McqMate
| 201. |
Elements of costs are. |
| A. | three types. |
| B. | four types. |
| C. | five types. |
| D. | seven types. |
| Answer» A. three types. | |
| 202. |
Direct expenses are also called . |
| A. | major expenses. |
| B. | chargeable expenses. |
| C. | overhead expenses. |
| D. | sundry expenses. |
| Answer» B. chargeable expenses. | |
| 203. |
Indirect material used in production is classified as. |
| A. | office overhead. |
| B. | selling overhead. |
| C. | distribution overhead. |
| D. | production overhead. |
| Answer» D. production overhead. | |
| 204. |
Warehouse rent is a part of . |
| A. | prime cost. |
| B. | factory cost. |
| C. | distribution cost. |
| D. | production cost. |
| Answer» C. distribution cost. | |
| 205. |
Indirect material scrap is adjusted along with . |
| A. | prime cost. |
| B. | factory cost. |
| C. | labour cost. |
| D. | cost of goods sold. |
| Answer» B. factory cost. | |
| 206. |
Which one of the following is not considered for preparation of cost sheet? |
| A. | Factory cost. |
| B. | Goodwill written off. |
| C. | Selling cost. |
| D. | Labour cost. |
| Answer» B. Goodwill written off. | |
| 207. |
Sale of defectives is reduced from . |
| A. | prime cost. |
| B. | works cost. |
| C. | cost of production. |
| D. | cost of sales. |
| Answer» C. cost of production. | |
| 208. |
Tender is an. |
| A. | estimation of profit. |
| B. | estimation of cost. |
| C. | estimation of selling price. |
| D. | estimation of units. |
| Answer» C. estimation of selling price. | |
| 209. |
Cost of sales plus profit is . |
| A. | Selling price. |
| B. | value of finished product. |
| C. | value of goods produced. |
| D. | value of stocks. |
| Answer» A. Selling price. | |
| 210. |
Prime cost includes. |
| A. | Direct materials, direct wages and indirect expenses. |
| B. | Indirect materials and indirect labour and indirect expenses. |
| C. | Direct materials, direct wages and direct expenses. |
| D. | Direct materials, indirect wages and indirect expenses. |
| Answer» C. Direct materials, direct wages and direct expenses. | |
| 211. |
Total of all direct costs is termed as . |
| A. | prime cost. |
| B. | works cost. |
| C. | cost of sales. |
| D. | cost of production. |
| Answer» A. prime cost. | |
| 212. |
Depreciation of plant and machinery is a part of . |
| A. | factory overhead. |
| B. | selling overhead. |
| C. | distribution overhead. |
| D. | administration overhead. |
| Answer» A. factory overhead. | |
| 213. |
Audit fess is a part of . |
| A. | works on cost. |
| B. | selling overhead. |
| C. | distribution overhead. |
| D. | administration overhead. |
| Answer» D. administration overhead. | |
| 214. |
Counting house salary is part of . |
| A. | factory overhead. |
| B. | selling overhead. |
| C. | distribution overhead. |
| D. | administration overhead. |
| Answer» D. administration overhead. | |
| 215. |
Factory overhead can be charged on the basis of -. |
| A. | material cost. |
| B. | labour cost. |
| C. | prime cost. |
| D. | direct expenses |
| Answer» A. material cost. | |
| 216. |
Office and administrative expenses can be charged on the basis of . |
| A. | material cost. |
| B. | labour cost. |
| C. | prime cost. |
| D. | factory cost. |
| Answer» C. prime cost. | |
| 217. |
Selling and distribution expenses can be charged on the basis of . |
| A. | material cost. |
| B. | labour cost. |
| C. | prime cost. |
| D. | factory cost. |
| Answer» C. prime cost. | |
| 218. |
The ratios which reflect managerial efficiency in handling the assets is. |
| A. | turnover ratios |
| B. | profitability ratios. |
| C. | short term solvency ratio. |
| D. | long term solvency ratio. |
| Answer» A. turnover ratios | |
| 219. |
The ratios which reveal the final result of the managerial policies and performance is . |
| A. | turnover ratios. |
