McqMate
101. |
Profit Volume ratio is the ratio of ……………. To sales |
A. | contribution |
B. | profit |
C. | sales |
D. | none of these |
Answer» A. contribution |
102. |
…………..is the angle caused by intersection of total cost line and total sales line |
A. | angle of contribution |
B. | angle of incidence |
C. | all of these |
D. | none of these |
Answer» B. angle of incidence |
103. |
At Break even point contribution will be equal to ……………. |
A. | variable cost |
B. | fixed cost |
C. | profit |
D. | none of these |
Answer» B. fixed cost |
104. |
The ratio of contribution to ……………. Is called P/V ratio |
A. | volume |
B. | sales |
C. | profit |
D. | none of these |
Answer» B. sales |
105. |
Marginal cost is the aggregate of prime cost and ………………. |
A. | fixed overheads |
B. | variable overheads |
C. | contribution |
D. | none of these |
Answer» B. variable overheads |
106. |
When fixed cost is deducted from contribution, the balance will be ………. |
A. | variable cost |
B. | profit |
C. | total cost |
D. | sales |
Answer» B. profit |
107. |
When sales are Rs.30000 and P/V ratio is 20% then contribution will be…. |
A. | 2000 |
B. | 4000 |
C. | 6000 |
D. | 8000 |
Answer» C. 6000 |
108. |
When fixed costs are Rs.4000 and P/v ratio is 25%, then break even point will be ………….. |
A. | 40000 |
B. | 20000 |
C. | 16000 |
D. | 10000 |
Answer» C. 16000 |
109. |
When profit is Rs.5000 and P/v ratio is 20% , Margin of safety is………… |
A. | 10000 |
B. | 25000 |
C. | 30000 |
D. | 50000 |
Answer» B. 25000 |
110. |
Fixed costs Rs.6000, Profit required Rs.4000 and P/v ratio is 50% , then sales required will be…………. |
A. | 6000 |
B. | 4000 |
C. | 10000 |
D. | 20000 |
Answer» D. 20000 |
111. |
Variable cost ratio is 60% Sales Rs.20000 and fixed cst Rs.5000, then profit will be …….. |
A. | 15000 |
B. | 12000 |
C. | 3000 |
D. | 10000 |
Answer» C. 3000 |
112. |
Responsibility Accounting is also called ……………. Accounting |
A. | profitability |
B. | management |
C. | all of these |
D. | none of these |
Answer» A. profitability |
113. |
In responsibility accounting the organization is divided into different ………centers |
A. | responsibility |
B. | cost |
C. | profit |
D. | none of these |
Answer» A. responsibility |
114. |
A cost centre is a segment of the organization where the manager is responsible for ………………….. |
A. | costs |
B. | inputs |
C. | a or b |
D. | none of these |
Answer» C. a or b |
115. |
Both costs and revenues are measured in ………………… centers |
A. | cost |
B. | profit |
C. | revenue |
D. | all of these |
Answer» B. profit |
116. |
A …………….is that factor which causes cost. |
A. | cost driver |
B. | profit driver |
C. | all of these |
D. | none of these |
Answer» A. cost driver |
117. |
cost driver for activities is called ……………. |
A. | activity driver |
B. | expense driver |
C. | driver |
D. | none of these |
Answer» A. activity driver |
118. |
A centre where the manager is responsible for sales is ………….. |
A. | cost centre |
B. | revenue centre |
C. | investment centre |
D. | none of these |
Answer» B. revenue centre |
119. |
The performance of investment centre is based on ………………. |
A. | cost of the centre |
B. | profit of the centre |
C. | profit and investment of the centre |
D. | revenue of the centre |
Answer» C. profit and investment of the centre |
120. |
Responsibility accounting is used for ………………. |
A. | cost control |
B. | planning |
C. | decision making |
D. | pricing |
Answer» A. cost control |
121. |
ABC system is used for ……………… |
A. | material control |
B. | wages control |
C. | overhead allocation |
D. | pricing decisions |
Answer» C. overhead allocation |
122. |
.A cost centre is ………………… |
A. | a production department where all production costs are aggregated |
B. | an area of business accountable for both costs and revenues |
C. | the part of the business where all costs are paid to suppliers |
D. | an area for which costs are accumulated |
Answer» D. an area for which costs are accumulated |
123. |
An investment centre is a responsibility centre where the manager has control of ……………… |
A. | costs and profits |
B. | cost profits and product quality |
C. | costs profits and assets |
D. | costs |
Answer» C. costs profits and assets |
124. |
Responsibility accounting aims to ……………. |
A. | ensure that costs become the responsibility of a specific manager |
B. | reduce the costs that a department incurs |
C. | allocate costs to all areas of a business |
D. | ensure that a manager is punished if things go wrong |
Answer» A. ensure that costs become the responsibility of a specific manager |
