Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Corporate and Economic Laws 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 State 1. Which of the following companies is NOT required to prepare a Cash Flow Statement? Listed public company Small company Private company with turnover above ₹50 crore Public company with net worth above ₹100 crore None 2. The statutory auditors of a company are appointed under which section of the Companies Act, 2013? Section 139 Section 148 Section 129 Section 166 None 3. Which committee is responsible for recommending corporate governance measures? Narasimham Committee Kotak Committee Basel Committee Satyam Committee None 4. Under the Companies Act, 2013, a listed company must have at least: 3 independent directors 2 independent directors 5 independent directors None 5. The tenure of an independent director is limited to a maximum of: 2 terms of 5 years each 3 terms of 5 years each 1 terms of 15 year 2 terms of 3 years each None 6. Which of the following requires approval via a Special Resolution? Appointment of statutory auditor Change in company name Declaration of interim dividend Board resolution for issuing debentures None 7. The quorum for a Board Meeting of a listed company is: 1/2 of total directors 1/3 of total directors or 2, whichever is higher 1/4 of total directors 2 members irrespective of the number of directors None 8. A company’s annual return must be signed by: Only the Company Secretary A Director and the Company Secretary Only the Managing Director Only an Independent Director None 9. Which of the following is NOT a feature of a One Person Company (OPC)? Only one shareholder No requirement for an Annual General Meeting No need to file financial statements Limited liability None 10. Which of the following is true regarding Buyback of Shares? It increases the number of outstanding shares It is allowed only for private companies It reduces the company’s paid-up capital It requires approval from the Competition Commission of India None 11. Under SEBI regulations, a company making an IPO must have net tangible assets of at least: ₹1 crore ₹3 crore ₹5 crore ₹10 crore None 12. Which of the following statements is true regarding insider trading? It is legal if done by promoters It is regulated under SEBI (Prohibition of Insider Trading) Regulations It is only applicable to public sector companies It is allowed if approved by shareholders None 13. The primary market is a market for: Buying and selling existing securities Issuing new securities Trading foreign exchange Commodity trading None 14. A company can raise funds from the public through: Private Placement Initial Public Offering (IPO) Rights Issue Both b and c None 15. SEBI’s main function is to regulate: Mutual Funds Stock Market Corporate Governance All of the above None 16. The Foreign Exchange Management Act (FEMA), 1999 replaced: SEBI Act, 1992 FERA, 1973 Banking Regulation Act, 1949 RBI Act, 1934 None 17. Under the Consumer Protection Act, 2019, a consumer complaint can be filed for: Defective goods Deficiency in services Unfair trade practices All of the above None 18. Which authority resolves competition disputes in India? SEBI Competition Commission of India (CCI) IRDAI RBI None 19. The maximum penalty for misleading advertisements under the Consumer Protection Act, 2019 is: ₹10 lakh ₹50 lakh ₹1 crore ₹2 crore None 20. Under the IBC, the minimum default amount for initiating CIRP is: ₹10 lakh ₹50 lakh ₹1 crore ₹2 crore None 21. The liquidator under IBC is appointed by: The Board of Directors The Committee of Creditors The MCA SEBI None 22. Which body hears appeals against CCI orders? National Consumer Disputes Redressal Commission National Company Law Appellate Tribunal (NCLAT) Securities Appellate Tribunal (SAT) RBI None 23. The primary objective of the Prevention of Money Laundering Act, 2002 is to: Regulate banking activities Prevent corruption in the stock market Combat money laundering and illegal transactions Promote foreign investment None 24. What is the full form of SARFAESI Act? Securities and Asset Reconstruction Fund Act Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act Stock and Reserve Financial Enforcement Act None of the above None 25. Which agency enforces the Prevention of Money Laundering Act? SEBI Enforcement Directorate (ED) CCI RBI None 26. Which document governs the internal management of a company? Memorandum of Association Articles of Association Prospectus Shareholders’ Agreement None 27. Which type of resolution is required to change the registered office of a company from one state to another? Ordinary Resolution Special Resolution Board Resolution Unanimous Resolution None 28. The maximum number of directors in a private company is: 10 12 15 Unlimited (subject to provisions) None 29. Which section of the Companies Act, 2013 deals with the powers of the Board of Directors? Section 149 Section 179 Section 133 Section 186 None 30. Which of the following is NOT an essential requirement for a valid contract under the Indian Contract Act, 1872? Offer and acceptance Lawful consideration Written agreement Competent parties None 31. Under FEMA, the term ‘Person Resident in India’ refers to a person who has stayed in India for at least: 120 days 180 days 240 days 365 days None 32. Which authority governs foreign direct investment (FDI) policy in India? RBI SEBI Department for Promotion of Industry and Internal Trade (DPIIT) Ministry of Finance None 33. Which of the following is NOT covered under the Consumer Protection Act, 2019? Goods Services Commercial contracts E-commerce transactions None 34. The Competition Act, 2002 prohibits: Insider trading Anti-competitive agreements Banking frauds Forex manipulation None 35. Who is responsible for approving a Corporate Resolution Plan under the Insolvency and Bankruptcy Code (IBC)? RBI SEBI Committee of Creditors (CoC) NCLT None 36. Which of the following is NOT a function of SEBI? Regulating the stock market Protecting investor interests Issuing currency notes Preventing insider trading None 37. A mutual fund is regulated under: SEBI Act, 1992 RBI Act, 1934 Companies Act, 2013 FEMA, 1999 None 38. A merchant banker is primarily involved in: Issuing loans Managing IPOs Regulating stock exchanges Providing insurance None 39. Which of the following is considered a financial derivative? Equity Share Bond Futures Contract Commercial Paper None 40. Which financial instrument has a fixed maturity and is issued by corporations for short-term financing? Debenture Commercial Paper Preference Share Mutual Fund Unit 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!
Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Corporate and Economic Laws 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 State 1. Which of the following is NOT a characteristic of a company? Perpetual succession Limited liability Unlimited liability of members Separate legal entity None 2. Under the Companies Act, 2013, the minimum number of members required for a public company is: 1 2 3 7 None 3. Which document defines the scope and activities of a company? Articles of Association Memorandum of Association Prospectus Board Resolution None 4. Which of the following is NOT a type of share capital? Authorized capital Subscribed capital Overdraft capital Issued capital None 5. The time limit for filing annual returns by a company is: 30 days 45 days 60 days 90 days None 6. The maximum number of directors in a private company is: 7 10 15 20 None 7. Which of the following companies must appoint a Company Secretary? Private company with paid-up capital of ₹5 crore Listed company Partnership firm Sole proprietorship None 8. Which of the following meetings is mandatory for every listed company? Board Meeting Annual General Meeting Extraordinary General Meeting Class Meeting None 9. The penalty for non-maintenance of proper books of accounts is prescribed under: Section 128 of the Companies Act, 2013 Section 177 of the Companies Act, 2013 Section 180 of the Companies Act, 2013 Section 92 of the Companies Act, 2013 None 10. Which regulatory body governs companies in India? SEBI RBI MCA IRDAI None 11. SEBI was established in which year? 1991 1996 1997 1988 None 12. Which of the following is NOT a function of SEBI? Regulating the stock market Approving company mergers Protecting investor interests Promoting fair practices in securities trading None 13. The primary function of a depository is to: Issue shares Hold securities electronically Regulate the banking sector Provide insurance None 14. Which of the following is NOT a type of corporate governance principle? Transparency Accountability Insider Trading Ethical Conduct None 15. SEBI regulates which market in India? Commodities market Stock market Banking sector Mutual funds only None 16. The Competition Act, 2002 aims to prevent: Unfair business practices Foreign trade Monopoly in the stock market Industrial licensing None 17. Who is the regulatory body under the Competition Act, 2002? SEBI IRDAI CCI RBI None 18. Which of the following is NOT an objective of FEMA, 1999? Regulating external trade Controlling domestic banking Facilitating foreign payments Promoting foreign investment None 19. Which act governs consumer protection in India? The Companies Act, 2013 The SEBI Act, 1992 The Consumer Protection Act, 2019 The Contract Act, 1872 None 20. What is the maximum penalty under the Competition Act, 2002? ₹10 lakh ₹50 lakh 10% of turnover ₹1 crore None 21. The Insolvency and Bankruptcy Code, 2016 applies to: Individuals only Companies only Both individuals and companies Banks only None 22. The time limit for corporate insolvency resolution process (CIRP) is: 180 days 270 days 330 days 1 year None 23. Who initiates the insolvency process in IBC? Shareholders Creditors Government SEBI None 24. NCLT stands for: National Company Law Tribunal National Capital Law Tribunal National Competition Law Tribunal None of the above None 25. Which of the following is NOT a stakeholder in IBC? Corporate debtor Financial creditors Shareholders Stock exchanges None 26. A private company must have a minimum of how many directors? 1 2 3 5 None 27. Which of the following is NOT a mode of winding up a company? Voluntary winding up Winding up by Tribunal Winding up by SEBI Summary winding up None 28. Who appoints the auditor of a company in the first Annual General Meeting? Board of Directors Shareholders SEBI RBI None 29. Which section of the Companies Act, 2013 deals with related party transactions? Section 188 Section 92 Section 135 Section 210 None 30. The Corporate Social Responsibility (CSR) provisions under the Companies Act, 2013 apply to companies with: Net profit of ₹5 crore or more Turnover of ₹100 crore or more Net worth of ₹500 crore or more All of the above None 31. Which law governs the regulation of foreign exchange in India? FEMA, 1999 FERA, 1973 RBI Act, 1934 SEBI Act, 1992 None 32. What is the full form of NBFC? National Banking and Finance Corporation Non-Banking Financial Company Non-Banking Fund Corporation National Bank for Financing Credit None 33. The Foreign Exchange Management Act (FEMA), 1999 is administered by: SEBI RBI MCA CCI None 34. Under the Consumer Protection Act, 2019, complaints can be filed in the National Commission if the claim amount exceeds: ₹10 crore ₹2 crore ₹5 crore ₹20 crore None 35. Which organization regulates the insurance sector in India? SEBI IRDAI RBI CCI None 36. Who appoints the Resolution Professional under IBC? NCLT Committee of Creditors (CoC) MCA RBI None 37. The moratorium period under IBC starts from: The date of application filing The date of CIRP initiation The date of admission of insolvency petition by NCLT The date of liquidation order None 38. Who can file an application for Corporate Insolvency Resolution Process (CIRP)? Financial creditors Operational creditors Corporate debtor All of the above None 39. SEBI regulates mutual funds under which set of regulations? SEBI (Listing Obligations and Disclosure Requirements) Regulations SEBI (Prohibition of Insider Trading) Regulations SEBI (Mutual Fund) Regulations SEBI (Substantial Acquisition of Shares) Regulations None 40. Which type of financial instrument represents ownership in a company? Bond Debenture Equity Share Commercial Paper 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!
