Management Accounting Test Questions

Q.  Product X is manufactured By ABC company, The sales is Rs 50,000 Direct Materials is Rs 20,000, Direct Labour is Rs 10,000, Variable overheads is Rs 5,000 and Fixed overheads is Rs 10,000. ABC Company now intends to introduce a new product Y so that sales may be increased by Rs 10,000. There will be no rise in fixed costs and the estimated variable costs of Product Y are Labour Rs 2,200 Materials Rs 4,800 Overheads Rs 1,400. If the company introduces Product Y, what will be the impact?

a. Total profit will decrease by Rs 1,600
b. Total profit will increase by Rs 1,600
c. No impact
d. None of the above


ANSWER: See Answer
 
No explanation is available for this question!
MCQs:  Management auditor should be well versed with
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Which of the following is responsibility center?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  On the basis of information contained in the reports, the managerial reporting can be divided into
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Management accounting is related with A) The problem of choice making B) Recording of transactions C) Cause and effect relationships
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Analysis of any financial Statement comprises
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Which of the following statements are true? A) Common-size balance sheet shows relative value of the various items. B) In the common size income statement, each product is represented as a percentage of the net sales figure. C) Common size income statements represent the various elements as a percentage of the gross profit.
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  The point of tangency between risk return indifferences curves and efficient frontier highlights:
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  A portfolio comprises two securities and the expected return on them is 12% and 16% respectively. Determine return of portfolio if first security constitutes 40% of total portfolio.
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Net operating profit ratio determines ___________ while net profit ratio determines
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Operating ratio is calculated by
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Determine Operating ratio, if operating expenses is Rs 60,000, Sales is Rs 9,40,000, Sales Return is Rs 40,000 and Cost of net goods sold is Rs 6,60,000.
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  If reserve for bad and doubtful debts is mentioned in the question of Funds Flow Statement Preparation, it can be shown as
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Funds Flow Statement is also known as
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Cash outflow on purchases is calculated by
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  The amount of operating expenses which are actually been paid in cash are shown under:
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Given salary expenses Rs 40,000, Outstanding in the beginning of the year: Rs 5,000 and outstanding at the end of the year Rs 10,000. Cash outflow on salary will be:
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  In Analytical method of calculating marginal costing, it is determined on the basis of past records.
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Theory of contribution is the excess of sales over variable costs.
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Which of the following statements related to Contribution Analysis are true?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Marginal costing is helpful in
Category: MBA Questions,   Published by: T-Code Scripts