McqMate
Chapters
| 501. |
Long period budgets are prepared under |
| A. | Receipts and payment method |
| B. | Balance sheet method |
| C. | Adjusted profit and loss method |
| D. | Receipts and payments, balance sheet method |
| Answer» D. Receipts and payments, balance sheet method | |
| 502. |
A budget specifies the operations to be performed during the next year is called __________ |
| A. | Operation budget |
| B. | Responsibility budget |
| C. | Activity budget |
| D. | Flexible budget |
| Answer» C. Activity budget | |
| 503. |
The branch of accounting which primarily deals with processing and presenting accounting data fro internal use is ________________ |
| A. | Cost accounting |
| B. | Financial accounting |
| C. | Management accounting |
| D. | Inflation accounting |
| Answer» C. Management accounting | |
| 504. |
The term management accounting was used in |
| A. | 1950 |
| B. | 1939 |
| C. | 1910 |
| D. | 1947 |
| Answer» A. 1950 | |
| 505. |
Management accounting is also known as _______________ |
| A. | Price level accounting |
| B. | Historical accounting |
| C. | Decision accounting |
| D. | None of these |
| Answer» C. Decision accounting | |
| 506. |
Which of the following is not a technique of management accounting |
| A. | Budgetary control |
| B. | Standard costing |
| C. | Marginal costing |
| D. | Process costing |
| Answer» D. Process costing | |
| 507. |
Management accounting is helpful in increasing _______________ |
| A. | Performance |
| B. | Profitability |
| C. | Efficiency |
| D. | Production |
| Answer» C. Efficiency | |
| 508. |
Management accounting has a ___________ scope than cost accounting |
| A. | Wider |
| B. | Narrower |
| C. | Smaller |
| D. | None of these |
| Answer» A. Wider | |
| 509. |
Management accounting helps in ___________ data |
| A. | Analysis |
| B. | Interpretation |
| C. | Analysis and interpretation |
| D. | None of these |
| Answer» C. Analysis and interpretation | |
| 510. |
Management accounting provides alternative choices for managerial ___________ |
| A. | Decisions |
| B. | Policies |
| C. | Uses |
| D. | None of these |
| Answer» A. Decisions | |
| 511. |
Publication of management accounting statements are ______________ |
| A. | Compulsory |
| B. | Not optional |
| C. | Optional |
| D. | None of these |
| Answer» B. Not optional | |
| 512. |
Management accounting deals only with that information which is useful to the ___________ |
| A. | Accountant |
| B. | Owners |
| C. | Management |
| D. | All of the above |
| Answer» C. Management | |
| 513. |
The prime function of management accounting is to ------------------------------- |
| A. | Interpret financial data |
| B. | Assist the management in performing its functions |
| C. | Record business transaction |
| D. | None of these |
| Answer» B. Assist the management in performing its functions | |
| 514. |
Management accounting relates to ________ |
| A. | Recording of accounting data |
| B. | Recording of costing data |
| C. | Presentation of accounting data |
| D. | None of these |
| Answer» C. Presentation of accounting data | |
| 515. |
Management accounting analyses accounting data with the help of ------------------------- |
| A. | Auditors |
| B. | Statutory forms |
| C. | Tools and techniques |
| D. | None of these |
| Answer» C. Tools and techniques | |
| 516. |
Management accounting and cost accounting functions are -------------------------- |
| A. | Neutral in effect |
| B. | Complementary in nature |
| C. | Contradictory in nature |
| D. | None of these |
| Answer» B. Complementary in nature | |
| 517. |
Management accounting provides valuable services to management in performing ____ |
| A. | Coordinating functions |
| B. | Controlling functions |
| C. | Planning functions |
| D. | All managerial functions |
| Answer» D. All managerial functions | |
| 518. |
Management accounting and financial accounting differ in that management accounting information is prepared |
| A. | following prescribed rules |
| B. | using whatever methods, the company finds beneficial. |
| C. | for shareholders. |
| D. | to summarize the whole company with little detail. |
| Answer» B. using whatever methods, the company finds beneficial. | |
| 519. |
Management accounting is the branch of accounting concerned with reporting to |
| A. | internal managers. |
| B. | shareholders. |
| C. | the government |
| D. | bankers. |
| Answer» B. shareholders. | |
| 520. |
The use of management accounting is |
| A. | Optional |
| B. | Compulsory |
| C. | Legally obligatory |
| D. | Compulsory to some and optional to others |
| Answer» A. Optional | |
| 521. |
The management accounting can be stated an extension of A) Cost Accounting B) Financial Accounting C) Responsibility Accounting |
| A. | Both A and B |
| B. | Both A and C c) |
| C. | Both B and C |
| D. | A, |
| Answer» D. A, | |
| 522. |
Which of the following is true about management accounting?