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 State 1. The primary objective of cost control is to: Reduce costs without considering efficiency Maintain costs within budgeted limits Eliminate all fixed costs Increase selling price None 2. Cost reduction focuses on: Eliminating unnecessary costs permanently Temporary cost-cutting strategies Ignoring quality standards Reducing the selling price None 3. The technique used for cost reduction by analyzing product functions is: Marginal Costing Activity-Based Costing Value Analysis Life Cycle Costing None 4. A Kaizen costing approach emphasizes: Continuous and incremental cost reduction One-time cost reduction Fixed cost elimination Zero inventory costs None 5. Which of the following is a cost reduction strategy? Process improvement Increasing advertising costs Raising employee salaries Expanding the product range None 6. A favorable variance in cost accounting means: Actual cost is lower than standard cost Standard cost is lower than actual cost Sales revenue is lower than expected Profit is lower than budgeted None 7. Material Price Variance arises due to: Change in material cost per unit Difference in usage efficiency Wastage during production Increase in selling price None 8. If actual labour hours exceed standard labour hours, it results in: Labour Rate Variance Labour Efficiency Variance Material Usage Variance Sales Variance None 9. Which variance is calculated as (Actual Sales – Budgeted Sales) × Standard Selling Price? Sales Volume Variance Sales Price Variance Material Cost Variance Labour Efficiency Variance None 10. Overhead Variance is classified into: Fixed Overhead and Variable Overhead Variance Direct and Indirect Cost Variance Standard and Budgeted Cost Variance Sales and Profit Variance None 11. Which of the following ratios measures profitability? Gross Profit Ratio Current Ratio Inventory Turnover Ratio Fixed Asset Turnover Ratio None 12. The debt-equity ratio measures: Liquidity Solvency Efficiency Profitability None 13. The Acid-Test Ratio (Quick Ratio) is used to assess: Short-term liquidity without considering inventory The efficiency of asset utilization The impact of leverage on profitability The firm’s long-term solvency None 14. A high Return on Capital Employed (ROCE) indicates: Efficient use of capital High inventory levels High debt levels Low cash reserves None 15. The Earnings Before Interest and Taxes (EBIT) is calculated as: Revenue – Operating Expenses Net Profit + Interest + Taxes Gross Profit – Selling & Distribution Expenses Sales – Cost of Goods Sold None 16. Capital structure refers to: The mix of current assets and liabilities The mix of debt and equity in financing The allocation of fixed costs The investment portfolio composition None 17. High financial leverage means: Higher proportion of debt financing Lower fixed costs Increased variable cost per unit Lower interest expenses None 18. Optimal capital structure is achieved when: The company maximizes its market value and minimizes cost of capital The proportion of debt is zero The company only relies on equity financing There is an equal balance of debt and equity None 19. If a company has zero debt, its financial leverage will be: Zero Infinite High Unchanged None 20. Which of the following factors influences a company’s capital structure decision? Business risk Tax benefits of debt Cost of equity All of the above None 21. Corporate Social Responsibility (CSR) refers to: Ethical business practices and sustainability initiatives Maximizing short-term profits Reducing employee salaries Increasing debt to fund expansion None 22. CSR activities typically include: Environmental protection Community development programs Employee welfare initiatives All of the above None 23. The Triple Bottom Line (TBL) approach includes: Profit, People, Planet Sales, Marketing, Growth Equity, Debt, Assets Management, Leadership, Strategy None 24. Which of the following is an ethical principle in management accounting? Integrity Objectivity Confidentiality All of the above None 25. Corporate governance ensures: Transparency and accountability in business Higher profits Decreased regulations Lower employee turnover None 26. Big Data Analytics helps management accountants by: Providing real-time financial insights Increasing data storage costs Replacing all financial reports Reducing automation in finance None 27. Blockchain Technology in accounting helps in: Securing financial transactions Increasing fraud risks Eliminating financial reporting Reducing revenue None 28. Artificial Intelligence (AI) in management accounting is used for: Automating financial analysis Reducing decision-making efficiency Increasing accounting errors Avoiding compliance regulations None 29. Sustainability Accounting focuses on: Environmental and social impact reporting Short-term financial goals Eliminating cost control Reducing capital investment None 30. The use of cloud-based accounting software allows: Remote financial management Decreased data security Increased paperwork Limited access to financial data None 31. Zero-based budgeting (ZBB) requires: Incremental adjustments Justification for every expense Only fixed costs to be reviewed No changes from the previous budget None 32. A Flexible Budget is prepared: To accommodate changes in activity levels Only for fixed costs At the beginning of the year and never revised Without considering actual performance None 33. The Master Budget includes: Operational and financial budgets Only production budgets Cash budgets only Marketing plans only None 34. A Cash Budget helps in: Managing liquidity and cash flows Estimating total production costs Calculating profit margins Determining market share None 35. A Fixed Budget remains: Unchanged regardless of activity levels Flexible according to production volume Adjusted monthly Based only on variable costs None 36. Responsibility Accounting is based on: Assigning accountability to different departments Recording only direct expenses Ignoring cost control measures Maximizing only short-term profits None 37. A Cost Centre is responsible for: Controlling costs but not generating revenue Both cost and revenue generation Investment decisions Sales and profit margins None 38. A Profit Centre is evaluated based on: Revenue generation and cost control Only cost control Capital expenditure decisions Inventory turnover None 39. An Investment Centre is responsible for: Generating revenue and managing investments Only cost control Deciding salaries of employees Budget preparation None 40. Transfer pricing is used for: Setting prices for external customers Determining internal transfer of goods/services Government tax calculations Reducing external competition 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! 