Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000. Determine value of stock.
a. Rs 54,000
b. Rs 60,000
c. Rs 1, 62,000
d. None of the above
Q. A Current Ratio of Less than One means
a. Current Liabilities < Current Assets,
b. Fixed Assets > Current Assets,
c. Current Assets < Current Liabilities,
d. Share Capital > Current Assets.
Q. A Company has a material standard of 1 kg. per unit of output. Each kg. has a standard price of Rs.25 per kg. Company paid Rs.1,27,500 for 5000 kg., which they used to produce 4,700 units. What is the direct material price variance?
a. Rs.2,500 unfavourable
b. Rs.2,600 favourable
c. Rs.12,600 unfavourable
d. Rs.10,000 unfavourable
Q. Company has a material standard of 1.1 kg. per unit of output. Each kg. has a standard price of Rs.25 per. Company paid Rs.1,18,800? for 5,100 kg. which they used to produce 4,900 units. What is the direct materials quantity variance?
a. Rs.7,250 favourable
b. Rs.5,000 favourable
c. Rs.7,250 unfavourable
d. Rs.5,000 unfavourable
Q. (A Company has a standard of 1 direct labor hour per unit at Rs.12 per hour. 3,850 labor hours costing Rs.46,970 were used to produce 4,000 units.)Company’s labor price variance is
a. Rs.770 favourable
b. Rs.770 unfavourable
c. Rs.1,030 favourable
d. Rs.1,030 unfavourable
Q. (A Company has a standard of 1 direct labor hour per unit at Rs.12 per hour. 3,850 labor hours costing Rs.46,970 were used to produce 4,000 units.)Company’s labor quantity variance is
a. Rs.1,830 unfavourable
b. Rs.1,830 favourable
c. Rs.1,800 favourable
d. Rs.1,800 unfavourable
Q. (A Company has a standard of 1 direct labor hour per unit at Rs.12 per hour. 3,850 labor hours costing Rs.46,970 were used to produce 4,000 units.)Company’s total labor variance is
a. Rs.770 unfavourable
b. Rs.800 unfavourable
c. Rs.1,030 favourable
d. Rs.1,930 favourable
Q. Material cost variances is measured as
a. Total standard cost - Total actual cost
b. Standard cost of revised standard mix - Standard cost of actual mix
c. (Standard unit price - Actual unit price) * Actual quantity used
d. (Standard quantity - Actual quantity) * Unit standard price
Q. When the actual cost is less than the standard cost, the difference is termed as
a. Favourable variance
b. Adverse variance
c. Both a and b
d. None of the above
Q. The formula to estimate Labour Mix variance is
a. Total standard labour cost of actual output - Total actual cost of actual output
b. (Standard rate per hour - Actual rate per hour) * Actual Hours
c. (Revised standard time - Actual time) * Standard rate
d. Abnormal idle hours * Standard hourly rate
Q. Given standard time per unit is 80 hours, standard time per hour @ Rs 1 per hour, actual time per unit is 90 hours and actual rate per hour @ Rs 1.10 per hour. Determine labour cost variance, labour rate variance and labour efficiency variance.
a. Rs 11, Rs 22 and Rs 10 all unfavorable
b. Rs 19, Rs 9 and Rs 10 all favorable
c. Rs 19, Rs 9 and Rs 10 all unfavorable
d. Rs 11, Rs 22 and Rs 10 all favorable
Q. The formula used for calculation of labour rate variance is
a. Total standard labour cost of actual output - Total actual cost of actual output
b. (Standard rate per hour - Actual rate per hour) * Actual Hours
c. (Standard time - Actual time) * Standard rate per hour
d. Abnormal idle hours * Standard hourly rate
Q. The data related to Production of T are for material X standard data and actual data are 40 kgs @ Rs 10 and 55 kgs @ Rs 9, respectively. The standard data and actual data for material Y are 50 kgs @ Rs 5 and 35 kgs @ Rs 7. Determine material usage variance.
a. Rs 75 favorable
b. Rs 75 unfavorable
c. Rs 90 unfavorable
d. Rs 90 favorable
Q. Material yield variance arises when
a. Actual output > Standard output
b. Actual output < Standard output
c. Both a and b
d. None of the above