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. 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!
