MCQ Portal

30:00

Dec 2018 CMA&FM Paper

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

1. Which of the following is a fundamental function of management?

Motivating Leadership Decision-making Communication

2. Contribution margin is equal to:

Sales - Fixed Cost - Profit Profit + Variable Cost Fixed Cost - Loss None of the above

3. The budgeting approach where all activities are reevaluated each time a budget is formulated and assumes no prior requirement of funds is called:

Performance Budgeting Programme Budgeting Flexible Budgeting Zero-based Budgeting

4. The management approach that saves time by focusing only on deviations from predetermined standards is known as:

Management by Objectives Budgetary Control Standard Costing Management by Exception

5. Marginal Costing is also referred to as:

Direct Costing Absorption Costing Variable Cost Variable Costing

6. Another term for 'Contribution' in cost accounting is:

Marginal Income Gross Profit Net Income None of the above

7. Which of the following does not help to increase the Current Ratio?

Issue of Debentures to buy Stock Issue of Debentures to pay Creditors Sale of Investment to pay Creditors Avail Bank Overdraft to buy Machine

8. Which of the following is not considered while preparing a cash budget?

Accrual Principle Difference in Capital and Revenue items Conservation Principle All of the above

9. Cost of capital may be defined as:

Weighted Average Cost of all Debts Rate of Return expected by Equity Shareholders Average IRR of the Projects of the firm Minimum Rate of Return that the firm should earn

10. At the Indifference Level of EBIT, different capitals have:

Same EBIT Same EPS Same PAT Same PBT

11. ABC Analysis is used in:

Inventory Management Receivables Management Accounting Policies Corporate Governance

12. Which of the following is not incorporated in Capital Budgeting?

Tax Effect Time Value of Money Required Rate of Return Rate of Cash Discount