MCQOPTIONS
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MCQOPTIONS
This section includes 1713 Mcqs, each offering curated multiple-choice questions to sharpen your General Management knowledge and support exam preparation. Choose a topic below to get started.
| 451. |
Budgetary control facilitates easy introduction of the - |
| A. | Marginal costing |
| B. | Ratio analysis |
| C. | Standard costing |
| D. | Subjective matter |
| Answer» D. Subjective matter | |
| 452. |
What is treated as the base in common size P& L statement. |
| A. | RFO |
| B. | Other Incomes |
| C. | Total Income |
| D. | Profit before tax |
| Answer» B. Other Incomes | |
| 453. |
When selling price of product A is Rs.25 and product B is Rs. 20 and respective variable cost is Rs. 23 and Rs.16. The fixed cost is Rs.750, which of the following sales mix of product A and product B should be adopted to maximize the profit. |
| A. | 250 units of A & 250 units of B |
| B. | 500 units of B only |
| C. | 400 units of A & 100 units of B |
| D. | 150 units of A & 350 units of B |
| Answer» E. | |
| 454. |
A budget which is prepared in a manner so as to give the budgeted cost for any level ofactivity is known as - |
| A. | Master budget |
| B. | Zero base budget |
| C. | Functional budget |
| D. | Flexible budget |
| Answer» E. | |
| 455. |
Example of activity ratios ------------------------ |
| A. | Gross profit ratio |
| B. | Net profit ratio |
| C. | Operating ratio |
| D. | Stock turn over ratio |
| Answer» E. | |
| 456. |
Calculate Break Even Point in units if Fixed cost is 15,000,SP=15 and VC=12 |
| A. | 1000 units |
| B. | 1250 units |
| C. | 1500 units |
| D. | 5000 units |
| Answer» E. | |
| 457. |
Which are financing activities?I)Issue of shares II)Interest Paid III)Dividend paid IV)Redemption of debentures |
| A. | All |
| B. | Only I,II and IV |
| C. | Only I and IV |
| D. | Only I,III and IV |
| Answer» C. Only I and IV | |
| 458. |
The basic function of management accounting is to: |
| A. | record all business transactions |
| B. | interpret the financial data |
| C. | assist the management in performing its functions effectively |
| D. | None of the above |
| Answer» D. None of the above | |
| 459. |
In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’sprice is below the firm’s own ___________. |
| A. | Fixed Cost |
| B. | Variable Cost |
| C. | Total Cost |
| D. | Prime Cost |
| Answer» C. Total Cost | |
| 460. |
Which of the following is NOT a key ratio in the prediction of bankruptcy asdeveloped by Edward Altman? |
| A. | debt to equity |
| B. | current ratio |
| C. | retained earnings as a percent of total assets |
| D. | total assets |
| Answer» B. current ratio | |
| 461. |
Which of the following shows details and results of the company's profitrelated activities for a period of time? |
| A. | balance sheet |
| B. | income statement |
| C. | statement of cash flows |
| D. | statement of financial position |
| Answer» C. statement of cash flows | |
| 462. |
Cash payment suppliers of goods and services are shown under-------------. |
| A. | Operating |
| B. | Financing |
| C. | Investing |
| D. | None of the above |
| Answer» B. Financing | |
| 463. |
Which of these is false? |
| A. | Working Capital=Current Assets-Current Liabilities |
| B. | CL=CA-Working capital |
| C. | Current Liabilities=Workin g capital -CA |
| D. | Current Assets=Working capital+CL |
| Answer» D. Current Assets=Working capital+CL | |
| 464. |
Debt equity ratio is a-------------------------------------- |
| A. | Profitability ratio |
| B. | Turnover ratio |
| C. | Short term solvency ratio |
| D. | Long term solvency ratio |
| Answer» E. | |
| 465. |
Purpose of Management Accounting is to – |
| A. | Past orientation |
| B. | Help banks make decisions |
| C. | Help managers make decisions |
| D. | Help investors make decisions |
| Answer» D. Help investors make decisions | |
| 466. |
Vertical analysis is also known as ------------------ |
| A. | Dynamic analysis |
| B. | Static analysis |
| C. | External analysis |
| D. | Internal analysis |
| Answer» C. External analysis | |
| 467. |
Operating ratio is calculated by |
| A. | (Operating Cost/Gross sales)*100 |