| B. | profitability ratios. |
| C. | short term solvency ratio. |
| D. | long term solvency ratio. |
| Answer» B. profitability ratios. | |
| 220. |
Return on investment is a . |
| A. | turnover ratios. |
| B. | short term solvency ratio. |
| C. | profitability ratios. |
| D. | long term solvency ratio. |
| Answer» C. profitability ratios. | |
| 221. |
Net profit ratio is a . |
| A. | turnover ratio. |
| B. | long term solvency ratio. |
| C. | short term solvency ratio |
| D. | profitability ratio. |
| Answer» D. profitability ratio. | |
| 222. |
Stock turnover ratio is a . |
| A. | turnover ratio. |
| B. | profitability ratio. |
| C. | short term solvency ratio. |
| D. | long term solvency ratio. |
| Answer» A. turnover ratio. | |
| 223. |
Current ratio is a |
| A. | short-term solvency ratio. |
| B. | long-term solvency ratio. |
| C. | profitability ratio. |
| D. | turnover ratio. |
| Answer» A. short-term solvency ratio. | |
| 224. |
Proprietary ratio is a . |
| A. | short-term solvency ratio. |
| B. | long-term solvency ratio. |
| C. | profitability ratio. |
| D. | turnover ratio. |
| Answer» B. long-term solvency ratio. | |
| 225. |
Fixed assets ratio is a |
| A. | short-term solvency ratio. |
| B. | long-term solvency ratio. |
| C. | profitability ratio. |
| D. | turnover ratio. |
| Answer» B. long-term solvency ratio. | |
| 226. |
Fixed assets turnover ratio is a |
| A. | short-term solvency ratio. |
| B. | long-term solvency ratio. |
| C. | profitability ratio. |
| D. | turnover ratio. |
| Answer» D. turnover ratio. | |
| 227. |
The ratio which measures the profit in relation to capital employed is known as |
| A. | return on investment. |
| B. | gross profit ratio. |
| C. | operating ratio. |
| D. | operating profit ratio. |
| Answer» A. return on investment. | |
| 228. |
The ratio which determines the profitability from the shareholder’s point of view is . |
| A. | return on investment. |
| B. | gross profit ratio. |
| C. | return on shareholders funds. |
| D. | operating profit ratio. |
| Answer» C. return on shareholders funds. | |
| 229. |
Return on equity is also called |
| A. | . return on investment. |
| B. | gross profit ratio. |
| C. | return on shareholders funds. |
| D. | return on net worth. |
| Answer» D. return on net worth. | |
| 230. |
Prepaid expenses is an example of . |
| A. | fixed assets. |
| B. | current assets. |
| C. | fictitious assets. |
| D. | current liabilities. |
| Answer» B. current assets. | |
| 231. |
The ratio which is calculated to measure the productivity of total assets is |
| A. | return on equity. |
| B. | return on shareholders’ funds. |
| C. | return on total assets. |
| D. | return on equity share holders’ funds. |
| Answer» C. return on total assets. | |
| 232. |
The ratio which shows the proportion of profits retained in the business out of the current year’s profits is |
| A. | Retained earnings ratio. |
| B. | payout ratio |
| C. | Earnings per share. |
| D. | Price earnings ratio. |
| Answer» A. Retained earnings ratio. | |
| 233. |
The ratio which indicates earnings per share reflected by the market price is . |
| A. | retained earnings ratio. |
| B. | pay out ratio. |
| C. | earnings per share. |
| D. | price earnings ratio. |
| Answer» D. price earnings ratio. | |
| 234. |
The ratio establishes the relationship between profit before interest and tax and fixed interest charges is. |
| A. | interest cover ratio. |
| B. | fixed dividend cover ratio. |
| C. | debt service coverage ratio. |
| D. | dividend yield ratio. |
| Answer» A. interest cover ratio. | |
| 235. |
The ratio shows the preference dividend as a proportion of profit available for shareholders is . |
| A. | interest cover ratio. |
| B. | fixed dividend cover ratio. |
| C. | debt service coverage ratio. |
| D. | dividend yield ratio. |
