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 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!
