Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2007 M.B.A Finance

a. Cost of production b. Output
c. Input d. Profit

24. Variable Cost = Marginal Cost.
a. actual b. False

25. Which of the subsequent are the advantages of Break – even chart.
a. It helps to determine the selling price to provide a desired quantity of profit.
b. It facilities Inter firm comparison of profitability.
c. It indicates the affect of increase and reduce in selling price.
d. All of the above.

26. Sales - ____________ = Margin of safety
a. Break even point b. Break even sales
c. P/V ratio d. Profit

27. Which of the subsequent heads is not an application of marginal costing.
a. Competition b. Recession
c. Special customer d. None of above

28. F.C = P/V X S – F.
a. actual b. False

29. Which of the subsequent is accurate.
a. P/V ratio = change in profit X 100 b. P/V ratio = C/S
change in sales
c. P/C ratio = C/S d. All of the above

30. Graphical representation of cost & revenue showing their relations at various quantities of output is called _________.
a. Break even chart b. Break-even point
c. Margin of safety d. Profit/volume ratio

31. The establishment of budget relating responsibilities of executives to the requirements of a policy and continuous comparison of true with budgeted outcome is called:
a. Budget b. Budgeting system
c. Budgetary control d. All of the above

32. Fixed and flexible budgets are divided according to which category.
a. Scope b. Efficiency
c. Period d. None of the above

33. The consolidated summary of different functional budget is called:
a. Functional budget b. Flexible budget
c. Master budget d. Fixed budget

34. __________ is the target of every part of a organization.
a. Cost b. Profit
c. Budget d. All of the above

35. Budget lays down ________ for the future and budgetary control compares _________ with the budget and exercise control over activities and cost of the organization.
a. Policies, true performance b. Performance, plans
c. Budgeting, controlling d. None of the above

Earning:   Approval pending.