Test 551 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Management AccountingTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. Management accounting primarily focuses on: Financial transactions Future decision making Historical data Government regulations None 2. Which of the following is a limitation of management accounting? Provides valuable insights Relies on financial and cost data Incorporates qualitative data Requires standard costing None 3. Which type of variance results when actual cost is greater than standard cost? Favorable variance Adverse variance Neutral variance Zero variance None 4. Budgetary control helps in: Increasing expenses Reducing coordination Setting targets Avoiding planning None 5. The concept of marginal costing is most suitable for: Long-term planning Decision making in the short run Tax computation Calculating dividends None 6. Fixed costs per unit vary inversely with: Sales volume Production volume Variable cost Selling price None 7. Responsibility accounting is based on the concept of: Centralized control Delegation of authority Tax management Inventory control None 8. A profit center is evaluated on the basis of: Sales only Costs only Profit generated Asset turnover None 9. The difference between standard cost and actual cost is called: Cost differential Variance Differential cost Opportunity cost None 10. Which of the following is not a characteristic of management accounting? Historical data-based Future-oriented Aids decision making Non-mandatory None 11. Which of the following measures liquidity? Current ratio Debt-equity ratio Operating leverage Return on investment None 12. The break-even point occurs where: Fixed costs are zero Total revenue equals total costs Variable costs are zero Profit is maximized None 13. The main objective of cost-volume-profit analysis is: Budgeting Decision making Cost allocation Tax planning None 14. A flexible budget is useful in: Static conditions Dynamic and uncertain conditions Forecasting fixed costs Calculating dividends None 15. Standard costing helps in: Inventory valuation Cost control Increasing sales Fixed asset management None 16. Which of the following is a non-cash item? Wages Depreciation Rent Direct material cost None 17. Which financial ratio is used to assess profitability? Quick ratio Gross profit ratio Inventory turnover ratio Current ratio None 18. Contribution margin is defined as: Sales revenue - Fixed costs Sales revenue - Variable costs Variable costs - Fixed costs Fixed costs - Net profit None 19. Incremental analysis is used in: Long-term decisions Short-term decisions Inventory control Tax planning None 20. Which cost is excluded in marginal costing? Variable cost Fixed cost Prime cost Direct material cost None 21. Opportunity cost refers to: Historical costs Benefits forgone Fixed cost Variable cost None 22. Which of the following is used for long-term financial planning? Cash budget Capital budget Sales budget Production budget None 23. The main purpose of a cash flow statement is to: Show profitability Track inflows and outflows of cash Calculate depreciation Determine market share None 24. A variance analysis helps in: Increasing sales volume Analyzing deviations from standards Determining tax liability Preparing a trial balance None 25. Zero-based budgeting involves: Historical budgeting Budgeting from scratch Fixed budgeting Flexible budgeting None 26. Payback period method is used to evaluate: Profitability Risk Liquidity Capital investments None 27. Which cost is relevant for decision making? Sunk cost Opportunity cost Fixed cost Historical cost None 28. Which of the following is used to evaluate managerial performance? Profit center Cost center Investment center Sales center None 29. Absorption costing includes: Only variable costs Only fixed costs Both fixed and variable costs Direct costs only None 30. Direct costing is also known as: Absorption costing Marginal costing Full costing Activity-based costing None 31. Transfer pricing is applicable to: External transactions Inter-departmental transfers Dividend payments External audits None 32. Which of the following is a qualitative factor in decision making? Incremental costs Employee morale Variable costs Contribution margin None 33. An unfavorable variance indicates that: Actual cost is lower than budgeted Actual cost is higher than budgeted Sales are increasing Profits are stable None 34. Management accounting information is used by: Government agencies Internal management Investors Creditors None 35. Which of the following is a method of inventory valuation? LIFO FIFO Average cost All of the above None 36. Activity-based costing focuses on: Cost centers Activities that drive costs Reducing sales price Eliminating fixed costs None 37. Capital employed is calculated as: Total assets - Current liabilities Fixed assets - Current assets Fixed costs - Variable costs Total revenue - Cost of sales None 38. Which method considers the time value of money in capital budgeting? Payback period Net present value Accounting rate of return Absorption costing None 39. The objective of a responsibility accounting system is to: Allocate fixed costs Control costs and efficiency Minimize tax payments Manage inventory levels None 40. Which financial statement shows the financial position of a company at a specific point in time? Income statement Balance sheet Cash flow statement Profit and loss account 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 !! Time's upTime is Up!
