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Managerial Accounting MCQ Part1

The document contains 100 multiple-choice questions (MCQs) focused on managerial accounting concepts, including cost classifications, budgeting, and decision-making. Key topics include the differences between fixed and variable costs, the importance of prime costs, and the role of managerial accounting in internal decision-making. It also includes practical sums to calculate costs and break-even points.

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14 views4 pages

Managerial Accounting MCQ Part1

The document contains 100 multiple-choice questions (MCQs) focused on managerial accounting concepts, including cost classifications, budgeting, and decision-making. Key topics include the differences between fixed and variable costs, the importance of prime costs, and the role of managerial accounting in internal decision-making. It also includes practical sums to calculate costs and break-even points.

Uploaded by

John
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Managerial Accounting - 100 MCQs with Sums

1. Managerial accounting primarily focuses on:

a) External users b) Historical data c) Internal decision-making d) Tax reporting

Answer: c

2. Which of the following is not a characteristic of managerial accounting?

a) Future-oriented b) Mandatory by law c) Used for internal planning d) Detailed segment

reporting

Answer: b

3. Management accounting provides information for:

a) Tax authorities b) Shareholders c) Employees d) Managers

Answer: d

4. A primary tool used in managerial accounting for planning is:

a) Tax return b) Budget c) Income statement d) Balance sheet

Answer: b

5. Which of these is a non-manufacturing cost?

a) Direct materials b) Factory rent c) Sales commission d) Assembly wages

Answer: c

6. Cost accounting is a part of:

a) Auditing b) Managerial accounting c) Financial accounting d) Tax accounting

Answer: b

7. Which one is not an objective of managerial accounting?

a) Cost control b) Financial auditing c) Budgeting d) Decision-making

Answer: b

8. Product costs are:

a) Expensed in the period incurred b) Treated as assets until the product is sold
c) Irrelevant for decision-making d) Always fixed

Answer: b

9. Period costs include:

a) Raw materials b) Factory maintenance c) Rent of head office d) Assembly line wages

Answer: c

10. Which is a fixed cost?

a) Raw material cost b) Electricity per unit c) Factory manager's salary d) Packaging cost per

unit

Answer: c

11. Which cost varies with the level of production?

a) Fixed cost b) Sunk cost c) Variable cost d) Overhead

Answer: c

12. Sunk cost is:

a) A future cost b) A relevant cost c) An unavoidable past cost d) A controllable cost

Answer: c

13. Opportunity cost is:

a) Past cost b) Actual cost c) The cost of the next best alternative d) Overhead cost

Answer: c

14. Direct costs can be traced:

a) Indirectly to the product b) To factory overhead c) Directly to a cost object d) Only in service

sectors

Answer: c

15. Which is a semi-variable cost?

a) Telephone bill with a fixed base rate b) Raw materials c) Salaries d) Rent

Answer: a

16. Overhead includes:


a) Direct labor b) Direct materials c) Indirect factory costs d) Sales revenue

Answer: c

17. A controllable cost is:

a) Always fixed b) Not affected by managers c) Subject to a manager's control d) Sunk cost

Answer: c

18. Conversion cost = Direct Labor + ?

a) Direct Materials b) Manufacturing Overhead c) Selling Expenses d) Admin Expenses

Answer: b

19. Which of these is not a cost classification by behavior?

a) Fixed b) Variable c) Semi-variable d) Sunk

Answer: d

20. Prime cost includes:

a) Direct material + direct labor b) Direct material + factory overhead

c) Direct labor + admin cost d) Indirect material + labor

Answer: a

21. Direct Materials = INR 50,000, Direct Labor = INR 30,000, Factory Overhead = INR 20,000.

Prime Cost?

a) INR 50,000 b) INR 80,000 c) INR 70,000 d) INR 100,000

Answer: c

22. Total cost = INR 150,000, Variable cost/unit = INR 10, Units = 5,000. Fixed Cost?

a) INR 50,000 b) INR 100,000 c) INR 0 d) INR 200,000

Answer: a

23. Variable cost/unit = INR 40, Units = 2,000. Total Variable Cost?

a) INR 40,000 b) INR 80,000 c) INR 50,000 d) INR 90,000

Answer: b

24. Fixed Cost = INR 75,000, Contribution/unit = INR 25. BEP (units)?
a) 3,000 b) 2,000 c) 5,000 d) 4,000

Answer: a

25. Selling Price = INR 60, Variable Cost = INR 40, Fixed Cost = INR 40,000. Break-even Sales

(INR )?

a) INR 60,000 b) INR 80,000 c) INR 1,20,000 d) INR 2,40,000

Answer: c

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