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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 State 1. Which of the following costs is NOT considered in marginal costing? Fixed Costs Variable Costs Direct Material Cost Direct Labour Cost None 2. The contribution margin is calculated as: Sales – Fixed Costs Sales – Variable Costs Fixed Costs – Variable Costs Sales – Profit None 3. In marginal costing, which of the following decisions is made based on contribution margin analysis? Make or Buy Decision Capital Investment Decision Amortization Decision Financial Restructuring None 4. When production increases, per-unit fixed cost will: Increase Decrease Remain constant Vary randomly None 5. Which of the following is a limitation of marginal costing? Ignores variable costs Does not consider time value of money Ignores fixed costs in decision-making Inaccurate cost allocation None 6. The time taken to recover the initial investment in a project is known as: Internal Rate of Return (IRR) Payback Period Net Present Value (NPV) Profitability Index None 7. A project should be accepted if its Net Present Value (NPV) is: Negative Zero Positive Lower than IRR None 8. Which capital budgeting technique considers the time value of money? Payback Period Net Present Value (NPV) Accounting Rate of Return (ARR) Standard Costing None 9. If the Internal Rate of Return (IRR) is higher than the Cost of Capital, the project should be: Accepted Rejected Deferred Re-evaluated None 10. The Profitability Index (PI) is calculated as: Present Value of Cash Inflows / Initial Investment Net Profit / Initial Investment (Cash Inflows – Cash Outflows) / Depreciation Payback Period × Internal Rate of Return None 11. The ratio that measures a company's ability to pay short-term obligations is: Current Ratio Debt-Equity Ratio Return on Equity Gross Profit Margin None 12. A high Gross Profit Margin indicates: Low production cost High profitability High operating expenses Low sales volume None 13. The Earnings Per Share (EPS) is calculated as: Net Profit / Number of Equity Shares Gross Profit / Sales Revenue / Fixed Assets Operating Cost / Total Liabilities None 14. A company with high leverage has: Higher fixed costs Higher debt financing Lower interest burden Lower total assets None 15. The measure of financial risk associated with the use of debt is: Operating Leverage Financial Leverage Return on Capital Employed Price Earnings Ratio None 16. A budget that remains unchanged regardless of activity level is called: Flexible Budget Fixed Budget Rolling Budget Zero-Based Budget None 17. Which variance shows the difference between actual and budgeted sales? Material Variance Labour Variance Sales Variance Fixed Overhead Variance None 18. Which budgeting approach starts from zero for every budget period? Incremental Budgeting Zero-Based Budgeting (ZBB) Activity-Based Budgeting Fixed Budgeting None 19. An Adverse Material Usage Variance indicates: Lower material cost Higher material wastage More efficient material use Lower labour costs None 20. Responsibility accounting is based on the concept of: Controlling all business functions centrally Holding managers accountable for their department’s performance Reducing managerial decision-making Setting equal targets for all managers None 21. The purpose of budgetary control is to: Set sales targets Provide a basis for financial reporting Compare actual performance with budgeted figures Allocate costs between products None 22. A Cost Center is responsible for: Generating revenue Controlling costs Making investment decisions Managing sales price None 23. In transfer pricing, the most commonly used pricing method is: Market-based pricing Cost-plus pricing Negotiated pricing Arbitrary pricing None 24. The purpose of transfer pricing is to: Determine profit-sharing between divisions Reduce tax liability Manage external pricing strategies Increase the cost of production None 25. The method that uses pre-determined costs for control purposes is: Standard Costing Marginal Costing Absorption Costing Opportunity Costing None 26. Corporate Governance aims to: Enhance shareholder value Maximize short-term profits Reduce corporate social responsibility Ignore financial risks None 27. Ethical considerations in management accounting require: Accuracy and fairness in reporting Maximizing profit at any cost Avoiding transparency Ignoring compliance issues None 28. Fraudulent financial reporting is often caused by: Misstatement of financial statements Following accounting standards Increased regulatory compliance Strong internal controls None 29. The Triple Bottom Line (TBL) includes: Profit, People, Planet Cost, Revenue, Profit Shareholders, Creditors, Employees Income, Expenses, Tax None 30. Code of Ethics in management accounting promotes: Integrity, objectivity, and confidentiality Maximizing short-term profit Tax evasion strategies Avoiding financial reporting None 31. The break-even point is the level of sales at which: There is no profit or loss Fixed costs are recovered Contribution equals sales Only variable costs are covered None 32. If the Contribution Margin per unit increases, the break-even point will: Increase Decrease Remain the same Depend on fixed costs None 33. In a Make or Buy Decision, a company should: Always buy if the purchase cost is lower Consider both variable costs and opportunity costs Ignore fixed costs Choose the option with the highest total cost None 34. If sales increase beyond the break-even point, the company will: Start incurring losses Earn a profit Reach the shut-down point Need to increase fixed costs None 35. The Margin of Safety is calculated as: Total Sales – Break-even Sales Break-even Sales – Total Costs Fixed Costs – Variable Costs Sales – Profit None 36. Working Capital is defined as: Fixed Assets – Current Liabilities Current Assets – Current Liabilities Total Assets – Total Liabilities Long-Term Assets – Short-Term Liabilities None 37. The Operating Cycle refers to the time taken to: Convert raw materials into cash Earn profit from sales Pay off long-term loans Recover fixed asset costs None 38. A company with negative working capital means: Current Liabilities > Current Assets Fixed Assets < Current Liabilities The company is debt-free Net profit is negative None 39. The Quick Ratio (Acid-Test Ratio) formula is: (Current Assets – Inventory) / Current Liabilities Current Assets / Fixed Liabilities Sales / Accounts Receivable Fixed Assets / Current Liabilities None 40. A high Inventory Turnover Ratio indicates: Efficient inventory management Slow-moving stock Low sales volume Excessive stock levels 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!
