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. 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! 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!