| B. | (Operating Cost/Gross sales)*100 |
| C. | (Operating cost/Net sales)*100 |
| D. | None of the above |
| Answer» D. None of the above | |
| 468. |
What would be the most likely impact on trade receivables days if invoice discounting wasoffered to and accepted by a large customer of a business? |
| A. | trade receivables days would no longer exist |
| B. | trade receivables days would reduce |
| C. | trade receivables days would increase |
| D. | trade receivable days would not be affected |
| Answer» C. trade receivables days would increase | |
| 469. |
-------------------means transfer of economic value of firm from one asset or equity to another. |
| A. | Flow of funds |
| B. | Uses of fund |
| C. | Inflow of funds |
| D. | Application of funds |
| Answer» B. Uses of fund | |
| 470. |
Which of the following cost management tools supports the firm's concentration on the delivery of value to the customer? |
| A. | service industry growth |
| B. | global competition |
| C. | preparing an earnings report for external reporting |
| D. | value-chain analysis |
| Answer» E. | |
| 471. |
------------------------ helps in drawing inferences of conclusions |
| A. | Analysis |
| B. | Interpretation |
| C. | Comparison |
| D. | None of the above |
| Answer» C. Comparison | |
| 472. |
The cost that tends to remain constant irrespective of the level of activity is called_______. |
| A. | Variable cost |
| B. | Fixed cost |
| C. | Total cost |
| D. | All of the above |
| Answer» C. Total cost | |
| 473. |
Total Actual material is 1250 Kg.The Standard qty of Material A=800Kg and B=400Kg.What is the revised Std qty of A and Brespectively. |
| A. | 825kg,425Kg |
| B. | 950Kg,300Kg |
| C. | 833Kg,417Kg |
| D. | 750Kg,500Kg |
| Answer» D. 750Kg,500Kg | |
| 474. |
In finance, "working capital" means the same thing as __________. |
| A. | total assets. |
| B. | fixed assets. |
| C. | current assets. |
| D. | current assets minus current liabilities. |
| Answer» D. current assets minus current liabilities. | |
| 475. |
Total Actual material is 1250 Kg.The Standard qty of Material A=800Kg and B=400Kg.What is the revised Std qty of A and B respectively. |
| A. | 825kg,425Kg |
| B. | 950Kg,300Kg |
| C. | 833Kg,417Kg |
| D. | 750Kg,500Kg |
| Answer» D. 750Kg,500Kg | |
| 476. |
The factor which limits the volume of output of different products of an understanding at a particular point of time is known as… |
| A. | Key factor |
| B. | BEP |
| C. | Contribution |
| D. | None |
| Answer» B. BEP | |
| 477. |
Goods purchased on credit-----------inflow of funds |
| A. | Does not result |
| B. | Does result |
| C. | Change |
| D. | None of these |
| Answer» B. Does result | |
| 478. |
A Company has a material standard of 1 kg. per unit of output. Each kg. has a standard price of Rs.25 per kg. Company paid Rs.1,27,500 for 5000 kg., which they used to produce 4,700 units. What is the direct material price variance? |
| A. | Rs.2,500 unfavourable |
| B. | Rs.2,600 favourable |
| C. | Rs.12,600 unfavourable |
| D. | Rs.10,000 unfavourable |
| Answer» B. Rs.2,600 favourable | |
| 479. |
Common size Income Statement present the various items as a percentage of ---------------- |
| A. | Sales |
| B. | Credit sales |
| C. | Cash sales |
| D. | None of the above |
| Answer» B. Credit sales | |
| 480. |
Budget period is the… |
| A. | period of budget committee |
| B. | period of budget centres |
| C. | period for which a budget is prepared |
| D. | period of budget officer |
| Answer» D. period of budget officer | |
| 481. |
---------------- ratio studies the firm’s ability to meet its long term financial position |
| A. | Liquidity ratio |
| B. | Profitability |
| C. | Activity |
| D. | Leverage |
| Answer» E. | |
| 482. |
Net capital employed is equal to --------------- |
| A. | Total assets minus liabilities |
| B. | Fixed asset plus net working capital |
| C. | Total asset minus long-term liabilities |
| D. | Total assets |
| Answer» C. Total asset minus long-term liabilities | |
| 483. |
Financing Activities bring changes in |
| A. | Size and composition of owner equities |
| B. | Borrowing of the enterprise |
| C. | Both a and b |
