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. Which of the following is NOT an element of cost? Material Labour Overheads Profit None 2. The technique of costing used to determine costs at different activity levels is: Standard Costing Marginal Costing Absorption Costing Uniform Costing None 3. Fixed costs per unit will: Remain constant with changes in production Decrease with an increase in production Increase with an increase in production Vary randomly None 4. Which costing method charges all costs, both fixed and variable, to products? Marginal Costing Absorption Costing Variable Costing Process Costing None 5. Overhead absorption is necessary to: Calculate direct cost Allocate indirect costs to cost units Reduce material cost Avoid fixed costs None 6. The most suitable costing technique for Make or Buy decisions is: Marginal Costing Absorption Costing Job Costing Process Costing None 7. Sunk costs are: Relevant for decision-making Irrelevant for decision-making Costs incurred in the future Always variable costs None 8. Opportunity cost is: An irrelevant cost for decision-making The benefit foregone from an alternative choice The variable cost in production Fixed cost per unit None 9. Which of the following is NOT considered while calculating Break-even Analysis? Fixed Costs Variable Costs Selling Price Tax Rate None 10. If the selling price is higher than the break-even price, the company will: Make a loss Make a profit Break-even Increase fixed costs None 11. The best measure of a company's profitability is: Gross Profit Margin Return on Capital Employed Inventory Turnover Ratio Current Ratio None 12. A high Debt-to-Equity Ratio indicates: High financial risk Low debt levels High liquidity Lower borrowing costs None 13. The Quick Ratio is also known as: Current Ratio Acid Test Ratio Inventory Turnover Ratio Debt-Equity Ratio None 14. Return on Investment (ROI) is calculated as: Net Profit / Net Sales Net Profit / Capital Employed Net Sales / Total Assets Current Assets / Current Liabilities None 15. A high Inventory Turnover Ratio indicates: Excess stock Efficient inventory management Poor working capital management High overhead costs None 16. The budget that provides details about capital expenditure is: Cash Budget Master Budget Capital Budget Sales Budget None 17. The Cash Budget helps in: Planning long-term investments Managing day-to-day liquidity needs Calculating gross profit Determining product pricing None 18. The Rolling Budget is: Updated continuously by adding new periods A static budget for fixed periods Prepared only for capital expenditure Not applicable for service industries None 19. The master budget is: A detailed departmental budget A summary budget incorporating all other budgets A sales forecast A production budget None 20. A Fixed Budget is useful when: Activity levels remain unchanged Costs are highly variable Production changes frequently The company has a high sales fluctuation None 21. The working capital cycle measures: The time taken to convert raw materials into cash The fixed asset turnover The long-term financial stability The return on investment None 22. Which of the following improves cash flow? Increasing inventory levels Delaying customer payments Faster collection from debtors Reducing creditor payment period None 23. Just-in-Time (JIT) inventory management helps in: Reducing holding costs Increasing stock levels Increasing production lead time Reducing sales revenue None 24. A low working capital turnover ratio indicates: Efficient working capital management Excess investment in current assets Higher sales revenue High profitability None 25. Factoring is mainly used to manage: Inventory Accounts receivable Cash flows Capital investments None 26. Kaizen costing focuses on: Continuous cost reduction Absorbing fixed costs One-time cost savings Increasing selling price None 27. Activity-Based Costing (ABC) is used to: Allocate overheads based on cost drivers Calculate only variable costs Determine standard costs Ignore fixed costs None 28. Which of the following is a cost reduction technique? Value Analysis Absorption Costing Process Costing Break-even Analysis None 29. A Balanced Scorecard is used for: Measuring overall business performance Controlling production costs Determining break-even point Setting budget limits None 30. Benchmarking is: A process of comparing with the best practices A process of comparing with the worst practices A process of comparing with the average practices None of the above None 31. Which financial statement provides information about cash inflows and outflows? Balance Sheet Cash Flow Statement Profit & Loss Statement Statement of Changes in Equity None 32. In Strategic Management Accounting, the focus is on: Historical cost data Future-oriented decision-making Tax compliance Only internal financial reporting None 33. The concept of Economic Value Added (EVA) is used to measure: Liquidity Shareholder wealth creation Inventory turnover Depreciation expenses None 34. A Balanced Scorecard includes which of the following perspectives? Financial, Customer, Internal Business Process, Learning & Growth Profit, Revenue, Cost, Market Share Economic, Social, Environmental, Political None of the above None 35. Which of the following is NOT a financial risk? Credit risk Liquidity risk Operational risk Market risk None 36. Standard costing is mainly used for: Financial accounting Performance measurement and cost control Preparing cash budgets Break-even analysis None 37. Which cost management technique focuses on eliminating non-value-adding activities? Activity-Based Costing (ABC) Absorption Costing Marginal Costing Process Costing None 38. The best method to evaluate a long-term investment decision is: Payback Period Net Present Value (NPV) Accounting Rate of Return (ARR) Operating Profit Ratio None 39. The Internal Rate of Return (IRR) is the discount rate at which: Net Present Value (NPV) is zero Future cash flows exceed initial investment Profit equals investment Total assets are maximized None 40. The Weighted Average Cost of Capital (WACC) is used to: Measure overall cost of financing a business Compute variable cost per unit Determine the break-even point Allocate costs to different departments 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. 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