|
| A. | Only A |
| B. | Only B |
| C. | Both A and B |
| D. | None of the above |
| Answer» A. Only A | |
| 523. |
Which of the following are tools of management accounting?
|
| A. | A, B and D |
| B. | A, C and D |
| C. | A, B and C |
| D. | A, B , C, D |
| Answer» C. A, B and C | |
| 524. |
Management accounting is related with
|
| A. | A and B |
| B. | B and C |
| C. | A and C |
| D. | All are false |
| Answer» C. A and C | |
| 525. |
Management accountancy is a structure for |
| A. | Costing |
| B. | Accounting |
| C. | Decision making |
| D. | Management |
| Answer» C. Decision making | |
| 526. |
The prime function of financial accounting is to |
| A. | Classify and Record the economic data |
| B. | To achieve non-economic goals |
| C. | Provide information for control |
| D. | None of the above. |
| Answer» A. Classify and Record the economic data | |
| 527. |
If net profit is ₹ 50,000 after writing off goodwill ₹ 10,000 then the Cash Flow from operating activities will be: |
| A. | ₹ 60,000 |
| B. | ₹ 40,000 |
| C. | ₹ 50,000 |
| D. | ₹ 30,000 |
| Answer» A. ₹ 60,000 | |
| 528. |
Net Profit during the year ₹ 1,00,000
|
| A. | ₹ 30,000 |
| B. | ₹ 94,000 |
| C. | ₹ 1,06,000 |
| D. | ₹ 1,66,000 |
| Answer» B. ₹ 94,000 | |
| 529. |
Net Profit during the year ₹ 30,000
|
| A. | ₹ 30,000 |
| B. | ₹ 34,000 |
| C. | ₹ 22,000 |
| D. | ₹ 40,000 |
| Answer» C. ₹ 22,000 | |
| 530. |
Financing Activities bring changes in |
| A. | Size and composition of owner equities |
| B. | Borrowing of the enterprise |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |
| 531. |
For year 2018 Equity Share Capital is Rs 3,00,000 Preference Share Capital is Rs.1,00,000,10% debentures is Rs.2,00,000 and Share premium is Rs.30,000. For year 2019 Equity Share Capital is Rs 4,00,000 Preference Share Capital is Rs.60,000 10% debentures is Rs.1,00,000 and Share premium is 40,000. Also given, Dividend paid on shares Rs 15,000 and Interest paid on debentures Rs. 20,000. Determine net cash flow from financing activities. |
| A. | Inflow of Rs 65,000 |
| B. | Outflow of Rs 65,000 |
| C. | Inflow of Rs 56,000 |
| D. | Outflow of Rs 56000 |
| Answer» B. Outflow of Rs 65,000 | |
| 532. |
Which of the following falls under Profitability Ratios?
