Management Accounting Interview Questions and Answers in 2025 (100+ Q&A)

Management Accounting

Ques:- Determine stock turnover ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales is Rs 3,20,000 and Gross profit ratio is 25% on sales.

Asked In :- NJ India, mha macintyre hudson, gkp,

Right Answer:
Stock Turnover Ratio = Cost of Goods Sold / Average Stock

1. Calculate Gross Profit:
Gross Profit = Sales × Gross Profit Ratio
Gross Profit = 3,20,000 × 25% = Rs 80,000

2. Calculate Cost of Goods Sold (COGS):
COGS = Sales - Gross Profit
COGS = 3,20,000 - 80,000 = Rs 2,40,000

3. Calculate Average Stock:
Average Stock = (Opening Stock + Closing Stock) / 2
Average Stock = (31,000 + 29,000) / 2 = Rs 30,000

4. Calculate Stock Turnover Ratio:
Stock Turnover Ratio = COGS / Average Stock
Stock Turnover Ratio = 2,40,000 / 30,000 = 8

The stock turnover ratio is 8.

Management Accounting

Ques:- Rahul has an amount of Rs 3,00,000 which is invested in a business. He desires 15% return on his fund. It is known from the past cost data analysis that fixed costs are Rs 1,50,000 per annum and variable costs of operation are 60% of sales. Determine sales volume to get 15% return. Also tell shut down point of the business, if he would spend Rs 50,000 even if business has to be closed.

Asked In :- SGV & Co, britam, crowe horwath malaysia,

Right Answer:
To achieve a 15% return on Rs 3,00,000, Rahul needs a profit of Rs 45,000 (15% of 3,00,000).

Total fixed costs = Rs 1,50,000
Variable costs = 60% of sales (let sales be S)
Total costs = Fixed costs + Variable costs = Rs 1,50,000 + 0.6S

To find the sales volume (S) for the desired profit:
Profit = Sales - Total Costs
Rs 45,000 = S - (Rs 1,50,000 + 0.6S)
Rs 45,000 = S - Rs 1,50,000 - 0.6S
Rs 45,000 + Rs 1,50,000 = S - 0.6S
Rs 1,95,000 = 0.4S
S = Rs 1,95,000

Management Accounting

Ques:- Given standard time per unit is 80 hours, standard time per hour @ Rs 1 per hour, actual time per unit is 90 hours and actual rate per hour @ Rs 1.10 per hour. Determine labour cost variance, labour rate variance and labour efficiency variance.

Asked In :- highradius, petrochemical industries co., xl dynamics india pvt. ltd.,

Right Answer:
Labour Cost Variance = (Actual Time x Actual Rate) - (Standard Time x Standard Rate)
= (90 hours x Rs 1.10) - (80 hours x Rs 1)
= Rs 99 - Rs 80
= Rs 19 (Unfavorable)

Labour Rate Variance = (Actual Rate - Standard Rate) x Actual Time
= (Rs 1.10 - Rs 1) x 90 hours
= Rs 0.10 x 90
= Rs 9 (Unfavorable)

Labour Efficiency Variance = (Standard Time - Actual Time) x Standard Rate
= (80 hours - 90 hours) x Rs 1
= -10 hours x Rs 1
= Rs 10 (Unfavorable)

Summary:
Labour Cost Variance: Rs 19 (Unfavorable)
Labour Rate Variance: Rs 9 (Unfavorable)
Labour Efficiency Vari

Assistant Manager Operations Management Accounting

Ques:- Determine Operating ratio, if operating expenses is Rs 60,000, Sales is Rs 9,40,000, Sales Return is Rs 40,000 and Cost of net goods sold is Rs 6,60,000?

Asked In :- GSFC, Karomi, Fluentgrid, barloworld equipment, direct line, south african institute of professional accountants (saipa),

Right Answer:
Operating Ratio = (Operating Expenses + Cost of Goods Sold) / Net Sales

Net Sales = Sales - Sales Return = Rs 9,40,000 - Rs 40,000 = Rs 9,00,000

Operating Ratio = (Rs 60,000 + Rs 6,60,000) / Rs 9,00,000 = Rs 7,20,000 / Rs 9,00,000 = 0.8 or 80%

Management Accounting

Ques:- What will be the amount of profit if Fixed cost is Rs 20,000 Sales is Rs 1,60,000 and P/V ratio is 25%?