| D. | None of the above |
| Answer» D. None of the above | |
| 484. |
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 |
| Answer» B. Frequent break downs during production process | |
| 485. |
A Current Ratio of Less than One means |
| A. | Current Liabilities < Current Assets, |
| B. | Fixed Assets > Current Assets, |
| C. | Current Assets < Current Liabilities, |
| D. | Share Capital > Current Assets. |
| Answer» D. Share Capital > Current Assets. | |
| 486. |
Gross Profit ratio is also termed as |
| A. | Gross Profit Margin |
| B. | Gross Margin to net sales |
| C. | Both a and b |
| D. | All of the above |
| Answer» D. All of the above | |
| 487. |
The art of managing, within the acceptable level of risk, the consolidated fundsoptimally and profitably is called _________. |
| A. | integrated treasury |
| B. | treasury management |
| C. | merchant banking |
| D. | none of the above |
| Answer» C. merchant banking | |
| 488. |
.Which of the following statements are true about labor idle time? |
| A. | Labour idle time variance is not caused by non-availability of raw material |
| B. | Labour idle time variance is measured as : Abnormal idle hours * Actual hourly rate |
| C. | Labour idle time variance is always unfavorable or adverse |
| D. | All of the above |
| Answer» D. All of the above | |
| 489. |
Purchase of fixed asset is classified as------activity |
| A. | financing |
| B. | investing |
| C. | operating |
| D. | others |
| Answer» C. operating | |
| 490. |
________ is the excess amount over the requirement for regular working capital. |
| A. | variable working capital |
| B. | fixed working capital |
| C. | reserve working capital |
| D. | regular working capital |
| Answer» D. regular working capital | |
| 491. |
Disclose accounting information |
| A. | Balance sheet |
| B. | Trading account |
| C. | Profit and Loss Account |
| D. | Financial statements |
| Answer» E. | |
| 492. |
From following which is not a principle of good reporting ? |
| A. | Simplicity |
| B. | Accountability |
| C. | Promptness |
| D. | Accuracy |
| Answer» C. Promptness | |
| 493. |
Which of the following is true about management accounting?(i) Management accounting is associated with presentation of accounting data.(ii) Management accounting is extremely sensitive to investors needs. |
| A. | Only (i) |
| B. | Only (ii) |
| C. | Both (i) and (ii) |
| D. | None of the above |
| Answer» B. Only (ii) | |
| 494. |
Increase in the amount of bills payable results in---------- |
| A. | Decrease in cash |
| B. | Increase in cash |
| C. | No change in cash |
| D. | None of these |
| Answer» C. No change in cash | |
| 495. |
Income statement ratios are also called ----------- |
| A. | Operating ratio |
| B. | Liquidity ratio |
| C. | Activity ratio |
| D. | Trend ratio |
| Answer» B. Liquidity ratio | |
| 496. |
In a manufacturing firm, the standard quantity of material was set at 10 kg and standard price was fixed at Rs. 2 per kg. The actual quantity consumed was 12 kg and the actual price paid was Rs 1.90 per kg. Determine material usage variance. |
| A. | Rs 4 favorable |
| B. | Rs 4 unfavorable |
| C. | Rs 2.80 unfavorable |
| D. | Rs 1.20 favorable |
| Answer» C. Rs 2.80 unfavorable | |
| 497. |
Management accounting assists the management |
| A. | Only in control |
| B. | Only in direction |
| C. | Only in planning |
| D. | In planning, direction and control |
| Answer» E. | |
| 498. |
Costs Which ------------between different alternatives are to be ignored. |
| A. | Are differential costs |
| B. | Are incremental costs |
| C. | Are constant costs |
| D. | Are relevant costs |
| Answer» D. Are relevant costs | |
| 499. |
Recording of actual performance is - |
| A. | An advantage of budgetary control |
| B. | A step in budgetary control |
| C. | A limitation of budgetary control |
| D. | None of the above |
| Answer» C. A limitation of budgetary control | |
| 500. |
Cost accounting mainly helps the management in: |
| A. | Earning extra profits |
| B. | Providing information to the management for decision-making. |
| C. | Fixing process of the products. |
| D. | Selling products |
| Answer» C. Fixing process of the products. | |