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June 2018 SCM Paper

The Number of MCQs are limited as per ICMAI Past Paper in Syllabus 2016


(i) A company needs ₹85,00,000 in sales to achieve its target net profit. The contribution margin is 30%, and the fixed costs are ₹15,00,000. What is the target net profit?



(ii) In a standard costing system, a factory used 1100 kg of material at ₹8 per kg for product X. The material price variance is ₹2200 (Favorable), and the material usage variance is ₹1000 (Adverse). What is the standard material cost of actual production?



(iii) Given the following cost information for ABC:

At 60% capacity: Variable cost = ₹12,000, Fixed cost = ₹20,000

At 80% capacity: Variable cost = ₹16,000, Fixed cost = ₹22,000

What is the differential cost for an increase of 20% in capacity?



(iv) A company makes ₹10,000 profit when selling 9,000 units but incurs a loss of ₹10,000 when selling 7,000 units. What is the break-even point?



(v) In a monopoly market, 1200 units of microchips must be sold to earn a profit of ₹1,06,000. The fixed cost for the period is ₹74,000, and the contribution is ¾ of the variable cost. What is the target selling price per unit?



(vi) An operation has a 90% learning curve, and the first unit took 28 minutes. The labor cost is ₹20 per hour. What should be the cost of the second unit?



(vii) If project A has an NPV of ₹30,00,000 and project B has an NPV of ₹50,00,000, what is the opportunity cost if project B is selected?



(viii) A company using Activity-Based Costing (ABC) budgeted 2000 purchase orders at a total cost of ₹1,00,000 for the year (13 four-week periods). During a recent four-week period, 200 orders were placed at a cost of ₹9,000. What is the over-recovery of costs for this period?



(ix) Empire Hotel has 100 single rooms and 20 double rooms, with an average occupancy rate of 70% throughout the year. The rent for a double room is 130% of a single room. What is the total room occupancy in single room terms?



(x) Which statement is correct in the context of network analysis?