Asked In :- CLA (CliftonLarsonAllen), moss adams llp,

Right Answer:
Profit will be Rs 40,000.

Assistant Manager Operations Management Accounting

Ques:- A facility, the installed capacity of which is 1,00,000 units, has budgeted 70% level of activity as Materials Rs 1,05,000, Wages Rs 1,40,000 Variable overheads Rs 70,000 and Fixed overheads Rs 20,000. Production is now proposed at 80,000 units. Determine Marginal cost p.u., Differential cost, and Differential cost p.u.

Asked In :- london stock exchange group (lseg), petrochemical industries co., uganda wildlife authority,

Right Answer:
Marginal cost per unit (p.u.) = (Materials + Wages + Variable overheads) / Production units
= (Rs 1,05,000 + Rs 1,40,000 + Rs 70,000) / 80,000
= Rs 4.12 p.u.

Differential cost = (Total cost at 80,000 units) - (Total cost at 70% capacity)
= (Rs 1,05,000 + Rs 1,40,000 + Rs 70,000) - (Rs 1,05,000 + Rs 98,000 + Rs 49,000)
= Rs 2,00,000 - Rs 1,52,000
= Rs 48,000

Differential cost per unit (p.u.) = Differential cost / Increase in production units
= Rs 48,000 / (80,000 - 70,000)
= Rs 4,

Assistant Manager Operations Management Accounting

Ques:- The balance of property at cost has been Rs 20,000 and Rs 17,000 in 2013 and 2014 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2014. Determine sale of proceeds from land.

Asked In :- azim premji foundation,

Right Answer:
The sale proceeds from the land is Rs 19,000.

Assistant Manager Operations Management Accounting

Ques:- A portfolio comprises two securities and the expected return on them is 12% and 16% respectively. Determine return of portfolio if first security constitutes 40% of total portfolio.

Asked In :- IMAGINATION TECHNOLOGIES LIMITED, MP Chitale & Co, Kirtane & Pandit, tata chemicals, azim premji foundation, esat, xl dynamics india pvt. ltd.,

Right Answer:
The return of the portfolio is 14.4%.

Management Accounting

Ques:- What will be sales in units if fixed cost is Rs 50,000, Contribution per unit is Rs 60 and desired profit per unit is Rs 10.

Asked In :- bop, proximity,

Right Answer:
Sales in units = (Fixed Cost + Desired Profit) / Contribution per unit = (50,000 + 10) / 60 = 833.33 units.

Since you can't sell a fraction of a unit, the sales in units would be 834 units.

Management Accounting

Ques:- Given fixed expenses Rs 20,000 and variable expenses of 10,000 units and 15,000 units are Rs 30,000 and Rs 45,000 respectively. Determine Differential cost, Differential cost p.u.

Asked In :- Himatsingka Seide, crowe horwath malaysia, symmetry financial group,

Right Answer:
Differential cost = Cost at 15,000 units - Cost at 10,000 units = Rs 45,000 - Rs 30,000 = Rs 15,000.
Differential cost per unit = Differential cost / Change in units = Rs 15,000 / (15,000 - 10,000) = Rs 3.00.

Management Accounting

Ques:- In the balance sheet of Praveen for 2013 and 2014, 4% debentures are Rs 5,00,000 and Rs 4,00,000, respectively. Profit on redemption of debentures in 2013 is nil while in 2014 is Rs 4,000. What is the amount of redemption for the purpose of funds flow statement?

Asked In :- SAICA, VITAE International Accounting Services, citrin cooperman,

Right Answer:
The amount of redemption for the purpose of the funds flow statement is Rs 1,00,000.

Management Accounting

Ques:- The share capital of A Ltd. stood at Rs 20,00,000 in 2013 and at Rs 26 lac in 2014. As per records, the company bought asset of another company for Rs 6 lac payable in fully paid shares. These assets included Goodwill Rs 2,00,000 Machinery Rs 1,83,600 and Stock Rs 2,16,400. What is the fund from issue of shares?

