Cost and Management Accounting Multiple Choice Questions#10



NOTE: Attempt all Questions to see the Result at the bottom of this page.


  1. 1)

    ___________ is a summary of all functional budgets in a capsule form.


    • A) Functional Budget
    • B) Master Budget
    • C) Long Period Budget
    • D) Flexible Budget

  2. 2)

    _____________ is a detailed budget of cash receipts and cash expenditure incorporating both revenue and capital items.


    • A) Cash Budget
    • B) Capital Expenditure Budget
    • C) Sales Budget
    • D) Overhead Budget

  3. 3)

    Statutory cost audit are applicable only to:


    • A) Firm
    • B) Company
    • C) Individual
    • D) Society

  4. 4)

    If credit sales for the year is Rs. 5,40,000 and Debtors at the end of year is Rs. 90,000 the Average Collection Period will be


    • A) 30 days
    • B) 61 days
    • C) 90 days
    • D) 120 days

  5. 5)

    The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs. 30,00,000 then Break Even Point in Rs. will be


    • A) Rs. 9,00,000
    • B) Rs. 18,00,000
    • C) Rs. 5,00,000
    • D) None of the above

  6. 6)

    In element-wise classification of overheads, which one of the following is not included —


    • A) Fixed overheads
    • B) Indirect labour
    • C) Indirect materials
    • D) Indirect expenditure.

  7. 7)

    When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000, the P/V ratio is —


    • A) 20%
    • B) 30%
    • C) 25%
    • D) 40%.

  8. 8)

    A process costing system for J Co used an input of 3,500Kg of materials at Rs20 per Kg and labour hours of 2,750 at Rs25 per hour. Normal loss is 20% and losses can be sold at a scrap value of Rs5per Kg. Output was 2,950 Kg. What is the value of the output?


    • A) Rs 142,485
    • B) Rs 146,183
    • C) Rs 149,746
    • D) Rs 152,986

  9. 9)

    In process costing, a joint product is


    • A) a product which is later divided into many parts
    • B) a product which is produced simultaneously with other products and is of similar value to at least one of the other products.

    • C) A product which is produced simultaneously with other products but which is of a greater value than any of the other products.

    • D) a product produced jointly with another organization

  10. 10)

    A ltd is a manufacturing company that has no production resource limitations for the foreseeable future. The Managing Director has asked the company mangers to coordinate the preparation of their budgets for the next financial year. In what order should the following budgets be prepared?

       (1) Sales budget
       (2) Cash budget
       (3) Production budget
       (4) Purchase budget
       (5) Finished goods inventory budget


    • A) (2), (3), (4), (5), (1)
    • B) (1), (5), (3), (4), (2)
    • C) (1), (4), (5), (3), (2)
    • D) (4), (5), (3), (1), (2)