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
| 401. |
Given standard time per unit is 80 hours, standard time per hour @ Rs 1 per hour, actual time per unit is 90 hours and actual rate per hour @ Rs 1.10 per hour. Determine labour cost variance, labour rate variance and labour efficiency variance. |
| A. | Rs 11, Rs 22 and Rs 10 all unfavorable |
| B. | Rs 19, Rs 9 and Rs 10 all favorable |
| C. | Rs 19, Rs 9 and Rs 10 all unfavorable |
| D. | Rs 11, Rs 22 and Rs 10 all favorable |
| Answer» C. Rs 19, Rs 9 and Rs 10 all unfavorable | |
| 402. |
The formula used for calculation of labour rate variance is |
| A. | Total standard labour cost of actual output - Total actual cost of actual output |
| B. | (Standard rate per hour - Actual rate per hour) * Actual Hours |
| C. | (Standard time - Actual time) * Standard rate per hour |
| D. | Abnormal idle hours * Standard hourly rate |
| Answer» B. (Standard rate per hour - Actual rate per hour) * Actual Hours | |
| 403. |
The data related to Production of T are for material X standard data and actual data are 40 kgs @ Rs 10 and 55 kgs @ Rs 9, respectively. The standard data and actual data for material Y are 50 kgs @ Rs 5 and 35 kgs @ Rs 7. Determine material usage variance. |
| A. | Rs 75 favorable |
| B. | Rs 75 unfavorable |
| C. | Rs 90 unfavorable |
| D. | Rs 90 favorable |
| Answer» B. Rs 75 unfavorable | |
| 404. |
Material yield variance arises when |
| A. | Actual output > Standard output |
| B. | Actual output < Standard output |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |
| 405. |
While calculating material mix variance, if revised standard quantity is greater than actual quantity, the variance is |
| A. | Unfavorable |
| B. | Favorable |
| C. | Neither favorable nor unfavorable |
| D. | None of the above |
| Answer» B. Favorable | |
| 406. |
To produce Product A 2 kg of material X at Rs 10 per kg is required . During February 800 units of Product, A were produced. Actual price paid for material X is Rs 9 per kg and total cost Rs 15,300. Determine material cost variance. |
| A. | Rs 700 favorable |
| B. | Rs 700 unfavorable |
| C. | Inadequate data |
| D. | None of the above |
| Answer» A. Rs 700 favorable | |
| 407. |
In a manufacturing firm, the standard quantity of material was set at 10 kg and standard price was fixed at Rs. 2 per kg. The actual quantity consumed was 12 kg and the actual price paid was Rs 1.90 per kg. Determine material usage variance. |
| A. | Rs 4 favorable |
| B. | Rs 4 unfavorable |
| C. | Rs 2.80 unfavorable |
| D. | Rs 1.20 favorable |
| Answer» B. Rs 4 unfavorable | |
| 408. |
Marginal Cost is the aggregate of all |
| A. | Fixed overheads |
| B. | Variable Costs |
| C. | Contribution Costs |
| D. | Work Cost |
| Answer» B. Variable Costs | |
| 409. |
The other name of Marginal Costing is… |
| A. | Direct Costing |
| B. | Variable Costing |
| C. | Incremental Costing |
| D. | All of the above |
| Answer» D. All of the above | |
| 410. |
While making make or buy decision under marginal costing, external purchase price of the articles must be compared with its |
| A. | Fixed Cost |
| B. | Total Cost |
| C. | Variable Cost |
| D. | Prime Cost. |
| Answer» C. Variable Cost | |
| 411. |
Shut down cost is: |
| A. | Avoidable Fixed Cost |
| B. | Unavoidable Fixed Cost |
| C. | Avoidable Variable Cost |
| D. | Unavoidable Variable Cost |
| Answer» B. Unavoidable Fixed Cost | |
| 412. |
Profit volume ratio can be improved by |
| A. | Reducing variable cost |
| B. | Reducing the selling price |
| C. | Increasing the fixed cost |
| D. | Increasing the key factor |
| Answer» A. Reducing variable cost | |
| 413. |
When Profit is Rs.5000 and P/V ratio is 20%, Margin of Safety is--------- |
| A. | 10000 |
