Top 80+ Solved Cost and Management Accounting and Financial Management MCQ Questions Answer
Q. The difference in total cost that results from two alternative courses of action is called
a. Relevant Cost
b. Opportunity Cost
c. Differential Cost
d. Marginal Cost
Q. A budget that gives a summary of all the functional budgets and projected Profit andLoss A/c is known as
a. Master budget
b. Flexible budget
c. Performance budget
d. Discretionary budget
Q. When there are no opening or closing stocks, profit under marginal costing will be
a. Greater than in absorption costing
b. Less than in absorption costing
c. Equal to absorption costing
d. Greater, Lower or Equal depending on certain factors
Q. Break Even Point can be reduced by
a. Increasing selling price per unit
b. Reducing the variable costs
c. Reducing fixed costs
d. All of the above
Q. One of the following is not within the scope of Management Accounting
a. Formulation of policies
b. Classification and collection of costs
c. Planning and co-ordinating the activities of the enterprise
d. Decision making on alternative courses of action
Q. AB company budgets for fixed overhead of Rs. 24,000 and Production of 4800 units. Actual Production is 4200 units. If fixed overhead cost increased is Rs. 22,000, the Fixed overhead volume variance will be
a. Rs. 1,000 (Adv.)
b. Rs. 2,000 (Fav.)
c. Rs. 3,000 (Adv.)
d. Rs. 3,000 (Fav.)