S.Y B.COM
SEMESTER - 4
MANAGEMENT ACCOUNTING
(MA))
MCQS - MARCH 2018
(1) Match the following :
|
i) Management accounting |
(a) General nature and reporting result of
operations |
|
(ii) Financial accounting |
(b) Analysis of cost for control and maximizing
efficiency |
|
(iii) Cost accounting |
(c) Assist management in performing functions |
(A) i - (a), ii - (b), iii - (c)
(B) i - (b), ii - (a), iii - (c)
(C) i - (c), ii - (a), iii - (b)
(D) i - (b), ii - (c), iii - (a)
(2) Contribution is the difference between
(A) Sales and variable cost
(B) Sales and fixed cost
(C) Sales and total cost
(D) Fixed cost and profii
(3) In transport business _______ will vary in direct proportion to kilometres run.
(A) Standing charges
(B) Operation and running charges.
(C) Maintenances charges
(D) All (A), (B) and (C)
(4) Which one of the following is not a benefit of activity based costing ?
(A) Accurate cost allocation
(B) Improved decision making
(C) Better control on activities and cost
(D) Reduction of prime cost
(5) Within its scope management accounting includes
(i) Financial accounting and cost accounting
(ii) Statistical tools and graphical techniques.
(A) Both (i) and (ii) are true
(B) Both (i) and (ii) are false
(C) (i) is true and (ii) is false
(D) (i) is false and (ii) is true
(6) GG Ltd has profit volume ratio of 50%. If during a particular period it's fixed costs were Rs.2,50,000 and it suffered a loss Rs.50,000, then it's sales would have been
(A) Rs. 4,00,000
(B) Rs. 5,00,000
(C) Rs. 6,00,000
(D) Rs. 2,00,000
(7) VAYU Ltd. Operates a bus between two towns which are 50 kms. apart. The bus makes 2 round trips a day with 50 passengers on as average. Determine the total kilometres for the month of February 2018.
(A) 5,600
(B) 2,800
(C) 2,80,000
(D) 6,000
(8) The following tasks are associated with an activity based costing system. Arrange the tasks as per correct order.
1. Calculation of cost driver rates
2. Creating cost pool and identification of cost drivers
3. Assignment of cost to products
4. Identification of activity
(A) 1, 2, 3, 4
(B) 2, 4, 1, 3
(C) 3, 4, 2, 1
(D) 4, 2, 1, 3
(9) The information supplied by the management accounting can be used for
(A) Decision making
(B) Formulating strategy
(C) Safeguarding assets
(D) All (A), (B) and (C)
(10) C. Ltd earn contribution of Rs. 2,00,000 and net profit of Rs. 1,50,000 on sales of Rs. 8,00,000. Determine margin of safety sales.
(A) Rs. 5,75,000
(B) Rs. 4,00,000
(C) Rs. 7,00,000
(D) Rs. 6,00,000
(11) Match the following in respect of transport costing :
|
(i) Running charges |
(a) Tyre cost |
|
(ii) Standing charges |
(b) Petrol and diesel |
|
(iii) Maintenance |
(c) General administration & supervision
charges |
(A) (i)-(a), (ii)-(b), (iii)-(c)
(B) (i)-(b), (ii)-(a), (iii)-(c)
(C) (i)-(c), (ii)-(b), (iii)-(a)
(D) (i)-(b), (ii)-(c), (iii)-(a)
(12) During the year the mileage run by vehicle A is 15,000 miles while vehicle B is 6,000 miles. The miles run per litre are 10 in case of vehicle A and 12 in case of vehicle B. Cost of fuel is Rs.75 per litre. Total fuel cost for the year would be
(A) Rs. 1,12,500
(B) Rs. 37,500
(C) Rs. 1,50,000
(D) Rs. 1,31,250
(13) The end products consume resources in the proportion to the volume of production is an assumption of
(A) Activity based costing system
(B) Operating costing system
(C) Traditional costing system
(D) All (A), (B) and (C)
(14) Total indirect cost of PK Ltd includes setup cost Rs.14,000, material handling cost Rs.7,840 scheduling cost Rs.10,000 and quality inspection cost Rs.10,560. Total direct labour hours used in all the product is 800 hours. Company follows traditional costing system and charged overheads based on direct labour hours. If 300 labour hours are used by product P. Determine the amount of overhead chargeable to product P.
(A) Rs. 11,564
(B) Rs. 15,900
(C) Rs. 5,310
(D) Rs. 7,840
(15) Qualitative information supplied by management accounting to management does not include
(A) Legal judgments
(B) Opinion polls
(C) Value of sales
(D) Logic
(16) Under marginal costing, decision of dropping an existing product line shall be considered as a good decision when that product gives
(A) Negative profit
(B) Negative contribution
(C) Positive profit
(D) Positive contribution
(17) Composite cost unit is one of the distinctive features of
(A) Activity based costing
(B) Operation costing
(C) Marginal costing
(D) Operating costing
(18) Which of the following classification of cost is used to ascertain operating cost ?
