740+ Management Accounting Solved MCQs

Chapters

601.	Cash Flow Statement is based upon
A.	Cash basis of accounting
B.	Accrual basis of accounting
C.	Credit basis of accounting
D.	None of the above
Answer» A. Cash basis of accounting

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602.	As per Accounting Standard-3, Cash Flow is classified into
A.	Operating activities and investing activities
B.	Investing activities and financing activities
C.	Operating activities and financing activities
D.	Operating activities, financing activities and investing activities
Answer» D. Operating activities, financing activities and investing activities

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603.	Which of the following is not a cash outflow?
A.	Increase in Prepaid expenses
B.	Increase in debtors
C.	Increase in stock
D.	Increase in creditors
Answer» D. Increase in creditors

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604.	Which of the following is not a cash inflow?
A.	Decrease in debtors
B.	Issue of shares
C.	Decrease in creditors
D.	Sale of fixed assets
Answer» C. Decrease in creditors

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605.	When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________.
A.	Operating activities, financing activities
B.	Financing activities, investing activities
C.	Investing activities, operating activities
D.	None of the above
Answer» B. Financing activities, investing activities

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606.	In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from
A.	Operating activities
B.	Financing activities
C.	Investing activities
D.	None of the above
Answer» A. Operating activities

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607.	As per AS-3, Cash Flow Statement is mandatory for (a) All enterprises (b) Companies listed on a stock exchange (c) Companies with a turnover of more than Rs 50 crores
A.	Both A and B
B.	Both A and C
C.	Both C and B
D.	None of the above
Answer» C. Both C and B

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608.	Cash outflow on purchases is calculated by
A.	Purchases + Opening Creditors + Opening B/P – Closing Creditors - Closing B/P
B.	Purchases + Opening Creditors - Closing Creditors + Closing B/P
C.	Purchases - Opening Creditors - Opening B/P + Closing Creditors + Closing B/P
D.	None of the above
Answer» A. Purchases + Opening Creditors + Opening B/P – Closing Creditors - Closing B/P

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609.	While preparing Cash Flow Statement, non-cash items and non-operating items are not required to be adjusted under________
A.	Indirect method
B.	Direct method
C.	Both a and b
D.	None of the above
Answer» B. Direct method

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610.	Cash Flow Statement is prepared from
A.	Profit and loss account
B.	Balance Sheet
C.	Additional Information
D.	All of the above
Answer» D. All of the above

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611.	When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as
A.	Accounting ratio
B.	Financial ratio
C.	Costing ratio
D.	None of the above
Answer» A. Accounting ratio

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612.	Profit for the objective of calculating a ratio may be taken as
A.	Profit before tax but after interest
B.	Profit before interest and tax
C.	Profit after interest and tax
D.	All of the above
Answer» D. All of the above

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613.	Which of the following falls under Profitability ratios? (a) General Profitability ratios (b) Overall Profitability ratios (c) Comprehensive Profitability ratios
A.	A and B
B.	A and C
C.	B and C
D.	None of the above
Answer» A. A and B

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614.	Gross Profit ratio is also termed as
A.	Gross Profit Margin
B.	Gross Margin to net sales
C.	Both a and b
D.	All of the above
Answer» C. Both a and b

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615.	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
Answer» C. (Operating cost/Net sales)*100

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616.	Which of the following is expenses ratio? (a) Administrative expenses ratio (b) Selling and Distribution expenses ratio (c) Factory expenses ratio (d) Finance Expenses ratio
A.	A, B and D
B.	A, C and D
C.	A, B and C
D.	A, B , C, D
Answer» D. A, B , C, D

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617.	Return on equity capital is calculated on basis of:
A.	Funds of equity shareholders
B.	Equity capital only
C.	Either a or b
D.	None of the above
Answer» C. Either a or b

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618.	Turnover ratios are also known as
A.	Activity ratios
B.	Performance ratios
C.	Both a and b
D.	None of the above
Answer» C. Both a and b

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619.	Debtors Turnover ratio is also known as (a) Receivables turnover ratio (b) Debtors velocity (c) Stock velocity (d) Payable turnover ratio
A.	A and B
B.	A and C
C.	B and C
D.	C and D
Answer» A. A and B

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620.	Liquid assets is determined by
A.	Current assets-stock-Prepaid expenses
B.	Current assets +stock+ prepaid expenses
C.	Current assets +Prepaid expenses
D.	None of the above
Answer» A. Current assets-stock-Prepaid expenses

