Inter PN-12 Management Accounting Quiz 9

Which decision is least appropriate based on marginal costing?

If the P/V ratio increases, what happens to the break-even point (in rupees)?

What happens to fixed cost per unit when production increases?

Which statement is true?

Under marginal costing, get‑or‑drop decisions predominantly rely on:

When there are no inventories, profit under marginal costing and absorption costing will be:

Which of the following is not an assumption of marginal costing?

A “cost pool” in ABC refers to:

Under ABC, if an activity’s cost is zero (i.e., no cost incurred), then:

In ABC, “facility‑sustaining costs” are:

Which statement is true about ABC compared to traditional absorption costing?

A company incurs ₹ 60,000 as facility‑sustaining cost (which supports all products), and allocates it equally across 3 product lines X, Y, Z under ABC. Product X produces 5,000 units, Y 10,000 units, Z 15,000 units. What is the per‑unit share of facility cost for Z?

A company currently uses traditional costing and absorbs overheads at ₹ 20 per direct labour hour. Under ABC, two cost pools are identified: Setups (₹ 50,000) with driver number of setups (500), and material handling (₹ 100,000) with driver number of parts (200,000). Product Y uses 50 setups and 4,000 parts. Under ABC, overhead allocated to Y is:

A firm has two products A and B. The “order processing” cost pool is ₹ 120,000. The cost driver is number of orders. There are 2,000 orders in total: A uses 600 orders; B uses 1,400 orders. The overhead assigned to B is:

A product requires 5 machine hours. The machine hour activity pool has ₹ 300,000 budgeted cost and 15,000 machine hours. What is the machine‑hour overhead allocated to that product under ABC?

A company has identified the following overhead cost pools and cost drivers for a product:Setup cost pool: ₹ 200,000; driver = number of setups (2,500 setups)Inspection cost pool: ₹ 100,000; driver = number of inspections (50,000 inspections)Product X has 200 setups and 4,000 inspections.What is the overhead allocated to Product X (using ABC)?

Which of the following is least suitable as a cost driver under ABC?

In Activity Based Costing, the first step is to:

The technique used in management accounting to compare actual results with planned performance is:

A key feature of management accounting is that it:

Management accounting reports are primarily intended for:

Which of the following is NOT a characteristic of management accounting?

Two investments have different expected returns. Project A’s expected return is 20% and the standard deviation of its returns is 15%. Project B’s expected return is only 10%, while the standard deviation of its returns remains at 9%. Compute Coefficient of Varience of Project A.

We are comparing two investment projects. Both have expected returns of 20%, but the standard deviation of Project A’s returns is 15%, while the standard deviation of Project B’s returns is 9%. Which one is relatively riskier?

The sequence of possible managerial decisions and their expected outcome under each set of circumstances can be represented and analysed by using ___________________.