1) Management accountancy is a structure for
a. Costing
b. Accounting
c. Decision making
d. Management
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2) Which of the following statements are true?
A) External analysis depends entirely on issued financial statements.
B) Interpretation and analysis both are different.
C) Financial analysis covers interpretation.
a. Both A and B
b. Both A and C
c. Both B and C
d. A, B, C
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3) Which of the following are techniques, tools or methods of analysis and interpretation of financial statements?
a. Ratio Analysis
b. Average Analysis
c. Trend Analysis
d. All of the above
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4) A risk free security has zero variance.
a. True
b. False
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5) Return on any financial asset consists of capital yield and current yield.
a. True
b. False
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6) Which of the following is expenses ratio?
A) Administrative expenses ratio
B) Selling and Distribution expenses ratio
C) Factory expenses ratio
D) Finance Expenses ratio
a. A, B and D
b. A, C and D
c. A, B and C
d. A, B, C, D
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7) Overall Profitability ratios are based on
a. Investments
b. Sales
c. Both a and b
d. None of the above
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8) Return on Proprietors funds is also known as:
a. Return on net worth
b. Return on Shareholders fund
c. Return on Shareholders Investment
d. All of the above
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9) Given Net profit for the year Rs 2,50,000 transferred to general reserves Rs 40,000 and old machinery bought for Rs 50,000 was sold for Rs 20,000. Calculate funds from operations.
a. Rs 2,80,000
b. Rs 2,20,000
c. Rs 2,90,000
d. Rs 3,00,000
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10) Which of the following are sources of funds?
A) Issue of bonus shares
B) Issue of shares against the purchase of fixed assets
C) Conversion of debentures into shares
D) Conversion of loans into shares
a. A and C
b. A and D
c. A, B, C and D
d. None of the above
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11) In indirect method, net cash flow from operating activities is calculated on the basis of
a. Net Profit after tax
b. Net profit before tax
c. Both a and b
d. None of the above
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12) Which of the following are added to net profit after tax and extraordinary items to reach to net profit before tax and extraordinary items?
A) Provision for tax made during the year
B) Proposed dividend made during the year
C) Interim dividend
D) Transfer to General reserves and other reserves
a. Both A and B
b. Both A and C
c. Both B and C
d. A, B, C and D
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13) Which of the following are cash flow from investing activities?
A) Interest received
B) Dividend received
C) Sale of fixed assets
D) Purchase of fixed assets
a. Both A and B
b. Both A and C
c. Both B and C
d. A, B, C and D
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14) When contribution is negative but less than fixed cost,
a. There is loss equal to fixed costs
b. There is loss more than fixed costs
c. There will be loss less than fixed costs
d. All of above are false
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15) When contribution is positive but equal to fixed cost,
a. There is loss equal to fixed costs
b. There is loss more than fixed costs
c. There will be loss less than fixed costs
d. There will be neither profit nor loss
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16) Opportunities to achieve further growth within current businesses are:
a. Intensive Opportunities
b. Integrative Opportunities
c. Diversification Opportunities
d. None of the above
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17) If desired profit is decided, then normal price should be
a. Marginal cost + Contribution
b. Marginal cost + Fixed cost – profit
c. Both a and b
d. None of the above
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18) In a purely competitive market, 10,000 mobiles can be manufactured and sold for a certain profit. Profit targeted is Rs 2,00,000. The variable cost per mobile is Rs 100 and the total fixed costs are Rs 40,000. Find out unit selling price.
a. Rs 124 per mobile
b. Rs 1.24 per mobile
c. Rs 1240 per mobile
d. None of the above
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19) If there is no change in fixed cost at different levels of output,
a. Marginal costs > Differential cost
b. Marginal costs < Differential cost
c. Marginal cost and Differential cost are same
d. None of the above
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20) Determine Margin of safety if Profit is Rs 15,000 and P/V ratio is 40%.