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621.	Comparison of financial statements highlights the trend of the _________ of the business.
A.	Financial position
B.	Performance
C.	Profitability
D.	All of the above
Answer» D. All of the above

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622.	Analysis of any financial Statement comprises
A.	Balance sheet
B.	P&L Account
C.	Trading account
D.	All of the above
Answer» D. All of the above

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623.	Which of the following are techniques, tools or methods of analysis and interpretation of financial statements?
A.	Ratio Analysis
B.	Average Analysis
C.	Trend Analysis
D.	All of the above
Answer» D. All of the above

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624.	Interpretation of accounts is the
A.	Art and science of translating the figures
B.	To know financial strengths and weaknesses of a business
C.	To know the causes for the prevailing performance of business
D.	All of the above
Answer» D. All of the above

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625.	The form of balance sheet is
A.	Vertical
B.	Horizontal
C.	Horizontal and vertical
D.	Horizontal or vertical
Answer» D. Horizontal or vertical

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626.	The term current asset doesn’t cover
A.	Car
B.	Debtors
C.	Stock
D.	Prepaid expenses
Answer» A. Car

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627.	A budgeting process which demands each manager to justify his entire budget in detail from beginning is
A.	Functional budget
B.	Master budget
C.	Zero base budgeting
D.	None of the above
Answer» C. Zero base budgeting

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628.	Match the columns (i) Activity Ratio -------------------- i) (Actual hours worked / Budgeted hours) * 100 (ii) Capacity Ratio ------------------ ii) (Standard hours of actual production / Actual hours worked) * 100 (iii) Efficiency Ratio ----------------- iii) (Standard hours for actual output / Budgeted hours) * 100
A.	A-ii, B-iii, C-i
B.	A-i, B-ii, C-iii
C.	A-iii, B-i, C-ii
D.	None of the above
Answer» C. A-iii, B-i, C-ii

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629.	While preparing sales budget, which of the following factors are considered?
A.	Non-operational factors
B.	Environmental factors
C.	Both a and b
D.	None of the above
Answer» B. Environmental factors

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630.	_______ provides an estimate of the capital amount that may be required for buying fixed assets needed for meeting production requirements.
A.	Production budget
B.	Cash budget
C.	Capital expenditure budget
D.	None of the above
Answer» B. Cash budget

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631.	Plant utilization budget and Manufacturing overhead budgets are types of
A.	Production budget
B.	Sales budget
C.	Cost budget
D.	None of the above
Answer» C. Cost budget

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632.	_______ is designed after assessment of the volume of output to be produced during budget period.
A.	Cost budget
B.	Sales budget
C.	Production budget
D.	None of the above
Answer» A. Cost budget

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633.	________ is the first step of budgetary system and all other budgets depends on it.
A.	Cost budget
B.	Sales budget
C.	Production budget
D.	None of the above
Answer» B. Sales budget

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634.	_______also known as subsidiary budgets.
A.	Master budget
B.	Functional budget
C.	Cost budget
D.	None of the above
Answer» B. Functional budget

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635.	_________ is stated as a budget which is made to change as per the levels of activity attained.
A.	Fixed budget
B.	Flexible budget
C.	Both a and b
D.	None of the above
Answer» B. Flexible budget

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636.	_______ is prepared for single level of activity and single set of business conditions.
A.	Fixed budget
B.	Flexible budget
C.	Both a and b
D.	None of the above
Answer» A. Fixed budget

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637.	The process of budgeting helps in the control of
A.	Cost of production
B.	Liquidity
C.	Capital Expenditure
D.	All of the above
Answer» D. All of the above

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638.	Which of the following statements are not true about budget, budgeting & budgetary control?
A.	Budgetary control works on the basis of best option
B.	Budget is one of the important mediums of communication
C.	Budgeting develops the quality of objectivity in planning
D.	None of the above
Answer» D. None of the above

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639.	Which of the following statements are true about responsibility accounting?
A.	Responsibility accounting results in inter-departmental conflicts
B.	In responsibility center more focus is paid on products, processes or jobs
C.	No focus is paid on controlling costs
D.	None of the above
Answer» A. Responsibility accounting results in inter-departmental conflicts

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640.	In profit center revenue represents a monetary measure of output emanating from a profit center in a given period irrespective whether
A.	The revenue is realized or not
B.	The output is sold or not
C.	Both a and b
D.	None of the above
Answer» C. Both a and b

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641.	Contribution margin center is also known as
A.	Expense center
B.	Profit center
C.	Investment center
D.	(All of the above
Answer» B. Profit center

