B.Com. (Accounting and Finance) Sem VI ATKT All Objectives Question Paper - Mumbai University | munotes

MULTIPLE CHOICE QUESTIONS :
Serial No UnitNo Questions
1 Budget is drawn for . Organising
Key factor is also known as . Political factors
3 Budgetary Control can be applied in All organisation
4 Budget gives a summary of all funcSales
requires classification of cost
5 1 as fixed, variable and semi-variable. Production budget
Budgetary control is costly for Large
shows estimate of sales in
A Budget which shows the number of
employees and/or number of labour hours
required to produce a budgeted output is
8 1 termed as budget. Labour
9 1 Production Budget is expressed in . Quantity
10 1 Flexible budget is useful for . Control
Budget defines of a concerned Responsibility
12 1 Flexible budgets are useful for Planning purpose only
13 1 A budget is expressed in . Financial terms only
Which of the budget is prepared for a long Production budget
14 1 period of time
15 1 A budget is prepared for . One year
16 1 Budget period depends on Type of budget
Variance means the difference The actual and the standard
The object of budgetory control is Planning
When preparing a production budget, the
quantity to be produced equals to Sales quantity + closing stoc
Of the four costs shown below which would Depreciation of the fixed as:
20 1 not be included in the cash budget ? P
Following is the essence of budgetary Well defined objectives
22 1 Performance of any organization depends on factors
23 1 Sales budget shows . Estimate of future sales
24 1 Capital expenditure budget is . A budget for long term inve
25 1 The budget which is dynamic is . Fixed budget
26 1 Production cost budget shows . Budgeted cost of production
27 1 ZBB stands for . Zero based budgeting
budget is calculated from the
desired ending inventory and the
Budget is a Budget of income
or expenditure appropriate to, or the Functional
29 1 responsibility of, a particular function
CIMA has defined Factor as - "A
factor which at any time or over a period, may K
limit the activity of an entity often one where
there is shortage or difficulty of supply."
31 2 Marginal cost is . Variable cost
34 2 Contribution is the test of . Profitability
ratio shows relationship between P/V
35 2 contribution and sales
BEP is the point at which there is profit
Sales and fixed cost
39 2 is sales less BE sales. Decreases BEP
41 in variable cost increases contribution. Increase
in selling price increases contribution. Lowers the net profit
is the excess of actual sales over Break
Increase in selling price brings down the Exceed
Variable cost varies in direct proportion to
Fixed cost remains irrespective of
46 upto the limit. Constant, Output, Capacity
the margin of safety greater is the,,
47 scope for granting concessions to customers
In no case the concession should the Exceed
48 2 margin of safety
49 2 Contribution margin is known as . Marginal income
50 Break-even analysis may be described as Comparison between sales a
51 2 An increase in sales price . Does not affect the break-ev
52 2 A decrease in sale price . Does not affect the break-ev
53 Fixed cost per unit decreases when . Production volume increase:
54 2 Margin of safety is referred to as Excess of sales over break-e
To obtain break-even point in rupees,
55 2 cost is divided by Variable cost per unit
At break-even point, the contribution margin Variable cost
Under marginal costing, marginal cost is equal Fixed cost + variable cost
Under marginal costing, cost is classified on Function
58 2 the basis of
59 Contribution margin is equal to . Fixed cost + variable cost
61 2 Margin of safety is . Sales — contribution
62 P/V ratio will increase if there is . An increase in fixed cost
Contribution is the difference between Sales and Variable cost
64 2 Period cost is . Fixed cost
Valuation of stock in marginal costing is done Total cost
66 2 Variable cost per unit . Increases with increase in pr
67 2 Variable cost depends on . Production
Ratio is improved by _ reducing Variable Cost
69 The following is not a fixed cost . Property tax
70 2 Telephone charges is a . Fixed cost
71 2 Increase in fixed cost . Increases BEP
72 2 BEP in units is equal to . Contribution/Sales
73 2 Contribution is . Sales — Variable Cost
74 2 Decrease in variable cost . Decreases the BEP
75 2 Decrease in selling price . Increases the BEP
76 2 Increase in selling price . Increase contribution
77 2 P/V Ratio is improved by . Reducing fixed cost
