Q. Cash flow example from an operating activity is
✅ Correct Answer: (C)
Interest Paid on Term-deposits by a Bank
Management Accounting MCQs and Notes
Q. If break-even number of units are 120 units and the fixed cost is $62000, then the contribution margin per unit will be
✅ Correct Answer: (C)
$516.67
Q. Which of the following is incorrect about the statement of cash flows?
✅ Correct Answer: (B)
It reconciles ending cash balance with the balance as per bank statement.
Q. In master budgeting, the cost drivers for manufacturing overhead costs are
✅ Correct Answer: (D)
Both 1 and 2
Q. 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.
✅ Correct Answer: (C)
Rs 152
Q. 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?
✅ Correct Answer: (C)
60%
Q. Which of the following are the assumptions of marginal costing?
1) All the elements of cost can be divided into fixed and variable components.
2) Total fixed cost remains constant at all levels of output.
3) Total variable costs vary in proportion to the volume of output.
4) Per unit selling price remain unchanged at all levels of operating activity.
1) All the elements of cost can be divided into fixed and variable components.
2) Total fixed cost remains constant at all levels of output.
3) Total variable costs vary in proportion to the volume of output.
4) Per unit selling price remain unchanged at all levels of operating activity.
✅ Correct Answer: (D)
A, B, C and D
Q. An officer responsible for financial operations of organization is considered as
✅ Correct Answer: (A)
Chief financial officer
Q. To establish an effective system of standard costing it is essential that
1) The technical process of operation should be prone to planning
2) The cost of the products should be given
3) The process or operating costs of products should be provided
4) The standard costing should be consistent with the technical procedure of the production of the specific entity
1) The technical process of operation should be prone to planning
2) The cost of the products should be given
3) The process or operating costs of products should be provided
4) The standard costing should be consistent with the technical procedure of the production of the specific entity
✅ Correct Answer: (B)
A, C and D
Q. An indirect setup labor costs, costs of setup and equipment maintenance and costs of indirect material can be categorized as
✅ Correct Answer: (C)
Variable setup costs