McqMate
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) .
Chapters
| 551. |
A document which provides for the detailed cost centre and cost unit is _______. |
| A. | Tender |
| B. | Cost Sheet |
| C. | Invoice |
| D. | Profit Statement |
| Answer» B. Cost Sheet | |
| 552. |
An indirect setup labor costs, costs of setup and equipment maintenance and costs of indirect material can be categorized as |
| A. | Variable batch costs |
| B. | Fixed batch costs |
| C. | Variable setup costs |
| D. | Fixed setup costs |
| Answer» C. Variable setup costs | |
| 553. |
To establish an effective system of standard costing it is essential that
|
| A. | A, B and C |
| B. | A, C and D |
| C. | B, C and D |
| D. | D, C and A |
| Answer» B. A, C and D | |
| 554. |
An officer responsible for financial operations of organization is considered as |
| A. | Chief financial officer |
| B. | Chief manager |
| C. | Chief line function |
| D. | Chief staff function |
| Answer» A. Chief financial officer | |
| 555. |
Which of the following are the assumptions of marginal costing?
|
| A. | A and B |
| B. | B and C |
| C. | A and D |
| D. | A, B, C and D |
| Answer» D. A, B, C and D | |
| 556. |
Factory overhead is Rs 3,00,000 and direct material cost is Rs 5,00,000 What is the overhead rate under direct material cost method? |
| A. | 25% |
| B. | 30% |
| C. | 60% |
| D. | 75% |
| Answer» C. 60% | |
| 557. |
The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit. |
| A. | Rs 145 |
| B. | Rs 150 |
| C. | Rs 152 |
| D. | Rs 140 |
| Answer» C. Rs 152 | |
| 558. |
In master budgeting, the cost drivers for manufacturing overhead costs are |
| A. | Direct manufacturing labour-hours |
| B. | Setup labour-hours |
| C. | Budgeted labour-hours |
| D. | Both 1 and 2 |
| Answer» D. Both 1 and 2 | |
| 559. |
Which of the following is incorrect about the statement of cash flows? |
| A. | It provides information about the cash receipt and cash payments of an enterprise. |
| B. | It reconciles ending cash balance with the balance as per bank statement. |
| C. | It provides information about the operating, investing and financing activities. |
| D. | It explains the deviation of cash from Earnings. |
| Answer» B. It reconciles ending cash balance with the balance as per bank statement. | |
| 560. |
If break-even number of units are 120 units and the fixed cost is $62000, then the contribution margin per unit will be |
| A. | $74,400 |
| B. | $7,440,000 |
| C. | $516.67 |
| D. | $51,667 |
| Answer» C. $516.67 | |
| 561. |
Cash flow example from an operating activity is |
| A. | Purchase of Own Debenture |
| B. | Sale of Fixed Assets |
| C. | Interest Paid on Term-deposits by a Bank |
| D. | Issue of Equity Share Capital |
| Answer» C. Interest Paid on Term-deposits by a Bank | |
| 562. |
During the month of December actual direct labour cost amounted to $39,550, the standard direct labour rate was $10 per hour and the direct labour rate variance amounted to $450 favourable. The actual direct labour hours worked were: |
| A. | 3,955 hours |
| B. | 4,000 hours |
| C. | 3,910 hours |
| D. | 4,500 hours |
| Answer» B. 4,000 hours | |
| 563. |
Batch Costing is useful in determining: |
| A. | Maximum Quantity of output |
| B. | Minimum Quantity of output |
| C. | Economic Batch Quantity |
| D. | Profit of Batches |
| Answer» A. Maximum Quantity of output | |
| 564. |
Overhead Cost is the total of |
| A. | All Direct Cost |
| B. | All Indirect Cost |
| C. | All Specific Cost |
| D. | All Indirect and Direct Cost |
| Answer» B. All Indirect Cost | |
| 565. |
Regal Industries is replacing a grinder purchased 5 years ago for $15,000 with a new one costing $25,000 cash. The original grinder is being depreciated on a straight-line basis over 15 years to a zero-salvage value. Regal will sell this old equipment to a third party for $6,000 cash. The new equipment will be depreciated on a straight-line basis over 10 years to a zero-salvage value. Assuming a 40% marginal tax rate, Regal’s net cash investment at the time of purchase if the old grinder is sold and the new one purchased is |
