Top 550+ Solved Management Accounting MCQ Questions Answer

Q. Factory overhead is Rs 3,00,000 and direct material cost is Rs 5,00,000 What is the overhead rate under direct material cost method?

a. 25%

b. 30%

c. 60%

d. 75%

Q. The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.

a. Rs 145

b. Rs 150

c. Rs 152

d. Rs 140

Q. In master budgeting, the cost drivers for manufacturing overhead costs are

a. Direct manufacturing labour-hours

b. Setup labour-hours

c. Budgeted labour-hours

d. Both 1 and 2

Q. Which of the following is incorrect about the statement of cash flows?

a. It provides information about the cash receipt and cash payments of an enterprise.

b. It reconciles ending cash balance with the balance as per bank statement.

c. It provides information about the operating, investing and financing activities.

d. It explains the deviation of cash from Earnings.

Q. If break-even number of units are 120 units and the fixed cost is $62000, then the contribution margin per unit will be

a. $74,400

b. $7,440,000

c. $516.67

d. $51,667

Q. Cash flow example from an operating activity is

a. Purchase of Own Debenture

b. Sale of Fixed Assets

c. Interest Paid on Term-deposits by a Bank

d. Issue of Equity Share Capital

Q. During the month of December actual direct labour cost amounted to $39,550, the standard direct labour rate was $10 per hour and the direct labour rate variance amounted to $450 favourable. The actual direct labour hours worked were:

a. 3,955 hours

b. 4,000 hours

c. 3,910 hours

d. 4,500 hours

Q. Batch Costing is useful in determining:

a. Maximum Quantity of output

b. Minimum Quantity of output

c. Economic Batch Quantity

d. Profit of Batches

Q. Overhead Cost is the total of

a. All Direct Cost

b. All Indirect Cost

c. All Specific Cost

d. All Indirect and Direct Cost

Q. Regal Industries is replacing a grinder purchased 5 years ago for $15,000 with a new one costing $25,000 cash. The original grinder is being depreciated on a straight-line basis over 15 years to a zero-salvage value. Regal will sell this old equipment to a third party for $6,000 cash. The new equipment will be depreciated on a straight-line basis over 10 years to a zero-salvage value. Assuming a 40% marginal tax rate, Regal’s net cash investment at the time of purchase if the old grinder is sold and the new one purchased is

a. $19000

b. $15000

c. $17400

d. $25000

Q. The Moore Corporation is considering the acquisition of a new machine. The machine can be purchased for $90000; it will cost $6000 to transport to Moore’s plant and $9,000 to install. It is estimated that the machine will last 10 years, and it is expected to have an estimated salvage value of $5,000. Over its 10-year life, the machine is expected to produce 2,000 units per year, each with a selling price of $500 and combined material and labour costs of $450 per unit. Federal tax regulations permit machines of this type to be depreciated using the straight-line method over 5 years with no estimated salvage value. Moore has a marginal tax rate of 40%. What is the net cash flow for the tenth year of the project that Moore Corporation should use in a capital budgeting analysis?

a. $100000

b. $91000

c. $68400

d. $63000

Q. An annual report is issued by company to its :

a. Directors

b. Auditors

c. Shareholders

d. Management

Q. Which of the following statement is correct ?

a. Assets = Liabilities + Shareholders funds

b. Assets = Total funds

c. Assets = Funds of outsiders

d. None of the above

Q. The process of budgeting includes

a. Preparation of budget

b. Budget Control

c. Budget co-ordination

d. All of the above

Q. The labour engaged in the making of a product is known as _______

a. Direct labour

b. Indirect labour

c. Temporary labour

d. None of the above

Top 550+ Solved Management Accounting MCQ Questions Answer

From 526 to 540 of 731

Q. Factory overhead is Rs 3,00,000 and direct material cost is Rs 5,00,000 What is the overhead rate under direct material cost method?

Q. The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.

Q. In master budgeting, the cost drivers for manufacturing overhead costs are

Q. Which of the following is incorrect about the statement of cash flows?

Q. If break-even number of units are 120 units and the fixed cost is $62000, then the contribution margin per unit will be

Q. Cash flow example from an operating activity is

Q. During the month of December actual direct labour cost amounted to $39,550, the standard direct labour rate was $10 per hour and the direct labour rate variance amounted to $450 favourable. The actual direct labour hours worked were:

Q. Batch Costing is useful in determining:

Q. Overhead Cost is the total of

Q. An annual report is issued by company to its :

Q. Which of the following statement is correct ?

Q. The process of budgeting includes

Q. The labour engaged in the making of a product is known as _______

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