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 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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