MCQOPTIONS
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MCQOPTIONS
This section includes 1375 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 1301. |
If static budget amount is $6000 and flexible budget amount is $15000, then sales volume variance will be |
| A. | $9,000 |
| B. | $8,000 |
| C. | $12,000 |
| D. | $21,000 |
| Answer» B. $8,000 | |
| 1302. |
In an activity based costing implementation, product's diverse demand is based on |
| A. | batch size |
| B. | complexity |
| C. | process steps |
| D. | all of above |
| Answer» E. | |
| 1303. |
Use of variables to signal whether strategies are effective or ineffective is classified as |
| A. | evaluating strategy |
| B. | performing strategy |
| C. | warned strategy |
| D. | weighted strategy |
| Answer» B. performing strategy | |
| 1304. |
Variance used by managers to check whether company has performed well and properly implemented strategies is considered as |
| A. | strategic implementation |
| B. | proper implementation |
| C. | performance evaluation |
| D. | well evaluated |
| Answer» D. well evaluated | |
| 1305. |
In activity based costing method implementation, an output unit level costs are classified as |
| A. | indirect costs |
| B. | direct cost |
| C. | labour cost |
| D. | raw material cost |
| Answer» B. direct cost | |
| 1306. |
A manager who is responsible for only cost of company belongs to |
| A. | cost center |
| B. | revenue center |
| C. | profit center |
| D. | investment center |
| Answer» B. revenue center | |
| 1307. |
Part of master budget, which covers capital expenditures, budgeted statement of cash flows and balance sheet is classified as |
| A. | financial budget |
| B. | capital budget |
| C. | cash flows budget |
| D. | balanced budget |
| Answer» B. capital budget | |
| 1308. |
Chances of cost to be considered as variable are more, if the |
| A. | time horizons are long |
| B. | time horizons are short |
| C. | time horizons are irrelevant |
| D. | time horizons are relevant |
| Answer» B. time horizons are short | |
| 1309. |
"What is the company's breakeven point:Selling price - Rs 6 per unitVariable production cost - Rs 1.20 per unitVariable selling cost - Rs 0.40 per unitFixed production cost - Rs 4 per unitFixed selling cost - Rs 0.80 per unitBudgeted production and sales for the year are 10,000 units." |
| A. | 8,000 units |
| B. | 8,333 units |
| C. | 10,000 units |
| D. | 10,909 units |
| Answer» E. | |
| 1310. |
Which of the following organisations should not be advised to use service costing? |
| A. | Distribution service |
| B. | Hospital |
| C. | Maintenance division of a manufacturing company |
| D. | A light engineering company |
| Answer» E. | |
| 1311. |
"For the financial year ended as on March 31, 20XX the figures extracted from the balance sheet of Xerox Limited as under:Opening Stock Rs 29,000; Purchases Rs 2,42,000; Sales Rs 3,20,000; Gross Profit 25% of Sales.Stock Turnover Ratio will be" :- |
| A. | 8 times |
| B. | 6 times |
| C. | 9 times |
| D. | 10 times |
| Answer» B. 6 times | |
| 1312. |
A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as: |
| A. | Master budget |
| B. | Zero base budget |
| C. | (Functional budget |
| D. | Flexible budget |
| Answer» E. | |
| 1313. |
"After inviting tenders for supply of raw materials, two quotations are received as follows—Supplier P Rs 2.20 per unit, Supplier Q Rs 2.10 per unit plus Rs 2,000 fixed charges irrespective of the units ordered. The order quantity for which the purchase price per unit will be the same—"# |
| A. | 22,000 units |
| B. | 20,000 units |
| C. | 21,000 units |
| D. | None of the above. |
| Answer» C. 21,000 units | |
| 1314. |
In master budgeting, cost drivers for manufacturing overhead costs are |
| A. | direct manufacturing labour-hours |
| B. | setup labour-hours |
| C. | budgeted labour-hours |
| D. | both a and b |
| Answer» E. | |
| 1315. |
Considering relationship of variables, relationship in which activity cost is included in dependent variable, which has similar cost driver is classified as |
| A. | heterogeneous relationship |
| B. | extreme relationship |