| B. | 25000 |
| C. | 30000 |
| D. | 50000 |
| Answer» B. 25000 | |
| 414. |
When selling price of product A is Rs.25 and product B is Rs. 20 and respective variable cost is Rs. 23 and Rs.16. The fixed cost is Rs.750, which of the following sales mix of product A and product B should be adopted to maximize the profit. |
| A. | 250 units of A & 250 units of B |
| B. | 500 units of B only |
| C. | 400 units of A & 100 units of B |
| D. | 150 units of A & 350 units of B |
| Answer» D. 150 units of A & 350 units of B | |
| 415. |
The breakdown of cost of a component of a company is Material Rs.275, Labour Rs. 175 ,other Variable costs Rs.50 and Depreciation Rs.125. At what price the product should be available in the market so that company should buy from the market. |
| A. | Rs. 575 |
| B. | Rs. 600 |
| C. | Rs.500 |
| D. | None |
| Answer» D. None | |
| 416. |
Costs Which ------------between different alternatives are to be ignored. |
| A. | Are differential costs |
| B. | Are incremental costs |
| C. | Are constant costs |
| D. | Are relevant costs |
| Answer» C. Are constant costs | |
| 417. |
When selling price is Rs.200 Per unit, Variable Cost Rs.150 per unit and Fixed Cost is Rs.50000 at which capacity level the cost per unit would be minimum. |
| A. | 50% |
| B. | 60% |
| C. | 75% |
| D. | 85% |
| Answer» D. 85% | |
| 418. |
The profit volume ratio (P/V Ratio) |
| A. | 15% |
| B. | 20% |
| C. | 25% |
| D. | 30% |
| Answer» B. 20% | |
| 419. |
The Break-Even Point sales are |
| A. | Rs.2000000 |
| B. | Rs.2500000 |
| C. | Rs.3000000 |
| D. | Rs. 4000000 |
| Answer» C. Rs.3000000 | |
| 420. |
The Variable Cost in 2018 are |
| A. | Rs.2800000 |
| B. | Rs.3000000 |
| C. | Rs.3200000 |
| D. | Rs.3400000 |
| Answer» C. Rs.3200000 | |
| 421. |
The Fixed Cost are |
| A. | Rs.200000 |
| B. | Rs.300000 |
| C. | Rs.400000 |
| D. | Rs.500000 |
| Answer» B. Rs.300000 | |
| 422. |
If projected sales in the year 2020 to be Rs.6500000 find out the corresponding profit |
| A. | Rs. 700000 |
| B. | Rs. 800000 |
| C. | Rs. 900000 |
| D. | Rs.1000000 |
| Answer» D. Rs.1000000 | |
| 423. |
Balance sheet indicates the financial status of the business ____. |
| A. | For a day |
| B. | For a month |
| C. | For a year |
| D. | At given period |
| Answer» D. At given period | |
| 424. |
__do not give the returns during the same period during which they are paid for |
| A. | Intangible assets |
| B. | Fixed assets |
| C. | Both (A) and (B) |
| D. | None of the above |
| Answer» B. Fixed assets | |
| 425. |
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 | |
| 426. |
_________ Accounting becomes a source of information for Management Accounting. |
| A. | Financial |
| B. | Cost |
| C. | Both (A) and (B) |
| D. | None of the above |
| Answer» A. Financial | |
| 427. |
Profit and Loss Account debit side includes |
| A. | Salary |
| B. | Discount allowed |
| C. | Postage & telegram |
| D. | All of the above |
| Answer» D. All of the above | |
| 428. |
The following is (are) the indirect labour cost(s) |
| A. | Wages paid to storekeeper |
| B. | Salary of works manager |
| C. | Wages paid to gatekeeper |
| D. | All of the above |
| Answer» D. All of the above | |
| 429. |
The term management accounting was first coined in |
| A. | 1960 |
| B. | 1950 |
| C. | 1945 |
| D. | 1955 |
| Answer» B. 1950 | |
| 430. |
Management accounting is
|
| A. | Only (i) |
| B. | Only (ii) |
| C. | Both (i) and (ii) |
| D. | None of the above |
| Answer» A. Only (i) | |
| 431. |
The management accounting can be stated an extension of
|
| A. | Both (i) and (ii) |
| B. | Both (i) and (iii) |
| C. | Both (ii) and (iii) |
| D. | (i), (ii), (iii) |
| Answer» D. (i), (ii), (iii) | |
| 432. |
Which of the following is true about management accounting?
