McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Commerce (M.com) .
| 1. |
The business environmental factors are _________. |
| A. | Static |
| B. | Dynam |
| C. | C. Both of the above |
| D. | None of the above |
| Answer» B. Dynam | |
| 2. |
The control ratios used by the management to know whether the deviations of the actual performance from the budgeted performance are favourable or unfavourable are __________. |
| A. | Capacity ratio and calendar ratio. |
| B. | Efficiency ratio and calendar ratio. |
| C. | Both A a |
| D. | B D. None of these |
| Answer» A. Capacity ratio and calendar ratio. | |
| 3. |
The problems associated with marginal costing are |
| A. | Difficulties in divisions of costs |
| B. | Problem of valuation of stocks |
| C. | Ignores time elements |
| D. | All of the above |
| Answer» D. All of the above | |
| 4. |
___________ is not suitable where selling price is determined on the basis of cost-plus method. |
| A. | Absorption costing |
| B. | Marginal costing |
| C. | Both A a |
| D. | B D. None of the above |
| Answer» B. Marginal costing | |
| 5. |
Managers utilizes marginal costing for |
| A. | Make or buy decision |
| B. | Utilisation of additional capacity |
| C. | Determination of dumping price |
| D. | All of the above |
| Answer» D. All of the above | |
| 6. |
Which of the following are advantages of marginal costing? |
| A. | Makes the process of cost accounting more simple |
| B. | Helps in proper valuation of closing stock |
| C. | Useful for standa |
| D. | and budgetary control D. All of the above |
| Answer» D. and budgetary control D. All of the above | |
| 7. |
Given production is 1,00,000 units, fixed costs is Rs 2,00,000 Selling price is Rs 10 per unit and variable cost is Rs 6 per unit. Determine profit using technique of marginal costing. |
| A. | Rs 2, 00,000 |
| B. | Rs 8, 00,000 |
| C. | Rs 6, 00,000 |
| D. | None of the above |
| Answer» A. Rs 2, 00,000 | |
| 8. |
Contribution margin is also known as |
| A. | Gross profit |
| B. | Net profit |
| C. | Earning before tax |
| D. | Marginal income |
| Answer» D. Marginal income | |
| 9. |
Contribution is the difference between |
| A. | Sales and variable cost |
| B. | Sales and fixed cost |
| C. | Sales a |
| D. | total cost D Factory cost and profit |
| Answer» A. Sales and variable cost | |
| 10. |
When fixed cost is Rs. 20,000 and Profit volume ratio is 25 per cent, then breakeven point will occur at |
| A. | Rs. 5000 |
| B. | 5000 units |
| C. | Rs. 80,000 |
| D. | 80,000 units |
| Answer» C. Rs. 80,000 | |
| 11. |
Period cost means |
| A. | Variable cost |
| B. | Fixed costs |
| C. | Prime cost |
| D. | Factory cost |
| Answer» B. Fixed costs | |
| 12. |
If profit-volume ratio is 25 per cent and sales is Rs. 100,000, the variable cost will be |
| A. | Rs. 25,000 |
| B. | Rs. 50,000 |
| C. | Rs. 75,000 |
| D. | None of the above |
| Answer» C. Rs. 75,000 | |
| 13. |
The valuation of stock in marginal costing as compared to absorption costing is |
| A. | Higher |
| B. | Lower |
| C. | Same |
| D. | None of the above |
| Answer» D. None of the above | |
| 14. |
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 produc |
| D. | by other companies |
| Answer» B. Budgeted unit cost of product produced in a particular period | |
| 15. |
The term budgeted cost refers to the: |
| A. | Estimated expenses of budgeted production |
| B. | Actual expenses of budgeted production |
| C. | Estimat |
| D. | expenses of actual production |
| Answer» A. Estimated expenses of budgeted production | |
| 16. |
……………is concerned with providing information to management for taking managerial decisions. |
| A. | Management Accounting |
| B. | Financial accounting |
| C. | Cost accounting |
| D. | All of these |
| Answer» A. Management Accounting | |
| 17. |
Which among the following is not a management accounting technique? |
| A. | Standard costing |
| B. | marginal costing |
| C. | Project appraisal |
| D. | None |
| Answer» D. None | |
| 18. |
The essence of marginal costing is that ……………… cost is considered on the whole as separate. |
| A. | Fixed |
| B. | variable |
| C. | both of these |
| D. | none of these |
| Answer» A. Fixed | |
| 19. |
A document that records the standard cost of a single unit of product is known as: |
| A. | Bill of materials |
| B. | Bill of product |
| C. | Standa |
| D. | cost card D. product expense card |
| Answer» C. Standa | |
| 20. |
Following is used as tool for Cost Control |
| A. | Marginal cost |
| B. | Historical cost |