| Answer» B. fixed dividend cover ratio. | |
| 236. |
The dividend is related to the market value of shares in . |
| A. | interest cover ratio. |
| B. | fixed dividend cover ratio. |
| C. | debt service coverage ratio. |
| D. | dividend yield ratio. |
| Answer» D. dividend yield ratio. | |
| 237. |
. Turnover ratio is also known as . |
| A. | activity ratios. |
| B. | solvency ratios. |
| C. | liquidity ratios. |
| D. | profitability ratios. |
| Answer» A. activity ratios. | |
| 238. |
Inventory or stock turnover ratio is also called . |
| A. | stock velocity ratio. |
| B. | . debtors velocity ratio. |
| C. | . creditors velocity ratio. |
| D. | working capital turnover ratio. |
| Answer» A. stock velocity ratio. | |
| 239. |
Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital investment? |
| A. | stock velocity ratio. |
| B. | debtors velocity ratio. |
| C. | creditors velocity ratio. |
| D. | working capital turnover ratio. |
| Answer» A. stock velocity ratio. | |
| 240. |
The ratio which measures the relationship between the cost of goods sold and the amount of average inventory is |
| A. | Stock turnover ratio. |
| B. | debtors velocity ratio. |
| C. | creditors velocity ratio. |
| D. | working capital turnover ratio. |
| Answer» A. Stock turnover ratio. | |
| 241. |
Sales – Gross Profit = . |
| A. | net profit. |
| B. | administrative expenses. |
| C. | cost of production. |
| D. | cost of goods sold. |
| Answer» D. cost of goods sold. | |
| 242. |
Opening stock + purchases + direct expenses – closing stock = |
| A. | net profit. |
| B. | cost of production |
| C. | administrative expenses. |
| D. | cost of goods sold. |
| Answer» D. cost of goods sold. | |
| 243. |
Which ratio measures the number of times the receivables are rotated in a year in terms of sales? |
| A. | stock turnover ratio. |
| B. | debtors turnover ratio. |
| C. | creditors velocity ratio. |
| D. | working capital turnover ratio. |
| Answer» B. debtors turnover ratio. | |
| 244. |
Debtors turnover ratio is also called . |
| A. | stock turnover ratio. |
| B. | debtors velocity ratio. |
| C. | creditors velocity ratio. |
| D. | working capital turnover ratio |
| Answer» B. debtors velocity ratio. | |
| 245. |
Creditors turnover ratio is also called . |
| A. | stock turnover ratio. |
| B. | debtors velocity ratio. |
| C. | . accounts payables ratio. |
| D. | working capital turnover ratio. |
| Answer» C. . accounts payables ratio. | |
| 246. |
The indicates the number of times the payables rotate in a year is _. |
| A. | stock turnover ratio. |
| B. | stock turnover ratio. |
| C. | creditors velocity ratio. |
| D. | working capital turnover ratio. |
| Answer» C. creditors velocity ratio. | |
| 247. |
Funds flow statement is based on the . |
| A. | working capital concept of funds. |
| B. | cash concept of funds. |
| C. | fixed assets concept of funds. |
| D. | long term funds. |
| Answer» A. working capital concept of funds. | |
| 248. |
All those assets which are converted into cash in the normal course of business within one year are known as . |
| A. | fixed assets. |
| B. | current assets. |
| C. | fictitious assets. |
| D. | wasting assets. |
| Answer» B. current assets. | |
| 249. |
All those liabilities which are payable in cash in the normal course of business within a period of one year are called _. |
| A. | long term liabilities. |
| B. | overdraft. |
| C. | short term loans. |
| D. | current liabilities. |
| Answer» D. current liabilities. | |
| 250. |
Any transaction between a current account and another current account does not Affect . |
| A. | profit. |
| B. | funds. |
| C. | working capital. |
| D. | capital. |
| Answer» B. funds. | |
| 251. |
Any transaction between a non current account and another non current account does not affect . |
| A. | profit. |
| B. | funds. |
