Top 80+ Solved Cost and Management Accounting and Financial Management MCQ Questions Answer
Q. Type of accounting which measures, reports and analyse non-financial and financialinformation to help in decision making is called:
a. Financial Accounting
b. Management Accounting
c. Cost Accounting
d. Green Accounting
Q. Which one of the following is not considered as a method of Transfer Pricing?
a. Negotiated Transfer Pricing
b. Market Price Based Transfer Pricing
c. Fixed Cost Based Transfer Pricing
d. Opportunity Cost Based Transfer Pricing
Q. In cost accounting, purpose of variance analysis is to:
a. understand reasons for variances.
b. take remedial measures.
c. improve future performance.
d. All of the above
Q. Absorption Costing is also known as:
a. Total Costing
b. Committed Costing
c. Target Costing
d. Discretionary Costing
Q. Which of the following is not correct with regard to Margin of Safety (MOS)?
a. MOS = Profit PV Ratio
b. MOS = Total Sales – Sales at BEP
c. MOS = × 100 Total Sales - Sales at BEP Total Sales
d. MOS = PV Ratio × Sales – Fixed Cost
Q. Which one of the following is not to be considered for preparing a productionbudget?
a. The production plan of the organization
b. The Sales Budget
c. Research and Development Budget
d. Availability of Raw Materials
Q. The breakeven point is the point at which,
a. There is no profit, no loss
b. Contribution margin is equal to total fixed cost
c. Total fixed cost is equal to total revenue
d. All of the above.
Q. The P/V ratio of a product is 0.4 and the selling price is Rs. 40 per unit. The marginalcost of the product would be,
a. Rs. 8
b. Rs. 24
c. Rs. 20
d. Rs. 25
Q. If standard hours are 400 @ Rs. 1 per hour and actual hours are 380 @ Rs. 1.25 perhour, the labour rate variance is:
a. Rs. 20 (Favourable)
b. Rs. 25 (Favourable)
c. Rs. 100 (Adverse)
d. Rs. 95 (Adverse)
Q. The time taken for initial unit of a product is 100 hours. At 80% learning rate what is thetotal time for 4 units.
a. 100 hours
b. 80 hours
c. 160 hours
d. 256 hours
Q. Sales Rs. 4,00,000; Variable Cost Rs. 3,00,000; Fixed Cost Rs. 75,000; Investments Rs.1,50,000 and desired 20% on investments. What is residual income?
a. Rs. 25,000
b. Rs. 30,000
c. Rs. 20,000
d. Rs. (5,000)
Q. Sales in January month Rs. 3,00,000; Credit Sales are 80%; Credit period is 2 months.Amount collected in the month of March is
a. Rs. 50,000
b. Rs. 2,40,000
c. Rs. 40,000
d. None of the above
Q. Planning and control are done by
a. top management
b. lowest level of management
c. all levels of management
d. None of the above
Q. The use of management accounting is
a. Compulsory
b. Optional
c. Mandatory as per the law
d. None of the above
Q. The budgets are classified on the basis of
a. Time
b. Function
c. Flexibility
d. All of the above