Top 550+ Solved Management Accounting MCQ Questions Answer
Q. A Cost Unit is _____________
a. The cost per machine hour
b. The Cost per labour hour
c. A unit of production in relation to which costs are ascertained
d. A measure of work Output in a standard hour
Q. Factory Overheads are also called :
a. Sundry Overhead
b. Works Overhead
c. Extra Overhead
d. Total Overhead
Q. Expenditure over and above prime cost is known as ________.
a. overhead
b. factory cost
c. cost of sales
d. cost of production
Q. If the actual price input is $700, the budgeted price of input is $400 and the actual quantity of input are 50 units, then the price variance will be
a. $15,000
b. $13,000
c. $11,000
d. $9,000
Q. Return on capital employed shows the ________ of a firm.
a. Profitability
b. Overall efficiency
c. Both
d. Subjective matter
Q. In a product mix decision, which is the most important factor to consider to try to maximise profit?
a. Product unit selling price
b. Contribution per unit of a scarce resource used to make the product
c. Contribution per unit of the product
d. Variable cost per unit of the product
Q. If the contribution margin per unit is $700 per unit and the break-even per unit is $40, then the fixed cost would be
a. $35,000
b. $28,000
c. $17,500
d. $82,000
Q. The budget which commonly takes the form of budgeted Profit and Loss Account and Balance Sheet is
a. Cash Budget
b. Fixed Budget
c. Master Budget
d. Flexible Budget
Q. Which of the following is not likely to be a reason of unfavourable direct labour efficiency variance?
a. Increase in direct materials prices
b. Frequent break downs during production process
c. Lack of proper supervision
d. Use of old, outdated or faulty equipment
Q. What is main component of operating expenses?
a. Selling expenses
b. Distribution expenses
c. Production expenses
d. None
Q. Comprehensive Machine Hour Rate includes :
a. Machine Operators Wages
b. Managing Directors Salary
c. Income Tax
d. Office rent
Q. The purpose of financial accounting is to provide information for ________.
a. fixing prices
b. controlling cost
c. locating factors leading to wastages and losses
d. assessing the profitability and financial position of the firm
Q. XYZ factory working for 50 hours per week employs hundred workers on a job work. The standard output is 200 units per gang hour and standard rate is Rs 1 per hour. During a week in June, five employees were paid @ Rs 1.20 per hour and ten employees were paid @ 80 paise per hour. Rest of the employees were paid @ standard hour rate. The actual number of units produced was 10,200. Determine labour cost variance
a. Rs 100 favourable
b. Rs 150 unfavourable
c. Rs 150 favourable
d. Rs 100 unfavourable
Q. Operating ratio is calculated by
a. (operating cost/gross sales) *100
b. (operating cost/gross sales) *100
c. (operating cost/net sales) *100
d. none of the above
Q. The financial decision making that relates to current assets or short term asset is known as__________________.
a. working capital
b. non-working capital
c. venture capital
d. all of the above