Management Accounting MCQs

R

Ranjeet • 25.13K Points
Instructor II

Q 1. XYZ factory working for 50 hours per week employs hundred workers on a job work. The standard output is 200 units per gang hour and standard rate is Rs 1 per hour. During a week in June, five employees were paid @ Rs 1.20 per hour and ten employees were paid @ 80 paise per hour. Rest of the employees were paid @ standard hour rate. The actual number of units produced was 10,200. Determine labour cost variance

(A) Rs 100 favourable
(B) Rs 150 unfavourable
(C) Rs 150 favourable
(D) Rs 100 unfavourable
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P

Praveen Singh • 27.20K Points
Instructor II

Q 2. The purpose of financial accounting is to provide information for ________.

(A) fixing prices
(B) controlling cost
(C) locating factors leading to wastages and losses
(D) assessing the profitability and financial position of the firm
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R

Rakesh Kumar • 19.20K Points
Tutor I

Q 3. Comprehensive Machine Hour Rate includes :

(A) Machine Operators Wages
(B) Managing Directors Salary
(C) Income Tax
(D) Office rent
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G

Gopal Sharma • 28.64K Points
Instructor II

Q 4. What is main component of operating expenses?

(A) Selling expenses
(B) Distribution expenses
(C) Production expenses
(D) None
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R

Ram Sharma • 188.81K Points
Coach

Q 5. Which of the following is not likely to be a reason of unfavourable direct labour efficiency variance?

(A) Increase in direct materials prices
(B) Frequent break downs during production process
(C) Lack of proper supervision
(D) Use of old, outdated or faulty equipment
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R

Ram Sharma • 188.81K Points
Coach

Q 6. The budget which commonly takes the form of budgeted Profit and Loss Account and Balance Sheet is

(A) Cash Budget
(B) Fixed Budget
(C) Master Budget
(D) Flexible Budget
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P

Priyanka Tomar • 25.98K Points
Instructor II

Q 7. If the contribution margin per unit is $700 per unit and the break-even per unit is $40, then the fixed cost would be

(A) $35,000
(B) $28,000
(C) $17,500
(D) $82,000
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P

Priyanka Tomar • 25.98K Points
Instructor II

Q 8. In a product mix decision, which is the most important factor to consider to try to maximise profit?

(A) Product unit selling price
(B) Contribution per unit of a scarce resource used to make the product
(C) Contribution per unit of the product
(D) Variable cost per unit of the product
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P

Priyanka Tomar • 25.98K Points
Instructor II

Q 9. Total revenue from operations ₹27,00,000; Credit revenue from operations ₹18,00,000; Opening Debtors ₹3,20,000; Closing Debtors ₹4,00,000; Provision for Doubtful Debts ₹60,000. Trade Receivables Turnover Ratio will be :

(A) 7.5 times
(B) 9 times
(C) 6 times
(D) 5 times
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G

Gopal Sharma • 28.64K Points
Instructor II

Q 10. A Company’s Quick Ratio is 1.5 : 1; Current Liabilities are ₹2,00,000 and Inventory is ₹1,80,000. Current Ratio will be :

(A) 0.9 : 1
(B) 1.9 : 1
(C) 1.4 : 1
(D) 2.4 : 1
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