1.A company has fixed costs of Rs. 50,000 and variable costs per unit of output of Rs. 8.

If
its sole product sells for Rs. 18, what is the break-even quantity of output?

Select one:
a. 5000
b. 300
c. 5500
d. 3000

2. __________ contains the picture of total plans during the budget period and it
comprises information relating to sales, profit, cost, production etc.

Select one:
a. Cost Budget
b. None Of The Above
c. Functional Budget
d. Master Budget

3. Which of the following is one of the two approaches used to analyze data in the
decision to keep or discontinue a segment?

Select one:
a. Comparing Gross Margin And Variable Costs
b. Comparing Contribution Margins And Fixed Costs
c. Comparing Contribution Margins And Variable Costs
d. Comparing Total Contribution Margin Under Each Alternative

4. Costs that do not change when the activity base fluctuates are known as?

Select one:
a. Sunk Cost
b. Variable Cost
c. Fixed Costs
d. Incremental Cost
 5. A shop sells wedding dresses. The cost of each dress is comprised of the following:
Selling price of Rs.1,000 and variable (flexible) costs of Rs.400. Total fixed (capacity-
related) cost for Shop is Rs.90,000. What is the contribution margin per dress?

Select one:
a. 60
b. 6000
c. 600
d. 6600

6. As per CVP analysis, estimated sales for desired profit (in amount)
is____________________?

Select one:
a. Fc+ Profit/Contribution Margin Per Unit
b. Vc+ Profit/Contribution Margin Ratio
c. Vc+ Profit/Contribution Margin
d. Fc+ Profit/Contribution Margin Ratio

7. XY ltd. uses activity-based costing for Product M and Product N. The total estimated
overhead cost for the parts administration activity pool was Rs.7,50,000 and the
expected activity was 3000 part types. If Product N requires 1400 part types, the
amount of overhead allocated to product N for parts administration would be:

Select one:
a. Rs. 350000
b. Rs. 300000
c. Rs. 330000
d. Rs. 340000

8. Which of the following is a limitation of activity-based costing?

Select one:
a. To Estimate All Overhead Costs, Not Just Factory Overheads.
b. To Estimate Costs In Service Costing As In Product Costing.
c. The Benefits Obtained From Abc Might Not Justify The Costs.
d. To Estimate A More Precise Cost Per Unit.
 9. As per ABC cost categorizations, direct materials and direct labour are categorised
as__________

Select one:
a. Product-Level Costs.
b. Facility-Level Costs.
c. Batch Level Costs.
d. Unit-Level Costs.

10. The examples of GHG gases are_____

Select one:
a. Co2, Co And Methane
b. O2, Co2 And Co
c. Co2 And H2
d. O2 And Co2

11. ABC helps managers make improved _________

Select one:
a. Inventory Estimations
b. All Of The Above
c. Pricing Decisions
d. Profitability Decisions

12. Where key factor is present, from available alternatives, best project must be
selected on the basis of

Select one:
a. Contribution Per Key Factor
b. Pv Ratio
c. Contribution Per Unit
d. Bep
 13. Which of the following is not a Material control technique?

Select one:
a. Ved Analysis
b. Maintaining Stores Ledger & Bin Card
c. Abc Analysis
d. Stock Level

14. Shut down cost is:

Select one:
a. Avoidable Variable Cost
b. Unavoidable Fixed Cost
c. Avoidable Fixed Cost
d. Unavoidable Variable Cost.

15. Given sales = Rs.1,50,000, Fixed costs = Rs.30,000, Profit =Rs. 40,000. The variable
cost is Rs………….

Select one:
a. 120000
b. 10000
c. 80000
d. 110000

16. The scare factors are also known as

Select one:
a. Linking Factor
b. Key Factor
c. Abnormal Factor
d. None Of The Above

17. When fixed cost is deducted from contribution, the balance will be--------

Select one:
a. Total Cost
b. Variable Cost
c. Sales
d. Profit

18. If actual units produced are lower than the budgeted level of production which of
the following types of cost would you expect to be lower than the budget?

Select one:
a. Variable Costs Per Unit
b. Total Variable Costs
c. None Of Above
d. Total Fixed Costs

19. _______ is designed after assessment of the volume of output to be produced during
budget period.

Select one:
a. Production Budget
b. None Of The Above
c. Sales Budget
d. Cost Budget

20. The process of material handling involves:

Select one:
a. All Of The Above.
b. Storage Of Material
c. Issue Of Material
d. Purchase & Receipts.

21. Minimum level of stock is computed as:

Select one:
a. Average Daily Usage * Lead Time Under Emergency Situations
b. Maximum Consumption* Maximum Lead Time
c. Re-Order Level – (Average Usage * Average Lead Time)
d. Re-Order Level + Re-Order Quantity – (Minimum Usage * Minimum Lead Time)

22. Activity-based costing will provide better accuracy when allocating costs than a
manufacturer's machine hours when its products and customers are __________
diversified.

Select one:
a. More
b. Less
c. Equally
d. Not Sufficient Information

23. Overhead allocation by using ABC mostly leads to__

Select one:
a. Needs A Predetermined Overhead Rate
b. Provides The Results Same As Traditional Costing
c. Changes Overhead Costs From High-Volume Products To Low-Volume Products
d. Changes Overhead Costs From Low-Volume Products To High-Volume Products

24. Expenses in the form of salary, wages, fringe benefits, and other repeatitive
expenses are classified as______ as per Historical Cost Model of HRA

Select one:
a. Revenue Expense
b. Assets
c. Liabilitities
d. Capital Expense

25. _______ is prepared for single level of activity and single set of business conditions.