|
| A. | A and B |
| B. | A and C |
| C. | B and C |
| D. | None of the above |
| Answer» A. A and B | |
| 533. |
While calculating Gross Profit Ratio, |
| A. | Closing stock is deducted from cost of goods sold |
| B. | Closing stock is added to cost of goods sold |
| C. | Closing stock is ignored |
| D. | None of the above |
| Answer» A. Closing stock is deducted from cost of goods sold | |
| 534. |
Gross Profit Ratio is calculated by |
| A. | (Gross Profit/Gross sales)*100 |
| B. | (Gross Profit/Net sales)*100 |
| C. | (Net Profit/Gross sales)*100 |
| D. | None of the above |
| Answer» B. (Gross Profit/Net sales)*100 | |
| 535. |
Given Sales is Rs.2,40,000 and Gross Profit is 60,000, the Gross Profit Ratio is |
| A. | 24% |
| B. | 25% |
| C. | 40% |
| D. | 44%% |
| Answer» B. 25% | |
| 536. |
If selling price is fixed 25% above the cost, the Gross Profit Ratio is |
| A. | 13% |
| B. | 28% |
| C. | 26% |
| D. | 20% |
| Answer» D. 20% | |
| 537. |
Determine Stock Turnover Ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales is Rs 3,20,000 and Gross profit ratio is 25% on sales. |
| A. | 12 times |
| B. | 11 times |
| C. | 8 times |
| D. | 10 times |
| Answer» C. 8 times | |
| 538. |
Which of the following is not included in quick assets? |
| A. | Debtors |
| B. | Stock |
| C. | Cash at bank |
| D. | Cash in hand |
| Answer» B. Stock | |
| 539. |
Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000. Determine value of stock. |
| A. | Rs 54,000 |
| B. | Rs 60,000 |
| C. | Rs 1, 62,000 |
| D. | None of the above |
| Answer» A. Rs 54,000 | |
| 540. |
A Current Ratio of Less than One means |
| A. | Current Liabilities < Current Assets, |
| B. | Fixed Assets > Current Assets, |
| C. | Current Assets < Current Liabilities, |
| D. | Share Capital > Current Assets. |
| Answer» C. Current Assets < Current Liabilities, | |
| 541. |
A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio? |
| A. | 20% |
| B. | 50% |
| C. | 10% |
| D. | 40% |
| Answer» C. 10% | |
| 542. |
A Company has a material standard of 1 kg. per unit of output. Each kg. has a standard price of Rs.25 per kg. Company paid Rs.1,27,500 for 5000 kg., which they used to produce 4,700 units. What is the direct material price variance? |
| A. | Rs.2,500 unfavourable |
| B. | Rs.2,600 favourable |
| C. | Rs.12,600 unfavourable |
| D. | Rs.10,000 unfavourable |
| Answer» A. Rs.2,500 unfavourable | |
| 543. |
Company has a material standard of 1.1 kg. per unit of output. Each kg. has a standard price of Rs.25 per. Company paid Rs.1,18,800? for 5,100 kg. which they used to produce 4,900 units. What is the direct materials quantity variance? |
| A. | Rs.7,250 favourable |
| B. | Rs.5,000 favourable |
| C. | Rs.7,250 unfavourable |
| D. | Rs.5,000 unfavourable |
| Answer» A. Rs.7,250 favourable | |
| 544. |
(A Company has a standard of 1 direct labor hour per unit at Rs.12 per hour. 3,850 labor hours costing Rs.46,970 were used to produce 4,000 units.) Company’s labor price variance is |
| A. | Rs.770 favourable |
| B. | Rs.770 unfavourable |
| C. | Rs.1,030 favourable |
| D. | Rs.1,030 unfavourable |
| Answer» B. Rs.770 unfavourable | |
| 545. |
(A Company has a standard of 1 direct labor hour per unit at Rs.12 per hour. 3,850 labor hours costing Rs.46,970 were used to produce 4,000 units.) Company’s labor quantity variance is |
| A. | Rs.1,830 unfavourable |
| B. | Rs.1,830 favourable |
| C. | Rs.1,800 favourable |
| D. | Rs.1,800 unfavourable |
| Answer» C. Rs.1,800 favourable | |
| 546. |
(A Company has a standard of 1 direct labor hour per unit at Rs.12 per hour. 3,850 labor hours costing Rs.46,970 were used to produce 4,000 units.) Company’s total labor variance is |
| A. | Rs.770 unfavourable |
| B. | Rs.800 unfavourable |
| C. | Rs.1,030 favourable |
| D. | Rs.1,930 favourable |
| Answer» D. Rs.1,930 favourable | |
| 547. |
Material cost variances is measured as |
| A. | Total standard cost - Total actual cost |
| B. | Standard cost of revised standard mix - Standard cost of actual mix |
| C. | (Standard unit price - Actual unit price) * Actual quantity used |
| D. | (Standard quantity - Actual quantity) * Unit standard price |
| Answer» A. Total standard cost - Total actual cost | |
| 548. |
When the actual cost is less than the standard cost, the difference is termed as |
| A. | Favourable variance |
| B. | Adverse variance |
| C. | Both a and b |
| D. | None of the above |
| Answer» A. Favourable variance | |
| 549. |
