Management Accounting Interview Questions and Answers – Page 4

Given sales is Rs 2,00,000 and Rs 4,00,000 in year 2013 and 2014 respectively. Cost is Rs 1,40,000 and Rs 2,40,000 in 2013 and 2014 respectively. Compute P/V ratio.

The cost of material at 50% capacity is Rs 8,000 and budget is to be prepared at 60%, 90% and 100% of normal capacity. The cost of material at 60% and 90% capacity will be

If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be:

If total cost of 100 units is Rs 5000 and those of 101 units is Rs 5030 then increase of Rs 30 in total cost is?

A component is being made with the help of a machine. 10,000 units are made at a cost of Rs 10 per unit (of which Rs 9 are variable). The same component can be bought from the market at Rs 9.50 per unit. However, the owner intends to rent the machine for Rs 6,000 following which he will buy components from market. If he does so, what will be the impact?

Determine Contribution if Fixed cost is Rs 40,000 and profit is Rs 30,000?

In a manufacturing firm, the standard quantity of material was set at 10 kg and standard price was fixed at Rs. 2 per kg. The actual quantity consumed was 12 kg and the actual price paid was Rs 1.90 per kg. Determine material usage variance.

In responsibility cost accounting what costs are in focus?

When do we use flexible budget?

A company is producing product T on a machine. The selling price of T is Rs 100, marginal cost is Rs 60 and machine takes 20 hours to produce T. The company uses a component H which can be made on same machine in 3 hours for a marginal cost of Rs 5. Component can also be bought from the market for Rs 10. What will be the final result if the company decides to by component H from market? (Machine is fully utilized)

Why standard costs are better than historical costs?

Which technique is used to compare Heterogeneous cash flows?

Determine P/V ratio if Sales per unit is Rs 10 and Variable cost per unit is Rs 7?

What Formula is used to measure Material yield variance?

Project forecast method is also known as what?

What does CAPM accounts for?

What is the formula for Net Profit ratio?

P/V ratio can be calculated on the basis of variable cost ratio as

When does material yield variance arise?

Define Capital market line?

While preparing Cash Flow Statement under which method non-cash items and non-operating items are not required to be adjusted?

Which standard reflects a level of attainment depending on the maximum possible efficiency which may never be achieved?

If Y is total cost, a = fixed cost, b = marginal cost and X is output, what is the linear equation under method of least squares?

What is the determining factor of price in a competitive market?

Which budget contains the picture of total plans during the budget period and it comprises information relating to sales, profit, cost, production etc?

What is the formula for Cash flow from sales?

Subsidiary budgets are also known as what?

A cost centre which relates to equipment or to location is known as what?

True or False: Internal reporting provides financial statement and annual accounts.

Which budget is made to change as per the levels of activity attained?