Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2007 M.B.A Financial and Management Accounting - Question Paper

APAR INDIA INSTITUTE OF MANAGEMENT & TECHNOLOGY

Management
Accounting

Q 1. Current ratio examine
a) profitability
b) long term solvency
c) Mgmt. efficiency
d) short term solvency
Ans. D
Q 2. CVP stands for
a) cost\ volume\ position
b) cost variance position
c) cost quantity profitability
d) cost validity period
Ans C

Q 3. Which of the subsequent is actual
a)MIS is an accounting software
b)MIS is a substitute to mgmt.
c)Accounting system is a sub-system of MIS.
d) MIS is a luxury for business units
.Ans. C

Q 4. Which 1 of the subsequent is not a fixed cost?
a)Rent
b)Interest on Capital
c)Salary of supervisor
d)Indirect factory material
Ans. D

Q 5. If Current Asset increases than working capital shall
a)Increase
b)Decrease
c)Do not change
Ans A

Q 6. If corporate tax rate imposed on any company increase it shall have impact on _____________
a)Return on Investment
b)Return on Equity
c)Debtors Turnover Ratio
d)Gross Profit Ratio
Ans B

Q 7. A step cost ______________
a)Always remain constant
b)It never remain constant
c)It remain constant up to 50% of production capacity
d)None of the above.
Ans D

Q 8. Margin of safety can be computed by
a)Fixed Cost / Contribution per unit
b)Total Sales – Fixed Cost
c)Profit / PV Rates * 100
d)BES-Actual Sales
Ans D

Q 9. Fixed Cost Line is always
a)Parallel to output line
b)Parallel to cost line
c)Tangent to output line
d)Parallel to sales line
AnsA

Q 10. Break-even chart has no relation with _____
a)Angle of Incidence
b)Margin of safety
c)Cost / quantity Profit Analysis
d)Study of effect of different product mix on profit
Ans D

Q 11. Cash Budget is a
a)Functional Budget
b)Master Budget
c)Flexible Budget
d)Sales budget
Ans A



Q 13. Which of the subsequent statement is true:
a)Imputed Cost are not relevant in decision making
b)Imputed Cost involve cash outlay
c)Imputed Cost are sunk cost
d)Imputed Cost are relevant in decision making
Ans D

Q 14. Transfer to General Reserve is
a)Transferred to application side of Fund Flow Statement
b)Transferred to schedule of change in working capital
c)Deducted from Fund from Operator
d)Added to Fund from Operator
Ans D

Q 15. If cost of goods sold is Rs. 1,20,000/- and Gross Profit 20% on sales then sales will be
a)Rs. 1,44,000
b)Rs. 1,50,000
c)Rs. 96,000
d)Rs. 85,000
Ans B

Q 16. Split-off point is related to
a)Marginal Costing

Earning:   Approval pending.