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in Management Accounting

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Banking and Insurance (BBI) , Bachelor of Commerce (B Com) .

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1.

Fixed assets are Rs 5,00,000 , Current assets are Rs 3,00,000, Current liabilities are Rs 1,00,000. There is no investment. Capital employed will be :

A. rs 8,00,000
B. rs 7,00,000
C. rs 9,00,000
D. rs 6,00,000
Answer» B. rs 7,00,000
discuss (1)
2.

Current liabilities include creditors Rs 2,00,000, Bills payable Rs 1,00,00 Expenses payable Rs 50,000 Bank Overdraft Rs 2,00,000. Quick liabilites will be :

A. rs 3,50,000
B. rs 3,00,000
C. rs 2,50,000
D. rs 2,00,000
Answer» A. rs 3,50,000
discuss (3)
3.

Fixed assets include premises Rs 10,00,000, Machinery Rs 5,00,000 Furniture Rs 2,00,000 Vehicles Rs 3,00,000 Live stock Rs 1,00,000 Goodwill Rs 2,00,000, Patents & Copy rights Rs 1,50,000, Underwriting commission Rs 50,000 Fixed tangible immovable asset will be :

A. rs 10,00,000
B. rs 20,00,000
C. rs 3,00,000
D. rs1,50,000
Answer» A. rs 10,00,000
discuss
4.

Kumar Ltd. reported net sales Rs 9,00,000, Rs 9,90,000 and Rs 10,80,000 in the year 2013, 2014 and 2015. If 2013 is the base year what is the trend % for 2015?

A. 1.2
B. 0.75
C. 0.8
D. 0.9
Answer» A. 1.2
discuss (1)
5.

Total current assets are Rs 30,000, Rs 54,000 and Rs 66,000 in 2013, 2014 and 2015 respectively. If 2013 is the base year what is the % increase from 2013 to 2015?

A. 1.2
B. 1.25
C. 0.6
D. 0.5
Answer» A. 1.2
discuss
6.

Cost of goods sold for a company is Rs 30,00,000, Rs 24,00,000 and Rs 18,00,000 for 2015, 2014 and 2013 respectively. If 2013 is the base year the percentage increase in cost of goods sold from 2013 to 2015 is

A. 0.6667
B. 0.7
C. 0.5
D. 0.45
Answer» A. 0.6667
discuss
7.

Gauri Ltd has a debt equity of 3:2 and total assets turnover is 2. If NP ratio is 10%. The ROE is

A. 0.4
B. 0.5
C. 0.35
D. 0.2
Answer» B. 0.5
discuss
8.

ABC Ltd has total assets turnover ratio and total assets to Net worth are 1.75 and 2 respectively. If NP ratio is 10% the ROE will be :

A. 0.2
B. 0.35
C. 0.4
D. 0.6
Answer» B. 0.35
discuss
9.

Current Assets are Rs 5,00,000 and Current liabilities are Rs 2,00,000. The Current ratio is

A. 1.5
B. 1.75
C. 2.5
D. 3.20,
Answer» C. 2.5
discuss
10.

WIP is Rs 14,000, COGS is Rs 1,50,000, 360 days in a year WIP Turnover period is :

A. 30 days
B. 40 days
C. 34 days
D. 45 days
Answer» C. 34 days
discuss
11.

S Ltd has a plan to produce 52,000 units for the year 2020-21 selling price is Rs 1,000 per unit. Credit allowed to customers is 8 weeks. One year consists of 52 weeks. The debtors value is

A. rs 40,00,000
B. rs 80,00,000
C. rs 70,00,000
D. rs 60,00,000
Answer» B. rs 80,00,000
discuss
12.

K Ltd has decided to produce and sell 5,000 units during the year 2020-21. S.P. is Rs 200 per unit. 70% of sales will be on credit and credit period wil be 6 weeks. One year consists of 50 weeks. The debtors will be :

A. rs 70,000
B. rs 80,000
C. rs 84,000
D. rs 95,000
Answer» C. rs 84,000
discuss
13.

In Management accounting,emphasis and focus should be

A. future oriented
B. past oriented
C. communication oriented
D. bank oriented
Answer» A. future oriented
discuss
14.

What are the characteristics of management accounting?

