ICFAI University MBA Accounting For Decision Making

Hii Buddy , Here I m Looking for Previous year MBA Accounting For Decision Making Exam Question Paper of ICFAI University , Would you please Provide me ?

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Friend For your help Here I m giving Sample Questions for MBA Accounting For Decision Making Exam paper :

1.
Prime cost plus variable overheads is
(a) Total cost
(b) Cost of sales
(c) Production cost
(d) Marginal cost
(e) Cost of goods sold. (1 mark)

2.
A sunk cost is
(a) A common fixed overhead cost
(b) Irrelevant to decision making
(c) Relevant to long-term decision making
(d) Relevant to short-term decision making
(e) A substitute for opportunity cost. (1 mark)

3.
A company is producing three products-A, B and C. A and B are profit making products and product C
is a loss making product. The company is paying a rent of Rs.60,000 per annum for its factory. For the
decision of whether to continue or discontinue product C, the rent of factory is considered as
(a) Marginal cost
(b) Unavoidable cost
(c) Avoidable cost
(d) Opportunity cost
(e) Imputed cost. (1 mark)

4.
The margin of safety can be decreased by
(a) Reduction in fixed cost
(b) Increase in variable cost
(c) Increase in the level of production or selling price or both
(d) Change in the sales mix in order to increase the contribution
(e) Substitute the existing unprofitable product with the profitable ones. (1 mark)

5.
Which of the following items is notexcluded while preparing a cost sheet?
(a) Goodwill written off
(b) Provision for taxation
(c) Property tax on Factory Building
(d) Transfer to reserves
(e) Interest Paid

Welcome Ltd. produces and sells a product ‘Ferrum’. The company has a P/V ratio of 20%. The
company incurs Rs.1,20,000 as fixed cost per annum and its present sales are Rs.90,000 per month. The
fixed cost is likely to increase to Rs.1,35,000 and the variable cost is expected to increase by 5% for the
next period. The percentage increase in selling price required to maintain the existing level of profit is
(a) 4.00%
(b) 5.00%
(c) 5.39%
(d) 5.50%
(e) 6.00%.

For the purpose of planning and control, costs are classified as
(a) Normal and abnormal costs
(b) Historical and predetermined costs
(c) Budgeted and standard costs
(d) Product and period costs
(e) Fixed, variable and semi-variable costs. (1 mark)

The full cost pricing method is used to recover
(a) Market price plus mark-up
(b) Standard cost plus mark-up
(c) Fixed costs plus mark-up
(d) Variable costs plus fixed costs
(e) All costs plus normal profit margin in the long run

Where the machine hours is a key factor, the products to be produced should have
(a) Highest sales price per unit
(b) Highest contribution per unit
(c) Lowest machine hours per unit
(d) Highest sales volume potential
(e) Highest contribution per machine hour. (1 mark)

Shraddha Ltd. has furnished the following data pertaining to its business:
Variable cost – Rs. 95 per unit
Fixed overhead – Rs. 20 per unit
Normal production – 10,000 units
Actual production – 8,000 units
Sales – 6,000 units
Sale price – Rs.140 per unit

The value of ending inventory using Absorption costing is
(a) Rs.2,80,000
(b) Rs.1,90,000
(c) Rs.2,30,000
(d) Rs.2,40,000
(e) Rs.4,80,000

The profit-volume ratio will be reduced by
(a) Increasing the selling price per unit
(b) Increasing the selling price and variable cost with equal amount
(c) Reducing the variable costs
(d) Increasing the selling price and variable cost with equal percentage
(e) Reducing the sales mix of low profit-volume products

Which of the following is a cost-behavior oriented approach to product costing?
(a) Absorption costing
(b) Marginal costing
(c) Standard costing
(d) Job costing
(e) Target costing

Ahuja Ltd. produces and sells 1,500 units of product-K each month with total variable costs of
Rs.19,500 and total fixed costs of Rs.19,500. Idle capacity would permit the acceptance of a special
order for 1,000 units each month. The lowest acceptable selling price per unit of the product is
(a) Rs.26.00
(b) Rs.19.50
(c) Rs.15.00
(d) Rs.11.00
(e) Rs. 9.00

In a decision analysis situation, which of the following costs is generally not relevant?
(a) Incremental cost
(b) Opportunity cost
(c) Replacement cost
(d) Avoidable cost
(e) Historical cost

Cost-volume-profit analysis is mostimportant for the determination of
(a) Volume of operations necessary to break-even
(b) Margin of safety necessary to equal fixed costs
(c) Sales revenue necessary to equal fixed costs
(d) Relationship between revenues and costs at various levels of operations
(e) Sales revenue necessary to equal total costs

The equal percentage change in selling price per unit and variable cost per unit will cause the breakeven point in rupees to
(a) Increase by the percentage change in variable cost per unit
(b) Decrease by less than the percentage increase in selling price per unit
(c) Decrease by more than the percentage increase in the selling price per unit
(d) Decrease by the percentage change in selling price per unit
(e) Remain unchanged




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