125. |
Prime costs may be defined as |
A. | the total costs of manufacturing a product |
B. | the total direct costs of manufacturing a product |
C. | the cost of the first stage of manufacturing |
D. | the total cost of production |
Answer» B. the total direct costs of manufacturing a product |
126. |
Which of the following best describes a fixed cost ? |
A. | remains constant irrespective of the level of activity |
B. | represents a fixed proportion of total costs |
C. | increases proportionately with output |
D. | has a direct relationship with output |
Answer» A. remains constant irrespective of the level of activity |
127. |
The weighted average method of stock valuation would be most appropriate for …………. |
A. | chemical manufacturer |
B. | a food retailer |
C. | a building contractor |
D. | a motor components retailer |
Answer» A. chemical manufacturer |
128. |
Direct labour costs will include…………… |
A. | all labor costs attributable to product |
B. | direct labor costs plus any bonuses |
C. | total direct labor hours at the normal hourly rate of pay |
D. | direct labor costs plus any bonuses and overtime premium |
Answer» C. total direct labor hours at the normal hourly rate of pay |
129. |
Management accounting is said to meet: |
A. | the internal accounting needs of the organization |
B. | the needs of laws that govern company financial reporting. |
C. | the regulatory requirements of the organization |
D. | the external accounting needs of the organisation. |
Answer» A. the internal accounting needs of the organization |
130. |
Which one of the following is not a recognised cost classification? |
A. | time |
B. | function |
C. | performance |
D. | type |
Answer» C. performance |
131. |
Direct costs are also known as: |
A. | indirect cost |
B. | overhead costs |
C. | prime costs |
D. | marginal costs |
Answer» C. prime costs |
132. |
Indirect costs are also known as |
A. | direct cost |
B. | overhead costs |
C. | prime costs |
D. | marginal costs |
Answer» B. overhead costs |
133. |
Which of the following is not true? |
A. | managerial accounting information is prepared for internal users |
B. | managerial accounting information is not required by various laws |
C. | there are specific standards of acceptability for managerial accounting |
D. | the structure of managerial accounting practice is relatively flexible |
Answer» C. there are specific standards of acceptability for managerial accounting |
134. |
Which of the following are basic inventories for a manufacturer? |
A. | indirect materials, goods in process, and raw materials |
B. | finished goods, raw materials, and direct materials |
C. | raw materials, goods in process, and finished goods |
D. | raw materials, factory overhead, and direct labour |
Answer» C. raw materials, goods in process, and finished goods |
135. |
The three basic elements of the cost of a manufactured product are: |
A. | indirect materials, indirect labour, and manufacturing overhead |
B. | merchandise inventory, work in process, and finished goods inventory |
C. | direct materials, work in process, and finished goods inventory |
D. | direct materials, direct labour, and manufacturing overhead |
Answer» D. direct materials, direct labour, and manufacturing overhead |
136. |
A cost which changes in proportion to changes in volume of activity is called |
A. | fixed cost |
B. | controllable cost |
C. | variable cost |
D. | opportunity cost |
Answer» C. variable cost |
137. |
A 'direct' cost is a cost that is classified by: |
A. | behaviour |
B. | traceability |
C. | controllability |
D. | relevance |
Answer» B. traceability |
138. |
A 'product' cost is a cost that is classified by: |
A. | behaviour |
B. | function |
C. | controllability |
D. | relevance |
Answer» B. function |
139. |
Which of the following is a period cost? |
A. | direct materials |
B. | indirect materials |
C. | factory utilities |
D. | administrative expenses |
Answer» D. administrative expenses |
140. |
Managerial accounting information is generally prepared for |
A. | shareholders |
B. | creditors |
C. | managers |
D. | regulatory agencies |
Answer» C. managers |
141. |
Which of the following is not an internal user of management information? |
A. | creditor |
B. | department manager |
C. | controller |
D. | treasurer |
Answer» A. creditor |
142. |
Sales commissions are classified as |
A. | prime costs |
B. | period costs |
C. | product costs |
D. | indirect labour |
Answer» B. period costs |
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