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 State 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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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 State 1. Management Accounting is primarily concerned with: Historical data Future planning and decision-making External reporting Tax assessment None 2. The main objective of Management Accounting is to: Provide financial statements to shareholders Help managers in decision-making Compute taxable income Prepare annual reports None 3. Which of the following is NOT a tool of Management Accounting? Ratio Analysis Budgeting Cost Sheet Preparation Audit Report None 4. Comparative Financial Statements help in: Understanding trends over time Reducing production costs Preparing tax returns Payroll management None 5. Which of the following ratios is used to measure a company’s short-term liquidity? Debt-Equity Ratio Current Ratio Return on Investment Earnings Per Share None 6. A high Inventory Turnover Ratio indicates: High stock levels Efficient inventory management Poor sales performance High fixed costs None 7. A budget that remains unchanged regardless of activity level is called: Flexible Budget Fixed Budget Zero-Based Budget Rolling Budget None 8. The process of preparing budgets for different levels of activity is called: Performance Budgeting Zero-Based Budgeting Flexible Budgeting Cash Budgeting None 9. In Zero-Based Budgeting, every cost: Is justified from scratch Is based on historical trends Remains constant Is irrelevant for decision-making None 10. Contribution is calculated as: Sales - Variable Cost Sales - Fixed Cost Fixed Cost - Variable Cost Sales - Total Cost None 11. The break-even point occurs when: Total revenue equals fixed cost Total revenue equals variable cost Total revenue equals total cost Marginal cost equals fixed cost None 12. Variance analysis is a part of: Standard Costing Marginal Costing Absorption Costing Target Costing None 13. Net Present Value (NPV) method considers: Time value of money Only cash outflows Book profits Accounting depreciation None 14. Which method does not consider the time value of money? Payback Period NPV Internal Rate of Return (IRR) Discounted Payback Period None 15. The Internal Rate of Return (IRR) is the discount rate at which: NPV = 0 Payback Period = 0 Total Revenue = Total Costs Profit is maximized None 16. Responsibility centers include all except: Cost Center Revenue Center Marketing Center Investment Center None 17. Which of the following is NOT a key performance indicator (KPI)? Return on Capital Employed Gross Profit Margin Employee ID number Inventory Turnover Ratio None 18. Return on Investment (ROI) is calculated as: Profit / Sales Profit / Capital Employed Sales / Investment Sales / Total Assets None 19. Working Capital is defined as: Fixed Assets – Current Liabilities Current Assets – Current Liabilities Total Assets – Total Liabilities Long-Term Assets – Short-Term Liabilities None 20. A higher debtor turnover ratio means: Faster collection from debtors More credit sales Higher bad debts Poor cash flow management None 21. Factoring is used to manage: Fixed costs Debtors Inventory Long-term investments None 22. Which costing technique is used in Make or Buy decisions? Standard Costing Absorption Costing Marginal Costing Job Costing None 23. The Margin of Safety is calculated as: Total Sales – Break-even Sales Break-even Sales – Total Costs Fixed Costs – Variable Costs Sales – Profit None 24. A company should accept a special order if: It covers variable costs and contributes to fixed costs It is priced below marginal cost It reduces overall profitability It does not affect existing customers None 25. Cost-Volume-Profit (CVP) analysis helps in: Long-term capital investments Short-term decision-making Preparing cash budgets Calculating historical costs None 26. In CVP analysis, Contribution Margin is: Sales – Fixed Costs Sales – Variable Costs Fixed Costs – Variable Costs Sales – Profit None 27. A higher Margin of Safety indicates: Higher risk of losses Lower break-even sales More dependency on fixed costs Poor profitability None 28. The primary goal of financial management is to: Maximize revenue Minimize cost Maximize shareholder wealth Increase sales volume None 29. The Payback Period method is useful for: Analyzing long-term profitability Identifying risk and liquidity concerns Calculating IRR Assessing book value of assets None 30. Sensitivity analysis is used in: Capital budgeting Payroll processing Cost sheet preparation Inventory management None 31. Target costing is used to: Determine profit margin before setting price Find cost after setting price Estimate production cost from suppliers Reduce quality to control cost None 32. Which pricing strategy involves setting prices based on competition? Cost-plus pricing Market-based pricing Absorption pricing Contribution pricing None 33. The term "mark-up" refers to: The percentage added to cost price to determine selling price The profit margin in a company’s financial statements The process of cost-cutting in production The increase in selling price due to inflation None 34. Transfer pricing is mainly applicable to: Inter-departmental transactions External sales only Taxation purposes only Individual cost units None 35. The best method to determine transfer pricing between divisions is: Cost-plus pricing Market-based pricing Negotiated pricing All of the above None 36. Which responsibility center has control over revenues, costs, and investments? Cost center Profit center Investment center Revenue center None 37. The Cash Conversion Cycle is the time taken to convert: Raw materials into finished goods Inventories into cash Sales into profit Fixed assets into liquid assets None 38. A high Debtors Turnover Ratio indicates: Efficient credit management Higher outstanding debts Increased bad debts None 39. The primary objective of working capital management is to: Increase net profit Ensure smooth business