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1. Which type of accounting focuses on measuring, reporting, and analyzing both financial and non-financial information to assist in decision-making?

Financial Accounting Management Accounting Cost Accounting Green Accounting

2. Which of the following is not recognized as a method of Transfer Pricing?

Negotiated Transfer Pricing Market Price Based Transfer Pricing Fixed Cost Based Transfer Pricing Opportunity Cost Based Transfer Pricing

3. In cost accounting, what is the primary purpose of variance analysis?

To understand the reasons for variances To implement corrective actions To enhance future performance All of the above

4. What is another name for Absorption Costing?

Total Costing Committed Costing Target Costing Discretionary Costing

5. Which of the following statements about Margin of Safety (MOS) is incorrect?

MOS = Profit PV Ratio MOS = Total Sales – Sales at BEP MOS = (Total Sales - Sales at BEP) / Total Sales × 100 MOS = PV Ratio × Sales – Fixed Cost

6. Which of the following is not a consideration when preparing a production budget?

The production plan of the organization The Sales Budget Research and Development Budget Availability of Raw Materials

7. Which of the following statements is true regarding Standard Costs?

They are based on future costs. They are determined from historical costs. They are irrelevant for variance analysis. They are only applicable to variable costs.

8. What is the effect of a price increase on the Break Even Point, assuming all other variables remain constant?

It will increase the Break Even Point. It will decrease the Break Even Point. It will have no effect on the Break Even Point. It will make the Break Even Point irrelevant.

9. A specific process requires a standard of 24 hours of skilled labor and 30 hours of unskilled labor, with rates set at ₹60 and ₹40 respectively. In practice, 20 hours of skilled labor and 25 hours of unskilled labor were utilized at a rate of ₹50 for both. What will be the resulting labor mix variance?

Adverse Favorable Neutral Favorable for skilled labor and unfavorable for unskilled labor

10. When an organization possesses all necessary resources for production, what is likely to be the primary budget factor?

Non-existent Demand for sales Availability of raw materials Supply of labor

June 17 CMA & FM Tax

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