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642.	Which of the following is responsibility center?
A.	Expense center
B.	Profit center
C.	Investment center
D.	All of the above
Answer» D. All of the above

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643.	The responsibility centers, for control purposes, may be classified into _____ types.
A.	Five
B.	Three
C.	Four
D.	None of the above
Answer» B. Three

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644.	The area of focus on responsibility center is
A.	Quantum of sales
B.	Quantum of production
C.	Optimum utilization of resources
D.	All of the above
Answer» C. Optimum utilization of resources

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645.	In responsibility cost accounting the costs in focus are
A.	Controllable costs
B.	Uncontrollable costs
C.	Both a and b
D.	None of the above
Answer» A. Controllable costs

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646.	The term standard cost refers to the:
A.	average unit cost of product produced in the previous period
B.	budgeted unit cost of product produced in a particular period
C.	average unit cost of product produced by other companies
D.	average unit cost of product produced in the current period
Answer» B. budgeted unit cost of product produced in a particular period

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647.	The sub-variance of material usage variance, known as Material mix variance is measured as
A.	Total standard cost - Total actual cost
B.	Standard cost of revised standard mix - Standard cost of actual mix
C.	Standard unit price - Actual unit price) * Actual quantity used
D.	Standard quantity - Actual quantity) * Unit standard price
Answer» B. Standard cost of revised standard mix - Standard cost of actual mix

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648.	Volume variance arises when
A.	There is rise in overhead rate per hour
B.	There is decline in overhead rate per hour
C.	There is decrease or increase in actual output compared to the budgeted output
D.	None of the above
Answer» C. There is decrease or increase in actual output compared to the budgeted output

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649.	The corrective actions after the analysis of variances has to be taken by
A.	Cost accountant
B.	Management
C.	Both a and b
D.	None of the above
Answer» B. Management

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650.	Sales margin variance due to sales quantities is measured as
A.	Standard profit - Revised standard profit
B.	Revised standard profit - Budgeted profit
C.	Standard profit + Revised standard profit
D.	Revised standard profit + Budgeted profit
Answer» B. Revised standard profit - Budgeted profit

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651.	.Which of the following statements are true about labor idle time?
A.	Labour idle time variance is not caused by non-availability of raw material
B.	Labour idle time variance is measured as : Abnormal idle hours * Actual hourly rate
C.	Labour idle time variance is always unfavorable or adverse
D.	All of the above
Answer» C. Labour idle time variance is always unfavorable or adverse

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652.	The formula used for calculation of labor rate variance 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
Answer» B. (Standard rate per hour - Actual rate per hour) * Actual Hours

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653.	Idle time variance arises when
A.	Only one grade of labour is used
B.	Time is lost due to abnormal reasons
C.	Both a and b
D.	None of the above
Answer» C. Both a and b

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654.	Material price, mix, usage and revised quantity variances are measured on _______ basis, whereas material yield variance is measured on _______ basis.
A.	Output, Input
B.	Output, Output
C.	Input, Output
D.	None of the above
Answer» C. Input, Output

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655.	Marginal cost is computed as
A.	Prime cost + All Variable overheads
B.	Direct material + Direct labour + Direct Expenses + All variable overheads
C.	Total costs – All fixed overheads
D.	All of the above
Answer» A. Prime cost + All Variable overheads

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656.	Marginal costing is also known as Direct costing
A.	Variable costing
B.	Both a and b
C.	None of the above
D.	none
Answer» C. None of the above

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657.	Which of the following statements are true? (a) Marginal costing is not an independent system of costing. (b) In marginal costing all elements of cost are divided into fixed and variable components. (c) In marginal costing fixed costs are treated as product cost. (d) Marginal costing is not a technique of cost analysis.
A.	A and B
B.	B and C
C.	A and D
D.	B and D
Answer» A. A and B

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658.	While computation of profit in marginal costing
A.	Total marginal cost is deducted from total sales revenues
B.	Total marginal cost is added to total sales revenues
C.	Fixed cost is added to contribution
D.	None of the above
Answer» A. Total marginal cost is deducted from total sales revenues

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659.	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
Answer» B. Total costs

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660.	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
Answer» A. If contribution is zero, there is loss equal to fixed costs

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661.	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
Answer» C. There will be loss less than fixed costs

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662.	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
Answer» D. There will be neither profit not loss

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663.	Absorption costing is also known as
A.	Historical costing
B.	Total costing
C.	Both a and b
D.	None of the above
Answer» C. Both a and b

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664.	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
Answer» C. Both a and b

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665.	Under absorption costing, managerial decisions are based on
A.	Profit
B.	Contribution
C.	Profit volume ratio
D.	None of the above
Answer» A. Profit

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666.	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
Answer» D. All of the above

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667.	___________ 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
Answer» B. Marginal costing

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668.	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.
Answer» D. All of the above.

