Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Under High and Low Point method, the output at two different levels is compared with the amount of __________ incurred at these two points.
a. Total fixed costs
b. Total costs
c. Total fixed costs
d. None of the above
Q. Which of the following statements related to Contribution Analysis are ture?
a. If contribution is zero, there is loss equal to fixed costs
b. If contribution is negative, loss is less than fixed costs
c. If contribution is positive and more than fixed cost there will be profit.
d. All of the above
Q. When contribution is negative but less than fixed cost,
a. There is loss equal to fixed costs
b. There is loss more than fixed costs
c. There will be loss less than fixed costs
d. All of above are false
Q. When contribution is positive but equal to fixed cost,
a. There is loss equal to fixed costs
b. There is loss more than fixed costs
c. There will be loss less than fixed costs
d. There will be neither profit not loss
Q. Absorption costing is also known as
a. Historical costing
b. Total costing
c. Both a and b
d. None of the above
Q. In context of net operating profit, which of the following statements are true?
a. If all costs are variable, the amount of profit obtained in marginal costing and absorption costing will be same.
b. If the volume of sales and output is equal in a period, profit will be same in absorption costing and marginal costing.
c. Both a and b
d. None of the above
Q. Under absorption costing, managerial decisions are based on
a. Profit
b. Contribution
c. Profit volume ratio
d. None of the above
Q. Managers utilizes marginal costing for
a. Make or buy decision
b. Utilization of additional capacity
c. Determination of dumping price
d. All of the above
Q. ___________ is not suitable where selling price is determined on the basis of cost-plus method.
a. Absorption costing
b. Marginal costing
c. Both a and b
d. None of the above
Q. Which of the following are characteristics of B.E.P?
a. There is no loss and no profit to the firm.
b. Total revenue is equal to total cost.
c. Contribution is equal to fixed cost.
d. All of the above.
Q. Which of the following are limitations of break-even analysis?
a. Static concept
b. Capital employed is taken into account.
c. Limitation of non-linear behaviour of costs
d. Limitation of presence of perfect competition
Q. Using equation method, Break-even point is calculated as
a. Sales = Variable expenses + Fixed expenses + Profit
b. Sales = Variable expenses + Fixed expenses - Profit
c. Sales = Variable expenses - Fixed expenses + Profit
d. None of the above
Q. Given selling price is Rs 10 per unit, variable cost is Rs 6 per unit and fixed cost is Rs 5,000. What is break-even point?
a. 500 units
b. 1,000 units
c. 1,250 units
d. None of the above
Q. Contribution is also known as
a. Contribution margin
b. Net Margin
c. Both a and b
d. None of the above
Q. Determine Contribution if Sales is Rs 1,50,000 and P/V ratio is 40%.
a. Rs 60,000
b. Rs 70,000
c. Rs 30,000
d. None of the above