Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Management Accounting Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email Area Pin Code 1. Responsibility accounting is a system of accounting that segments an organization into: Departments Responsibility centers Profit centers only Divisions None 2. Which of the following is NOT a type of responsibility center? Cost Center Revenue Center Liability Center Profit Center None 3. A profit center is responsible for: Only revenues Only costs Both revenues and costs Capital budgeting None 4. Transfer pricing is used for: Setting prices for external customers Determining internal transfer of goods/services Government tax calculations Reducing external competition None 5. Which transfer pricing method is based on market prices? Cost-based pricing Negotiated pricing Market-based pricing Arbitrary pricing None 6. Net working capital is defined as: Current liabilities - Current assets Current assets - Current liabilities Total assets - Total liabilities Fixed assets - Current liabilities None 7. Which of the following is NOT a component of working capital? Accounts receivable Inventory Plant and machinery Accounts payable None 8. Working capital management focuses on managing: Long-term investments Short-term assets and liabilities Shareholder equity Tax obligations None 9. Which working capital policy maintains a high level of current assets? Aggressive policy Conservative policy Moderate policy Static policy None 10. A higher inventory turnover ratio indicates: Slow-moving inventory Efficient inventory management High capital investment in inventory Lower demand for products None 11. Fixed costs remain constant: Per unit In total Per unit and in total Only when production is zero None 12. Which of the following is an example of a variable cost? Rent of factory building Electricity cost based on production Depreciation on machinery Salaries of managers None 13. Activity-Based Costing (ABC) assigns costs based on: Direct labor hours Machine hours Activities that drive costs Sales volume None 14. In ABC, cost drivers are used to: Allocate overheads Reduce production costs Eliminate fixed costs Increase sales None 15. Which cost behavior pattern remains constant per unit but changes in total? Fixed cost Variable cost Semi-variable cost Overhead cost None 16. Which ratio measures the profitability of a firm? Debt-Equity Ratio Current Ratio Gross Profit Ratio Quick Ratio None 17. Return on Equity (ROE) is calculated as: Net Profit / Total Assets Net Profit / Owner’s Equity Net Profit / Sales Gross Profit / Total Equity None 18. Which ratio helps assess a company’s short-term liquidity? Debt Ratio Quick Ratio Profitability Ratio Earnings Per Share None 19. Earnings Per Share (EPS) is a measure of: Liquidity Solvency Profitability Efficiency None 20. A higher inventory turnover ratio indicates: High inventory holding costs Slow-moving stock Efficient inventory management Higher fixed costs None 21. Cash Flow Statement provides information on: Revenue and Expenses Cash Inflows and Outflows Financial Position Profit Distribution None 22. Which activity is NOT part of the Cash Flow Statement? Operating Activities Investing Activities Financing Activities Accounting Activities None 23. Fund Flow Statement analyzes: Cash Transactions Changes in Working Capital Profit & Loss Budgeting Process None 24. Depreciation is included in Cash Flow Statements under: Operating Activities Investing Activities Financing Activities Not included None 25. Working Capital changes affect which section of the Cash Flow Statement? Operating Activities Investing Activities Financing Activities None of the above None 26. Break-even analysis helps in: Determining fixed costs Setting selling prices Decision-making regarding production levels Identifying tax liabilities None 27. Which cost is considered in make-or-buy decisions? Sunk Cost Opportunity Cost Depreciation Accounting Profit None 28. A higher Margin of Safety means: Higher risk Higher profits Lower break-even sales More fixed costs None 29. The Profit-Volume (P/V) ratio is calculated as: Contribution / Sales × 100 Sales / Fixed Costs × 100 Gross Profit / Sales × 100 Net Profit / Sales × 100 None 30. Variable cost per unit remains: Constant Increases with volume Decreases with volume Unpredictable None 31. Which type of budget changes with the level of activity? Fixed Budget Flexible Budget Master Budget Zero-Based Budget None 32. A budget is: A plan expressed in financial terms A method for cost control A decision-making tool All of the above None 33. The Cash Budget is used to: Determine profit Plan cash inflows and outflows Calculate capital investments Control long-term liabilities None 34. A master budget includes: Only the Production Budget Only Financial Budgets Summary of All Functional Budgets Overhead Budgets Only None 35. Zero-based budgeting (ZBB) requires: Incremental adjustments Justification for every expense Only fixed costs to be reviewed No changes from the previous budget None 36. Standard costing is mainly used for: Controlling costs Reducing selling prices Preparing financial statements Tax planning None 37. Which variance measures the difference between actual and standard cost of materials? Labor Variance Material Cost Variance Overhead Variance Sales Variance None 38. Overhead variances are classified into: Fixed and variable overhead variances Direct and indirect overhead variances Labor and material variances None of the above None 39. Labor efficiency variance is caused by: Change in Wage Rate Efficiency of Workers Idle Time Both b and c None 40. Sales volume variance is calculated using: (Actual Sales Volume – Budgeted Sales Volume) × Standard Selling Price Actual Sales × Standard Selling Price (Actual Cost – Standard Cost) × Actual Sales Budgeted Sales × Standard Cost None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