operations Minimize sales revenue Reduce capital investments None 40. Factoring is used for: Managing receivables Managing inventory Financing fixed assets Capital budgeting 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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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 State 1. Which of the following is NOT a type of financial risk? Market Risk Credit Risk Operational Risk Personal Risk None 2. Which of the following increases financial risk? Higher debt levels More retained earnings Increased cash flow Lower fixed costs None 3. Capital structure refers to: The mix of current assets and liabilities The mix of debt and equity in financing The allocation of fixed costs The investment portfolio composition None 4. The debt-equity ratio measures: Liquidity Solvency Efficiency Profitability None 5. A company with high operating leverage has: High variable costs Low fixed costs High fixed costs Low contribution margin None 6. Corporate governance is primarily concerned with: Maximizing shareholder value Increasing employee wages Reducing taxation Controlling inflation None 7. Which of the following is NOT a principle of corporate governance? Transparency Accountability Profit Maximization Fairness None 8. Business ethics involve: Following only legal rules Acting in the interest of stakeholders Ignoring corporate social responsibility Focusing only on short-term profits None 9. Which of the following is an example of an unethical business practice? Transparent financial reporting Insider trading Corporate social responsibility initiatives Fair pricing policies None 10. Which regulatory body ensures corporate governance in India? SEBI RBI IRDA NITI Aayog None 11. Activity-Based Costing (ABC) is mainly used for: Identifying cost drivers Reducing financial leverage Determining break-even point Evaluating dividend policies None 12. Which of the following is a key feature of ABC? Costs are allocated based on production volume Costs are assigned based on activities Overheads are ignored Direct costs are not considered None 13. ABC is more effective when: Overheads are a significant portion of total costs The company has few cost centers Direct costs dominate total costs Fixed costs are minimal None 14. Which cost driver would be most appropriate for machine maintenance costs? Direct labor hours Machine hours Sales revenue Number of employees None 15. ABC helps in: Determining break-even sales Allocating costs based on actual resource consumption Reducing product price automatically Ignoring indirect costs None 16. The Break-even Point (BEP) is the level at which: Total costs exceed total revenue Total revenue equals total costs Fixed costs become zero Variable costs equal fixed costs None 17. The Contribution Margin is calculated as: Sales Revenue – Variable Costs Sales Revenue – Fixed Costs Sales Revenue / Total Costs Fixed Costs / Sales Revenue None 18. If the contribution margin increases, the break-even point: Increases Decreases Remains unchanged Becomes infinite None 19. The main objective of responsibility accounting is to: Measure individual performance Assign accountability for financial performance Track cash flow Control production processes None 20. A higher margin of safety indicates: Lower risk Higher fixed costs Higher break-even point None of the above None 21. Which of the following affects the break-even point? Change in selling price Increase in fixed costs Increase in variable costs All of the above None 22. Which type of center is responsible for both revenue and costs? Measure individual performance Assign accountability for financial performance Track cash flow Control production processes None 23. Key Performance Indicators (KPIs) help in: Measuring operational success Reducing tax liability Allocating capital investments Managing financial risks None 24. A high Return on Investment (ROI) indicates: Strong financial performance Poor asset utilization Increased liabilities High fixed costs None 25. Residual Income is calculated as: Operating Income – (Cost of Capital × Invested Capital) Net Sales – Variable Costs Total Assets – Liabilities Operating Profit × Tax Rate None 26. A flexible budget is prepared to: Remain constant regardless of activity level Adjust based on actual levels of output Eliminate all fixed costs Replace capital budgets None 27. Which budget is prepared first in the budgeting process? Production Budget Sales Budget Cash Budget Financial Budget None 28. Which of the following is not a type of budget? Fixed budget Flexible budget Operating budget Sunk budget None 29. Variance analysis is used to: Compare actual performance with budgeted performance Set future sales targets Control tax expenses Avoid financial reporting None 30. A favorable material cost variance occurs when: Actual material cost is less than standard cost Actual material cost is higher than standard cost There is excess inventory More raw materials are purchased None 31. Which cost is NOT relevant for decision-making? Opportunity Cost Sunk Cost Avoidable Cost Incremental Cost None 32. A make-or-buy decision involves comparing: Fixed costs only Only past production data The cost of making in-house versus outsourcing Depreciation expenses None 33. Which of the following costs is an example of an opportunity cost? The salary foregone when choosing to start a business Fixed costs of the current year Rent paid for office space Depreciation on old equipment None 34. Which costing method is most useful for short-term decision-making? Absorption Costing Marginal Costing Process Costing Activity-Based Costing None 35. In shutdown decisions, a business should continue operations if: Fixed costs exceed variable costs Contribution margin is positive Depreciation is high Fixed costs are rising None 36. A labor efficiency variance occurs due to: Differences in wage rates Differences in labor hours worked Changes in fixed overheads Increases in production quantity None 37. Standard costing is mainly used for: Controlling costs Reducing selling prices Preparing financial statements Tax planning None 38. Which of the following is NOT considered a variance? Material Price Variance Fixed Overhead Absorption Variance Contribution Variance Break-even Variance None 39. Which performance measure considers both profits and the investment required to earn those profits? Residual Income Break-even Analysis Cash Flow Statement Direct Costing None 40. Which of the following is an internal benchmark for evaluating performance? Competitor pricing Industry average Standard costs Stock market trends 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!
