Top 550+ Solved Management Accounting MCQ Questions Answer
Q. While calculating material mix variance, if revised standard quantity is greater than actual quantity, the variance is
a. Unfavorable
b. Favorable
c. Neither favorable nor unfavorable
d. None of the above
Q. To produce Product A 2 kg of material X at Rs 10 per kg is required . During February 800 units of Product, A were produced. Actual price paid for material X is Rs 9 per kg and total cost Rs 15,300. Determine material cost variance.
a. Rs 700 favorable
b. Rs 700 unfavorable
c. Inadequate data
d. None of the above
Q. In a manufacturing firm, the standard quantity of material was set at 10 kg and standard price was fixed at Rs. 2 per kg. The actual quantity consumed was 12 kg and the actual price paid was Rs 1.90 per kg. Determine material usage variance.
a. Rs 4 favorable
b. Rs 4 unfavorable
c. Rs 2.80 unfavorable
d. Rs 1.20 favorable
Q. Marginal Cost is the aggregate of all
a. Fixed overheads
b. Variable Costs
c. Contribution Costs
d. Work Cost
Q. The other name of Marginal Costing is…
a. Direct Costing
b. Variable Costing
c. Incremental Costing
d. All of the above
Q. While making make or buy decision under marginal costing, external purchase price of the articles must be compared with its
a. Fixed Cost
b. Total Cost
c. Variable Cost
d. Prime Cost.
Q. Shut down cost is:
a. Avoidable Fixed Cost
b. Unavoidable Fixed Cost
c. Avoidable Variable Cost
d. Unavoidable Variable Cost
Q. Profit volume ratio can be improved by
a. Reducing variable cost
b. Reducing the selling price
c. Increasing the fixed cost
d. Increasing the key factor
Q. When Profit is Rs.5000 and P/V ratio is 20%, Margin of Safety is---------
a. 10000
b. 25000
c. 30000
d. 50000
Q. When selling price of product A is Rs.25 and product B is Rs. 20 and respective variable cost is Rs. 23 and Rs.16. The fixed cost is Rs.750, which of the following sales mix of product A and product B should be adopted to maximize the profit.
a. 250 units of A & 250 units of B
b. 500 units of B only
c. 400 units of A & 100 units of B
d. 150 units of A & 350 units of B
Q. Costs Which ------------between different alternatives are to be ignored.
a. Are differential costs
b. Are incremental costs
c. Are constant costs
d. Are relevant costs