Top 150+ Solved Cost and Management Accounting MCQ Questions Answer
Q. All those assets which are converted into cash in the normal course of business within one year are known as .
a. fixed assets.
b. current assets.
c. fictitious assets.
d. wasting assets.
Q. All those liabilities which are payable in cash in the normal course of business within a period of one yearare called _.
a. long term liabilities.
b. overdraft.
c. short term loans.
d. current liabilities.
Q. Any transaction between a current account and another current account does notAffect .
a. profit.
b. funds.
c. working capital.
d. capital.
Q. Any transaction between a non current account and another non current account does notaffect .
a. profit.
b. funds.
c. working capital.
d. capital.
Q. Principle’ for preparation of working capital statement -Increase in current asset .
a. increases working capital.
b. decreases working capital.
c. decrease fixed capital.
d. increase fixed capital.
Q. Principle’ for preparation of working capital statement - Decrease in current asset .
a. increases working capital.
b. decreases working capital.
c. decrease fixed capital.
d. increase fixed capital.
Q. Principle’ for preparation of working capital statement -Increase in current liability .
a. increases working capital.
b. decreases working capital.
c. decrease fixed capital.
d. increase fixed capital.
Q. Principle’ for preparation of working capital statement -Decrease in current Liability .
a. increases working capital.
b. decreases working capital.
c. decrease fixed capital
d. increase fixed capital.
Q. Depreciation on fixed assets is .
a. non operating income.
b. operating expense.
c. operating income.
d. non operating expense.
Q. Production cost under marginal costing includes .
a. prime cost only .
b. prime cost and fixed overhead .
c. . prime cost and variable overhead.
d. prime cost, variable overhead and fixed overhea
Q. One of the primary differences between marginal costing and absorption costing regarding the treatment of .
a. prime cost .
b. fixed overheads.
c. variable overheads .
d. direct materials.
Q. Absorption costing differs from marginal costing is the .
a. fact that standard costs can be used with absorption costing but not with marginal costing .
b. amount of costs assigned to individual units of products .
c. kind of activities for which each can be used .
d. amount of fixed costs that will be incurre
Q. Contribution margin is also known as .
a. marginal income .
b. gross profit.
c. net profit.
d. net loss.
Q. Contribution margin is equal to .
a. fixed cost - loss .
b. profit + variable cost.
c. sales — fixed cost- profit .
d. sales – profit.