Top 550+ Solved Management Accounting MCQ Questions Answer
Q. For calculating trend percentages any year is selected as:
a. Current year
b. Previous year
c. Base year
d. None of these
Q. If total cost of 100 units is Rs 5000 and those of 101 units is Rs. 5030 then increase of Rs. 30 in total cost is
a. Marginal cost
b. Prime cost
c. All Fixed overheads
d. None of the above
Q. Which of the following statements are true?
a. In absorption costing, cost is divided into three major parts while in marginal costing cost is divided into two main parts.
b. In absorption costing period is important and in marginal costing product is important.
c. Both a and b
d. None of the above
Q. In case of other enterprises cash flow arising from interest paid should be classified as cash flow from ________ while dividends and interest received should be stated as cash flow from ____.
a. Operating activities, financing activities
b. Financing activities, investing activities
c. Investing activities, operating activities
d. None of the above
Q. Determine Contribution if Fixed cost is Rs 50,000 and loss is Rs 20,000.
a. Rs 60,000
b. Rs 70,000
c. Rs 30,000
d. None of the above
Q. Which of the below is an Accounting Concept
a. Materiality
b. Separate Legal Entity
c. Consistency
d. Conservatism
Q. The Carl Care Company established the following direct labour cost standards for one unit of product Z:•Standard hours: 1.5 hours•Standard rate: $20 per hour•Standard cost: $30 (1.5 hours @ $20 per hour)During the month of July, 20,000 direct labour hours were worked, and 12,500 units ofproduct Z were manufactured. The total wages related to direct labour in July were$405,000. The direct labour rate variance for July was:
a. $5,000 unfavourable
b. $5,000 favourable
c. $30,000 favourable
d. $30,000 unfavourable
Q. Which of the following is an example of Semi-Variable Costs
a. Salary
b. Tax
c. Telephone Expenses
d. Office Expenses
Q. Long Term Solvency is indicated by:
a. Current Ratio
b. Debt / Equity Ratio
c. Net Profit Ratio
d. Gross Profit Ratio
Q. A document which provides for the detailed cost centre and cost unit is _______.
a. Tender
b. Cost Sheet
c. Invoice
d. Profit Statement
Q. An indirect setup labor costs, costs of setup and equipment maintenance and costs of indirect material can be categorized as
a. Variable batch costs
b. Fixed batch costs
c. Variable setup costs
d. Fixed setup costs
Q. To establish an effective system of standard costing it is essential that1) The technical process of operation should be prone to planning2) The cost of the products should be given3) The process or operating costs of products should be provided4) The standard costing should be consistent with the technical procedure of the production of the specific entity
a. A, B and C
b. A, C and D
c. B, C and D
d. D, C and A
Q. An officer responsible for financial operations of organization is considered as
a. Chief financial officer
b. Chief manager
c. Chief line function
d. Chief staff function
Q. Which of the following are the assumptions of marginal costing?1) All the elements of cost can be divided into fixed and variable components.2) Total fixed cost remains constant at all levels of output.3) Total variable costs vary in proportion to the volume of output.4) Per unit selling price remain unchanged at all levels of operating activity.
a. A and B
b. B and C
c. A and D
d. A, B, C and D