| A. | $19000 |
| B. | $15000 |
| C. | $17400 |
| D. | $25000 |
| Answer» C. $17400 | |
| 566. |
The Moore Corporation is considering the acquisition of a new machine. The machine can be purchased for $90000; it will cost $6000 to transport to Moore’s plant and $9,000 to install. It is estimated that the machine will last 10 years, and it is expected to have an estimated salvage value of $5,000. Over its 10-year life, the machine is expected to produce 2,000 units per year, each with a selling price of $500 and combined material and labour costs of $450 per unit. Federal tax regulations permit machines of this type to be depreciated using the straight-line method over 5 years with no estimated salvage value. Moore has a marginal tax rate of 40%. What is the net cash flow for the tenth year of the project that Moore Corporation should use in a capital budgeting analysis? |
| A. | $100000 |
| B. | $91000 |
| C. | $68400 |
| D. | $63000 |
| Answer» D. $63000 | |
| 567. |
An annual report is issued by company to its : |
| A. | Directors |
| B. | Auditors |
| C. | Shareholders |
| D. | Management |
| Answer» C. Shareholders | |
| 568. |
Which of the following statement is correct ? |
| A. | Assets = Liabilities + Shareholders funds |
| B. | Assets = Total funds |
| C. | Assets = Funds of outsiders |
| D. | None of the above |
| Answer» A. Assets = Liabilities + Shareholders funds | |
| 569. |
The process of budgeting includes |
| A. | Preparation of budget |
| B. | Budget Control |
| C. | Budget co-ordination |
| D. | All of the above |
| Answer» D. All of the above | |
| 570. |
The labour engaged in the making of a product is known as _______ |
| A. | Direct labour |
| B. | Indirect labour |
| C. | Temporary labour |
| D. | None of the above |
| Answer» A. Direct labour | |
| 571. |
Cash from Operations is equal to: |
| A. | Net Profit plus increase in outstanding Expenses |
| B. | Net Profit plus increase in Debtors |
| C. | Net Profit plus increase in Stock |
| D. | Net Profit |
| Answer» A. Net Profit plus increase in outstanding Expenses | |
| 572. |
Margin of safety can be increased by |
| A. | Decrease in setting price |
| B. | Decline in volume of production |
| C. | Reduction in fixed or the variable costs or both |
| D. | None of the above |
| Answer» C. Reduction in fixed or the variable costs or both | |
| 573. |
When profit-volume ratio is 40 % and sales value Rs.10,000, the variable costs will be : |
| A. | Rs. 4,000 |
| B. | Rs. 6,000 |
| C. | Rs. 10,000 |
| D. | None of these |
| Answer» B. Rs. 6,000 | |
| 574. |
Determine B.E.P in units and amount if Units produced if Rs 10,000, Fixed cost is Rs 40,000, Selling price is Rs 50 per unit and Variable cost us Rs 30 per unit. |
| A. | Rs 40 per unit, Rs 2,00,000 |
| B. | Rs 50 per unit, Rs 10,00,000 |
| C. | Rs 20 per unit, Rs 1,00,000 |
| D. | None of the above |
| Answer» C. Rs 20 per unit, Rs 1,00,000 | |
| 575. |
When margin of safety is 20% and P/V ratio is 60%, the profit will be : |
| A. | 30% |
| B. | 33 1/3 % |
| C. | 12% |
| D. | None of these |
| Answer» C. 12% | |
| 576. |
Which of the following costs is not relevant when considering the closure of a department within a factory? |
| A. | Variable overheads |
| B. | Direct materials |
| C. | Fixed overheads |
| D. | Direct labour |
| Answer» C. Fixed overheads | |
| 577. |
A Cost Unit is _____________ |
| A. | The cost per machine hour |
| B. | The Cost per labour hour |
| C. | A unit of production in relation to which costs are ascertained |
| D. | A measure of work Output in a standard hour |
| Answer» C. A unit of production in relation to which costs are ascertained | |
| 578. |