| C. | Standa |
| D. | cost (D) All of the above |
| Answer» D. cost (D) All of the above | |
| 21. |
Which phrase best describes the current role of the managerial accountant? |
| A. | Managerial accountants prepare the financial statements for an organization. |
| B. | Managerial accountants facilitate the decision-making process within an organization. |
| C. | Managerial accountants make the key decisions within an organization. |
| D. | Managerial accountants are primarily information collectors. |
| Answer» B. Managerial accountants facilitate the decision-making process within an organization. | |
| 22. |
In comparison to the traditional manufacturing environment, overhead costs in a JIT environment all the following are true except |
| A. | is more easily tracked to products. |
| B. | is frequently direct in nature. |
| C. | includes rent, insurance a |
| D. | utilities. |
| Answer» D. utilities. | |
| 23. |
As production increases within the relevant range, |
| A. | variable costs will vary on a per unit basis. |
| B. | variable costs will vary in total. |
| C. | fix |
| D. | costs will vary in total. |
| Answer» B. variable costs will vary in total. | |
| 24. |
Which of the following statements regarding graphs of fixed and variable costs is true? |
| A. | Variable costs can be represented by a straight line where costs are the same for each data point. |
| B. | Fixed costs can be represented by a straight line starting at the origin and continuing through each data point. |
| C. | Fix |
| D. | costs are zero when production is equal to zero. |
| Answer» D. costs are zero when production is equal to zero. | |
| 25. |
All of the following statements regarding budgeting is true except |
| A. | Budgeting helps managers determine the resources needed to meet their goals and objectives. |
| B. | Budgeting is a key ingredient in good decision-making. |
| C. | Budgeting is a bookkeeping task |
| D. | The focus of budgeting is planning. |
| Answer» C. Budgeting is a bookkeeping task | |
| 26. |
A 'direct' cost is a cost that is classified by: |
| A. | behaviour |
| B. | traceability |
| C. | controllability |
| D. | Relevance |
| Answer» B. traceability | |
| 27. |
Which of the following costs is not capitalized as inventory? |
| A. | costs of delivering finished goods |
| B. | factory (manufacturing) overhead |
| C. | insurance of factory building a |
| D. | equipment |
| Answer» B. factory (manufacturing) overhead | |
| 28. |
A management concept under which all managers and employees at all stages of company operations strive toward higher standards and a reduced number of defective units are called: |
| A. | Continuous Improvement |
| B. | Total Quality Management (TQM) |
| C. | Theory of Constraints (TOC) |
| D. | Total Quality Control (TQC) |
| Answer» B. Total Quality Management (TQM) | |
| 29. |
The following information belongs to John Manufacturing Company that uses a standard costing system:
|
| A. | RS.35 |
| B. | RS.28 |
| C. | RS.30 |
| D. | RS.32.2 |
| Answer» A. RS.35 | |
| 30. |
Which of the following is a correct formula for computing direct materials price variance? |
| A. | Standard quantity purchased × (Actual rate - Standard rate) |
| B. | Actual quantity purchased × (Actual rate - Standard rate) |
| C. | Standa |
| D. | quantity purchased × (Actual rate + Standard rate) |
| Answer» B. Actual quantity purchased × (Actual rate - Standard rate) | |
| 31. |
A favorable direct materials price variance occurs when: |
| A. | Actual rate of direct materials is higher than standard rate of direct materials |
| B. | Actual rate of direct materials is equal to standard rate of direct materials |
| C. | Actual rate of direct materials is less than standa |
| D. | rate of direct materials |
| Answer» C. Actual rate of direct materials is less than standa | |
| 32. |
The “standard hours allowed” or “standard quantity allowed” is equal to: |
| A. | Actual output in units × standard input allowed |
| B. | Actual output in units × standard output allowed |
| C. | Actual output in units × standa |
| D. | output allowed |
| Answer» B. Actual output in units × standard output allowed | |
| 33. |
During the month of January, the standard cost of actual hours worked amounted to Rs.25, 000, the standard direct labor rate was Rs.10 per hour and the direct labor efficiency variance amounted to Rs.1, 000 favorable. The standard hours allowed for actual production were: |
| A. | 2,500 hours |
| B. | 2,400 hours |
| C. | 10,000 hours |
| D. | 2,600 hours |
