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Management Accounting
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Q421

Which of the following statements are the assumptions of marginal costing?
1. Per unit selling price remain unchanged at all levels of operating activity.
2. Total fixed cost remains constant for all the production units.
3. Total variable costs varies in proportion to the volume of output.
4. All the elements of cost can be divided into fixed and variable components.

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Q422

Which of the following would be included in a cash budget?

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Q423

Consider the following statements.
1. Marginal costing and absorption costing are the same.
2. For decision-making, absorption costing is more suitable than marginal costing.
3. Cost volume profit relationship also denote break-even point.
4. Marginal costing is based on the distinction between fixed and variable costs.
Which of the statements given above are correct?

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Q424

While computation of profit in marginal costing

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Q425

Which of these is not an objective of Cost accounting?

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Q426

Prime cost plus factory overhead cost is

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Q427

Calculate the prime cost from the following information
Direct material purchased Rs. 1,00,000
Direct material consumed Rs. 90,000
Direct labour Rs. 60,000
Direct expenses Rs. 20,000
Manufacturing overheads Rs. 30,000

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Q428

Element(s) of cost of a product are

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Q429

Break-even point is also known as . . . . . . . . point.

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Q430

Why is profit volume ratio used?
1. To compute the variable cost for any volume of sales.
2. To determine break-even point and the level of output required to earn a desired profit.
3. To decide most profitable sales mix.
Select the correct answer:

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Q431

In the context of standard costing, baste standard is established for

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Q432

Match the following.

List-I	List-II
a. Labour cost variance	1. Actual hours paid (Standard rate - Actual rate)
b. Labour rate variance	2. Standard cost - Actual cost
c. Efficiency variance	3. Idle hours × Standard rate per hour
d. Idle time variance	4. Standard rate (Standard hours - Actual hours worked)

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Q433

Using the marginal costing method, contrtbution is equal to total sales revenue less

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Q434

An increase in fixed costs will result, in which of the following?

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Q435

Which of the following statement(s) is/are correct?

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Q436

The standards that require peak efficiency and do not allow any work interruptions are known as

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Q437

The main purpose of cost accounting is to

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Q438

Which of the following are possible causes of material price variance?
1. Change in market price.
2. Use of poor quality of material.
3. Inefficient buying.
4. Untimely buying.
5. Paying overtime for urgent work.
6. Use of substitute material of different prices.
Select the correct answer:

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Q439

What may be the principle budget factor in case of plant?

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Q440

Marginal costing technique helps the management in deciding

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