A. Decision Making
B. Internal Use
C. Optional
D. All of the above
Answer» D. All of the above
discuss
15.

The management accounting can be stated an extension of
I)Cost Accounting
II)Financial Accounting

A. Only I
B. Only II
C. Both I and II
D. None of the Above
Answer» C. Both I and II
discuss
16.

Management accounting assists the management

A. Only in control
B. Only in decision making
C. Only in planning
D. In planning, decision making and control
Answer» D. In planning, decision making and control
discuss
17.

Which of the following is not the limitation of Management Accounting?
I)Developing Stage
II)Resistance from Staff
III)Lack of wide knowledge
IV)Decision Making

A. Only I,II,III
B. Both I & IV
C. Only IV
D. Only I
Answer» C. Only IV
discuss
18.

Data in management accounting is derived from

A. Cost Accounting
B. Financial Accounting
C. Other Sources
D. All of the above
Answer» D. All of the above
discuss
19.

Financial accounting is the art of
I)Classifying
II)Interpreting
III)Recording
IV)Summarizing .
Write Correct sequence.

A. III,IV,II,I
B. III,I,IV,II
C. III,I,II,IV
D. III,IV,I,II
Answer» B. III,I,IV,II
discuss
20.

Which statement is true.
I)Cost records are compulsory in all industries.
II)Management accounting records are compulsory by law.

A. Both are False
B. Only II
C. Both I and II
D. Only I
Answer» A. Both are False
discuss
21.

Which technique used for figures of two or more periods are placed side by side to facilitate easy and meaningful comparisons?

A. Comparative Statements
B. Common size Statements
C. Trend
D. None
Answer» A. Comparative Statements
discuss
22.

Total Assets in 2018 10 lac(Negative );in 2019 15 Lac (Positive).What is the Percentage change?

A. 150%
B. 100%
C. 250%
D. 50%
Answer» C. 250%
discuss
23.

What is treated as the base in common size P& L statement.

A. RFO
B. Other Incomes
C. Total Income
D. Profit before tax
Answer» A. RFO
discuss
24.

Working capital=45,000 ,Total Debt=1,00,000 , LT debt=70,000, what is value of Current assets?

A. 30000
B. 15000
C. 25000
D. 75000
Answer» D. 75000
discuss
25.

If Inventory turnover ratio=5 times,what is avg age if inventory?

A. 73 days
B. 80 days
C. 70 days
D. 69 days
Answer» A. 73 days
discuss
26.

What is formula of Capital employed?
I)Shareholder's Funds+Non Current Liabilities
II)Total Assets-Current Liabilities
III)Non Current Assets-Working capital
IV)Total Assets-Total Liabilities

A. Only III and IV
B. Only I,II and III
C. All I,II,III,IV
D. Only I and II
Answer» D. Only I and II
discuss
27.

Which items are added in Current year profit to get Net profit before tax.
I)Interim dividend
II)Provision for tax
III)Refund of tax
IV)Transfer to reserves

A. All
B. Only III
C. Only II and IV
D. Only I,II and IV
Answer» D. Only I,II and IV
discuss
28.

Which are financing activities?
I)Issue of shares
II)Interest Paid
III)Dividend paid
IV)Redemption of debentures

A. All
B. Only I,II and IV
C. Only I and IV
D. Only I,III and IV
Answer» B. Only I,II and IV
discuss
29.

Which of the following is not the objective of budgetary control?
I)Control
II)Danger of rigidity
III)Motivation
IV)Based on estimates

A. Only II
B. Only II and IV
C. Only II,III and IV
D. All I,II,III and IV
Answer» B. Only II and IV
discuss
30.

Which of the following is the limitation of Zero based budgeting.
I)Resist new ideas
II)Control on expenditure
III)Requires proper training
IV)Conflicts

A. All
B. Only I and IV
C. Only III and IV
D. Only I,III and IV
Answer» D. Only I,III and IV
discuss
31.

The fixed administration expenses are Rs 50,000 at 10,000 units of production.What will be the per unit fixed cost at 8000 units?

A. Rs 5 per unit
B. Rs 8.33
C. Rs 6.25 per unit
D. Rs 10
Answer» C. Rs 6.25 per unit
discuss
32.

Labour Efficiency Variance is the sum total of
I)Labour Mix variance
II)Labour Cost Variance
III)Idle time Variance
IV)Labour yield variance

A. Only I and IV
B. All
C. Only II and III
D. Only I,III and IV
Answer» D. Only I,III and IV
discuss
33.

Total Actual material is 1250 Kg.The Standard qty of Material A=800Kg and B=400Kg.What is the revised Std qty of A and B respectively.