78 2 M/s is expressed as . Profit P/V ratio
CVP (Cost-Volume-Profit) Analysis required Fixed or Variable Cost
cost to be recognied as
The Sales volume in value requied to earn the Target Profit Contribution
target Profit, the formula is
In Make or Buy decision only 1S Marginal Cost
82 3 Cost incurred in the past is . Historical Cost
The most profitable sales mix is one
In case of limiting factor, contribution should
be calculated in terms of
Selection of most profitable alternative is Variable cost
Measurable value of an alternative use of
A cost incurred in the past and hence
irrelevant for current decisions making is Fixed cost
In a decision situation which one is the cost
not likely to contain variable cost Material
The decision maker should consider, in case Sales
89 3 of limiting, factor to maximize the profit
A cost that cannot be changed by any decision Sunk cost
90 3 made now is
cost is the value of the alternatives
foregone by adopting a particular strategy or Opportunity cost
91 3 employing resources in specific manner
cost is the hypothetical or notional
cost not involving any actual cash payment
computed only for the purpose of decision- Opportunity cost
cost is the historical cost which is
incurred in the past, and not relevant to the Sunk cost
decision required to be made by the
93 3 management at present
cost which cannot be influenced by O
94 3 the concerned cost centre. Pportunity cost
cost which under given conditions of
performance efficiency should not have been Avoidable cost
cost are inescapable costs which are
essentially to be incurred, within the limits or Unavoidable cost
96 3 norms provided for
cost is the change in cost due to Direct
97 3 change in activity from one level to another
98 3 In make or buy decision . Marginal cost and
In Make or Buy decision only marginal cost is Relevant
100 3 BEP stands for Break Even Point
101 4 Labour time variance is . (Standard rate - Actual rate
102 4 Difference between standard cost and actual ccVariance
103 4 Which of the following is not a reason for an i Wage rate increase
104 4 Job requires 12,000 actual labour hours for coiRs. 19,200
105 4 Excess of actual cost over standard cost isa Favourable Varinace
106 4 Material cost variance is non controllable whe Change in quantity
107 4 Fixed overhead efficiency variance is a diffe overheads - Stan
108 4 Variable overhead variance is . Standard cost - actual cost
109 4 Material Yield variance arises due to change Wastage
110 4 Labour rate variance is favourable Actual rate is lower than sta
111 4 Material cost variance is favourable Actual cost of material is m
112 4 Material mix variance is a difference betwee SMC - AMC
113 4 Material cost variance is equal to MPV + MUV
114 4 The manger is responsible for idle time varia Production manager
115 4 Fixed overheads calendar variance arises due Change in the number of wo
116 4 Sale value variance is . SPV
117 4 Idle time variance is caused due to Power Failure
119 4 Purchase manager is responsible for Efficient buyer
120 4 Sales volume variance is . SQV + SMV
122 4 Favourable labour efficiency variance indicat Improvement in labour effic
123 4 The objective of standard costing Determine profitability of a
124 4 An estimate of what cost should be is known Actual cost
125 4 If standard cost is lower than the actual cost, Favourable
126 4 The difference between the actual quantity anc Material cost variance
127 4 The cost of product as determined under stand Fixed cost
128 4 When the variance is due to the difference bet Volume variance
129 4 Which of the following is the purpose of stand: To determine profit at diffe:
131 4 A standard cost system may be Job order costing but not pr
132 4 What standard is based on the assumptions of Ideal standard
133 4 The standard cost card contains quantities and Direct material only
134 4 The term "standard hours allowed" measures Budgeted output at actual h
135 4 Which of the following is not a type of standar Ideal standard
136 4 The amount of work achievable in an hour, at An Ideal standard
137 4 Which of the following best describes a basic A standard set at an idea
138 4 A total cost variance is best defined as the Total standard cost for the
139 4 The difference between the actual price and the Materials cost variance
140 4 Which of the following is correct with regard t Materials Price Variance: Y
141 4 The labour rate variance is computed as (Actual labour hours worke
142 4 What is the primary benefit of a standard costi It records costs at what shou
