Sl. No.

Course Code: 21PCM2C05

SRI VIDYA MANDIR ARTS & SCIENCE COLLEGE
(Autonomous)
Katteri – 636 902, Uthangarai, Krishnagiri District, Tamil Nadu
(An Autonomous College Affiliated to Periyar University, Salem)
(Recognized under Status 2(f) & 12(B) of the UGC Act 1956)
(Accredited by NAAC with ‘A’ Grade [3.27/4.00])

PG AND RESEARCH DEPARTMENT OF COMMERCE

Revision Examinations – January - 2023
Programme : I M.com
Accounting for Managerial Decision
Time: Three hours Maximum marks: 75

SECTION – A
Answer All Questions (15 x 1= 15)

1. Management accounting deals with

(a) Quantitative information (b) Qualitative information

(c) Both a and b (d) None of the above

2. Interpretation of accounts is the

(a) Art and science of translating the figures
(b) To know financial strengths and weaknesses of a business
(c) To know the causes for the prevailing performance of business

(d) All of the above

3. Trend analysis is significant for

(a) profit planning (b) Working Capital management

(c) Capital rationing (d) Forecasting and Budgeting.

4.Which of the following are techniques, tools or methods of analysis and
interpretation of financial statements?

a) Ratio Analysis b) Average Analysis

c)Trend Analysis d) All of the above

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Sl. No. Course Code: 21PCM2C05
5. ________ is the relationship between quick assets and current
liabilities.
a) Current ratio b) Absolute liquidity ratio
c) Acid test ratio d) Proprietary ratio
6. Given Sales is 1, 20,000 and Gross Profit is 30,000, the gross profit
ratio is
a) 24% b) 25%
c) 40% d) 44%
7. Given Net profit for the year Rs 2, 50,000 Transferred to general
reserves Rs 40,000 and old machinery bought for Rs 50,000 was sold for
Rs 20,000. Calculate funds from operations.
a) Rs 2, 80,000 b) Rs 2, 20,000
c) Rs 2, 90,000 d) Rs 3, 00,000
8. Statement of cash flows includes
a) Financing Activities b) Operating Activities
c) Investing Activities d) All of the Above
9. In cash flows, when a firm invests in fixed assets and short-term
financial investments results in
a) Increased Equity b) Increased Liabilities
c) Decreased Cash d) Increased Cash
10. Budgeting is

a) A technique b) A method of costing

c) Maintaining ledger accounts d) None of the above

11. The main objective of budgetary control is -

a) To define the goal of the firm b) To coordinate different

departments
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Sl. No. Course Code: 21PCM2C05
c) To plan to achieve its goals d) All of the above

12. Production budget is -

a) Dependent on purchase budget b) Dependent on sales budget

c) Dependent on cash budget d) None of the above

13. Which of the following is a purpose of standard costing?

(a) To determine profit at different levels
(b) To determine break-even production level
(c) To control costs
(d) To allocate cost with more accuracy

14. While computing variances from standard costs, the difference

between the actual and the standard prices multiplied by the actual
quantity yields a
(a) Yield variance
(b) Volume variance
(c) Mix variance
(d) Price variance

15.The labour cost variance may be expressed as

(a) Budgeted labour cost – Actual labour cost

(b) (Standard wage rage x Output achieved) – Actual wage cost

(c) (Standard hours – Actual hours) x Actual wage rate

(d) (Standard hours – Actual hours) x Standard wage rate