A. 825kg,425Kg
B. 950Kg,300Kg
C. 833Kg,417Kg
D. 750Kg,500Kg
Answer» C. 833Kg,417Kg
discuss
34.

AQ=2500Kg ,SP=Rs 2.5,SQ=2400Kg,AP=Rs 3 .Calculate Material Cost variance.

A. 1500 F
B. 1500 A
C. 950 F
D. 950 A
Answer» B. 1500 A
discuss
35.

BE point=40,000 ,Fixed Cost=15,000.Calculate P/V ratio.

A. 3.75%
B. 0.38%
C. 26.66%
D. 37.50%
Answer» D. 37.50%
discuss (1)
36.

Calculate Break Even Point in units if Fixed cost is 15,000 ,SP=15 and VC=12

A. 1000 units
B. 1250 units
C. 1500 units
D. 5000 units
Answer» D. 5000 units
discuss
37.

Calculate Profit if Mos=40%,P/v ratio=50% and Actual Sales=10,00,000.

A. 900000
B. 500000
C. 200000
D. 400000
Answer» C. 200000
discuss
38.

Variable cost ratio =80% and Mos=40%.Calculate P/V ratio and BEP(in Percentage) respectively.

A. 60%,60%
B. 20%,60%
C. 60%,20%
D. 20%,20%
Answer» B. 20%,60%
discuss
39.

At Break even point,Contribution is equal to .

A. Profit
B. Variable Cost
C. Fixed Cost
D. Selling Price
Answer» C. Fixed Cost
discuss
40.

Which statement is true.I)Fixed budget assumes Changing business conditions. II)Flexible budget is prepared for only one level of activity.

A. None is true
B. Both are true
C. Only I
D. Only II
Answer» A. None is true
discuss
41.

Fixed cost=8000,Profit=5600 .Calculate Contribution.

A. 8000
B. 2400
C. 13600
D. 5600
Answer» C. 13600
discuss
42.

The wages due from Mar 20 ,Apr 20 and May 20 are Rs8000,Rs9000 and Rs 10,000 respectively.There is delay in payment of wages of 2 months.What will be the wages paid in May

A. Rs 9000
B. Rs 8000
C. Rs 10000
D. Rs 27000
Answer» B. Rs 8000
discuss
43.

Type of accounting which specialises in providing information about detailed cost of products?

A. Cost Accounting
B. Management Accounting
C. Financial Management
D. Financial Accounting
Answer» A. Cost Accounting
discuss
44.

What is included in scope of management accounting?
I)Internal Control
II)Budgeting
III)Reporting to management
IV)Office Services

A. Only II,III,IV
B. ALL I,II,III,IV
C. Only II and IV
D. Only I,II,IV
Answer» B. ALL I,II,III,IV
discuss
45.

Which of the following is the basis of difference between Financial and Management Accounting?

A. Publication and Audit
B. Periodic v/s Continuos reporting
C. Statutory Requirements
D. All of the above
Answer» D. All of the above
discuss
46.

What are the objectives of Cost accounting?I)Cost Ascertainment II)Cost Control

A. Only I
B. Both I & II
C. Only II
D. None of the Above
Answer» B. Both I & II
discuss
47.

The status of management accountant is at what level as compared to cost accountant?

A. Lower
B. Equal
C. Higher
D. No status at all
Answer» C. Higher
discuss
48.

Which statement is true.I)Financial accounts are prepared according to Accounting Standards. II)Management Accounting reports are also prepared according to accounting standard.

A. Only II
B. Both I and II
C. Only I
D. None is true
Answer» C. Only I
discuss
49.

What indicate the relationship of different items of a financial statement with some common item by expressing each item as a percentage of the common item.

A. Comparative Statements
B. Ratio
C. Common size Statements
D. None of the Above
Answer» C. Common size Statements
discuss
50.

Which is not the limitation of financial analysis?
I)Effect of personal Bias
II)Identify Trend
III)Judge Efficiency
IV)Different accounting policies

A. Only I
B. Only II and III
C. Only II , III and IV
D. Only I and IV
Answer» B. Only II and III
discuss

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