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669.	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
Answer» A. Static concept

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670.	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
Answer» A. Sales = Variable expenses + Fixed expenses + Profit

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671.	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
Answer» C. 1,250 units

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672.	Contribution is also known as
A.	Contribution margin
B.	Net Margin
C.	Both a and b
D.	None of the above
Answer» A. Contribution margin

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673.	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
Answer» A. Rs 60,000

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674.	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
Answer» C. Contribution above breakeven point becomes profit.

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675.	Profit-Volume ratio is also known as
A.	Contribution ratio
B.	Contribution/Sales ratio
C.	Marginal Income percentage
D.	All of the above
Answer» D. All of the above

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676.	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
Answer» C. Concept of P/V ratio is also used to determine profit at a given volume of sales

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677.	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
Answer» C. Changing the sales mix

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678.	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
Answer» A. 1 - Variable Cost Ratio

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679.	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
Answer» A. (Fixed cost + profit)/ (P/V Ratio)

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680.	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
Answer» A. Actual sales – Sales at Breakeven point

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681.	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
Answer» A. Total revenue line intersects the total cost line

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682.	Direct material cost + direct labor cost + other variable costs is equal to…
A.	Contribution
B.	Total cost
C.	Marginal cost
D.	Sales
Answer» A. Contribution

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683.	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
Answer» A. Key factor

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684.	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
Answer» D. All of the above

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685.	In management accounting, an emphasis and focus must be
A.	Past oriented
B.	Future oriented
C.	Bank oriented
D.	Communication oriented
Answer» B. Future oriented

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686.	In financial accounting, investors, banks, suppliers and government agencies are classified as
A.	External parties
B.	Internal parties
C.	Environmental parties
D.	Transactional parties
Answer» A. External parties

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687.	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
Answer» A. Favourable

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688.	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
Answer» C. (Standard time - Actual time) * Standard rate per hour

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689.	Which of the following is technique of financial statement analysis?
A.	Common‐size statement
B.	Comparative statement
C.	Trend analysis
D.	All
Answer» D. All

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690.	For calculating trend percentages any year is selected as:
A.	Current year
B.	Previous year
C.	Base year
D.	None of these
Answer» C. Base year

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691.	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
Answer» A. Marginal cost

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692.	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
Answer» C. Both a and b

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693.	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
Answer» B. Financing activities, investing activities

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694.	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
Answer» C. Rs 30,000

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695.	Which of the below is an Accounting Concept
A.	Materiality
B.	Separate Legal Entity
C.	Consistency
D.	Conservatism
Answer» B. Separate Legal Entity

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696.	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 of product 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
Answer» A. $5,000 unfavourable

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697.	Which of the following is an example of Semi-Variable Costs
A.	Salary
B.	Tax
C.	Telephone Expenses
D.	Office Expenses
Answer» C. Telephone Expenses

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698.	Long Term Solvency is indicated by:
A.	Current Ratio
B.	Debt / Equity Ratio
C.	Net Profit Ratio
D.	Gross Profit Ratio
Answer» B. Debt / Equity Ratio

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699.	A department makes a product whose contribution per unit is £1,000, and which takes 20 hours machine time. A component used in this product with a marginal cost of £300 (taking 5 hours of machine time) could be purchased from an external supplier. The department is working at full capacity. What is the maximum price that the company may pay to buy the component from an external supplier?
A.	£550
B.	£500
C.	£575
D.	£600
Answer» A. £550

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700.	A document which provides for the detailed cost centre and cost unit is _______.
A.	Tender
B.	Cost Sheet
C.	Invoice
D.	Profit Statement
Answer» B. Cost Sheet

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740+ Management Accounting Solved MCQs

Cash Flow Statement is based upon

As per Accounting Standard-3, Cash Flow is classified into

Which of the following is not a cash outflow?

Which of the following is not a cash inflow?

When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________.