| C. | no homogeneous relationship |
| D. | homogeneous relationship |
| Answer» E. | |
| 1316. |
In regression equation Y = $6000 + (per unit cost x number of units), '$6000' is a |
| A. | constant |
| B. | variable |
| C. | expression |
| D. | base and exponent |
| Answer» B. variable | |
| 1317. |
The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs 30,00,000 then Break Even Point in Rs will be |
| A. | Rs 9,00,000 |
| B. | Rs 18,00,000 |
| C. | Rs 5,00,000 |
| D. | None of the above |
| Answer» C. Rs 5,00,000 | |
| 1318. |
Which one out of the following is not an inventory valuation method? |
| A. | FIFO |
| B. | LIFO |
| C. | Weighted Average |
| D. | EOQ |
| Answer» E. | |
| 1319. |
Sundry overhead expenses may be apportioned in the ratio of ________. |
| A. | material consumed |
| B. | number of employees |
| C. | labour hours |
| D. | machine hours |
| Answer» D. machine hours | |
| 1320. |
Factory overhead can be charged on the basis of _______. |
| A. | material cost |
| B. | labour cost |
| C. | prime cost |
| D. | direct expenses |
| Answer» B. labour cost | |
| 1321. |
Method which determines weights of cost allocation by considering cost of each user as separate entity is known as |
| A. | bundled products allocation method |
| B. | variable cost allocation method |
| C. | stand-alone cost allocation method |
| D. | incremental cost allocation method |
| Answer» D. incremental cost allocation method | |
| 1322. |
Difference between final sales value and separable costs is equal to |
| A. | net income |
| B. | net realizable value |
| C. | Gross margin |
| D. | Gross realizable value |
| Answer» C. Gross margin | |
| 1323. |
Over time is ________. |
| A. | actual hours being more than normal time |
| B. | actual hours being more than standard time |
| C. | standard hours being more than actual hours |
| D. | actual hours being less than standard time |
| Answer» B. actual hours being more than standard time | |
| 1324. |
Bonus under Rowan scheme is paid ________. |
| A. | as a proportion of standard time to actual time |
| B. | as a proportion of actual time to standard time |
| C. | as a proportion of time saved to standard time |
| D. | as a proportion of standard time to time saved |
| Answer» D. as a proportion of standard time to time saved | |
| 1325. |
Indirect material used in production is classified as ________. |
| A. | office overhead |
| B. | selling overhead |
| C. | distribution overhead |
| D. | factory overhead |
| Answer» E. | |
| 1326. |
Audit fess is a part of _______. |
| A. | works on cost |
| B. | selling overhead |
| C. | distribution overhead |
| D. | administration overhead |
| Answer» E. | |
| 1327. |
Appropriate basis for apportionment of material handling charges is ________. |
| A. | material purchased |
| B. | material in stock |
| C. | material consumed |
| D. | material wasted |
| Answer» D. material wasted | |
| 1328. |
The type of loss that should not affect cost of inventories is ________. |
| A. | normal loss |
| B. | abnormal loss |
| C. | seasonal loss |
| D. | standard loss |
| Answer» B. abnormal loss | |
| 1329. |
In order to avoid the stoppage of production due to shortage of material _______. |
| A. | maximum stock level is maintained |
| B. | minimum stock level is maintained |
| C. | re-order level is maintained |
| D. | average stock level is maintained |
| Answer» C. re-order level is maintained | |
| 1330. |
Number of worker employed is used as basis for the apportionment of ________. |
| A. | rent |
| B. | canteen expenses |
| C. | PF contribution |
| D. | rate and tax |
| Answer» C. PF contribution | |
| 1331. |
Cash sales, accounts receivables and rental receipts all are known as |
| A. | cash receipts |
| B. | budget receipts |
| C. | goods manufactured |
| D. | total goods sold |
| Answer» B. budget receipts | |
| 1332. |
Second step in developing operating budget is to |
| A. | plan coordination |
| B. | plan accounts |
| C. | obtain information |
| D. | coverage information |
| Answer» D. coverage information | |
| 1333. |
Fourth step in development of operating budget is to |
