Top 80+ Solved Advanced Management Accounting MCQ Questions Answer
Q. The business environmental factors are _________.
a. Static
b. Dynam
c. C. Both of the above
d. None of the above
Q. 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 __________.
a. Capacity ratio and calendar ratio.
b. Efficiency ratio and calendar ratio.
c. Both A a
d. B D. None of these
Q. The problems associated with marginal costing are
a. Difficulties in divisions of costs
b. Problem of valuation of stocks
c. Ignores time elements
d. All of the above
Q. ___________ is not suitable where selling price is determined on the basis of cost-plus method.
a. Absorption costing
b. Marginal costing
c. Both A a
d. B D. None of the above
Q. Managers utilizes marginal costing for
a. Make or buy decision
b. Utilisation of additional capacity
c. Determination of dumping price
d. All of the above
Q. Which of the following are advantages of marginal costing?
a. Makes the process of cost accounting more simple
b. Helps in proper valuation of closing stock
c. Useful for standa
d. and budgetary control D. All of the above
Q. 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.
a. Rs 2, 00,000
b. Rs 8, 00,000
c. Rs 6, 00,000
d. None of the above
Q. Contribution margin is also known as
a. Gross profit
b. Net profit
c. Earning before tax
d. Marginal income
Q. Contribution is the difference between
a. Sales and variable cost
b. Sales and fixed cost
c. Sales a
d. total cost D Factory cost and profit
Q. When fixed cost is Rs. 20,000 and Profit volume ratio is 25 per cent, then breakeven pointwill occur at
a. Rs. 5000
b. 5000 units
c. Rs. 80,000
d. 80,000 units
Q. If profit-volume ratio is 25 per cent and sales is Rs. 100,000, the variable cost will be
a. Rs. 25,000
b. Rs. 50,000
c. Rs. 75,000
d. None of the above
Q. The valuation of stock in marginal costing as compared to absorption costing is
a. Higher
b. Lower
c. Same
d. None of the above
Q. The term standard cost refers to the:
a. Average unit cost of product produced in the previous period
b. Budgeted unit cost of product produced in a particular period
c. Average unit cost of product produc
d. by other companies
Q. The term budgeted cost refers to the:
a. Estimated expenses of budgeted production
b. Actual expenses of budgeted production
c. Estimat
d. expenses of actual production