Quiz  /  Management accounting Gate & PSU MCQ Questions With Answers

  • 1. 
    The contribution margin increase when sales volume remain the same and

  • variable cost per unit decrease
  • variable cost per unit increase
  • fixed cost decrease
  • fixed cost increase

  • 2. 
    Selling price per tonne is Rs. 69.50, variable cost per tonne is Rs. 35.50 and fixed cost is Rs. 18,02,000. Find out the BEP in units

  • 49000
  • 51000
  • 53000
  • 55000

  • 3. 
    At breakeven point there is

  • Profit
  • Loss
  • No profit or loss
  • None of these

  • 4. 
    Contingent Liability is shown on the liability side of the Balancesheet

  • True
  • False

  • 5. 
    A balance sheet is a form of

  • Dynamic financial reports
  • Static financial reports
  • Activity reports
  • None of the above

  • 6. 
    Management accounting deals with

  • Quantitative information
  • Qualitative information
  • Quantitative important
  • Both a and b

  • 7. 
    Product (or manufacturing) costs consist of

  • direct materials, direct labor, and selling costs
  • prime costs and manufacturing overhead
  • administrative costs and conversion costs
  • selling and administrative costs

  • 8. 
    The person who is supervising the labourers involved in production will be

  • Direct Labour
  • Direct Expenses
  • Indirect Labour
  • None of the above

  • 9. 
    The assets of a business can be classified asA

  • Only fixed assets
  • Only current assets
  • Fixed and current assets
  • None of the above

  • 10. 
    The contribution margin is the

  • difference between sales and total cost
  • difference between sales and total variable cost
  • amount by which sales exceed total fixed cost
  • difference between sales and operating income

  • 11. 
    A document that records the standard cost of a single unit of product is known as

  • Materials cost card
  • Standard cost card
  • Product expense card

  • 12. 
    While sending the goods for distribution, packing the goods in Carton box will be considered

  • Direct Material
  • Primary Packing
  • Secondary Packing
  • Direct Expenses

  • 13. 
    Break-even revenue for the multiple-product firm can be calculated by

  • dividing segment fixed cost by the overall contribution margin ratio
  • dividing total fixed cost by the overall contribution margin ratio
  • dividing total fixed cost by the overall variable cost ratio
  • multiplying total fixed cost by the contribution margin ratio

  • 14. 
    There is a prescribed format for preparation of Management Accounting which is known as GAAP

  • True
  • False

  • 15. 
    The accounting which gives segregated information about the various products of Dabur is

  • Financial Accounting
  • Money Accounting
  • Cost Accounting
  • Management Accounting

  • 16. 
    Manufacturing costs is also known as

  • inventoriable cost
  • period cost
  • conversion costs
  • overhead costs

  • 17. 
    Companies may choose to use variable costing because it

  • accords with GAAP
  • is useful for external reporting
  • is most useful for management decision making
  • provides the gross margin

  • 18. 
    As volume/unit decreases, total fixed costs

  • are constant and cost per unit decreases
  • are constant and cost per unit increases
  • increase
  • decrease

  • 19. 
    When the accountant shows false information in financial statement to lure the investors it is known as

  • Mercantile Accounting
  • Window Dressing
  • Money Measurement Concept
  • None of the above

  • 20. 
    Following is (are) called the element(s) of Cost

  • Material
  • Labour
  • Expenses
  • All of the above

  • 21. 
    As discussed in the class, Profit and Loss account is like a photograph of a person

  • True
  • False
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