In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from

As per AS-3, Cash Flow Statement is mandatory for (a) All enterprises (b) Companies listed on a stock exchange (c) Companies with a turnover of more than Rs 50 crores

Cash outflow on purchases is calculated by

While preparing Cash Flow Statement, non-cash items and non-operating items are not required to be adjusted under________

Cash Flow Statement is prepared from

When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as

Profit for the objective of calculating a ratio may be taken as

Which of the following falls under Profitability ratios? (a) General Profitability ratios (b) Overall Profitability ratios (c) Comprehensive Profitability ratios

Gross Profit ratio is also termed as

Operating ratio is calculated by

Which of the following is expenses ratio? (a) Administrative expenses ratio (b) Selling and Distribution expenses ratio (c) Factory expenses ratio (d) Finance Expenses ratio

Return on equity capital is calculated on basis of:

Turnover ratios are also known as

Debtors Turnover ratio is also known as (a) Receivables turnover ratio (b) Debtors velocity (c) Stock velocity (d) Payable turnover ratio

Liquid assets is determined by

Comparison of financial statements highlights the trend of the _________ of the business.

Analysis of any financial Statement comprises

Which of the following are techniques, tools or methods of analysis and interpretation of financial statements?

Interpretation of accounts is the

The form of balance sheet is

The term current asset doesn’t cover

A budgeting process which demands each manager to justify his entire budget in detail from beginning is

While preparing sales budget, which of the following factors are considered?

_______ provides an estimate of the capital amount that may be required for buying fixed assets needed for meeting production requirements.

Plant utilization budget and Manufacturing overhead budgets are types of

_______ is designed after assessment of the volume of output to be produced during budget period.

________ is the first step of budgetary system and all other budgets depends on it.

_______also known as subsidiary budgets.

_________ is stated as a budget which is made to change as per the levels of activity attained.

_______ is prepared for single level of activity and single set of business conditions.

The process of budgeting helps in the control of

Which of the following statements are not true about budget, budgeting & budgetary control?

Which of the following statements are true about responsibility accounting?

In profit center revenue represents a monetary measure of output emanating from a profit center in a given period irrespective whether

Contribution margin center is also known as

Which of the following is responsibility center?

The responsibility centers, for control purposes, may be classified into _____ types.

The area of focus on responsibility center is

In responsibility cost accounting the costs in focus are

The term standard cost refers to the:

The sub-variance of material usage variance, known as Material mix variance is measured as

Volume variance arises when

The corrective actions after the analysis of variances has to be taken by

Sales margin variance due to sales quantities is measured as

.Which of the following statements are true about labor idle time?

The formula used for calculation of labor rate variance is

Idle time variance arises when

Material price, mix, usage and revised quantity variances are measured on _______ basis, whereas material yield variance is measured on _______ basis.

Marginal cost is computed as

Marginal costing is also known as Direct costing

While computation of profit in marginal costing

Under High and Low Point method, the output at two different levels is compared with the amount of __________ incurred at these two points.

Which of the following statements related to Contribution Analysis are ture?

When contribution is negative but less than fixed cost,

When contribution is positive but equal to fixed cost,

Absorption costing is also known as

In context of net operating profit, which of the following statements are true?

Under absorption costing, managerial decisions are based on

Managers utilizes marginal costing for

___________ is not suitable where selling price is determined on the basis of cost-plus method.

Which of the following are characteristics of B.E.P?

Which of the following are limitations of break-even analysis?

Using equation method, Break-even point is calculated as

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?

Contribution is also known as

Determine Contribution if Sales is Rs 1,50,000 and P/V ratio is 40%.

Which of the following statements are true?

Profit-Volume ratio is also known as

Which of the following statements are true?

The P/V ratio can be improved by

P/V ratio can be calculated on the basis of variable cost ratio as

Sales for desired profit is measured as

Margin of safety is equal to

Angle of incidence is the angle at which

When a fixed asset is bought as hire purchase, interest element is classified under and loan element is classified under__.

As per AS-3, Cash Flow Statement is mandatory for
(a) All enterprises
(b) Companies listed on a stock exchange
(c) Companies with a turnover of more than Rs 50 crores

Which of the following falls under Profitability ratios?
(a) General Profitability ratios
(b) Overall Profitability ratios
(c) Comprehensive Profitability ratios

Which of the following is expenses ratio?
(a) Administrative expenses ratio
(b) Selling and Distribution expenses ratio
(c) Factory expenses ratio
(d) Finance Expenses ratio

Debtors Turnover ratio is also known as
(a) Receivables turnover ratio
(b) Debtors velocity
(c) Stock velocity
(d) Payable turnover ratio

Material price, mix, usage and revised quantity variances are measured on _ basis, whereas material yield variance is measured on _ basis.

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 .