McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Uncategorized topics .
| 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. | |
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