.
- Static
- Dynam
- C. Both of the above
- None of the above
Q2 | The control ratios used by the management to know whether the deviations of the actual performance from the budgeted performance are favourable or unfavourable are __________.
- Capacity ratio and calendar ratio.
- Efficiency ratio and calendar ratio.
- Both A a
- B D. None of these
Q3 | The problems associated with marginal costing are
- Difficulties in divisions of costs
- Problem of valuation of stocks
- Ignores time elements
- All of the above
Q4 | ___________ is not suitable where selling price is determined on the basis of cost-plus method.
- Absorption costing
- Marginal costing
- Both A a
- B D. None of the above
Q5 | Managers utilizes marginal costing for
- Make or buy decision
- Utilisation of additional capacity
- Determination of dumping price
- All of the above
Q6 | Which of the following are advantages of marginal costing?
- Makes the process of cost accounting more simple
- Helps in proper valuation of closing stock
- Useful for standa
- and budgetary control D. All of the above
Q7 | Given production is 1,00,000 units, fixed costs is Rs 2,00,000 Selling price is Rs 10 per unitand variable cost is Rs 6 per unit. Determine profit using technique of marginal costing.
- Rs 2, 00,000
- Rs 8, 00,000
- Rs 6, 00,000
- None of the above
Q8 | Contribution margin is also known as
- Gross profit
- Net profit
- Earning before tax
- Marginal income
Q9 | Contribution is the difference between
- Sales and variable cost
- Sales and fixed cost
- Sales a
- total cost D Factory cost and profit
Q10 | When fixed cost is Rs. 20,000 and Profit volume ratio is 25 per cent, then breakeven pointwill occur at
- Rs. 5000
- 5000 units
- Rs. 80,000
- 80,000 units
Q11 | Period cost means
- Variable cost
- Fixed costs
- Prime cost
- Factory cost
Q12 | If profit-volume ratio is 25 per cent and sales is Rs. 100,000, the variable cost will be
- Rs. 25,000
- Rs. 50,000
- Rs. 75,000
- None of the above
Q13 | The valuation of stock in marginal costing as compared to absorption costing is
- Higher
- Lower
- Same
- None of the above
Q14 | The term standard cost refers to the:
- Average unit cost of product produced in the previous period
- Budgeted unit cost of product produced in a particular period
- Average unit cost of product produc
- by other companies
Q15 | The term budgeted cost refers to the:
- Estimated expenses of budgeted production
- Actual expenses of budgeted production
- Estimat
- expenses of actual production
Q16 | ……………is concerned with providing information to management for taking managerialdecisions.
- Management Accounting
- Financial accounting
- Cost accounting
- All of these
Q17 | Which among the following is not a management accounting technique?
- Standard costing
- marginal costing
- Project appraisal
- None
Q18 | The essence of marginal costing is that ……………… cost is considered on the whole asseparate.
- Fixed
- variable
- both of these
- none of these
Q19 | A document that records the standard cost of a single unit of product is known as:
- Bill of materials
- Bill of product
- Standa
- cost card D. product expense card
Q20 | Following is used as tool for Cost Control
- Marginal cost
- Historical cost
- Standa
- cost (D) All of the above
Q21 | Which phrase best describes the current role of the managerial accountant?
- Managerial accountants prepare the financial statements for an organization.
- Managerial accountants facilitate the decision-making process within an organization.
- Managerial accountants make the key decisions within an organization.
- Managerial accountants are primarily information collectors.
Q22 | In comparison to the traditional manufacturing environment, overhead costs in a JITenvironment all the following are true except
- is more easily tracked to products.
- is frequently direct in nature.
- includes rent, insurance a
- utilities.
Q23 | As production increases within the relevant range,
- variable costs will vary on a per unit basis.
- variable costs will vary in total.
- fix
- costs will vary in total.
Q24 | Which of the following statements regarding graphs of fixed and variable costs is true?
- Variable costs can be represented by a straight line where costs are the same for each data point.
- Fixed costs can be represented by a straight line starting at the origin and continuing through each data point.
- Fix
- costs are zero when production is equal to zero.
Q25 | All of the following statements regarding budgeting is true except
- Budgeting helps managers determine the resources needed to meet their goals and objectives.
- Budgeting is a key ingredient in good decision-making.
- Budgeting is a bookkeeping task
- The focus of budgeting is planning.