Management Accounting Test Questions


Q.  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?

a. 500 units
b. 1,000 units
c. 1,250 units
d. None of the above


ANSWER: See Answer
 
No explanation is available for this question!
MCQs:  Which of the following statements are true? A) Funds Flow statement is one of the ways to analyse & interpret financial statements. B) Cash Flow Statement is one of the ways to analyse & interprets financial statements. C) Common-size statement is one of the ways to analyse & interpret financial statements.
Category: MBA Questions,   Published by: teswesm
MCQs:  Mr. X takes a loan of Rs 50,000 from HDFC Bank. The rate of interest is 10% per annum. The first installment will be paid at the end of year 5. Determine the amount of equal annual installments if Mr. X wishes to repay the amount in five installments.
Category: MBA Questions,   Published by: teswesm
MCQs:  If nominal rate of return is 10% per annum and annual effective rate of interest is 10.25% per annum, determine the frequency of compounding:
Category: MBA Questions,   Published by: teswesm
MCQs:  Profit for the objective of calculating a ratio may be taken as
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following are limitations of ratio analysis? A) Ratio analysis may result in false results if variations in price levels are not considered. B) Ratio analysis ignores qualitative factors. C) Ratio Analysis ignores quantitative factors. D) Ratio Analysis is historical analysis.
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following falls under Profitability ratios? A) General Profitability ratios B) Overall Profitability ratios C) Comprehensive Profitability ratios
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following transactions will result in inflow of funds? A) Issue of debentures B) Conversion of debentures into equity shares C) Redemption of long term loan D) Creation of General Reserve
Category: MBA Questions,   Published by: teswesm
MCQs:  During the year, a business was bought by issue of Rs 25,000 debentures and Rs 25,000 shares. The business bought had machine worth Rs 20,000, Debtors Rs 15,000, Stock Rs 5,000 and Creditors Rs 5,000. Determine the effect of this transaction on flow of funds.
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following statements are true? A) Cash flow reveals only the inflow of cash. B) Cash flow reveals only the outflow of cash. C) Cash flow is a substitute for income statement. D) Cash flow statement is not a replacement of funds flow statement.
Category: MBA Questions,   Published by: teswesm
MCQs:  Cash flow statement is based upon _________ while Funds Flow Statement recognizes _______.
Category: MBA Questions,   Published by: teswesm
MCQs:  Statement of changes in working capital is prepared separately in
Category: MBA Questions,   Published by: teswesm
MCQs:  Absorption costing is used for
Category: MBA Questions,   Published by: teswesm
MCQs:  Absorption costs help in
Category: MBA Questions,   Published by: teswesm
MCQs:  Which of the following statements are true? A) Absorption costing helps in preparation of fixed budget. B) Absorption costing is dependent on level of level of output. C) Absorption costing is very helpful in taking managerial decisions. D) Absorption costing helps to conform with accrual and matching concept.
Category: MBA Questions,   Published by: teswesm
MCQs:  If the management decides to manufacture a product it in own factory, the focus should be on
Category: MBA Questions,   Published by: teswesm
MCQs:  If there are large fluctuations in demand, the component should be
Category: MBA Questions,   Published by: teswesm
MCQs:  Pertaining to the differential cost systems, which of the following statements are true? A) Differential cost plus differential income shows net loss or net income B) Differential cost is ascertained by comparing total costs of each alternative. C) Differential cost related to differential investments is calculated every time.
Category: MBA Questions,   Published by: teswesm
MCQs:  The term marginal cost can be used as a substitute of variable cost while measuring Contribution.
Category: MBA Questions,   Published by: teswesm
MCQs:  Determine total as well as per unit contribution if Sales is Rs 40,000, Sales in units is 4,000 and variable cost is Rs 30,000.
Category: MBA Questions,   Published by: teswesm
MCQs:  Determine Contribution if Sales is Rs 1,50,000 and P/V ratio is 40%.
Category: MBA Questions,   Published by: teswesm