Top 80+ Solved Cost and Management Accounting and Financial Management MCQ Questions Answer
Q. Learning curve theory is not applicable to
a. Direct labour
b. Material
c. Spoilage and defective works
d. Overhead
Q. A large Margin of Safety indicates
a. Over-Capitalization
b. The soundness of business
c. Over Production
d. None of the above
Q. Which of the following operating measures would a manager would like to see decreasing over time?
a. Merchandise Inventory Turn-over
b. Total quality cost
c. % of on-time deliveries
d. Finished Goods Inventory Turn-over
Q. Another name for the 'Learning Curve' is
a. Exponential Curve
b. Growth Curve
c. Production Curve
d. Experience Curve
Q. The well known basic function of management is
a. Motivating
b. Leadership
c. Decision making
d. Communicating
Q. Contribution margin is equal to
a. Sales - Fixed Cost - Profit
b. Profit + Variable Cost
c. Fixed Cost - Loss
d. None of the above
Q. In a system whereby all activities are revaluated each time a budget is formulatedand starts with the assumption that requirement of funds does not exist is called
a. Performance Budgeting
b. Programme Budgeting
c. Flexible Budgeting
d. Zero- based Budgeting
Q. The management’s time is saved by reporting only the deviations from thepredetermined standards is called
a. Management by objectives
b. Budgetary Control
c. Standard Costing
d. Management by Exception
Q. Marginal Costing is also known as
a. Direct Costing
b. Absorption Costing
c. Variable Cost
d. Variable Costing
Q. Another name for ‘Contribution’ is
a. Marginal Income
b. Gross Profit
c. Net Income
d. None of the above
Q. Management Accounting
a. accumulates, summarises and analyses the available dat
b. is primarily concerned with the requirements of the management.
c. makes Corporate Planning and Strategy effective.
d. All of the above
Q. XYZ Ltd. makes a special gadget for the car it manufactures. The machine for the gadget works to full capacity and incurs Rs. 15 Lakhs and Rs. 40 Lakhs respectively as Variable and Fixed Costs. If all the gadgets were purchased from an outside supplier, the machine could be used to produce other items, which would earn a total contribution of Rs. 25 Lakhs. What is the maximum price that XYZ Ltd. should be willing to pay to the outside supplier for the gadgets, assuming there is no change in Fixed Costs?
a. Rs. 40 Lakhs
b. Rs. 65 Lakhs
c. Rs. 25 Lakhs
d. Rs. 15 Lakhs
Q. The difference between hours paid and hours worked is known as
a. Labour rate variance
b. Labour efficiency variance
c. Idle time variance
d. Net efficiency variance