| Answer» D. 2,600 hours | |
| 34. |
Which one of the following does measure risk? |
| A. | Coefficient of variation |
| B. | Standard deviation |
| C. | Expect |
| D. | value D. All of the above are measures of risk. |
| Answer» C. Expect | |
| 35. |
A situation in which a decision maker knows all of the possible outcomes of a decision and also knows the probability associated with each outcome is referred to as |
| A. | Certainty. |
| B. | Risk. |
| C. | Uncertainty. |
| D. | Strategy. |
| Answer» B. Risk. | |
| 36. |
A situation in which a decision maker must choose between strategies that have more than one possible outcome when the probability of each outcome is unknown is referred to as |
| A. | Diversification. |
| B. | Certainty. |
| C. | Risk. |
| D. | Uncertainty. |
| Answer» D. Uncertainty. | |
| 37. |
Circumstances that influence the profitability of a decision are referred to as |
| A. | Strategies. |
| B. | A payoff matrix. |
| C. | States of nature. |
| D. | The marginal utility of money. |
| Answer» C. States of nature. | |
| 38. |
The analysis of a complex decision situation by constructing a mathematical model of the situation and then performing a large number of iterations in order to determine the probability distribution of outcomes is called |
| A. | Sensitivity analysis. |
| B. | Expected utility analysis. |
| C. | Simulation |
| D. | A decision tree. |
| Answer» C. Simulation | |
| 39. |
The tendency for low-quality cars to drive high quality cars out of the used car market is an example of |
| A. | Hedging. |
| B. | Adverse selection. |
| C. | Portfolio analysis. |
| D. | Moral hazard. |
| Answer» B. Adverse selection. | |
| 40. |
Which of the following is a way to deal with decision making under uncertainty? |
| A. | Simulation |
| B. | Diversification |
| C. | Acquisition of additional information |
| D. | Application of the maximin criterion |
| Answer» A. Simulation | |
| 41. |
______ is an objective assessment of an individual's performance against well-defined benchmarks. |
| A. | Performance Appraisal |
| B. | HR Planning |
| C. | Information for goal identification |
| D. | None of the above |
| Answer» A. Performance Appraisal | |
| 42. |
what is linked with performance appraisal? |
| A. | J |
| B. | Design B Development |
| C. | Job analysis |
| D. | None of the above |
| Answer» C. Job analysis | |
| 43. |
which of the following is an alternate term used for performance appraisal? |
| A. | Quality and quantity of output |
| B. | Job knowledge |
| C. | Employee assessment |
| D. | None of the above |
| Answer» C. Employee assessment | |
| 44. |
Match the following general applications of performance assessment with their specific purposes
|
| A. | I-C, II-D, III-B, IV-A |
| B. | I-B, II-C, III-D, IV-A |
| C. | I-B, II-C, III-D, IV |
| D. | D. I-A, II-B, III-D, IV-C |
| Answer» B. I-B, II-C, III-D, IV-A | |
| 45. |
Which of these is the main purpose of employee assessment? |
| A. | Making correct decisions |
| B. | To effect promotions based on competence and performance |
| C. | Establish job expectations |
| D. | None of the above |
| Answer» B. To effect promotions based on competence and performance | |
| 46. |
How performance appraisal can contribute to a firm's competitive advantage? |
| A. | Ensures legal compliances |
| B. | Minimizing job dissatisfaction and turnover |
| C. | Improves performance |
| D. | All of the above |
| Answer» D. All of the above | |
| 47. |
From the strategic point of view, in which three categories can an organisation, be grouped? |
| A. | Defenders |
| B. | Prospectors |
| C. | Analyzers |
| D. | All of the above |
| Answer» D. All of the above | |
| 48. |
Successful defenders use performance appraisal for identifying ____________. |
| A. | Staffing needs |
| B. | Job behaviour |
| C. | Training needs |
| D. | None of the above |
| Answer» C. Training needs | |
| 49. |
Analyzers tend to emphasis both ______ and _______ and employee extensive training programmes. |
| A. | Skill building and skill acquisition |
| B. | Current performance and past performance |
| C. | Strategy a |
| D. | behaviour |
| Answer» A. Skill building and skill acquisition | |
| 50. |
What do successful analyzers tend to examine? |
| A. | Division and corporate performance evaluation |
| B. | Ideal appraisal process |
| C. | Current performance with past performance |
| D. | None of the above |
| Answer» C. Current performance with past performance | |
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