| C. | working capital. |
| D. | capital. |
| Answer» C. working capital. | |
| 252. |
Principle’ for preparation of working capital statement -Increase in current asset . |
| A. | increases working capital. |
| B. | decreases working capital. |
| C. | decrease fixed capital. |
| D. | increase fixed capital. |
| Answer» A. increases working capital. | |
| 253. |
Principle’ for preparation of working capital statement - Decrease in current asset . |
| A. | increases working capital. |
| B. | decreases working capital. |
| C. | decrease fixed capital. |
| D. | increase fixed capital. |
| Answer» B. decreases working capital. | |
| 254. |
Principle’ for preparation of working capital statement -Increase in current liability . |
| A. | increases working capital. |
| B. | decreases working capital. |
| C. | decrease fixed capital. |
| D. | increase fixed capital. |
| Answer» B. decreases working capital. | |
| 255. |
Principle’ for preparation of working capital statement -Decrease in current Liability . |
| A. | increases working capital. |
| B. | decreases working capital. |
| C. | decrease fixed capital |
| D. | increase fixed capital. |
| Answer» A. increases working capital. | |
| 256. |
Depreciation on fixed assets is . |
| A. | non operating income. |
| B. | operating expense. |
| C. | operating income. |
| D. | non operating expense. |
| Answer» D. non operating expense. | |
| 257. |
Production cost under marginal costing includes . |
| A. | prime cost only . |
| B. | prime cost and fixed overhead . |
| C. | . prime cost and variable overhead. |
| D. | prime cost, variable overhead and fixed overhead. |
| Answer» C. . prime cost and variable overhead. | |
| 258. |
One of the primary differences between marginal costing and absorption costing regarding the treatment of . |
| A. | prime cost . |
| B. | fixed overheads. |
| C. | variable overheads . |
| D. | direct materials. |
| Answer» B. fixed overheads. | |
| 259. |
Absorption costing differs from marginal costing is the . |
| A. | fact that standard costs can be used with absorption costing but not with marginal costing . |
| B. | amount of costs assigned to individual units of products . |
| C. | kind of activities for which each can be used . |
| D. | amount of fixed costs that will be incurred. |
| Answer» B. amount of costs assigned to individual units of products . | |
| 260. |
Contribution margin is also known as . |
| A. | marginal income . |
| B. | gross profit. |
| C. | net profit. |
| D. | net loss. |
| Answer» A. marginal income . | |
| 261. |
Period costs are . |
| A. | overhead costs . |
| B. | prime cost. |
| C. | variable cost. |
| D. | fixed costs. |
| Answer» D. fixed costs. | |
| 262. |
Contribution margin is equal to . |
| A. | fixed cost - loss . |
| B. | profit + variable cost. |
| C. | sales — fixed cost- profit . |
| D. | sales – profit. |
| Answer» A. fixed cost - loss . | |
| 263. |
P/V Ratio is an indicator of . |
| A. | the rate at which goods are sold . |
| B. | the volume of sales |
| C. | the volume of profit. |
| D. | the rate of profit. |
| Answer» D. the rate of profit. | |
| 264. |
Margin of Safety is the difference between . |
| A. | planned sales and planned profit . |
| B. | actual sales and break-even sales. |
| C. | planned sales and actual sales |
| D. | planned sales and planned expenses. |
| Answer» B. actual sales and break-even sales. | |
| 265. |
An increase in variable costs . |
| A. | increases p/v ratio . |
| B. | increases the profit. |
| C. | reduces contribution . |
| D. | increase margin of safety. |
| Answer» C. reduces contribution . | |
| 266. |
An increase in selling price . |
| A. | increases the break-even point. |
| B. | decreases the break-even point. |
| C. | does not affect the break-even point. |
| D. | optimize the break even point. |
| Answer» B. decreases the break-even point. | |