| A. | choose alternatives |
| B. | evaluate alternatives |
| C. | efficiency improvements |
| D. | predicted improvements |
| Answer» B. evaluate alternatives | |
| 1334. |
Cash receipts is added in to beginning cash balance to calculate |
| A. | total goods manufactured |
| B. | total cash available |
| C. | total revenue |
| D. | total goods sold |
| Answer» C. total revenue | |
| 1335. |
In Kaizen budgeting, costs are based on all improvements which is |
| A. | to be implemented |
| B. | based on current practice |
| C. | based on past prices |
| D. | based on sold quantity |
| Answer» B. based on current practice | |
| 1336. |
Practice, which makes target more achievable by underestimating revenues or overestimating cost is called |
| A. | cost slack |
| B. | target slack |
| C. | budgetary slack |
| D. | revenue slack |
| Answer» D. revenue slack | |
| 1337. |
starting point in operating budget is |
| A. | cost budget |
| B. | material list |
| C. | revenue budget |
| D. | list of investors |
| Answer» D. list of investors | |
| 1338. |
Budgeted income statement and supporting budget schedules are categorized under |
| A. | focused statement |
| B. | slack statement |
| C. | budgeted income statement |
| D. | operating budget |
| Answer» E. | |
| 1339. |
Which one of the following is not considered for preparation of cost sheet? |
| A. | Factory cost |
| B. | Goodwill written off |
| C. | Labour cost |
| D. | Selling cost |
| Answer» C. Labour cost | |
| 1340. |
Prime cost plus variable overheads is known as________. |
| A. | Cost of sales |
| B. | Production Cost |
| C. | Total Cost |
| D. | Marginal cost |
| Answer» E. | |
| 1341. |
The stores keeper should initiate a purchase requisition when stock reaches ________. |
| A. | Average stock level |
| B. | Minimum stock level |
| C. | Maximum stock level |
| D. | Re-order level |
| Answer» E. | |
| 1342. |
Classification and accumulation of costs by fixed and variable costs is of special importance in ________. |
| A. | process costing |
| B. | unit costing |
| C. | operation costing |
| D. | operating costing |
| Answer» E. | |
| 1343. |
operating costing is a ________. |
| A. | method of costing |
| B. | technique of costing |
| C. | norm of costing |
| D. | procedure of costing |
| Answer» B. technique of costing | |
| 1344. |
Examples of nonlinear cost functions are |
| A. | step constant functions |
| B. | step cost functions |
| C. | step price functions |
| D. | step object functions |
| Answer» C. step price functions | |
| 1345. |
In linear cost function, which is y = a + bx, y is classified as |
| A. | predicted fixed cost |
| B. | predicted variable cost |
| C. | predicted cost |
| D. | predicted price |
| Answer» D. predicted price | |
| 1346. |
Cause and effect relationship that exists between change in total cost level and change in level of activity, is measured with help of |
| A. | production driver |
| B. | cost driver |
| C. | price driver |
| D. | estimation driver |
| Answer» C. price driver | |
| 1347. |
Cost analysis method, which uses mathematical method to use fit between past data observations and cost functions is termed as |
| A. | quantitative analysis method |
| B. | qualitative analysis method |
| C. | account analysis method |
| D. | conference analysis method |
| Answer» B. qualitative analysis method | |
| 1348. |
Learning curve models include |
| A. | cumulative average time learning model |
| B. | incremental unit time learning model |
| C. | incremental production learning model |
| D. | both a and b |
| Answer» E. | |
| 1349. |
Second step for estimation of cost function by using quantitative analysis is to |
| A. | choose independent variable |
| B. | choose cost estimation method |
| C. | choose price estimation method |
| D. | choose dependent variable |
| Answer» B. choose cost estimation method | |
| 1350. |
A problem which arises because of presence of systematic pattern in residual value sequence is considered as |
| A. | parallel correlation |
| B. | serial correlation |
| C. | auto correlation |
| D. | both B and C |
| Answer» E. | |