Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Which of the following statements are true?
a. Contribution doesn’t include fixed cost whereas profit includes fixed cost.
b. Contribution is not based on the concept of marginal cost.
c. Contribution above breakeven point becomes profit.
d. All of the above
Q. Profit-Volume ratio is also known as
a. Contribution ratio
b. Contribution/Sales ratio
c. Marginal Income percentage
d. All of the above
Q. Which of the following statements are true?
a. P/V Ratio can never be used to measure break-even point
b. Higher the P/V ratio less will be the profit and vice versa
c. Concept of P/V ratio is also used to determine profit at a given volume of sales
d. All of the above
Q. The P/V ratio can be improved by
a. Decreasing the selling price per unit
b. Increasing variable cost
c. Changing the sales mix
d. None of the above
Q. P/V ratio can be calculated on the basis of variable cost ratio as
a. 1 - Variable Cost Ratio
b. 1 + Variable Cost Ratio
c. 1/Variable Cost Ratio
d. None of the above
Q. Sales for desired profit is measured as
a. (Fixed cost + profit)/ (P/V Ratio)
b. (Fixed cost + profit) * (P/V Ratio)
c. (Fixed cost - profit)/ (P/V Ratio)
d. None of the above
Q. Margin of safety is equal to
a. Actual sales – Sales at Breakeven point
b. Actual sales + Sales at Breakeven point
c. Actual sales x Sales at Breakeven point
d. Actual sales / Sales at Breakeven point
Q. Angle of incidence is the angle at which
a. Total revenue line intersects the total cost line
b. Total cost line intersects the variable cost line
c. Variable cost line intersects fixed cost line
d. Fixed cost line intersects total revenue line
Q. Direct material cost + direct labor cost + other variable costs is equal to…
a. Contribution
b. Total cost
c. Marginal cost
d. Sales
Q. The factor which limits the volume of output of different products of an understanding at a particular point of time is known as…
a. Key factor
b. BEP
c. Contribution
d. None
Q. The break even chart helps the management in…
a. Forecasting costs and profits
b. Cost control
c. Long term planning and growth
d. All of the above
Q. In management accounting, an emphasis and focus must be
a. Past oriented
b. Future oriented
c. Bank oriented
d. Communication oriented
Q. In financial accounting, investors, banks, suppliers and government agencies are classified as
a. External parties
b. Internal parties
c. Environmental parties
d. Transactional parties
Q. If the actual output is more than the budgeted output, volume variance is
a. Favourable
b. Non-favourable
c. No impact
d. None of the above
Q. To get to labour efficiency variance, the formula to be applied 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