|
| A. | Only (i) |
| B. | Only (ii) |
| C. | Both (i) and (ii) |
| D. | None of the above |
| Answer» A. Only (i) | |
| 433. |
Which of the following are tools of management accounting?
|
| A. | (i), (ii) and (iii) |
| B. | (i), (iii) and (iv) |
| C. | (i),(ii) and (iii) |
| D. | (i), (ii), (iii), (iv) |
| Answer» C. (i),(ii) and (iii) | |
| 434. |
Management accounting is related with
|
| A. | (i) and (ii) |
| B. | (ii) and (iii) |
| C. | (i) and (iii) |
| D. | All are false |
| Answer» C. (i) and (iii) | |
| 435. |
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 | |
| 436. |
Which of the following statements are false about management accounting?
|
| A. | (i), (ii) and (iii) |
| B. | (i), (iii) and (iv) |
| C. | (i),(ii) and (iii) |
| D. | (i), (ii), (iii), (iv) |
| Answer» C. (i),(ii) and (iii) | |
| 437. |
Management accounting deals with |
| A. | Quantitative information |
| B. | Qualitative information |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |
| 438. |
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 | |
| 439. |
The prime function of accounting is to: |
| A. | record economic data |
| B. | provide the informational basis for action |
| C. | classify and record business transactions |
| D. | attain non-economic goals. |
| Answer» B. provide the informational basis for action | |
| 440. |
The basic function of management accounting is to: |
| A. | record all business transactions |
| B. | interpret the financial data |
| C. | assist the management in performing its functions effectively |
| D. | None of the above |
| Answer» C. assist the management in performing its functions effectively | |
| 441. |
Management accounting involves |
| A. | Preparation of financial statements |
| B. | Analysis and interpretation of data |
| C. | Recording of transactions |
| D. | None of the above |
| Answer» B. Analysis and interpretation of data | |
| 442. |
Management accounting provides invaluable services to management in performing: |
| A. | All management functions |
| B. | Coordination functions |
| C. | Controlling functions |
| D. | Directing function |
| Answer» A. All management functions | |
| 443. |
Cost accounting mainly helps the management in: |
| A. | Earning extra profits |
| B. | Providing information to the management for decision-making. |
| C. | Fixing process of the products. |
| D. | Selling products |
| Answer» B. Providing information to the management for decision-making. | |
| 444. |
Variable cost per unit: |
| A. | Remains fixed |
| B. | Fluctuates with the volume of production |
| C. | Varies in sympathy with ‘the volume of sales. |
| D. | None of the above |
| Answer» B. Fluctuates with the volume of production | |
| 445. |
If the activity level increases 10%, total variable costs will |
| A. | remain the same |
| B. | increase by more than 10% |
| C. | decrease by less than 10% |
| D. | increase by10% |
| Answer» A. remain the same | |
| 446. |
Opportunity cost helps in: |
| A. | Ascertainment of cost |
| B. | Controlling cost |
| C. | Making managerial decisions |
| D. | Fixing selling price |
| Answer» C. Making managerial decisions | |
| 447. |
Conversion cost is the sum total of: |
| A. | Direct material cost and direct wages cost |
| B. | Direct wages, direct expenses and factory overheads |
| C. | Indirect wages and factory overheads |
| D. | Indirect wages , direct wages & factory overheads |
| Answer» C. Indirect wages and factory overheads | |
| 448. |
Fixed cost per unit increases when: |
| A. | Production volume decreases |
| B. | Production volume increases |
| C. | Variable cost per unit decreases |
| D. | None of the above |
| Answer» D. None of the above | |
| 449. |
Cost behaviour analysis is a study of how a firm's costs |
| A. | relate to competitors' costs |
| B. | relate to general price level changes |
| C. | respond to changes in activity levels within the company |
| D. | respond to changes in the gross national product |
| Answer» C. respond to changes in activity levels within the company | |
| 450. |
Cash Flow Statement is also known as |
| A. | Statement of Changes in Financial Position on Cash basis |
| B. | Statement accounting for variation in cash |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |
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