Select one:
a. Fixed Budget
b. Flexible Budget
c. Both A And B
d. None Of The Above

26. A company's telephone bill consisting of a Rs. 200 monthly base amount, plus long
distance charges, would be classified as a?

Select one:
a. Variable Cost
b. Mixed Cost
c. Incremental Cost
d. Fixed Costs

27. While preparing sales budget, which of the following factors are considered?

Select one:
a. Both Option 1 & 2
b. Environmental Factors
c. None Of The Above
d. Non-Operational Factors

28. ________ is the first step of budgetary system and all other budgets depends on it.
Select one:
a. None Of The Above
b. Production Budget
c. Sales Budget
d. Cost Budget

29. What is the essential idea of costing concept?

Select one:
a. Corporate Social Responsibility
b. Cost Ascertainment.
c. Financial Audit
d. Tax Compliance.

31. Which of the following is not a material pricing method?

Select one:
a. Ved Analysis
b. Weighted Average
c. Lifo
d. Fifo
 32. A mechanized firm produces Product X, Royalty paid on sales is Rs45,000 and design
charges paid for the product is Rs3500. Compute the
Direct Expenses for the firm.
Select one:
a. 48500
b. 45000
c. Insufficient Information
d. 41500

33. The break-even point can be defined as?

Select one:
a. The Level Of Activity Where Cash Flow Is Zero
b. The Level Of Activity At Which There Is Neither Profit Nor Loss
c. The Level Of Activity Where Variable Costs Are Covered By Sales Revenue
d. The Level Of Activity Where Profits Equal Fixed Costs

34. Output and sales 50,000 units with sale price of Rs. 15/unit. Material & Labour cost per unit
Rs.7 & Variable Rs. 3/unit. Fixed Rs. 70,000 & Other fixed overheads Rs. 90,000. Calculate
Net income under Marginal costing?
Select one:
a. Rs. 99,000
b. Rs. 90,000
c. Rs. 2,50,000
d. Rs. 1,10,000

35. Key factor is also called as:

Select one:
a. All Of These.
b. Limiting Factor
c. Restricting Factors
d. Governing Factors

36. When should a segment be dropped?

Select one:
a. Only When The Decrease In Total Contribution Margin Is Equal To Fixed Cost
b. Only When The Decrease In Total Contribution Margin Is Less Than The Decrease In Fixed Cost
c. Only When The Decrease In Total Contribution Margin Is More Than The Decrease In Variable
Cost
d. Only When The Decrease In Total Contribution Margin Is Less Than The Decrease In Variable
Cost

37. ___________was signed in 2005 between 41 countries to control the GHG emission
Select one:
a. Kyoto Protocol
b. Basel Accord
c. Non Proliferation Agreement
d. Gatt

38. Marginal cost is the aggregate of prime cost and -----------------

Select one:
a. Fixed Overheads
b. Work Cost
c. Variable Overheads
d. Contribution
43. Abacus Company uses activity-based costing and has the following activity cost pools and
estimated overhead cost for each pool: Machine
related Rs3,00,000 Handling material Rs.2,60,000 Processing purchase orders Rs.7,50,000 General
factory Rs.6,00,000 The amount of total
estimated overhead is:
Select one:
a. 18,10,000
b. 18,20,000
c. 19,12,000
d. 19,10,000

44. The Countries which have signed Kyoto Protocol are called_____
Select one:
a. Green Countries
b. Annexured Countries
c. Developed Countries
d. Non Annexured Countries

45. The cost which can not be carried forward to next accounting period is called
Select one:
a. Absorbed Cost
b. Expired Cost
c. Unexpired Cost
d. Accrued Cost

46. While making make or buy decision under marginal costing, external purchase price of
the articles must be compared with:
Select one:
a. Its Variable Cost
b. Its Fixed Cost
c. Its Total Cost
d. Its Prime Cost

47. ___________ method of HRA recognizes an individual’s expected economic value to the
enterprise during his remaining service
period.
Select one:
a. The Historical Cost Approach
b. Present Value Of Future Earnings Method
c. The Opportunity Cost Approach
d. The Replacement Cost Approach

48. When sales are Rs.30000 and P/V ratio is 20% then contribution will be--------
Select one:
a. 2000
b. 4000
c. 6000
d. 8000

49. The cost which can be carried forward to next accounting period as part of inventory cost
is called
Select one:
a. Accrued Cost
b. Unexpired Cost
c. Absorbed Cost
d. Expired Cost

50. A budgeting process which demands each manager to justify his entire budget in detail
from beginning is
Select one:
a. Functional Budget
b. Functional Budget
c. None Of The Above
d. Zero Base Budgeting

51. ________ cost is the traceable cost for a particular product

Select one:
a. Differential
b. Variable
c. Indirect
d. Direct

52. Cost of any finished product can be calculated on the basis of

Select one:
a. All The Above
b. Salary Paid To The Employees
c. Tax Paid On The Final Product
d. Cost Of Material

53. An increase in the variable cost-----------

Select one:
a. Decreases Pv Ratio
b. Increases Pv Ratio
c. Increases Profit
d. Increases Contribution