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1. Which of the following options would result in the greatest reduction of the unit contribution margin?

A 10% reduction in selling price A 10% increase in variable costs A 10% reduction in variable costs A 10% reduction in fixed costs

2. Which statement best illustrates the learning curve concept?

The learning curve is a linear cost behavior influenced by learning. The learning curve is a subjective method for estimating costs when learning occurs. A learning curve indicates the percentage decrease in average time per unit produced as output doubles. A learning curve shows the percentage decrease in average time as output increases by one unit.

3. AB Ltd. employs a standard costing system. For Product X in March 2023, the following data is available: Standard rate per hour is ₹8, actual rate per hour is ₹8.40, and standard hours allowed for actual production is 2000 hours. The Labour Efficiency variance is ₹1,600 (Adverse). What were the actual hours worked?

1,800 Hours 1,810 Hours 2,200 Hours 2,190 Hours

4. Economic Value Added (EVA) is a concept closely related to residual income. How is EVA calculated?

By subtracting the adjusted total cost of capital from the adjusted after-tax income. By subtracting adjusted after-tax income from total divisional investment. By dividing adjusted after-tax income by adjusted divisional investment. By dividing adjusted after-tax income by adjusted total cost of capital.

5. In decision analysis, what does expected value represent?

A standard deviation weighted by probabilities. The square root of the squared deviations. A measure of the difference between the best possible outcome and the original decision outcome. An arithmetic mean weighted by probabilities.

6. M/s SP Limited sells Glucon P at a price of ₹100 per unit, with a variable cost of ₹80 per unit and fixed costs of ₹300,000. If the actual quantity sold is 100,000 boxes, what are the Break Even Point (BEP) in units and Margin of Safety (MOS) in units?

BEP: 20,000 units, MOS: 80,000 units BEP: 10,000 units, MOS: 90,000 units BEP: 15,000 units, MOS: 85,000 units BEP: 50,000 units, MOS: 50,000 units

7. Given a standard output of 1,000 units and an actual output of 800 units, with a standard price of ₹2 per Kg and an actual price of ₹3 per Kg, if the standard quantity per unit is 4 Kg and the actual quantity is 4,000 Kg, what will be the Material Cost Variance?

₹1,600 (Favorable) ₹1,600 (Adverse) ₹5,600 (Adverse) ₹3,200 (Adverse)

8. What type of budget incorporates all functional budgets and is ultimately approved, adopted, and implemented?

Zero Base Budget Rolling Budget Master Budget Performance Budget

9. M/s Shibaji Limited has a capital employed of ₹450,000 and an operating income of ₹100,000 for the year ending 31-03-2023. If the minimum expected rate of return is 14%, what is the Residual Income (RI) of the company?

₹35,000 ₹43,000 ₹40,000 ₹37,000

10.M/s Dutta Rubber manufactured 10,000 units of Biodegradable disposable containers at the Material cost of ₹6 per unit: The Direct labour cost is ₹ 15 per unit out of which 2/3 is for fixed, Factory overhead cost is ₹ 20 per unit of which 60% is fixed. The labour used manufacturing Biodegradable disposable containers can be used to manufacture another product having selling price per unit of ₹ 40 and Material cost of ₹ 10 per unit. The Relevant Cost (RC) of manufacturing Biodegradable disposable containers is

₹66 ₹44 ₹36 ₹32

11. Under what condition is fixed cost considered a Relevant Cost?

Discretionary Sunk Unavoidable Periodic

12. According to Norton and Kaplan, how should the balanced scorecard be utilized?

As a control system As a diagnostic system As a strategic system Both (A) and (C)

13. M/s NABARD Limited has provided data for the financial year 2022-23. The Break Even Point (BEP) is ₹266,666.67, with a selling price of ₹100 per unit and a variable cost of ₹70 per unit.Fixed Cost is % 80,000. If the selling price is reduced by 10% next year, what will be the new Break Even Point?

₹356,058 ₹360,000 ₹388,556 ₹357,548

14. M/s Agartala Plastics Private Limited has shared information about its packaging division. The fixed assets are valued at ₹1,000,000, current assets at ₹10,00,000, and the annual fixed cost of the packaging division is ₹16,00,000. The variable cost per unit is ₹10. If the budgeted volume per year is 800,000 units and the desired Return on Investment is 18%, what will be the transfer price of the packaging division?

₹11.60 ₹12.45 ₹10.90 ₹12.00

15. Under Marginal Costing, how are opening and closing stock valued?

Opening stock at variable cost and closing stock at total cost. Opening stock at total cost and closing stock at variable cost. Both opening and closing stock at variable cost. Both opening and closing stock at total cost.

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