Test 554 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 State 1. Which of the following is not a function of Management Accounting? Financial Reporting Decision-making Budgeting Auditing None 2. What is the primary objective of management accounting? Statutory compliance External reporting Assisting in decision-making Preparing balance sheets None 3. Which of the following tools is most commonly used in management accounting? Ratio analysis Depreciation methods Tax audit techniques IFRS reporting None 4. Standard costing is primarily used to: Value inventory Control costs Prepare tax returns Report financial position None 5. Which statement best defines Management Accounting? A tool for compliance with government regulations A process of collecting and analyzing financial information for internal decision-making A system for preparing statutory accounts None of the above None 6. The process of preparing budgets for various activities and comparing actual performance with budgeted figures is known as: Strategic Planning Performance Appraisal Budgetary Control Cost Analysis None 7. Zero-based budgeting starts with: Previous year's budget Zero Incremental growth assumptions None of the above None 8. Flexible budgets are most useful when: Costs are fixed Activities are constant Activities fluctuate There is no inflation None 9. In budgeting, the difference between standard cost and actual cost is termed as: Margin of safety Break-even point Variance Turnover ratio None 10. A Master Budget consolidates Only sales and production budgets All individual budgets Cash budgets only None of the above None 11. Which of the following costs is treated as fixed under marginal costing? Direct materials Direct labor Depreciatio Variable overheads None 12. 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 13. Contribution margin is calculated as: Sales - Fixed costs Sales - Variable costs Sales - Total costs Fixed costs + Profit None 14. A high margin of safety indicates: Low fixed costs High break-even salese Less risk of incurring a loss None of the above None 15. Which of the following statements is true about marginal costing? Fixed costs are allocated to products Marginal costing emphasizes on cost control Marginal costing is used only for tax reporting All costs are considered for decision-making None 16. Activity-Based Costing (ABC) is primarily used for: Determining net profit Allocating overhead costs more accurately Preparing balance sheets Tax planning None 17. Which of the following is considered a semi-variable cost? Rent Depreciation Electricity Insurance None 18. Job costing is most suitable for: Large-scale continuous production Small-scale custom production Service industries Retail businesses None 19. Sunk costs are: Relevant for decision-making Irrelevant for decision-making Costs incurred in the future Always variable costs None 20. Absorption costing considers which of the following costs? Variable costs only Fixed costs only Both fixed and variable costs Only direct material costs None 21. Material price variance is caused by: Excess usage of material Difference in actual and standard price Incorrect budgeting Machine downtime None 22. Labor efficiency variance measures: Difference in actual and standard labor rates Difference in hours worked versus hours budgeted Wastage of materials None of the above None 23. Overhead volume variance occurs due to: Change in production levels Change in overhead rates Idle time All of the above None 24. Which of the following formulas is correct for calculating Sales Volume Variance? (Standard price - Actual price) × Actual quantity (Actual quantity - Standard quantity) × Standard price (Standard price - Actual price) × Standard quantity None of the above None 25. Which of the following variances is not related to overheads? Fixed overhead expenditure variance Variable overhead efficiency variance Sales price variance Overhead volume variance None 26. The primary focus of relevant cost analysis is: Historical costs Costs that will affect future decisions Fixed costs All costs of a product None 27. Make-or-buy decisions are primarily influenced by: Fixed costs Incremental costs Historical costs Tax benefits None 28. The contribution margin per unit is used to calculate: Fixed costs Profit margin Break-even sales volume Total revenue None 29. Which of the following is a qualitative factor in decision-making? Contribution margin Employee morale Variable costs Overhead rates None 30. Which of the following is a characteristic of a responsibility accounting system? Centralized decision-making Decentralized control based on responsibility centers Fixed budgeting across departments None of the above None 31. Which type of responsibility center focuses on generating revenues? Cost center Revenue center Profit center Investment center None 32. Transfer pricing is used to: Set prices for external customers Allocate costs within departments Establish prices for transactions between divisions Monitor external sales None 33. Which costing method assigns costs to products based on activities performed? Absorption costing Activity-Based Costing (ABC) Marginal costing Job costing None 34. Which cost allocation method is most suitable for service departments? Direct method Step-down method Reciprocal method All of the above None 35. Balanced Scorecard measures performance across: Financial only Financial and operational only Four key perspectives Only external factors None 36. Benchmarking refers to: Setting arbitrary performance goals Comparing performance with best practices Estimating future costs Analyzing cost behavior None 37. Key Performance Indicators (KPIs) are used to: Analyze historical data only Measure progress toward strategic goals Evaluate past decisions Prepare budgets None 38. Which of the following is considered a fixed cost? Direct materials Rent Utilities Commissions None 39. Which pricing strategy is based on covering variable costs and generating a marginal profit? Skimming pricing Marginal cost pricing Cost-plus pricing Penetration pricing None 40. Which of the following statements is true about cost-volume-profit (CVP) analysis? It assumes fixed costs change with activity levels. It assumes a linear relationship between costs, volume, and profits. It excludes variable costs in decision-making. It focuses only on profit maximization. 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!
