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MCQs: Which of the following statements are true about movement of funds?
A) Funds flow in a transaction between current assets and fixed assets.
B) Funds flow in a transaction between current asset and capital.
C) Funds flow in a transaction between fixed assets and current liabilities.
D) Funds flow in a transaction between current liabilities and capital.
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MCQs: In cash flow statement, the item of interest is shown in
A) Operating Activities
B) Financing Activities
C) Investing Activities
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MCQs: Cash Flow Statement is based upon
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MCQs: Which of the following statements are false?
A) Cash Flow Statement is helpful in the formation of policies.
B) Cash Flow Statement is useful for external analysis.
C) Cash Flow Statement is helpful in estimating future cash flow.
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MCQs: All factory costs are treated as _______ while all administration costs are treated as ________.
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MCQs: While ascertaining gross profit under absorption costing, only that portion of manufacturing overheads is deducted from sales revenue which is associated with the goods sold.
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MCQs: Under absorption costing among fixed expenses
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MCQs: A component is being made with the help of a machine. 10,000 units are made at a cost of Rs 10 per unit (of which Rs 9 are variable). The same component can be bought from the market at Rs 9.50 per unit. However, the owner intends to rent the machine for Rs 6,000 following which he will buy components from market. If he does so, what will be the impact?
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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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