Management Sciences
Management Sciences MCQs With Answers
0 Management Sciences MCQs for CSS, PPSC, FPSC, NTS and entry-test preparation. Take a scored quiz instead →
If a capital budgeting project has an NPV greater than zero, what does its Profitability Index (PI) equal?
ALess than 0
BEqual to 0
CLess than 1
DGreater than 1
Which ratio measures a company’s ability to cover its short-term obligations using its most liquid current assets, excluding inventory?
ACurrent Ratio
BQuick Ratio (Acid-Test Ratio)
CDebt to Equity Ratio
DReturn on Assets
What does the Interest Coverage Ratio evaluate?
AShort-term asset turnover
BA firm's ability to satisfy interest payments on outstanding debt
CThe ratio of net profit to total revenue
DDividend payout ratio
According to the DuPont Analysis framework, Return on Equity (ROE) is decomposed into which three components?
AGross Margin, Operating Margin, Net Margin
BNet Profit Margin, Total Asset Turnover, Equity Multiplier
CCurrent Ratio, Quick Ratio, Cash Ratio
DDebt Ratio, Coverage Ratio, P/E Ratio
At the break-even point in cost-volume-profit (CVP) analysis, what is the total contribution margin equal to?
ATotal Variable Costs
BTotal Sales Revenue
CTotal Fixed Costs
DNet Operating Profit
In job-order costing, how are direct materials and direct labor costs charged to jobs?
AAllocated using a predetermined overhead rate
BTraced directly to each specific job using job cost sheets
CExpensed immediately as period costs
DAveraged across all units produced during the period
Which cost behavior classification remains constant per unit regardless of changes in the activity level within the relevant range?
AFixed Cost per unit
BVariable Cost per unit
CTotal Variable Cost
DMixed Cost per unit
What is the key difference between Marginal Costing (Absorption Costing alternative) and Absorption Costing?
ATreatment of direct materials
BTreatment of direct labor
CTreatment of fixed manufacturing overhead costs
DTreatment of variable selling overheads
Which accounting principle requires expenses to be recognized in the same accounting period as the revenues they helped generate?
AGoing Concern Concept
BMatching Principle
CHistorical Cost Principle
DMateriality Concept
Under the double-entry accounting system, an increase in an asset account is recorded as a:
ACredit entry
BDebit entry
CBalance sheet reduction
DContra entry