McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Commerce (M.com) .
| 51. |
which of the following cannot be a reason of unfavorable direct materials price variance? |
| A. | Sudden rise in price of materials |
| B. | Quality of materials purchased |
| C. | Appointment of inexperienc |
| D. | workers D Inefficient standard setting |
| Answer» C. Appointment of inexperienc | |
| 52. |
Which of the following is not likely to be a reason of unfavorable direct labor efficiency variance? |
| A. | Increase in direct materials prices |
| B. | Lack of proper supervision |
| C. | Frequent break downs during production process |
| D. | Use of old, outdated or faulty equipment |
| Answer» A. Increase in direct materials prices | |
| 53. |
Question Selling price per tonne is Rs. 69.50, variable cost per tonne is Rs. 35.50 and fixed cost is Rs. 18, 02,000. Find out the BEP in units |
| A. | 49000 |
| B. | 51000 |
| C. | 53000 |
| D. | 55000 |
| Answer» C. 53000 | |
| 54. |
Labour Efficiency Standards are decided by considering following factor(s) |
| A. | Records of past performance |
| B. | Time & Motion Study |
| C. | Trial Runs |
| D. | All of the above |
| Answer» D. All of the above | |
| 55. |
A good _____ system will not punish the workers for the matters beyond the control of the workers. |
| A. | Wage payment |
| B. | Appraisal |
| C. | Promotion |
| D. | none of the above |
| Answer» A. Wage payment | |
| 56. |
________ do not give the returns during the same period during which they are paid for |
| A. | Intangible assets |
| B. | Fixed assets |
| C. | Both (A) a |
| D. | (B) (D) None of the above |
| Answer» B. Fixed assets | |
| 57. |
--------------- Following is (are) called the element(s) of Cost |
| A. | Material |
| B. | Labour |
| C. | Expenses |
| D. | All of the above |
| Answer» D. All of the above | |
| 58. |
The cause(s) of idle time can be analysed as |
| A. | Administrative causes |
| B. | Productive causes |
| C. | Economic causes |
| D. | All of the above |
| Answer» D. All of the above | |
| 59. |
__________ Accounting becomes a source of information for Management Accounting. |
| A. | Financial |
| B. | Cost |
| C. | Both (A) a |
| D. | (B) (D) None of the above |
| Answer» A. Financial | |
| 60. |
Which of the following cannot be a reason of unfavorable direct materials quantity variance? |
| A. | Unmotivated workers |
| B. | Lack of supervision |
| C. | Frequent power failures |
| D. | Uneconomical order size |
| Answer» D. Uneconomical order size | |
| 61. |
Which of the following is not likely to be a reason of unfavorable direct labor rate variance? |
| A. | Poor estimates while setting direct labor standards |
| B. | An increase in labor rates and overtime premium |
| C. | Frequent break downs |
| D. | Assignment of easy tasks to highly skilled workers |
| Answer» C. Frequent break downs | |
| 62. |
Standard Costing specifically relates to the function of |
| A. | Finance |
| B. | Production |
| C. | Quality |
| D. | None of the above |
| Answer» B. Production | |
| 63. |
Cost Accounting restrict itself with _____ transactions |
| A. | Financial |
| B. | Spot |
| C. | Historical |
| D. | Administrative |
| Answer» C. Historical | |
| 64. |
In Cash budget, Non- operating cash inflow include(s) |
| A. | Receipt of loan/borrowings |
| B. | Issue of shares |
| C. | Sale of fix |
| D. | assets (D) All of the above |
| Answer» D. assets (D) All of the above | |
| 65. |
Sales Budget is a forecast expressed in |
| A. | Quantity |
| B. | Money |
| C. | Both (A) a |
| D. | (B) (D) None of the above |
| Answer» C. Both (A) a | |
| 66. |
Following is used as tool for Cost Control |
| A. | Marginal cost |
| B. | Historical cost |
| C. | Standa |
| D. | cost (D) All of the above |
| Answer» C. Standa | |
| 67. |
The term management accounting was first coined in |
| A. | 1960 |
| B. | 1950 |
| C. | 1945 |
| D. | 1955 |
| Answer» B. 1950 | |
