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Quiz 6
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Q.1
If an initial investment is $765000, payback period is 4.5 years, then increase in future cash flow will be
$5,645,000
$6,442,500
$3,442,500
$5,442,500
Q.2
Categories of cash flows include
net initial investment
cash flow from operations after paying taxes
cash flow from terminal disposal after paying taxes
all of above
Q.3
Process of making long term decisions, for capital investment in projects is called
lead budgeting
lean budgeting
capital budgeting
relevant budgeting
Q.4
If payback period is 4 years and uniform increases in cash flows per year is $2750000, then net initial investment can be
$10,511,000
$12,105,000
$1,100,000
$11,000,000
Q.5
If fixed cost is $15000 and breakeven revenue is $45000 then contribution margin will be
33.34%
43.34%
23.00%
25.00%
Q.6
Which of following is an example of internal business perspective in balanced scorecard?
employee turnover rates
operating capabilities and number of patents
operating income and revenue growth
customer satisfaction and market share
Q.7
Balanced scorecard perspective, which measures strategy profitability and amount of operating income results from cost reduction is classified as
learning perspective
financial perspective
internal business process perspective
customer perspective
Q.8
In strategy formulation, forces that must be focused for industry analysis include
potential entrants in market
customer's bargaining power
supplier's bargaining power
all of above
Q.9
In operating income strategic analysis, strategic component which measures change in cost attributed to price of input in current year, relative to price of input material in last year can be classified as
internal process component
growth component
price recovery component
productivity component
Q.10
An organization's ability to offer market offerings at lower prices, in comparison with its competitors is known as
inelastic demand
product differentiation
cost leadership
elastic demand
Q.11
Balanced scorecard perspective focuses on all operations, which leads to value creation process for customers, can be categorized as
learning perspective
financial perspective
internal business process perspective
customer perspective
Q.12
If manufacturing cycle efficiency is 0.725 and total manufacturing time is 45 minute, then value added manufacturing time will be
42.625
36.724
32.625
41.625
Q.13
In response to challenges arisen by competitors and new entrants, strategy which must be considered by company does include
cost leadership
demand inelasticity
differentiated products
both a and c
Q.14
Types of costs of quality consist of
appraisal costs
internal and external failure costs
prevention costs
all of above
Q.15
If cost of direct materials use in goods sold is $5000 and total revenues are $9000 then throughput contribution would be
$5,000
$14,000
$4,000
$9,000
Q.16
Formula to calculate return on investment, according to profitability analysis in DuPont method is
return on sales * investment turnover
return on sales + investment turnover
return on sales - investment turnover
investment turnover + residual income
Q.17
If operating income is $5650000 and revenue is $68558000, then return on sales will be
8.24%
7.24%
9.24%
10.24%
Q.18
Difference of current assets and working capital is equal to
current liabilities
long-term liabilities
residual assets value
net residual income
Q.19
Considering two fiscal years 2013 and 2014, actual units sold in 2013 and 2014 are 11000 and 12500 units respectively, and selling price in year 2013 is $50, then revenue effect of growth will be
$70,000
$75,000
$65,000
$73,000
Q.20
Time a company takes until a good is produced after order placement is known as
manufacturing lead time
manufacturing cycle efficiency
customer response time
system process time
Q.21
Factors identified by cause and effect diagrams include
component and material factors
machine-related factors
human factors
all of above
Q.22
An operating income is divided by revenues to calculate
residual income
return on after-tax operating income
return on sales
return on investment
Q.23
Sum of all resources used to generate income is classified as
DuPont investment
return on investment
investment
investment turnover
Q.24
Depreciation on plant equipment, salaries of plant managers and plant leasing costs are considered a
fixed batch cost
variable batch cost
variable overhead cost
fixed overhead cost
Q.25
Current assets are subtracted from current liabilities to calculate
opportunity cost of capital
working capital
total long term assets
weighted average cost of capital
Q.26
If actual input quantity is 300 units and budgeted input quantity is 100 units, then efficiency variance will be
600 units
200 units
400 units
500 units
Q.27
Cost allocation base used by an operating manager is classified as
machine hours
flexible hours
variable hours
fixed hours
Q.28
Delivery of goods by time it is contracted to be delivered is known as
effective performance
efficient performance
in-time performance
on-time performance
Q.29
An investment is multiplied to required rate of return to calculate
congruent cost of investment
transfer cost of investment
operating cost of investment
imputed cost of investment
Q.30
System in an organization that articulates purpose, mission and core values of a company is classified as
interactive control system
belief system
boundary system
diagnostic control system
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