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 State 1. Marginal costing considers which type of costs? Fixed costs only Variable costs only Both fixed and variable costs Sunk costs None 2. In marginal costing, fixed costs are treated as: Product costs Period costs Semi-variable costs Avoidable costs None 3. Which of the following statements about marginal costing is true? It does not consider fixed costs in decision-making It treats fixed costs as variable It is used only for long-term decision-making It calculates depreciation as part of marginal cost None 4. Break-even sales revenue is calculated as: Fixed Costs / Contribution per Unit Fixed Costs × Sales Price per Unit Fixed Costs / P/V Ratio Variable Cost per Unit × Sales Volume None 5. Which of the following decisions can be made using marginal costing? Make or Buy decisions Investment in Fixed Assets Capital Structure decisions Dividend Policy None 6. Which financial statement provides details about a company’s financial Income Statement Cash Flow Statement Balance Sheet Fund Flow Statement None 7. Which statement provides information about a company's performance Balance Sheet Cash Flow Statement Income Statement Fund Flow Statement None 8. The primary objective of financial statement analysis is to: Prepare tax returns Identify the company’s financial strengths and weaknesses Ensure compliance with accounting standards Predict stock prices None 9. The acid-test ratio is also known as: Current Ratio Quick Ratio Inventory Turnover Ratio Profitability Ratio None 10. Which analysis technique involves comparing financial statements over multiple years? Horizontal Analysis Vertical Analysis Ratio Analysis Trend Analysis None 11. Cost reduction refers to: Maintaining cost levels Reducing costs permanently without affecting quality Temporary cost savings Eliminating fixed costs None 12. Which of the following is NOT a method of cost control? Budgetary Control Standard Costing Job Rotation Marginal Costing None 13. Cost control focuses on: Increasing production costs Maintaining cost within predetermined limits Reducing selling price Ignoring fixed costs None 14. Which technique is used for continuous improvement in cost managem Standard Costing Kaizen Costing Target Costing Variance Analysis None 15. Which of the following is a cost reduction technique? Value Analysis Financial Leverage Depreciation Dividend Policy None 16. The principal budget factor is the: Budget that restricts overall business operations Total estimated cost of production Most flexible budget component Least important factor in budgeting None 17. Rolling budgets are: Fixed for the entire period Updated continuously Used only for capital expenditure Based on historical data None 18. What is the main purpose of performance budgeting? Controlling direct material costs Linking budgets to organizational objectives Reducing indirect costs Increasing sales revenue None 19. Which budgeting method starts from zero every time? Incremental Budgeting Flexible Budgeting Zero-Based Budgeting Standard Budgeting None 20. Which budget summarizes all other budgets? Capital Budget Master Budget Sales Budget Overhead Budget None 21. Balanced Scorecard is used for: Measuring employee performance only Financial and non-financial performance measurement Budget allocation Cost cutting None 22. Which of the following is NOT a perspective of the Balanced Scorecard Financial Perspective Customer Perspective Environmental Perspective Internal Business Process Perspective None 23. Which technique is used for evaluating strategic decisions in managem SWOT Analysis Ratio Analysis Trial Balance Fund Flow Statement None 24. Which of the following is a non-financial performance measure? Return on Investment Customer Satisfaction Index Gross Profit Margin Earnings Per Share None 25. Strategic Cost Management aims to: Minimize costs without impacting strategy Ignore market competition Focus only on financial aspects Reduce only variable costs None 26. Which of the following is NOT a capital budgeting technique? Net Present Value (NPV) Payback Period Internal Rate of Return (IRR) Current Ratio None 27. The Payback Period method measures: The total profit of a project The time required to recover the initial investment The cost of capital The project’s risk level None 28. Which method considers the time value of money? Payback Period Accounting Rate of Return (ARR) Net Present Value (NPV) Average Costing None 29. Internal Rate of Return (IRR) is the rate where: NPV is zero Payback period is highest Discounted cash flows are ignored Fixed costs are equal to variable costs None 30. A higher profitability index (PI) indicates: A less desirable project A more attractive investment A shorter payback period Higher depreciation costs None 31. Responsibility Accounting is used to: Allocate financial responsibility within an organization Record only financial transactions Manage only production costs Ignore indirect costs None 32. Which of the following is NOT a responsibility center? Cost Center Profit Center Revenue Center Tax Center None 33. Which type of transfer pricing is based on market price? Cost-based pricing Negotiated pricing Market-based pricing Dual pricing None 34. A profit center is responsible for: Only costs Only revenues Both costs and revenues Only investments None 35. Investment centers are evaluated based on: Cost savings Revenue generation Return on investment (ROI) Fixed cost reduction None 36. Working Capital is calculated as: Current Assets – Current Liabilities Fixed Assets – Current Liabilities Total Assets – Total Liabilities Fixed Assets – Long-term Liabilities None 37. A high working capital turnover ratio indicates: Efficient use of working capital Excessive fixed assets Poor cash management Increased long-term debt None 38. Which of the following is NOT a source of working capital? Bank Overdraft Retained Earnings Fixed Deposits Trade Credit None 39. The primary objective of inventory management is to: Reduce labor costs Minimize holding costs and avoid stockouts Maximize sales revenue Increase raw material purchases None 40. Which of the following factors affects the working capital requirement of a busin Nature of business Capital structure Depreciation policy Dividend distribution None 1 out of 4 Great job on taking the INCOC Test! 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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 State 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!