| 68. |
Management accounting is 1) Subjective 2) Objective |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both 1 a |
| D. | 2 (D) None of the above |
| Answer» A. Only 1 | |
| 69. |
The use of management accounting is |
| A. | Optional |
| B. | Compulsory |
| C. | Legally obligatory |
| D. | Compulsory to some and optional to others |
| Answer» A. Optional | |
| 70. |
The management accounting can be stated an extension of 1) Cost Accounting 2 ) Financial Accounting 3) Responsibility Accounting |
| A. | Both 1 and 2 |
| B. | Both 1 and 3 |
| C. | Both 2 a 3 |
| D. | 1, 2, 3 |
| Answer» D. 1, 2, 3 | |
| 71. |
Who coined the concept of management accounting? |
| A. | R.N Anthony |
| B. | James H. Bliss |
| C. | J. Batty |
| D. | American Accounting Association |
| Answer» B. James H. Bliss | |
| 72. |
The definition ‘Management Accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and the day-to-day operation of an undertaking.’ |
| A. | Anglo –American Council on Productivity |
| B. | AICPA |
| C. | Robert N. Anthony |
| D. | All of the above |
| Answer» A. Anglo –American Council on Productivity | |
| 73. |
During the month of December actual direct labor cost amounted to Rs. 39,550, the standard direct labor rate was Rs.10 per hour and the direct labor rate variance amounted toRs.450 favorable. The actual direct labor hours worked was: |
| A. | 3,955 hours |
| B. | 4,000 hours |
| C. | 3,910 hours |
| D. | 4,500 hours |
| Answer» B. 4,000 hours | |
| 74. |
Responsibility centres are departments or organizational functions whose performance is the direct responsibility of specific managers. One type of responsibility centre is a revenue centre, which is responsible for |
| A. | Investments and costs |
| B. | sales and profits |
| C. | profits |
| D. | sales |
| Answer» D. sales | |
| 75. |
Key motivational factors in budgeting do not include |
| A. | Training in the budget process |
| B. | correct identification of the blame for below budget performance |
| C. | the feedback of information |
| D. | the setting of fair, achievable standards |
| Answer» B. correct identification of the blame for below budget performance | |
| 76. |
Which of the following does not help to minimize the problems encountered in budgeting? |
| A. | Ensuring adequate budget planning |
| B. | identifying the responsibility for key performance areas |
| C. | Encouraging manager participation |
| D. | keeping bad news from the managing director |
| Answer» D. keeping bad news from the managing director | |
| 77. |
What would be the most likely cause of an unfavourable labour rate variance together with a favourable labour efficiency variance? |
| A. | The employment of more highly skilled staff than budgeted |
| B. | Poor wage negotiation by the Human Resources manager |
| C. | The employment of less well-train |
| D. | staff than in |
| Answer» A. The employment of more highly skilled staff than budgeted | |
| 78. |
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 | |
| 79. |
________ 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 | |
| 80. |
__________ contains the picture of total plans during the budget period and it comprises information relating to sales, profit, cost, production etc. |
| A. | Master budget |
| B. | Functional budget |
| C. | Cost budget |
| D. | None of the above |
| Answer» A. Master budget | |
| 81. |
Budgetary control system acts as a friend, philosopher and guide to the… |
| A. | Management |
| B. | Share holders |
| C. | Creditors |
| D. | Employees |
| Answer» A. Management | |
| 82. |
Budgetary control facilitates easy introduction of the… |
| A. | Marginal costing |
| B. | Ratio analysis |
| C. | Standa |
| D. | costing D) Subjective matter |
| Answer» C. Standa | |
| 83. |
Key factor is also known as… |
| A. | Limiting factor |
| B. | Governing factor |
| C. | Principal factor |
| D. | All |
| Answer» D. All | |
| 84. |
