Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2006 M.B.A Financial Management 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

36. Budgeting is time consuming as well as length.
a. actual b. False

37. ___________ is described as a budget designed to change in accordance with the level of activities truly attained.
a. Master Budget b. Current Budget
c. Flexible Budget d. Rolling Budget

38. Which of the subsequent is the advantage of budgetary control:
a. Master Budget b. Lays down objectives
c. Increase employee productivities d. All of the above

39. Match the following:
(i). The target of every part of an organization. (i) Budgeting
(ii). Process of preparing the budget. (ii) Budgetary control
(iii). Technique & process of fixing the target, preparing (iii) Budget
Budget & using as tool of planning and controlling.

40. __________ is an important tool of planning and cost control.
a. Budgetary b. Standard costing
c. Standard cost d. None of above

41. Which of the subsequent is not an element of cost.
a. Material b. Labour
c. Overheads d. None of above

42.
(i) It is set for cost only.
(ii) It include both income & expenditure.
(iii) It is more static.
(iv) It can be operated partially.
(v) Its figures are not for accounting.
(vi) It is projection of final accounting.

From the above which are the features of standard costing?
a. (i), (ii), (iii) b. (ii), (iii), (iv)
c. (i), (iii), (v) d. (ii), (iii), (v)

43. From the above which are the features of Budgetary control.
a. (i), (ii), (iii) b. (ii), (iii), (iv)
c. (i), (v), (vi) d. (i), (iv), (v)


44. From the above points (i) point is the feature of:
a. Budgetary control b. Budgeting
c. Marginal costing d. None of the above

45. Standard cost are used primarily as _______.
a. Tool of control b. Tool of costing
c. Measurement d. None of above

46. Variance is the difference ranging from ________ and true cost incurred during a period.
a. Standard cost b. Marginal cost
c. Variable cost d. Absorption

47. The preparation of a Break-even chart requires segregation of semi-fixed costs into _______.
a. Fixed components b. Variable components
c. Both a & b d. None of above

48. Manufacturing costs are incurred to manufacture the product.
a. actual b. False

49. Cost which is clearly traceable are known as.
a. Traceable cost b. Controllable cost
c. Direct cost d. Variable cost

50. Which of the subsequent is not considered under evaluation of stock.
a. Raw material b. Work in progress
c. Finished good d. None of above

51. At _______ point, ‘contribution’ is equal to fixed cost.
a. Break-even b. Sales
c. Fixed cost d. Variable cost

52. Under marginal costing only _________ are charged to operators, processes or product.
a. Fixed cost b. Marginal cost
c. Variable cost d. Absorption

53. The difference ranging from selling price and marginal cost is called __________.
a. Profit quantity ratio b. Break even point
c. Margin of sales d. Contribution

54. Break-even analysis is also known as cost-volume analysis.
a. actual b. False

55. The standards for materials include materials, quantity, standard and _________.
a. Material standard b. Material price
c. Cost standard d. Material performance

56. MCV = MUV + MPV
a. actual b. False

57. When true cost is less than the standard cost it is known as _________ variance.
a. Debit variance b. ‘F’ Variance
c. Favorable variance d. All of above

58. MCV = Standard cost of material _______.
a. Standard usage of material b. Standard price of material
c. true cost of material d. All of above

59. MUV = MCV = MPV
a. actual b. False

60. The subsequent info is given:
Standard volume - 250Units
true volume - 260Units
Standard price - Rs. 5/Unit
true price - Rs. 5.5/Unit

The MCV is
a. Rs. 150 b. Rs. 30
c. Rs. 180 d. Rs. 280

61. MPV is:
a. 150 b. 130
c. 50 d. 180

62. MUV is:
a. 160 b. 180
c. 130 d. 50

63. ________ are 3 important financial characteristics of a business entity.
a. Liquidity b. Solvency
c. Profitability d. All of the above

64. Indirect expenses are technically called________.
a. Cost b. Overheads
c. Expenditure d. All of above

65. Management decision is based on ________ cost.
a. Irrelevant b. Relevant
c. Sunk d. Swim

66. The function of management is:
a. Formulating a business plan.
b. Fixing of responsibility at different levels in the implementation of the plan.
c. Both a & b.

67. Cost incurred in the past is __________.
a. Relevant cost b. Sunk cost
c. Differential cost d. None of above

68. Management accounting is also called internal accounting.
a. actual b. False

69. __________ is the relationship ranging from 2 or more variable expressed in percentage, Rate and proportion.
a. Cost b. Ratio
c. Ratio analysis d. Cost analysis

70. Acid test ratio = Liquid Ratio
a. actual b. False

71. __________ is a measure of company’s liquidity position.
a. Net working capital ratio. b. Net profit ratio
c. Debt-equity ratio. d. None of above.

72. Earning per share = _______________.
a. Total equity b. Dividend paid
c. Total shares d. Interest paid.

73. Higher liquid ratio indicate ___________ financial position.
a. Higher b. Sound
c. Lower d. Bad

74. Operating expense include:
a. Administrative expenses b. Financial expenses
c. Selling expenses d. All of above

75. Which ratio is known as ‘Du-point control’.
a. Net profit ratio b. Debt-equity ratio
c. Operating ratio d. Return on capital employed

76. Operating ratio is the ratio of total shareholders fund to the total assets employed in the business.
a. actual b. False

77. Goodwill appears in the balance sheet only when a company has paid for it.
a. actual b. False

78. If COGS = Rs. 3,00,000 , Purchases = 3,30,000 , opening stock = 60,000 , stock turnover = ?
a. three times b. four times
c. 2.5 times d. five times

Earning:   Approval pending.