Management Accounting Test Questions

Q.  Stock velocity establishes a relationship between

a. Cost of goods sold in a given period and the average amount of inventory held during that period
b. Cost of goods sold in a given period and the average amount of stock held during that period
c. Both a and b
d. None of the above


ANSWER: See Answer
 
No explanation is available for this question!
MCQs:  Match the columns A) Activity Ratio -------------------- i) (Actual hours worked / Budgeted hours) * 100 B) Capacity Ratio ------------------ ii) (Standard hours of actual production / Actual hours worked) * 100 C) Efficiency Ratio ----------------- iii) (Standard hours for actual output / Budgeted hours) * 100
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MCQs:  A factory produces two types of articles Y and Z. Article Y takes 8 hours to make and Z takes 16 hours. In a month ( 25 days * 8 hours) 600 units of X and 400 units of Z are produced. Given budgeted hours 8000 per month and men employed are 50. Determine Activity ratio, Capacity ratio and efficiency ratio.
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MCQs:  Given estimated sales in February, March, April, May and June are Rs 90,000, Rs 96,000, Rs 54,000, Rs 87,000 and Rs 63,000. In case 50% of sales are realized in the next month and balance in the next of next month, determine cash collection from sales in April and May.
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MCQs:  In a firm, the forecast of wages for month of December, January, February and March are Rs 4,800, Rs 6,000, Rs 6,400 and Rs 6,800. The time-lag in payment of wages is 1/8 month. Determine the amount of wages payable in each month January to March.
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MCQs:  To get to labour efficiency variance, the formula to be applied is
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MCQs:  Which of the following statements are true about labour idle time?
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MCQs:  Given standard time per unit is 80 hours, standard time per hour @ Rs 1 per hour, actual time per unit is 90 hours and actual rate per hour @ Rs 1.10 per hour. Determine labour cost variance, labour rate variance and labour efficiency variance.
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MCQs:  Responsibility accounting is not useful in following the principle of management by exception.
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MCQs:  _________ indicates the variances and the reasons behind such variances.
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MCQs:  Management accounting deals with
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MCQs:  Which of the following is true about financial statements? A) Financial statement gives a summary of accounts. B) Financial statements can be stated as recorded facts.
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MCQs:  The statement of financial position and the balance sheet are synonyms.
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MCQs:  Schedules attached with the balance sheet forms a part of the financial statements.
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MCQs:  A bond is said to be issued at premium when
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MCQs:  Value of a bond just depends on the interest payment it offers.
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MCQs:  Debtors Turnover ratio is also known as A) Receivables turnover ratio B) Debtors velocity C) Stock velocity D) Payable turnover ratio
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MCQs:  Determine Debtors turnover ratio if, closing debtors is Rs 40,000, Cash sales is 25% of credit sales and excess of closing debtors over opening debtors is Rs 20,000.
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MCQs:  Working capital turnover ratio can be determined by:
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MCQs:  Determine Working capital turnover ratio if, Current assets is Rs 1,50,000, current liabilities is Rs 1,00,000 and Cost of goods sold is Rs 3,00,000.
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MCQs:  The Balance sheet of Ram at end of 2013 and 2014 disclose investments in shares of Rs 2000 and Rs 3000, respectively. Rs 100 as pre-acquisition dividend has been credited to investments account. Determine purchase of investments.
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