Factory Overheads are also called : |
| A. | Sundry Overhead |
| B. | Works Overhead |
| C. | Extra Overhead |
| D. | Total Overhead |
| Answer» B. Works Overhead | |
| 579. |
Expenditure over and above prime cost is known as ________. |
| A. | overhead |
| B. | factory cost |
| C. | cost of sales |
| D. | cost of production |
| Answer» A. overhead | |
| 580. |
If the actual price input is $700, the budgeted price of input is $400 and the actual quantity of input are 50 units, then the price variance will be |
| A. | $15,000 |
| B. | $13,000 |
| C. | $11,000 |
| D. | $9,000 |
| Answer» A. $15,000 | |
| 581. |
Return on capital employed shows the ________ of a firm. |
| A. | Profitability |
| B. | Overall efficiency |
| C. | Both |
| D. | Subjective matter |
| Answer» C. Both | |
| 582. |
A Company’s Quick Ratio is 1.5 : 1; Current Liabilities are ₹2,00,000 and Inventory is ₹1,80,000. Current Ratio will be : |
| A. | 0.9 : 1 |
| B. | 1.9 : 1 |
| C. | 1.4 : 1 |
| D. | 2.4 : 1 |
| Answer» D. 2.4 : 1 | |
| 583. |
Total revenue from operations ₹27,00,000; Credit revenue from operations ₹18,00,000; Opening Debtors ₹3,20,000; Closing Debtors ₹4,00,000; Provision for Doubtful Debts ₹60,000. Trade Receivables Turnover Ratio will be : |
| A. | 7.5 times |
| B. | 9 times |
| C. | 6 times |
| D. | 5 times |
| Answer» D. 5 times | |
| 584. |
In a product mix decision, which is the most important factor to consider to try to maximise profit? |
| A. | Product unit selling price |
| B. | Contribution per unit of a scarce resource used to make the product |
| C. | Contribution per unit of the product |
| D. | Variable cost per unit of the product |
| Answer» B. Contribution per unit of a scarce resource used to make the product | |
| 585. |
If the contribution margin per unit is $700 per unit and the break-even per unit is $40, then the fixed cost would be |
| A. | $35,000 |
| B. | $28,000 |
| C. | $17,500 |
| D. | $82,000 |
| Answer» B. $28,000 | |
| 586. |
The budget which commonly takes the form of budgeted Profit and Loss Account and Balance Sheet is |
| A. | Cash Budget |
| B. | Fixed Budget |
| C. | Master Budget |
| D. | Flexible Budget |
| Answer» C. Master Budget | |
| 587. |
Which of the following is not likely to be a reason of unfavourable direct labour efficiency variance? |
| A. | Increase in direct materials prices |
| B. | Frequent break downs during production process |
| C. | Lack of proper supervision |
| D. | Use of old, outdated or faulty equipment |
| Answer» A. Increase in direct materials prices | |
| 588. |
What is main component of operating expenses? |
| A. | Selling expenses |
| B. | Distribution expenses |
| C. | Production expenses |
| D. | None |
| Answer» D. None | |
| 589. |
Comprehensive Machine Hour Rate includes : |
| A. | Machine Operators Wages |
| B. | Managing Directors Salary |
| C. | Income Tax |
| D. | Office rent |
| Answer» A. Machine Operators Wages | |
| 590. |
The purpose of financial accounting is to provide information for ________. |
| A. | fixing prices |
| B. | controlling cost |
| C. | locating factors leading to wastages and losses |
| D. | assessing the profitability and financial position of the firm |
| Answer» D. assessing the profitability and financial position of the firm | |
| 591. |
XYZ factory working for 50 hours per week employs hundred workers on a job work. The standard output is 200 units per gang hour and standard rate is Rs 1 per hour. During a week in June, five employees were paid @ Rs 1.20 per hour and ten employees were paid @ 80 paise per hour. Rest of the employees were paid @ standard hour rate. The actual number of units produced was 10,200. Determine labour cost variance |
| A. | Rs 100 favourable |
| B. | Rs 150 unfavourable |
| C. | Rs 150 favourable |
| D. | Rs 100 unfavourable |
| Answer» C. Rs 150 favourable | |
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.