Cost and Management Accounting (CMA) MCQs

R

Ram Sharma • 193.84K Points
Coach

Q 61. Sales Rs. 25,000; Variable cost Rs. 8,000; Fixed cost Rs. 5,000; Break-even sales in value .

(A) Rs. 7,936.

(B) Rs. 7,353.

(C) Rs. 8,333.

(D) Rs. 9,090.

A

Admin • 35.87K Points
Coach

Q 62. Selling price per unit Rs. 10; Variable cost Rs. 8 per unit; Fixed cost Rs. 20,000; Break-even production in units .

(A) 10,000.

(B) 16,300.

(C) 2,000.

(D) 2,500.

S

Shiva Ram • 29.52K Points
Instructor II

Q 63. If fixed costs decrease while the variable cost per unit remains constant, the new contribution margin in relation to the old contribution margin will be .

(A) lower .

(B) unchanged .

(C) higher.

(D) indeterminate.

R

Ram Sharma • 193.84K Points
Coach

Q 64. 1f` fixed costs decrease while variable cost per unit remains constant, the new B.E.P in relation to the old B.E.P will be .

(A) lower .

(B) higher.

(C) unchanged .

(D) indeterminate.

R

Ram Sharma • 193.84K Points
Coach

Q 65. The conventional Break-even analysis does not assume that .

(A) selling price per unit will remain fixed .

(B) total fixed costs remain the same.

(C) variable cost per unit will vary .

(D) productivity per worker will remain unchanged.

R

Ram Sharma • 193.84K Points
Coach

Q 66. CVP analysis is most important for the determination of .

(A) sales revenue necessary to equal fixed costs .

(B) relationship between revenues and costs at various levels of operations .

(C) variable revenues necessary to equal fixed costs .

(D) volume of operations necessary to Break—even.

R

Ram Sharma • 193.84K Points
Coach

Q 67. Angie of incidence is .

(A) the angle between the sales line and the total cost line.

(B) the angle between the sales line and the y-axis.

(C) the angle between the sales line and the x-axis.

(D) the angle between the sales line and the total profit line.

S

Shiva Ram • 29.52K Points
Instructor II

Q 68. A large Margin of Safety indicates .

(A) over production.

(B) over capitalization .

(C) the soundness of the business.

(D) under capitalization.

G

Gopal Sharma • 37.30K Points
Coach

Q 69. An increase in selling price .

(A) increases the break-even point.

(B) decreases the break-even point.

(C) does not affect the break-even point.

(D) optimize the break even point.

P

Priyanka Tomar • 34.20K Points
Instructor I

Q 70. An increase in variable costs .

(A) increases p/v ratio .

(B) increases the profit.

(C) reduces contribution .

(D) increase margin of safety.