143 4 While evaluating deviations of actual cost from Regression analysis
144 4 The labour cost variance may be expressed as_ Budgeted labour cost - Actt
145 4 The standard hourly rate was * 1.40. The actua 6,000
146 4 is used wile computing all MActual quantiy
147 4 Which of the following best describe a basic st A standard set at an ideal
148 4 If the actual number of labour hours worked is An unfavourable labour rate
149 4 What term can be defined as a means of analysis
150 4 Fixed overhead calendar variance arises due to Week
Some Organisation Small Organisation None of the above a
Budgeted cost of production Budgeted cost of sales Control a
Planning, performance evaluatControl of performance only Performance only b
Quantitative terms only Both financial and quantitative teFinancial and or quantitat d
Management policy Government policy State Policy b
The standard and the actual Bothaandb None of the above c
Office salaries Commission paid to the agents Capital cost of a new contri a
Estimate of future production Estimate of inventory Estimate of purchases a
A budget for short term invest A budget for future expenditure A budget for personal expe a
Budgeted cost of sales Budgeted purchases Budgeted capacity a
Fixed Cost Prime Cost None of the above a
Variable Cost Fixed Cost All of the above a
Fixed Cost Prime Cost All of the above a
Margin of Safety Sales and Variable cost All of the above a
No, No Input, Output Icrease, Decrease b
P/V Ratio Sales and Variable cost Sales & Direct cost b
Fixed Cost Variable Cost All of the above b
Margin of Safety Increases BEP All of the above b
Sales X Margin of Safety Sales X P/V Ratio P/V ratio X Break Even Sa d
Lowers the net profit Decrease Higher the net profit
Decrease Increase Higher the net profit
Increases BEP Margin of Safety Contibution
Margin of Safety Output BES
Input, Output, Capacity Prime Cost, Fixed Cost, VariableNone of the above a
Comparison between between fixed cost aComparison to make out ca a
Lowers the net profit Increases the break-even point Lowers the break-even poi d
Lowers the net profit Increases the break-even point Lowers the break-even poi c
Excess of sales over fixed costExcess of sales over variable cos'Excess of sales over budge a
Varies per unit Remains fixed per unit None of these c
a decrease in fixed cost A decrease in variable cost per wA decrease in selling price c
Sales and fixed cost Sales and Total cost Factory cost and profit a
Decreases with decrease in prcRemains constant with change inChanges with change in
Fixed Cost Both a and b None of the above a
Insurance premium Power None of the above c
Decreases BEP Maintains the same BEP Lessen BEP a
Increases the BEP Decreases P/V ratio Increases P/V ratio a
Decreases the BEP Does not affect BEP Increases th sale a
Decreases contribution Decreases fixed cost Increases the fixed cost a
Actual sales — BES Both a and b none of the above c
Direct or Indirect Product or Period Standard or Actual a
Total cost and purchase price Fixed cost & marginal cost cost should be consi a
Machine breakdown Illness or injury to worker Non availability of worker a
Change in wastage Change in tax rate Change in quality
Actual time is less than standa Actual rate is higher than standa Actual time is more than st a
Standard cost of material is m Actual quantity of material is mc None of the above b
Change in the labour hours in output Change in input a
Change in quantity Change in efficiency wastages a
Improvement in quality Cost reduction Improvement in a
Determine break even produc Control costs Allocate costs with more a a
To determine break even procTo control costs To allocate cost with more c
Process costing , but not job c Either job order costing or proceNeither job order nor proce c
Direct labour only Direct material and Direct labour Direct material, Direct la d
Budgeted output at standard hActual output at standard hours Actual output at actual hou
The direct labour usage per ho A standard hour The direct labour efficienc c
A standard which assumes anA standard which is kept unchan;A standard which is based d
Total standard cost for the standard cost value of output The standard cost value oi d
Materials Price Variance: Yes Materials Price Variance: No; M Materials Price Variance: d
It allows for a comparison of It is easy to implement It is inexpensive and easy t b
A standard which assumes an A standard which is kept unchan A standard which is based