Management Accounting Interview Questions and Answers – Page 3

ABC Company plans a sale of 96,000 units of TV product line in the first fiscal quarter, 1,20,000 TV units in second quarter, and 1,32,000 units and 1,50,000 units in third and fourth quarter, and 1,56,000 units in the first quarter of next year. Given that at the beginning of first fiscal quarter, the company has 16,000 units in stock. Also, at the end of each quarter, ABC Company wants to maintain an inventory equal to one-sixth of the sales for the next fiscal quarter. Determine units to be manufactured in first and second quarter of the year.

Determine sales in units for desired profit if Fixed cost is Rs 15,000, desired profit is Rs 5,000 Selling price per unit is Rs 20 and Variable cost per unit is Rs 16?

The total costs at 60% and 70% of activity are Rs 28,290 and Rs 30,348 respectively. Production at 60% level is 720 units and selling price is Rs 38 per unit. Determine Profit and Loss at 80% activity level.

In two periods total costs amounts to Rs 50000 and Rs 40000 against production of 20000 and 15000 units respectively. Determine marginal cost per unit and fixed cost.

The simple interest on a sum of money is 1/9 th of the sum and the number of years and the rate per cent per annum are equal. What is the rate per cent per annum?

Tell the difference between Accounts and Finance?

Define an operative accounts?

Determine B.E.P if Sales is Rs 1,00,000, Variable cost is Rs 50,000 and Profit is Rs 20,000.

What will be the Gross Profit if, total sales is Rs 2,60,000, cost of net goods sold is Rs 2,00,000 and sales return is Rs 10,000?

What is the relation between journal and ledger?

What is Deferred Revenue Expenditure? Give some examples.

Volume of trade in a company over past four days has been 3431, 4532, 2789, and 5467. Find out the rate of changes day to day.

Given sales is Rs 2,00,000 and Rs 4,00,000 in year 2013 and 2014 respectively. Profit is Rs (-10,000) and Rs 20,000 in 2013 and 2014 respectively. Compute P/V ratio.

A company produces and sells three types of products namely X, Y and Z. Total sales per month is Rs 60,000 in which the share of these three goods are 40%, 40% and 20% respectively. Variable costs of these three goods are 40%, 50% and 60% respectively. Compute combined P/V ratio.

Given Sales is 1,20,000 and Gross Profit is 30,000, the gross profit ratio is

During the year, a business was bought by issue of Rs 25,000 debentures and Rs 25,000 shares. The business bought had machine worth Rs 20,000, Debtors Rs 15,000, Stock Rs 5,000 and Creditors Rs 5,000. Determine the effect of this transaction on flow of funds.

A box manufacturer discovers that while it costs Rs 6.25 per unit to make a component T the same is available in the market at Rs 5.75 each. There is reliability of regular supply. The breakdown of costs is materials is Rs 2.75 per unit, Labor is Rs 1.75 per unit, Other variable expenses is Rs 0.50 and depreciation and other fixed costs is Rs 1.25. Will you make or buy?

Determine Contribution if Fixed cost is Rs 50,000 and loss is Rs 20,000.

Determine P/V ratio if Sales is Rs 1,00,000, Fixed cost is Rs 30,000 and Profit is Rs 20,000.

Determine P/V ratio if Sales is Rs 80,000 and Variable cost is Rs 60,000.

Marginal costing is also known as?

Profit-Volume ratio is also known as what?

A standard cost card reveals that one unit of Product A needs 2 kg of material X at Rs 10 per kg. During February 800 units of Product A were produced. Actual price paid for material X is Rs 9 per kg and total cost Rs 15,300. Determine material cost variance.

Compute P/V ratio if variable cost ratio is 60%?

Determine total as well as per unit contribution if Sales is Rs 40,000, Sales in units is 4,000 and variable cost is Rs 30,000.

How risk of two securities with different expected return can be compared?

Given selling price is RS 20 per unit, variable cost is Rs 16 per unit contribution is?

Mr. X takes a loan of Rs 50,000 from HDFC Bank. The rate of interest is 10% per annum. The first installment will be paid at the end of year 5. Determine the amount of equal annual installments if Mr. X wishes to repay the amount in five installments.

In the context of Funds Flow Analysis, the word funds is used to define what?

If nominal rate of return is 10% per annum and annual effective rate of interest is 10.25% per annum, determine the frequency of compounding?