Q. Return on capital employed shows the ________ of a firm.
✅ Correct Answer: (C)
Both
Management Accounting MCQs and Notes
Q. 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
✅ Correct Answer: (A)
$15,000
Q. Expenditure over and above prime cost is known as ________.
✅ Correct Answer: (A)
overhead
Q. Factory Overheads are also called :
✅ Correct Answer: (B)
Works Overhead
Q. A Cost Unit is _____________
✅ Correct Answer: (C)
A unit of production in relation to which costs are ascertained
Q. Which of the following costs is not relevant when considering the closure of a department within a factory?
✅ Correct Answer: (C)
Fixed overheads
Q. When margin of safety is 20% and P/V ratio is 60%, the profit will be :
✅ Correct Answer: (C)
12%
Q. 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.
✅ Correct Answer: (C)
Rs 20 per unit, Rs 1,00,000
Q. When profit-volume ratio is 40 % and sales value Rs.10,000, the variable costs will be :
✅ Correct Answer: (B)
Rs. 6,000
Q. Margin of safety can be increased by
✅ Correct Answer: (C)
Reduction in fixed or the variable costs or both