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 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!
