Description : In context of net operating profit, which of the following statements are true? A. If all costs are variable, the amount of profit obtained in marginal costing and absorption costing will be same. B. If ... same in absorption costing and marginal costing. C. Both a and b D. None of the above
Last Answer : C. Both a and b
Description : While computation of profit in marginal costing A. Total marginal cost is deducted from total sales revenues B. Total marginal cost is added to total sales revenues C. Fixed cost is added to contribution D. None of the above
Last Answer : A. Total marginal cost is deducted from total sales revenues
Description : Profit-Volume ratio is also known as A. Contribution ratio B. Contribution/Sales ratio C. Marginal Income percentage D. All of the above
Last Answer : D. All of the above
Description : Opportunity cost helps in: A. Ascertainment of cost B. Controlling cost C. Making managerial decisions D. Fixing selling price
Last Answer : C. Making managerial decisions
Description : Under the _____________, both internal and external corporate governance mechanisms are intended to induce managerial actions that maximize profit and A. shareholder value. B. Shareholder theory. C. Agency theory. D. Stakeholder theory. E. Corporate governance theory
Last Answer : A. shareholder value.
Description : ___________ is not suitable where selling price is determined on the basis of cost-plus method. A. Absorption costing B. Marginal costing C. Both a and b D. None of the above
Last Answer : B. Marginal costing
Description : Absorption costing is also known as A. Historical costing B. Total costing C. Both a and b D. None of the above
Description : Total managerial remuneration cannot exceed ____% of net profit A. 11 B. 12 C. 13 D. 14
Last Answer : A. 11
Description : Which of the following statements are true? A. Contribution doesn’t include fixed cost whereas profit includes fixed cost. B. Contribution is not based on the concept of marginal cost. C. Contribution above breakeven point becomes profit. D. All of the above
Last Answer : C. Contribution above breakeven point becomes profit.
Description : Technique helps the manager in taking various important decisions. a) Standard costing b) marginal costing c) absorption costing d) Budgeting costing
Last Answer : b) marginal costing
Description : When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as A. Accounting ratio B. Financial ratio C. Costing ratio D. None of the above
Last Answer : A. Accounting ratio
Description : Which of the following are characteristics of B.E.P? A. There is no loss and no profit to the firm. B. Total revenue is equal to total cost. C. Contribution is equal to fixed cost. D. All of the above.
Last Answer : D. All of the above.
Description : When contribution is positive but equal to fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. There will be neither profit not loss
Last Answer : D. There will be neither profit not loss
Description : Which of the following statements related to Contribution Analysis are ture? A. If contribution is zero, there is loss equal to fixed costs B. If contribution is negative, loss is less than fixed costs ... contribution is positive and more than fixed cost there will be profit. D. All of the above
Last Answer : A. If contribution is zero, there is loss equal to fixed costs
Description : Contribution margin center is also known as A. Expense center B. Profit center C. Investment center D. All of the above
Last Answer : B. Profit center
Description : Which of the following statements are true? A. P/V Ratio can never be used to measure break-even point B. Higher the P/V ratio less will be the profit and vice versa C. Concept of P/V ratio is also used to determine profit at a given volume of sales D. All of the above
Last Answer : C. Concept of P/V ratio is also used to determine profit at a given volume of sales
Description : The factor which limits the volume of output of different products of an understanding at a particular point of time is known as… A. Key factor B. BEP C. Contribution D. None
Last Answer : A. Key factor
Description : AOA is a A. Public document B. Managerial document C. Private document D. Internal document
Last Answer : D. Internal document
Description : Managers utilizes marginal costing for A. Make or buy decision B. Utilization of additional capacity C. Determination of dumping price D. All of the above
Description : Which of the following statements are true? (a) Marginal costing is not an independent system of costing. (b) In marginal costing all elements of cost are divided into fixed and variable components. (c) In marginal costing fixed ... cost analysis. A. A and B B. B and C C. A and D D. B and D
Last Answer : A. A and B
Description : Marginal costing is also known as A. Direct costing B. Variable costing C. Both a and b D. None of the above
Description : Management accountancy is a structure for A. Costing B. Accounting C. Decision maki
Last Answer : C. Decision maki
Description : Which of the following are tools of management accounting? (i) Decision accounting (ii) Standard costing (iii) Budgetary control (iv) Human Resources Accounting A. (i), (ii) and (iii) B. (i), (iii) and (iv) C. (i),(ii) and (iii) D. (i), (ii), (iii), (iv)
Last Answer : C. (i),(ii) and (iii)
Description : Determine Contribution if Sales is Rs 1,50,000 and P/V ratio is 40%. A. Rs 60,000 B. Rs 70,000 C. Rs 30,000 D. None of the above
Last Answer : A. Rs 60,000
Description : Joseph bought two varieties of rice, costing 5 cents per ounce and 6 cents per ounce each, and mixed them in some ratio. Then he sold the mixture at 7 cents per ounce, making a profit of 20 percent. What was the ratio of the mixture? A) 1:10 B) 1:5 C) 2:7 D) 3:8 E) NONE
Last Answer : Answer: B 1) 20% profit at the price of 7 cents means that cost of the mixture should be 70/12 cents per ounce (7 = 120% and x = 100% => x = 7*100/120) 2) Let the amount of 5 cent rice will be x and the amount ... which as we know should equal to 70/12 3) (5x + 6y)/(x + y) = 70/12 => x/y = 1/5
Description : In what ratio must a person mix three kinds of musted seeds costing Rs.65/kg, Rs.70/kg and Rs.105 /kg so that the resultant mixture when sold at Rs.96/kg yields a profit of 20%? a) 1:2:4 b) 3:7:6 c) 1:4:2 d)1:8:6 e) 40 : 8 : 25
Last Answer : E The resultant mixture is sold at a profit of 20% at Rs.96/kg i.e. 1.2 (cost) = Rs.96 => Cost = = Rs.80 / kg. Let the three varities be A, B, and C costing Rs.65, Rs.70 and Rs.105 respectively. The ... be mixed. A:C=4:5 B:C=2:5 The resultant ratio A : B : C :: 40 : 8 : 25.
