Management Accounting Test Questions

Q.  General variances are applicable with

a. Turnover variances
b. Cost element variances
c. Both a and b
d. None of the above


ANSWER: See Answer
 
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MCQs:  A company is producing product T on a machine. The selling price of T is Rs 100, marginal cost is Rs 60 and machine takes 20 hours to produce T. The company uses a component H which can be made on same machine in 3 hours for a marginal cost of Rs 5. Component can also be bought from the market for Rs 10. What will be the final result if the company decides to by component H from market? (Machine is fully utilized)
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MCQs:  As per J.M. Clark, when a decision has to be made involving _________, the difference in cost between two policies may be considered to be the cost really incurred on account of these n-units of business.
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MCQs:  Break-even analysis is used in “Make or Buy” decision.
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MCQs:  Using equation method, Break-even point is calculated as
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MCQs:  Given selling price is Rs 10 per unit, variable cost is Rs 6 per unit and fixed cost is Rs 5,000. What is break-even point?
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MCQs:  Contribution is also known as
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MCQs:  Given selling price is RS 20 per unit, variable cost is Rs 16 per unit contribution is
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MCQs:  Standard Costing is more widely applied in job order industries and not suitable for engineering industries.
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MCQs:  Which of the following statements are true about Standard Costing? A) It controls certain elements of cost affecting production and sales. B) It creates cost consciousness among workers. C) It plays no role in forecast of production cost, profit and sales. D) It follows principle of management by exception at operational level.
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MCQs:  As per J. Batty, Standard Cost represents ______under given conditions.
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MCQs:  In forecast, there is a promise or commitment to achieve estimates.
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MCQs:  Which of the following are not the objectives of Budgeting? A) To express the objectives of the firms in qualitative terms. B) To prepare base for evaluation of work performance. C) To co-ordinate organizational and managerial units of the firm. D) To develop a strong appraisal of objectives and policies of firm.
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MCQs:  The process of budgeting does not establish a system of decentralization of authority.
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MCQs:  Cash budget is more helpful in those business concerns where there are
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MCQs:  While preparing a cash budget the focus should be on
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MCQs:  Flexible budget is that budget which presents __________ at various levels of business activity.
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MCQs:  Flexible budget is also known as
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MCQs:  When the actual cost is less than the standard cost, the difference is termed as
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MCQs:  The controllable variances are related with the
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MCQs:  The events like government policies, price rise etc have an impact on controllable variances.
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