The formula to estimate Labour Mix 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. | (Revised standard time - Actual time) * Standard rate |
| D. | Abnormal idle hours * Standard hourly rate |
| Answer» B. (Standard rate per hour - Actual rate per hour) * Actual Hours | |
| 550. |
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 | |
| 551. |
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 | |
| 552. |
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 | |
| 553. |
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 | |
| 554. |
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 | |
| 555. |
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 | |
| 556. |
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 | |
| 557. |
Marginal Cost is the aggregate of all |
| A. | Fixed overheads |
| B. | Variable Costs |
| C. | Contribution Costs |
| D. | Work Cost |
| Answer» B. Variable Costs | |
| 558. |
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 | |
| 559. |
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 | |
| 560. |
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 | |
| 561. |
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 | |
| 562. |
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 | |
| 563. |
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 | |
| 564. |
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 | |
| 565. |
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 | |
| 566. |
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% | |
| 567. |
The profit volume ratio (P/V Ratio) |
| A. | 15% |
| B. | 20% |
| C. | 25% |
| D. | 30% |
| Answer» B. 20% | |
| 568. |
The Break-Even Point sales are |
| A. | Rs.2000000 |
| B. | Rs.2500000 |
| C. | Rs.3000000 |
| D. | Rs. 4000000 |
| Answer» C. Rs.3000000 | |
| 569. |
The Variable Cost in 2018 are |
| A. | Rs.2800000 |
| B. | Rs.3000000 |
| C. | Rs.3200000 |
| D. | Rs.3400000 |
| Answer» C. Rs.3200000 | |
| 570. |
The Fixed Cost are |
| A. | Rs.200000 |
| B. | Rs.300000 |
| C. | Rs.400000 |
| D. | Rs.500000 |
| Answer» B. Rs.300000 | |
| 571. |
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 | |
| 572. |
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 | |
| 573. |
__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 | |
| 574. |
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 | |
| 575. |
_________ 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 | |
| 576. |
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 | |
| 577. |
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 | |
| 578. |
The term management accounting was first coined in |
| A. | 1960 |
| B. | 1950 |
| C. | 1945 |
| D. | 1955 |
| Answer» B. 1950 | |
| 579. |
Management accounting is
|
| A. | Only (i) |
| B. | Only (ii) |
| C. | Both (i) and (ii) |
| D. | None of the above |
| Answer» A. Only (i) | |
| 580. |
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) | |
| 581. |
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) | |
| 582. |
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) | |
| 583. |
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) | |
| 584. |
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 | |
| 585. |
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) | |
| 586. |
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 | |
| 587. |
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 | |
| 588. |
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 | |
| 589. |
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 | |
| 590. |
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 | |
| 591. |
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 | |
| 592. |
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. | |
| 593. |
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 | |
| 594. |
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 | |
| 595. |
Opportunity cost helps in: |
| A. | Ascertainment of cost |
| B. | Controlling cost |
| C. | Making managerial decisions |
| D. | Fixing selling price |
| Answer» C. Making managerial decisions | |
| 596. |
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 | |
| 597. |
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 | |
| 598. |
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 | |
| 599. |
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 | |
| 600. |
The objectives of Cash Flow Statement are (i) Analysis of cash position
|
| A. | Both A and B |
| B. | Both A and C |
| C. | Both B and D |
| D. | A, B, C, D |
| Answer» D. A, B, C, D | |
Done Reading?