| 267. |
A large Margin of Safety indicates . |
| A. | over production. |
| B. | over capitalization . |
| C. | the soundness of the business. |
| D. | under capitalization. |
| Answer» C. the soundness of the business. | |
| 268. |
Angie of incidence is . |
| A. | the angle between the sales line and the total cost line. |
| B. | the angle between the sales line and the y-axis. |
| C. | the angle between the sales line and the x-axis. |
| D. | the angle between the sales line and the total profit line. |
| Answer» A. the angle between the sales line and the total cost line. | |
| 269. |
CVP analysis is most important for the determination of . |
| A. | sales revenue necessary to equal fixed costs . |
| B. | relationship between revenues and costs at various levels of operations . |
| C. | variable revenues necessary to equal fixed costs . |
| D. | volume of operations necessary to Break—even. |
| Answer» A. sales revenue necessary to equal fixed costs . | |
| 270. |
The conventional Break-even analysis does not assume that . |
| A. | selling price per unit will remain fixed . |
| B. | total fixed costs remain the same. |
| C. | variable cost per unit will vary . |
| D. | productivity per worker will remain unchanged. |
| Answer» B. total fixed costs remain the same. | |
| 271. |
1f` fixed costs decrease while variable cost per unit remains constant, the new B.E.P in relation to the old B.E.P will be . |
| A. | lower . |
| B. | higher. |
| C. | unchanged . |
| D. | indeterminate. |
| Answer» B. higher. | |
| 272. |
If fixed costs decrease while the variable cost per unit remains constant, the new contribution margin in relation to the old contribution margin will be . |
| A. | lower . |
| B. | unchanged . |
| C. | higher. |
| D. | indeterminate. |
| Answer» B. unchanged . | |
| 273. |
Selling price per unit Rs. 10; Variable cost Rs. 8 per unit; Fixed cost Rs. 20,000; Break-even production in units . |
| A. | 10,000. |
| B. | 16,300. |
| C. | 2,000. |
| D. | 2,500. |
| Answer» A. 10,000. | |
| 274. |
Sales Rs. 25,000; Variable cost Rs. 8,000; Fixed cost Rs. 5,000; Break-even sales in value . |
| A. | Rs. 7,936. |
| B. | Rs. 7,353. |
| C. | Rs. 8,333. |
| D. | Rs. 9,090. |
| Answer» B. Rs. 7,353. | |
| 275. |
Fixed cost Rs. 80,000; Variable cost Rs. 2 per unit; Selling price_Rs. 10 per unit; turnover required for a profit target of Rs. 60,000. |
| A. | Rs. 1,75,000. |
| B. | Rs. 1,17,400. |
| C. | Rs. 1.57,000. |
| D. | Rs. 1,86,667. |
| Answer» A. Rs. 1,75,000. | |
| 276. |
Sales Rs. 25,000; Variable cost Rs. 15,000; Fixed cost Rs .4,000; P/V Ratio is . |
| A. | 40% . |
| B. | 80% |
| C. | 15% |
| D. | 30%. |
| Answer» A. 40% . | |
| 277. |
Sales Rs. 50,000; Variable cost Rs. 30,000; Net profit Rs. 6,000; fixed cost is . |
| A. | Rs. 10,000. |
| B. | b. Rs. l4,000 . |
| C. | Rs. 12,000. |
| D. | Rs. 8,000. |
| Answer» B. b. Rs. l4,000 . | |
| 278. |
Actual sales Rs .4,00,000; Break-even sales Rs. 2,50,000; Margin of Safety in percentage is _. |
| A. | 33.33%. |
| B. | 66.67% |
| C. | 37.5% . |
| D. | 76.33%. |
| Answer» C. 37.5% . | |
| 279. |
P/V Ratio 50%; Variable cost of the produce Rs. 25; Selling price is . |
| A. | Rs. 50 . |
| B. | Rs. 40. |
| C. | Rs. 30 . |
| D. | Rs. 55. |
| Answer» A. Rs. 50 . | |
| 280. |
Fixed cost Rs. 2,00,000; Sales Rs. 8,00,000; P/V Ratio 30%; the amount of' profit is . |
| A. | Rs. 50,000. |
| B. | Rs. 40,000 . |
| C. | Rs. 35,000 . |
| D. | Rs. 45,000 . |
| Answer» B. Rs. 40,000 . | |
| 281. |
P/V Ratio is 25% and Margin of Safety is Rs; 3,00,000, the amount of profit is . |
| A. | Rs. 1,00,000. |
| B. | Rs. 80,000. |
| C. | Rs. 75,000. |
| D. | . Rs. 60,000. |
| Answer» C. Rs. 75,000. | |
| 282. |
Total sales Rs. 20,00,000; Fixed expenses Rs. 4,00,000; P/V Ratio 40%; Break-even capacity in percentage is . |
