Top 80+ Solved Cost and Management Accounting and Financial Management MCQ Questions Answer
Q. Which of the following departments is most likely responsible for a price variance indirect materials?
a. Warehousing
b. Receiving
c. Purchasing
d. Production
Q. Idle time variance is always:
a. Favourable
b. Adverse
c. Favourable (or) Adverse
d. None of these
Q. In marginal costing, stock is valued at _________
a. Fixed Cost
b. Variable Cost
c. Inventory
d. sales
Q. Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending WIP inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning WIP inventory. How many equivalent units should be produced?
a. 5,80,000
b. 5,50,000
c. 5,00,000
d. 5,75,000
Q. Akash Ltd. is preparing its cash budget for the period. Sales are expected to be Rs. 1,00,000 in April, 2016; Rs. 2,00,000 in May 2016 Rs. 3,00,000 in June 2016 and Rs. 1,00,000 in July 2016. Half of all sales are cash sales and the other half are on credit. Experience indicates that 70% of the credit sales will be collected in the month following the sale, 20% the month after that and, 10% in the third month after the sale. The budgeted collection for the month of July, 2016 is:
a. Rs. 1,30,000
b. Rs. 1,80,000
c. Rs. 2,60,000
d. Rs. 3,60,000
Q. During the month of March, 560 kg of material was purchased at a total cost of Rs. 15,904. The stock of material increased by 15 kg. it is the company’s policy to value the stocks at standard purchase price. If the material price variance was Rs. 224 (A), the standard price per kg. of material is :
a. Rs. 28.40
b. Rs. 28.80
c. Rs. 28.00
d. Rs. 29.20
Q. Cost Price is not fixed in case of:
a. Cost plus contracts
b. Escalation clause
c. De escalation clause
d. All of the above
Q. Continuous stock taking is a part of:
a. ABC analysis
b. Annual stock taking
c. Perpetual Inventory
d. None of these
Q. In Reconciliation Statements expenses shown only in financial accounts are:
a. Added to financial profit
b. Deducted from financial profit
c. Ignored
d. Added to costing profit
Q. Operating costing is applicable to:
a. Hospitals
b. Cinemas
c. Transport undertaking
d. All the above
Q. Flexible budget requires a careful study of:
a. Fixed, semi-fixed and variable expenses
b. Past and current expenses
c. Overheads, selling and administrative expenses
d. None of the above
Q. Which of the following items is not excluded while preparing a cost sheet?
a. Goodwill written off
b. Provision for taxation
c. Property tax on factory building
d. Interest paid
Q. Depreciation is an example of:
a. Fixed cost
b. Variable cost
c. Semi variable cost
d. None of the above