Education Terms

Topics: Variable cost, Costs, Marginal cost Pages: 13 (3090 words) Published: August 7, 2013
SIKKIM MANIPAL UNIVERSITY - DDE Bachelor of Business Administration – BBA Semester 4 BBA 402 – Management Accounting – 4 Credits (Book Id – B1713) Model Question Paper Duration: 2 hours Total marks: 140

_____________________________________________________________________________ Part A (1 Mark questions) (50 * 1 = 50 marks)

1. ___________ sets the targets for each individual, reviews their working and points out their effectiveness and inefficiencies. A) Responsibility accounting B) Ratio Analysis C) Cost Accounting D) Cause and effect analysis

2. If the ________ ratio of the company is more than that of other companies, it is worth investing. A) Dividend yield B) Earnings per share C) Dividend payout D) Return on Investment

3. The finished products, when sold on credit, get converted into ________. A) Short-term funds B) Sundry creditors C) Sundry debtors D) Circulating capital

4. _____________ is a method of budgeting income earned and adjusting some part of the budget downwards for each part that should be adjusted upwards.

A) Zero-base budgeting B) Performance budgeting C) Labour budgeting D) Cash budgeting

5. Ratio analysis helps to compare items found in ____________ with other items with the aim of analysing the financial state of a business. A) Budget report B) Database C) Inventory D) Financial statements

6. In which of the following policy, a company can use short-term financing to obtain funds for a part of its permanent current assets. A) Dividend policy B) Credit policy C) Conservative policy D) Aggressive policy

7. ___________ ratio portrays the long-term solvency, that is, long-term financial position of a business and are useful to the long-term creditors, owners and the management? A) Capital structure ratio B) Turnover ratio C) Profitability ratio D) Coverage ratio

8. In _____________________, managers justify only the differences compared to the previous year’s assuming that the "baseline" is approved. A) Zero-base budgeting B) Traditional budgeting C) Performance budgeting

D) Conventional budgeting

9. Which among the following are the objectives of management accounting? A) Documenting a company's financial transactions. B) Keeping a record of company's financial growth. C) Ascertaining cost and profitability and controlling cost D) Analysing financial statements to enable management to formulate future policies

10. Which of the following budget is prepared after sales budget? A) Flexible budget B) Purchase budget C) Production budget D) Master budget

11. Which of the following approaches does a company follow when it uses more short-term financing? A) Aggressive approach B) Matching approach C) Conservative approach D) Decision theory approach

12. ____________ ratio measures the real rate of return on shares. A) Dividend payout B) Operating cost ratio C) Dividend yield D) Return on capital employed

13. ________ refers to that part of total working capital which is required by a business over and above permanent working capital. A) Permanent working capital B) Zero working capital

C) Temporary working capital D) Net working capital

14. Which among the following provides information to outsiders such as shareholders, debenture holders, creditors and bankers? A) Tax accounting B) Management accounting C) Financial accounting D) Project accounting

15. Which among the following is the correct calculation of budgeted production? A) Estimated sales + estimated closing stock - estimated opening stock B) Estimated sales - estimated closing stock + estimated opening stock C) Estimated opening stock + estimated closing stock - estimated production D) Estimated opening stock + estimated closing stock - estimated purchase

16. Which of the following has failed to communicate proper information to the management? A) Cost accounting B) Financial accounting C) Management accounting D) Project accounting

17. Which among the following options summarises...
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