Cost and Managerial Accounting MCQS With Answers 131 to 140

 

Cost and Managerial Accounting

131. In case of rising prices (inflation), LIFO will:

1. provide lowest value of closing stock and profit
2. provide highest value of closing stock and profit
3. provide highest value of closing stock but lowest value of profit
4. provide highest value of profit but lowest value of closing stock

Correct answer: (A)
provide lowest value of closing stock and profit

132. Capital gearing ratio is ______________.

1. Market test ratio
2. Long-term solvency ratio
3. Liquid ratio
4. urnover ratio

Correct answer: (B)
Long-term solvency ratio

133. A transport company is running five buses between two towns, which are 50 kms apart. Seating capacity of each bus is 50 passengers. Actually passengers carried by each bus were 75% of seating capacity. All buses ran on all days of the month. Each bus made one round trip per day. Passenger kms are:

1. 2,81,250
2. 1,87,500
3. 5,62,500
4. None of the above

Correct answer: (C)
5,62,500

134. ______________ is a summary of all functional budgets in a capsule form.

1. Functional Budget
2. Master Budget
3. Long Period Budget
4. Flexible Budget

Correct answer: (B)
Master Budget

135. CA Co manufactures a single product and has drawn up the following flexed budget for the year.

	60%	70%	80%
	Rs	Rs	Rs
Direct materials	120,000	140,000	160,000
Direct labour	90,000	105,000	120,000
Production overheads	54,000	58,000	62,000
Other overheads	40,000	40,000	40,000
Total Cost	304,000	343,000	382,000
What would be the total cost in a budget that is prepared at the 77% level of activity?

1. Rs 330,300
2. Rs 370,300
3. Rs 373,300
4. Rs 377,300

Correct answer: (B)
Rs 370,300

136. ______________ provides information for income determination.

1. Financial accounting
2. cost accounting
3. management accounting
4. none of these

Correct answer: (A)
Financial accounting

137. ______________ includes financial and cost accounting, tax planning and tax accounting.

1. Financial accounting
2. cost accounting
3. management accounting
4. none of these

Correct answer: (C)
management accounting

138. ______________ costing is a type or technique of costing.

1. Marginal
2. batch
3. multiple
4. job

Correct answer: (A)
Marginal

139. Cost Accountancy is the science, art and ______________ of a cost accountant.

1. Practice
2. exercise
3. hard work
4. effort

Correct answer: (A)
Practice

140. Cost accounting records both monetary and ______________ units.

1. Physical
2. cost
3. both a & b
4. none of these.

Correct answer: (A)
Physical