Top 150+ Solved Cost and Management Accounting MCQ Questions Answer
Q. P/V Ratio is an indicator of .
a. the rate at which goods are sold .
b. the volume of sales
c. the volume of profit.
d. the rate of profit.
Q. Margin of Safety is the difference between .
a. planned sales and planned profit .
b. actual sales and break-even sales.
c. planned sales and actual sales
d. planned sales and planned expenses.
Q. An increase in variable costs .
a. increases p/v ratio .
b. increases the profit.
c. reduces contribution .
d. increase margin of safety.
Q. An increase in selling price .
a. increases the break-even point.
b. decreases the break-even point.
c. does not affect the break-even point.
d. optimize the break even point.
Q. A large Margin of Safety indicates .
a. over production.
b. over capitalization .
c. the soundness of the business.
d. under capitalization.
Q. Angie of incidence is .
a. the angle between the sales line and the total cost line.
b. the angle between the sales line and the y-axis.
c. the angle between the sales line and the x-axis.
d. the angle between the sales line and the total profit line.
Q. CVP analysis is most important for the determination of .
a. sales revenue necessary to equal fixed costs .
b. relationship between revenues and costs at various levels of operations .
c. variable revenues necessary to equal fixed costs .
d. volume of operations necessary to Break—even.
Q. The conventional Break-even analysis does not assume that .
a. selling price per unit will remain fixed .
b. total fixed costs remain the same.
c. variable cost per unit will vary .
d. productivity per worker will remain unchange
Q. 1f` fixed costs decrease while variable cost per unit remains constant, the new B.E.P in relation to the old B.E.P will be .
a. lower .
b. higher.
c. unchanged .
d. indeterminate.
Q. If fixed costs decrease while the variable cost per unit remains constant, the new contribution margin in relation to the old contribution margin will be .
a. lower .
b. unchanged .
c. higher.
d. indeterminate.
Q. Selling price per unit Rs. 10; Variable cost Rs. 8 per unit; Fixed cost Rs. 20,000; Break-even production in units .
a. 10,000.
b. 16,300.
c. 2,000.
d. 2,500.
Q. Sales Rs. 25,000; Variable cost Rs. 8,000; Fixed cost Rs. 5,000; Break-even sales in value .
a. Rs. 7,936.
b. Rs. 7,353.
c. Rs. 8,333.
d. Rs. 9,090.
Q. Fixed cost Rs. 80,000; Variable cost Rs. 2 per unit; Selling price_Rs. 10 per unit; turnover required for a profittarget of Rs. 60,000.
a. Rs. 1,75,000.
b. Rs. 1,17,400.
c. Rs. 1.57,000.
d. Rs. 1,86,667.
Q. Sales Rs. 25,000; Variable cost Rs. 15,000; Fixed cost Rs .4,000; P/V Ratio is .
a. 40% .
b. 80%
c. 15%
d. 30%.
Q. Sales Rs. 50,000; Variable cost Rs. 30,000; Net profit Rs. 6,000; fixed cost is .
a. Rs. 10,000.
b. b. Rs. l4,000 .
c. Rs. 12,000.
d. Rs. 8,000.