Description : What does Strategy describe? A. The general direction in which an organization plans to move to attain its goals B. Framework for managerial decisions C. Leveraging strengths to gain competitive advantage D. All of these options
Last Answer : All of these options
Description : Business Policy is defined as the set of Managerial decisions and actions that determine the long run performance of a Corporation
Last Answer : True
Description : )Life Cycle Costing is a term that is: 1. used when making decisions between alternatives 2. employed principally by the government 3. typically used in the construction industry 4. not used within the government 5. A and B
Last Answer : 5. A and B
Description : Sales for desired profit is measured as A. (Fixed cost + profit)/ (P/V Ratio) B. (Fixed cost + profit) * (P/V Ratio) C. (Fixed cost - profit)/ (P/V Ratio) D. None of the above
Last Answer : A. (Fixed cost + profit)/ (P/V Ratio)
Description : Gross profit ratio is calculated by A. (Gross Profit/Gross sales)*100 B. (Gross Profit/Net sales)*100 C. (Net Profit/Gross sales)*100 D. None of the above
Last Answer : B. (Gross Profit/Net sales)*100
Description : Gross Profit ratio is also termed as A. Gross Profit Margin B. Gross Margin to net sales C. Both a and b D. All of the above
Description : Profit for the objective of calculating a ratio may be taken as A. Profit before tax but after interest B. Profit before interest and tax C. Profit after interest and tax D. All of the above
Description : Direct material cost + direct labor cost + other variable costs is equal to… A. Contribution B. Total cost C. Marginal cost D. Sales
Last Answer : A sales forecast is only......
Description : Contribution is also known as A. Contribution margin B. Net Margin C. Both a and b D. None of the above
Last Answer : A. Contribution margin
Description : When contribution is negative but less than fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. All of above are false
Last Answer : C. There will be loss less than fixed costs
Description : If you believe in making decisions for the good of most people, you can be described as following which school of thought? A. Utilitarianism B. Teleology C. Deontology D. Egoism
Last Answer : A. Utilitarianism
Description : Which statement correctly describes the relationship between philosophical ethics and ethos? (a) Individuals who obey the conventions, mores, and rules of their cultures are already acting ethically. No ... mores and customs of one's culture is a more dependable way to make moral decisions.
Last Answer : (b) Philosophical ethics distinguishes what people do value from what they should value. (c) What people do value and should value are, for all practical purposes, the same?
Description : How does CIMA support its members and students? A. Setting standards and disciplinary process B. Making decisions for them C. Offering helplines globally D. a and c
Last Answer : D. a and c
Description : Which statement correctly describes the relationship between philosophical ethics and ethos? A. Individuals who obey the conventions, mores, and rules of their cultures are already acting ethically. No further ... and customs of one's culture is a more dependable way to make moral decisions.
Last Answer : B. Philosophical ethics distinguishes what people do value from what they should value. C. What people do value and should value are, for all practical purposes, the same? D. Philosophical ethics is too abstract to be useful in everyday life situations. Following
Description : How does CIMA support its members and students? A. Setting standards and disciplinary process B. Making decisions for them C. Offering helplines globally D. A and C
Last Answer : D. A and C
Description : Sales promotions are thought to make consumer purchase decisions: A. less satisfying B. simpler C. more complex D. more satisfying
Last Answer : D. more satisfying
Description : The factors such as the buyer's age, life-cycle stage, occupation, economic situation, lifestyle, personality and self-concept that influences buyer's decisions refers to ... Personal characteristics B. Psychological characteristics C. Behavioral characteristics D. Demographical characteristics
Last Answer : D. Demographical characteristics
Description : Which of the following is not one of the major “product” variable decisions to be made by a retailer? A. Target market selection B. Product assortment decision C. Merchandising D. Store atmosphere decision
Last Answer : A. Target market selection
Description : The way in which the product is delivered to meet the customer’s need refers to: - A. New product concepts B. Selling C. Advertising D. Distribution decisions
Last Answer : C. Advertising
Description : The term "marketing mix" describes: A. A composite analysis of all environmental factors inside and outside the fir B. A series of business decisions that aid in selling a product ... strengths and its business weaknesses D. A blending of four strategic elements to satisfy specific target markets
Last Answer : D. A blending of four strategic elements to satisfy specific target markets
Description : To maximize market share, a firm may use _____________ pricing, which is based on the theory that as sales volume increases, unit costs will decrease. A. Market-penetration B. Market-skimming C. Value pricing D. Demand pricing E. Price bands
Last Answer : A. Market-penetration