(A) Traceability
(B) Behaviour
(C) Functions
(D) Elements
(19) Match the following :
|
(i) Absorption costing |
(a) Only variable costs are charged to the
product |
|
(ii) Marginal costing |
(b) Additional cost of producing an additional
unit of product |
|
(iii) Marginal cost |
(c) Fixed cost and variable cost both are charged
to the product |
(A) (i)-(a), (ii)-(b), (iii)-(c)
(B) (i)-(c), (ii)-(a), (iii)-(b)
(C) (i)-(c), (ii)-(b), (iii)-(a)
(D) (i)-(b), (ii)-(c), (iii)-(a)
(20) MB Ltd., Produces three products X, B and Y using common production facility. Contribution per unit of each prod let is Rs. 356; Rs.273 and Rs.440 and the number of machine hours required per unit is 4 hours, 3 hours and 5 hours respectively. Machine hours is a limiting factor. Indicate priority ranking for production.
(A) X - I, B - II, Y - III
(B) Y - I, B - II, X - III
(C) B - I, X - II, Y - III
(D) Y - I, X - II, Y - III
(21) The cost of vehicles is Rs.5,00,000 and the estimated life of the vehicles is 2,00,000 miles with the scrap value Rs. 50,000 at the end of the useful life. During the year the mileage run by vehicle is 20,000 miles. The amount of depreciation for the year would be
(A) Rs. 45,000
(B) Rs. 50,000
(C) Rs. 55,000
(D) Rs. 40,000
(22) Which one of the following is not correct with reference to management accounting ?
(A) Useful in decision making
(B) Mangament accounting reports should be audited by a cost accountant
(C) Flexibility in presentation of information
(D) Purely voluntary but highly useful
(23) ZZ Ltd. Manufactured 300 units of X and 200 units of Y by using 90 and 30 set - ups respectively. The company incurred Rs. 3,600 towards set - up charges and Rs. 5,000 for quality inspection. Determine the amount of set - up charges to be assigned to product X using activity based costing.
(A) Rs.9,000
(B) Rs.3,600
(C) Rs.2,700
(D) Rs.900
(24) March the following in respect of activity based costing system :
|
(i) Activity |
(a) Particular task performed with a specific
purpose |
|
(ii) Cost object |
(b) An item for which cost measurement is
required |
|
(iii) Cost pool |
(c) To indicate grouping of incurred |
(A) (i) - (a), (ii) - (b), (iii) - (c)
(B) (i) - (b), (ii) - (a), (iii) - (c)
(C) (i) - (c), (ii) - (b), (iii) - (a)
(D) (i) - (b), (ii) - (c), (iii) - (a)
(25) Sales of D Ltd., Increased from Rs. 40,000 to Rs. 60,000 and profit increased by Rs. 5,000. Find out P/V ratio
(A) 20%
(B) 30%
(C) 25%
(D) 40%
(26) During the year the mileage run by vehicle is 18,000 miles. Vehicles run 10 miles per hour on an average and driver is paid at Rs.20 per hour. Driver's salary for the year would be
(A) Rs.18,000
(B) Rs. 36,000
(C) Rs. 3,60,000
(D) Rs.1,80,000
(27) Sales of JP Ltd., Is Rs.20,000, fixed expenses Rs.4000 and break even Point Rs. 10,000. Find out the amount of profit at actual sales.
(A) Rs. 4000
(B) Rs. 10,000
(C) Rs. 5,000
(D) Rs. 8000
(28) DD Ltd., Is following traditional costing system (TCS) & thinking of adopting activity based costing (ABC) system. What would be the correct interpretation of the following cost per unit calculated under both the system ?
|
Particular |
Product X |
Product Y |
|
Cost Per unit as
per TCS |
150 |
120 |
|
Cost per unit as
per ABC |
156 |
114 |
(A) Product X is under costed while prouct Y is over costed
(B) Product X is over costed while product Y is under costed
(C) Product X is correctly while product Y is correctly costed
(D) Product X is over costed while product Y is correctly costed
(29) Other things remaining the same, increase in fixed cost will lead to _______ in break even point (BEP).
(A) Increase
(B) Decrease
(C) Remain constant
(D) None of the above
(30) Which one of the following is not an assumption of marginal costing ?
(A) Variable cost per unit remains constant at all levels of output
(B) Total fixed cost remains constant at all levels of output
(C) All the costs cannot be segregated in to fixed cost and variable cost
(D) There is no opening or closing stock
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