a. Rs 37,500
b. Rs 33,000
c. Rs 38,000
d. None of the above
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21) What is Margin of Safety if Sales is 20,000 units and B.E.P is 15,000 units.
a. 35,000 units
b. 5,000 units
c. Rs 5,000
d. Rs 35,000
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22) Calculate margin of safety if sales is Rs 3,00,000 and B.E.P is Rs 4,50,000.
a. Rs 1,00,000
b. Rs 1,50,000
c. Amount of sales < B.E.P, therefore no margin of safety
d. None of the above
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23) Determine sales in rupees for desired profit if fixed cost is Rs 10,000, Variable cost is Rs 30,000, Sales is Rs 50,000 and desired profit is Rs 5,000.
a. Rs 73,500
b. Rs 75,000
c. Rs 5,000
d. Rs 37,500
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24) What will be sales in rupees for desired profit if fixed cost is Rs 30,000, desired profit is Rs 15,000 and P/V ratio is 30%?
a. Rs 1,50,000
b. Rs 1,00,000
c. Rs 2,00,000
d. None of the above
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25) Which of the following statements are true about basic standards?
a. Basic standards are created for an unaltered use of for a long period of time
b. Basic standards are set in relation to certain base year
c. Basic standards are used in industries where routines and operations are well established
d. All of the above
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26) Basic standard is established for
a. Short period
b. Current period
c. Indefinite period
d. None of the above
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27) __________ is based on past averages adjusted to anticipated future changes.
a. Ideal Standard
b. Normal Standard
c. Basic Standard
d. Perfection Standard
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28) Plant utilization budget and Manufacturing overhead budgets are types of
a. Production budget
b. Sales budget
c. Cost budget
d. None of the above
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29) _______ provides an estimate of the capital amount that may be required for buying fixed assets needed for meeting production requirements.
a. Production budget
b. Cash budget
c. Capital expenditure budget
d. None of the above
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30) While preparing sales budget, which of the following factors are considered?
a. Non-operational factors
b. Environmental factors
c. Both a and b
d. None of the above
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31) While preparing cash budget from Cash Accounting method,
a. Payments and receipts related to budget period are considered
b. Payments and receipts before budget period are considered
c. Payments and receipts after budget period are considered
d. All of the above
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Answer
Explanation
Related Ques
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ANSWER: Payments and receipts related to budget period are considered
Explanation:
No explanation is available for this question!
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32) The receipts or payments having time lag are not included in cash budget.
a. True
b. False
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33) If indirect material at 80% capacity (800 units) is Rs 248, of which variable component is Rs 0.06 per unit, then the amount of indirect material at 100% capacity would be
a. Rs 260
b. Rs 600
c. Rs 310
d. None of the above
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34) Production at 60% capacity 600 units, Materials cost Rs 100 per unit, Labour at Rs 40 per unit and expenses at Rs 10 per unit. Factory expenses are Rs 40,000 (Fixed 40%) and Administration expenses Rs 30,000 (Fixed 60%). What is cost per unit at 60% and 80% capacity?
a. Rs 266.67 and Rs 252.50
b. Rs 252.50 and Rs 244
c. Rs 266.67 and Rs 244
d. None of the above
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35) Material price, mix, usage and revised quantity variances are measured on _______ basis, whereas material yield variance is measured on _______ basis.
a. Output, Input
b. Output, Output
c. Input, Output
d. None of the above
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36) 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
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37) Labour cost variance is measured as
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
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Answer
Explanation
Related Ques
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ANSWER: Total standard labour cost of actual output - Total actual cost of actual output
Explanation:
No explanation is available for this question!
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38) A management auditor can recommend the most suitable system of flow of information _______.
a. Internally
b. Externally
c. Internally and externally
d. None of the above
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39) Contribution margin center is also known as
a. Expense center
b. Profit center
c. Investment center
d. All of the above
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40) On the basis of users the managerial reports are categorized as
a. Operating reports and financial reports
b. Trend reports and analytical reports
c. Individual activity reports and joint activity reports
d. Internal reports and external reports
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