The responsibility accounting stresses on _________ |
| A. | Decentralization |
| B. | Centralization |
| C. | Both (a) & (b) |
| D. | None of these |
| Answer» A. Decentralization | |
| 85. |
In responsibility accounting system… |
| A. | Budgets are prepared |
| B. | Actual performance is recorded |
| C. | The performance is report |
| D. | All of the above |
| Answer» D. All of the above | |
| 86. |
The responsibility accounting emphasizes the performance of ____ |
| A. | System |
| B. | Men |
| C. | Both |
| D. | None of these |
| Answer» B. Men | |
| 87. |
The responsibility accounting is also called… |
| A. | Profitability accounting |
| B. | Activity accounting |
| C. | Both |
| D. | None of these |
| Answer» C. Both | |
| 88. |
The responsibility accounting is the part of … |
| A. | Financial accounting |
| B. | Management accounting |
| C. | Mechaniz |
| D. | accounting D) none of these |
| Answer» B. Management accounting | |
| 89. |
The responsibility accounting is a controlling tool for… |
| A. | Top‐level management |
| B. | Lower level management |
| C. | Middle level management |
| D. | none of these |
| Answer» A. Top‐level management | |
| 90. |
The accounting department in an organization is… |
| A. | Investment centre |
| B. | Expense centre |
| C. | Profit centre |
| D. | All of the above |
| Answer» A. Investment centre | |
| 91. |
The responsibility accounting is a system by which the responsibility is assigned to the concerned persons… |
| A. | To increase sales |
| B. | To control cash |
| C. | To increase production |
| D. | All of the above |
| Answer» B. To control cash | |
| 92. |
According to responsibility accounting, the entire organization is divided into various… |
| A. | Business centre |
| B. | Profit centre |
| C. | Responsibility centre |
| D. | none of these |
| Answer» C. Responsibility centre | |
| 93. |
In responsibility centre, the output is called as… |
| A. | Revenue |
| B. | Costs |
| C. | Both |
| D. | None |
| Answer» A. Revenue | |
| 94. |
If the responsibility centre gets more revenue from output, then it is called… |
| A. | Investment centre |
| B. | Cost centre |
| C. | Profit centre |
| D. | Expense centre |
| Answer» C. Profit centre | |
| 95. |
Internal transfer of process at profit _________ of the company |
| A. | Will not increase the asset |
| B. | Will increase the asset |
| C. | Can’t say |
| D. | Inadequate information |
| Answer» A. Will not increase the asset | |
| 96. |
The determination of actual value of assets employed in a responsibility centre is… |
| A. | Easy |
| B. | Can’t determine |
| C. | Difficult |
| D. | Not necessary |
| Answer» C. Difficult | |
| 97. |
Flexible manufacturing systems (FMS) are reported to have a number of benefits. Which is NOT a reported benefit of FMS? |
| A. | Lead time and throughput time reduction |
| B. | Increased quality |
| C. | More flexible than the manufacturing systems they replace |
| D. | Increased utilisation |
| Answer» C. More flexible than the manufacturing systems they replace | |
| 98. |
The use of Internet-based technology, either to support existing business processes or to create entirely new business opportunities, has become known as what? |
| A. | E-globalization |
| B. | E-business |
| C. | E-value creation |
| D. | E-process management |
| Answer» B. E-business | |
| 99. |
Which one of the following is not one of the Balanced Scorecard’s four generic perspectives? |
| A. | Marketing and advertising |
| B. | internal business processes |
| C. | Innovation a |
| D. | learning D) financial |
| Answer» A. Marketing and advertising | |
| 100. |
Which one of the following statements is true? |
| A. | Balanced Scorecards are a feedback mechanism |
| B. | Balanced Scorecards always have four perspectives |
| C. | Balanc |
| D. | Scorecards can be used in Not-for-Profit organisations |
| Answer» C. Balanc | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.