All India Management Association (AIMA) 2007 M.B.A Marketing Management Accounting for ision Making - II - Question Paper
Friday, 01 February 2013 10:55Web
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(b) Depends on whether the company is operating at or beneath break even point
(c) Involves an analysis of fixed costs
(d) Involves an analysis of historical costs
(e) Involves an analysis of avoidable costs.
( 1 mark)
62. The term ‘variable cost’ refers to
(a) All costs which are likely to respond to the amount of attention devoted to them by a specified manager
(b) All costs which are associated with marketing, shipping, warehousing and billing activities
(c) All costs which do not change in total for a provided period of time and relevant range but become progressively smaller on a per unit basis as quantity increases
(d) All manufacturing costs incurred to produce units of output
(e) All costs which fluctuate in total in response to small change in the rate of utilization of capacity.
( 1 mark)
63. Cost-volume-profit analysis is most important for the determination of
(a) Volume of operations necessary to break even
(b) Margin of safety necessary to equal fixed costs
(c) Sales revenue necessary to equal fixed costs
(d) Relationship ranging from revenues and costs at different levels of operations
(e) Sales revenue necessary to equal total costs.
( 1 mark)
64. For product A of Shilpa Ltd., the prime cost is Rs.20 per unit, factory overheads are 20% of prime cost and administration overheads are 25% of Works cost. If the company desires to earn a profit of 25% on selling price, the selling price per unit of product A would be
(a) Rs.40
(b) Rs.33
(c) Rs.90
(d) Rs.30
(e) Rs.24.
( 2 marks)
65. Which of the subsequent is not an example of finance module of application of Enterprise Resource Planning (ERP) system?
(a) Accounts receivable
(b) Treasury management
(c) Production planning
(d) Cost control
(e) General ledger.
( 1 mark)
66. Which of the subsequent statements is true?
(a) All costs are controllable
(b) Fixed cost per unit remains constant
(c) Depreciation is an out-of-pocket cost
(d) Variable cost per unit varies with the increase in the quantity of output
(e) An item of cost that is direct for 1 business may be indirect for a different.
( 1 mark)
67. The subsequent are the advantages of Enterprise Resource Planning other than
(a) Flexibility to allow for customization
(b) Adaptability to a changing business environment
(c) Elimination of redundant data and procedural operations
| Earning: Approval pending. |