| A. | 40% . |
| B. | 60% . |
| C. | 50% . |
| D. | 45%. |
| Answer» C. 50% . | |
| 283. |
Break - even point occurs at 40% of` total capacity, margin of safety will be . |
| A. | 40% . |
| B. | 60% . |
| C. | 80% . |
| D. | 85% . |
| Answer» B. 60% . | |
| 284. |
If the P/V Ratio of a product is 30% and selling price is Rs. 25 per unit, the marginal cost of the product would be . |
| A. | Rs. 18.75 |
| B. | Rs. 16.50 |
| C. | Rs. 15.40 |
| D. | Rs. 17.50 |
| Answer» D. Rs. 17.50 | |
| 285. |
Absorption costing is also known as . |
| A. | historical costing. |
| B. | real costing. |
| C. | marginal costing. |
| D. | real costing . |
| Answer» A. historical costing. | |
| 286. |
Under marginal costing stock are valued at . |
| A. | fixed cost. |
| B. | semi-variable cost. |
| C. | variable cost. |
| D. | market price. |
| Answer» C. variable cost. | |
| 287. |
The budget is a . |
| A. | a post-mortem analysis . |
| B. | a substitute of management |
| C. | an aid to management |
| D. | calculation . |
| Answer» C. an aid to management | |
| 288. |
One of the most important tools of cost planning is . |
| A. | budget. |
| B. | direct cost. |
| C. | unit cost. |
| D. | cost sheet. |
| Answer» A. budget. | |
| 289. |
Sales budget is a . |
| A. | Functional budget. |
| B. | Expenditure budget. |
| C. | Master budget . |
| D. | Flexible budget. |
| Answer» A. Functional budget. | |
| 290. |
The budget which usually takes the form of budgeted profit and loss account and balance sheet is known as |
| A. | Flexible budget . |
| B. | Master budget. |
| C. | Cash budget . |
| D. | Purchase budget. |
| Answer» B. Master budget. | |
| 291. |
Which of the following is usually a long-term budget?. |
| A. | .Fixed budget. |
| B. | Cash budget. |
| C. | Sales budget |
| D. | Capital expenditure budget. |
| Answer» D. Capital expenditure budget. | |
| 292. |
The fixed-variable cost classification has `a special significance in the preparation of . |
| A. | Capital budget. |
| B. | Cash budget. |
| C. | Master budget . |
| D. | Flexible budget . |
| Answer» D. Flexible budget . | |
| 293. |
Preparing budget figures for different levels of activity within a range under flexible budgeting is . |
| A. | Formula method. |
| B. | Multi-activity method. |
| C. | Budget cost allowance method. |
| D. | Proportionate method. |
| Answer» B. Multi-activity method. | |
| 294. |
What type of budget is designed to take into account forecast change in costs, prices, etc? |
| A. | Master budget. |
| B. | Rolling budget. |
| C. | Flexible budget . |
| D. | Functional budget. |
| Answer» B. Rolling budget. | |
| 295. |
Operation budgets normally cover a period of . |
| A. | one to ten years. |
| B. | one to two years. |
| C. | one to five years. |
| D. | one year or less. |
| Answer» D. one year or less. | |
| 296. |
The entire process of preparing the budgets is known as . |
| A. | Planning. |
| B. | Organizing. |
| C. | Budgeting. |
| D. | Controlling. |
| Answer» C. Budgeting. | |
| 297. |
Budgetary control starts with . |
| A. | Planning. |
| B. | Organizing. |
| C. | Budgeting. |
| D. | Controlling. |
| Answer» C. Budgeting. | |
| 298. |
Budget designed to remain constant irrespective of the level of activity attained is called . |
| A. | Fixed budget. |
| B. | Flexible budget. |
| C. | Sales budget. |
| D. | Production budget |
| Answer» A. Fixed budget. | |
| 299. |
Long-term budgets are prepared for . |
| A. | 1 year. |
| B. | 1-3 years. |
| C. | 1-5 years. |
| D. | 5-10 years. |
| Answer» D. 5-10 years. | |
| 300. |
The budget which shows the budgeted quantity of output to be produced during a specific period is. |
| A. | Fixed budget. |
| B. | Flexible budget. |
| C. | Sales budget. |
| D. | Production budget |
| Answer» D. Production budget | |
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