Management Accounting interview questions

ABC Ltd had investment of Rs 68,000 as on 31.3.2013 and investment of Rs 56,000 as on 31.3.2014. During the year ABC Ltd sold 40% of its investments being held in the beginning of period at a profit of Rs 16,800. Determine cash flow from investing activities.

1. Rs 59,200
2. Rs 28,800
3. Rs 72,800
4. None of the above

Determine stock turnover ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales is Rs 3,20,000 and Gross profit ratio is 25% on sales.

Rahul has an amount of Rs 3,00,000 which is invested in a business. He desires 15% return on his fund. It is known from the past cost data analysis that fixed costs are Rs 1,50,000 per annum and variable costs of operation are 60% of sales. Determine sales volume to get 15% return. Also tell shut down point of the business, if he would spend Rs 50,000 even if business has to be closed.

Determine Operating ratio, if operating expenses is Rs 60,000, Sales is Rs 9,40,000, Sales Return is Rs 40,000 and Cost of net goods sold is Rs 6,60,000?

What will be the amount of profit if Fixed cost is Rs 20,000 Sales is Rs 1,60,000 and P/V ratio is 25%?

Given standard time per unit is 80 hours, standard time per hour @ Rs 1 per hour, actual time per unit is 90 hours and actual rate per hour @ Rs 1.10 per hour. Determine labour cost variance, labour rate variance and labour efficiency variance.

A facility, the installed capacity of which is 1,00,000 units, has budgeted 70% level of activity as Materials Rs 1,05,000, Wages Rs 1,40,000 Variable overheads Rs 70,000 and Fixed overheads Rs 20,000. Production is now proposed at 80,000 units. Determine Marginal cost p.u., Differential cost, and Differential cost p.u.

The balance of property at cost has been Rs 20,000 and Rs 17,000 in 2013 and 2014 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2014. Determine sale of proceeds from land.

A portfolio comprises two securities and the expected return on them is 12% and 16% respectively. Determine return of portfolio if first security constitutes 40% of total portfolio.

What will be sales in units if fixed cost is Rs 50,000, Contribution per unit is Rs 60 and desired profit per unit is Rs 10.

Given fixed expenses Rs 20,000 and variable expenses of 10,000 units and 15,000 units are Rs 30,000 and Rs 45,000 respectively. Determine Differential cost, Differential cost p.u.

In the balance sheet of Praveen for 2013 and 2014, 4% debentures are Rs 5,00,000 and Rs 4,00,000, respectively. Profit on redemption of debentures in 2013 is nil while in 2014 is Rs 4,000. What is the amount of redemption for the purpose of funds flow statement?

The share capital of A Ltd. stood at Rs 20,00,000 in 2013 and at Rs 26 lac in 2014. As per records, the company bought asset of another company for Rs 6 lac payable in fully paid shares. These assets included Goodwill Rs 2,00,000 Machinery Rs 1,83,600 and Stock Rs 2,16,400. What is the fund from issue of shares?

Determine B.E.P in units and amount if Units produced if Rs 10,000, Fixed cost is Rs 40,000, Selling price is Rs 50 per unit and Variable cost us Rs 30 per unit.

If sales is Rs 5,00,000 and net profit is Rs 1,20,000.What is Net Profit ratio?

Determine Margin of safety if Profit is Rs 15,000 and P/V ratio is 40%.

Determine amount of profit if Variable costs is Rs 1,20,000 Fixed costs is Rs 40,000 and sales is Rs 2,00,000.

Given salary expenses Rs 40,000, Outstanding in the beginning of the year: Rs 5,000 and outstanding at the end of the year Rs 10,000. Cash outflow on salary will be:

Given estimated sales in February, March, April, May and June are Rs 90,000, Rs 96,000, Rs 54,000, Rs 87,000 and Rs 63,000. In case 50% of sales are realized in the next month and balance in the next of next month, determine cash collection from sales in April and May.

The Balance sheet of Ram at end of 2013 and 2014 disclose investments in shares of Rs 2000 and Rs 3000, respectively. Rs 100 as pre-acquisition dividend has been credited to investments account. Determine purchase of investments.

For year 2013 Equity Share Capital is Rs 3,00,000 Preference Share Capital is 1,00,000 10% debentures is 2,00,000 and Share premium is 30,000. For year 2014 Equity Share Capital is Rs 4,00,000 Preference Share Capital is 60,000 10% debentures is 1,00,000 and Share premium is 40,000. Also given, Dividend paid on shares Rs 15,000 and Interest paid on debentures Rs 20,000. Determine net cash flow from financing activities.

Given Net profit for the year Rs 2,50,000 transferred to general reserves Rs 40,000 and old machinery bought for Rs 50,000 was sold for Rs 20,000. Calculate funds from operations.

Given budgeted output, number of working days, fixed overheads and variable overheads are 15,000 units, 25, Rs 30,000 and Rs 45,000 respectively. The actual output, number of working days, fixed overheads and variable overheads are 16,000 units, 27, Rs 30,500 and Rs 47,000, respectively. The increase in capacity is 5%. Determine variable overhead expenditure variance and fixed overhead variance, respectively.

Given Break even sales is 40,000 Profit earned is Rs 2,000 and fixed cost is Rs 8,000. Determine actual sales.

If sales is Rs 10,00,000, sales returns is Rs 50,000, Profit Before Tax is Rs 2,00,000, Income tax is 40%, Net profit ratio is

What will be the B.E.P if Variable cost ratio is 70% and Fixed cost is Rs 36,000.

Calculate B.E.P if Fixed cost is Rs 1,50,000, Variable cost is Rs 2,00,000 and Profit is Rs 1,50,000.

ABC Ltd is operating a system of standard costing with closing of books done every quarter. The budgeted overheads are Rs 2,55,000. Also, the overhead rate was pre-decided @ Rs 5.1 per labour hours and during a quarter actually used 52,000 labour hours, instead of 51,000 hours. The actual overheads resulted in a rate of Rs 4.9 per labour hours. What is volume variance?

Given Maximum value of production and minimum value of production is 10,000 and 5000 units respectively. Maximum total cost is Rs 25,000 and minimum total cost is Rs 15,000. Determine total fixed cost and per unit marginal cost.

Determine sales in rupees for desired profit if fixed cost is Rs 10,000, Variable cost is Rs 30,000, Sales is Rs 50,000 and desired profit is Rs 5,000.