Management Accounting Test Questions

Q.  When there is tough competition and price-cut is on war, the focus should be on

a. Normal price
b. Depression price
c. Minimum price
d. None of the above


ANSWER: See Answer
 
No explanation is available for this question!
MCQs:  In profit center revenue represents a monetary measure of output emanating from a profit center in a given period irrespective whether
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MCQs:  Control reports and information reports are a part of
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MCQs:  Which of the following statements are false about management accounting? A) Management accounting is concerned with historical events. B) Management accounting is related only with such instances which can be expressed in monetary terms. C) Management accounting is a part of Financial Management. D) Management accounting information can be disclosed to outsiders.
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MCQs:  The form of balance sheet is
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MCQs:  The term current asset doesn’t cover
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MCQs:  P&L statement is also known as
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MCQs:  Required rate of return > Coupon rate, the bond will be valued at
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MCQs:  If the coupon rate is constant, the value of bond when close to maturity will be
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MCQs:  The lower turnover ratio highlights the under utilizations of the resources accessible at the disposal of the firm.
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MCQs:  Stock velocity establishes a relationship between
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MCQs:  Determine stock turnover ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales is Rs 3,20,000 and Gross profit ratio is 25% on sales.
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MCQs:  In the balance sheet of Praveen for 2013 and 2014, 4% debentures are Rs 5,00,000 and Rs 4,00,000, respectively. Profit on redemption of debentures in 2013 is nil while in 2014 is Rs 4,000. What is the amount of redemption for the purpose of funds flow statement?
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MCQs:  The balance of property at cost has been Rs 20,000 and Rs 17,000 in 2013 and 2014 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2014. Determine sale of proceeds from land.
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MCQs:  ABC Ltd had investment of Rs 68,000 as on 31.3.2013 and investment of Rs 56,000 as on 31.3.2014. During the year ABC Ltd sold 40% of its investments being held in the beginning of period at a profit of Rs 16,800. Determine cash flow from investing activities.
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MCQs:  Financing activities bring changes in
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MCQs:  For year 2013 Equity Share Capital is Rs 3,00,000 Preference Share Capital is 1,00,000 10% debentures is 2,00,000 and Share premium is 30,000. For year 2014 Equity Share Capital is Rs 4,00,000 Preference Share Capital is 60,000 10% debentures is 1,00,000 and Share premium is 40,000. Also given, Dividend paid on shares Rs 15,000 and Interest paid on debentures Rs 20,000. Determine net cash flow from financing activities.
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MCQs:  Under absorption costing, managerial decisions are based on
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MCQs:  If sales is less than production and there is no opening stock, it suggests there is closing stock. In such a scenario, profit under marginal costing will be less than the one shown by absorption costing.
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MCQs:  Minimum price is calculated as
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MCQs:  ABC Company manufactures and sells trucks at Rs 75,000 each made up of Direct Materials Rs 30,000, Direct Labour Rs 8,000 Variable Overheads is Rs 12,000, Fixed overheads is Rs 6,000, Variable selling expenses is Rs 3,000 Royalty is Rs 4,000 Profit is Rs 7,000. There is enough idle capacity. If the company decides to sell 4 trucks to ABC Company under the same management, what should be the minimum price to be charged?
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