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 State 1. Management Accounting primarily focuses on: Past financial data Future decision-making Legal compliance Statutory reporting None 2. Which of the following is NOT a function of Management Accounting? Planning Decision making Auditing Controlling None 3. Management Accounting helps in: Determining tax liability Preparing financial statements Managerial decision-making Following statutory requirements None 4. The main objective of Management Accounting is to: Provide financial statements to stakeholders Assist in internal decision-making Ensure compliance with tax laws Maintain accounting records None 5. Which of the following is a key tool used in Management Accounting? Ledger Posting Cost Sheets Cash Flow Statements Trial Balance None 6. Which analysis is used to compare financial data over multiple years? Vertical Analysis Horizontal Analysis Ratio Analysis DuPont Analysis None 7. Current Ratio is calculated as: Current Assets / Current Liabilities Fixed Assets / Current Liabilities Total Assets / Total Liabilities Liquid Assets / Current Liabilities None 8. Which ratio measures a company’s ability to meet short-term obligations? Profitability Ratio Liquidity Ratio Solvency Ratio Efficiency Ratio None 9. Debt-Equity Ratio is a measure of: Profitability Solvency Liquidity Efficiency None 10. Return on Investment (ROI) is calculated as: Net Profit / Sales Net Profit / Total Assets Net Profit / Owner’s Equity Net Profit / Fixed Assets None 11. A budget is a: Record of past transactions Plan for future income and expenditure Legal requirement Financial statement None 12. Which budget shows expected revenues and expenses? Capital Budget Cash Budget Operating Budget Sales Budget None 13. Flexible budgets are useful when: Costs are fixed Activity levels change Sales are constant The company is in the startup phase None 14. Zero-based budgeting (ZBB) requires: Incremental adjustments Justification for every expense Only fixed costs to be reviewed No changes from the previous budget None 15. Budgetary control helps in: Past financial reporting Setting financial targets Statutory compliance Reducing taxation None 16. Standard costing is a technique used for: External reporting Cost control Tax calculations Asset valuation None 17. Material variance arises due to changes in: Selling price Labor costs Material price or usage Overhead allocation None 18. Labor efficiency variance measures: Difference in standard and actual labor hours Total labor cost Total production cost Overhead expenses None 19. Which of the following is NOT a type of variance? Material Variance Labor Variance Sales Variance Asset Variance None 20. Variance analysis helps in: Increasing tax liability Identifying areas of cost overruns Reducing competition Improving external reporting None 21. Marginal costing considers: Only fixed costs Only variable costs Both fixed and variable costs Overhead costs only None 22. Break-even point occurs when: Total revenue = Total cost Total cost = Fixed cost Variable cost = Fixed cost Contribution = Profit None 23. Contribution margin is calculated as: Sales - Fixed Cost Sales - Variable Cost Sales - Total Cost Sales - Overheads None 24. Which of the following affects the break-even point? Change in selling price Increase in fixed costs Increase in variable costs All of the above None 25. Fixed costs remain constant: In the short run In the long run With production levels Only in marginal costing None 26. Which costing technique is used for short-term decision-making? Absorption Costing Marginal Costing Job Costing Process Costing None 27. Sunk costs are: Relevant for decision-making Always variable Already incurred and irrelevant for decisions Opportunity costs None 28. Which technique is used for capital investment decisions? Budgeting Ratio Analysis Capital Budgeting Marginal Costing None 29. A higher margin of safety indicates: Lower risk Higher fixed costs Higher break-even point None of the above None 30. Make-or-buy decisions consider: Only fixed costs Only variable costs Both fixed and variable costs Only overheads None 31. Which of the following is NOT a capital budgeting technique? Net Present Value (NPV) Internal Rate of Return (IRR) Payback Period Ratio Analysis None 32. Net Present Value (NPV) considers: Time value of money Only initial investment Accounting profit Fixed costs only None 33. Which of the following methods does NOT consider the time value of money? Payback Period Net Present Value (NPV) Internal Rate of Return (IRR) Profitability Index None 34. Internal Rate of Return (IRR) is the rate at which: NPV is zero Payback period is minimized Fixed costs are covered The project earns maximum profit None 35. Which of the following investment appraisal techniques is considered the most reliable? Payback Period Accounting Rate of Return Net Present Value (NPV) Cash Flow Analysis None 36. Cost-Volume-Profit (CVP) analysis helps in: Determining the impact of costs and volume on profits b) Preparing final accounts Tax calculation Reducing competition None 37. Which formula represents the break-even point (in units)? Fixed Cost / Contribution per unit Fixed Cost / Selling Price per unit Variable Cost / Contribution per unit Total Cost / Sales Revenue None 38. A company with a high operating leverage: Has higher fixed costs Has lower risk Relies mainly on variable costs Has lower contribution margin None 39. Margin of Safety (%) is calculated as: (Actual Sales – Break-even Sales) / Actual Sales × 100 Fixed Cost / Contribution per unit (Total Sales – Variable Costs) / Fixed Costs × 100 Sales × Variable Cost Ratio None 40. Which cost behavior assumption is made in Cost-Volume-Profit (CVP) analysis? Fixed costs remain constant Variable costs are non-linear Selling price changes frequently Both fixed and variable costs are unpredictable 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!