Asked In :- crowe horwath malaysia,

Right Answer:
The fund from the issue of shares is Rs 6,00,000.

Management Accounting

Ques:- Determine B.E.P in units and amount if Units produced if Rs 10,000, Fixed cost is Rs 40,000, Selling price is Rs 50 per unit and Variable cost us Rs 30 per unit.

Asked In :- Himatsingka Seide, SR Batliboi & Associates, Kirtane & Pandit, bop,

Right Answer:
Break-even point (B.E.P) in units = Fixed Costs / (Selling Price - Variable Cost)
B.E.P in units = 40,000 / (50 - 30) = 40,000 / 20 = 2,000 units

Break-even point (B.E.P) in amount = B.E.P in units * Selling Price
B.E.P in amount = 2,000 * 50 = Rs 100,000

So, B.E.P is 2,000 units and Rs 100,000.

Management Accounting

Ques:- If sales is Rs 5,00,000 and net profit is Rs 1,20,000.What is Net Profit ratio?

Asked In :-

Right Answer:
Net Profit Ratio = (Net Profit / Sales) × 100 = (1,20,000 / 5,00,000) × 100 = 24%.

Management Accounting

Ques:- Determine Margin of safety if Profit is Rs 15,000 and P/V ratio is 40%.

Asked In :- highradius, sybrin limited,

Right Answer:
Margin of Safety = Profit / P/V Ratio = 15,000 / 0.40 = Rs 37,500.

Management Accounting

Ques:- Determine amount of profit if Variable costs is Rs 1,20,000 Fixed costs is Rs 40,000 and sales is Rs 2,00,000.

Asked In :- SGV & Co,

Right Answer:
Profit = Sales - Variable Costs - Fixed Costs
Profit = Rs 2,00,000 - Rs 1,20,000 - Rs 40,000
Profit = Rs 40,000.

Management Accounting

Ques:- Given salary expenses Rs 40,000, Outstanding in the beginning of the year: Rs 5,000 and outstanding at the end of the year Rs 10,000. Cash outflow on salary will be:

Asked In :- SAICA, singhvi, dev & unni, chartered accountants,

Right Answer:
Cash outflow on salary will be Rs 35,000.

Management Accounting Management Associate

Ques:- Given estimated sales in February, March, April, May and June are Rs 90,000, Rs 96,000, Rs 54,000, Rs 87,000 and Rs 63,000. In case 50% of sales are realized in the next month and balance in the next of next month, determine cash collection from sales in April and May.

Asked In :- Offshore Accounting & Taxation Services, NJ India, uganda wildlife authority,

Right Answer:
Cash collection from sales in April: Rs 45,000 (from February) + Rs 48,000 (from March) + Rs 27,000 (from April) = Rs 120,000.
Cash collection from sales in May: Rs 48,000 (from March) + Rs 43,500 (from April) + Rs 31,500 (from May) = Rs 123,000.

Management Accounting Management Associate

Ques:- The Balance sheet of Ram at end of 2013 and 2014 disclose investments in shares of Rs 2000 and Rs 3000, respectively. Rs 100 as pre-acquisition dividend has been credited to investments account. Determine purchase of investments.

Asked In :- CARE Ratings, moss adams llp, dscl, kpmg philippines,

Right Answer:
The purchase of investments is Rs 1,100.

Bank Teller Management Accounting

Ques:- For year 2013 Equity Share Capital is Rs 3,00,000 Preference Share Capital is 1,00,000 10% debentures is 2,00,000 and Share premium is 30,000. For year 2014 Equity Share Capital is Rs 4,00,000 Preference Share Capital is 60,000 10% debentures is 1,00,000 and Share premium is 40,000. Also given, Dividend paid on shares Rs 15,000 and Interest paid on debentures Rs 20,000. Determine net cash flow from financing activities.

Asked In :- Bnp Paribas India Solutions Pvt Ltd,

Right Answer:
Net cash flow from financing activities for the year 2014 is Rs 1,15,000.

Welcome to the Management Accounting category on takluu.com, crafted especially for candidates preparing for finance, accounting, and managerial roles. Management accounting plays a critical role in helping organizations make informed financial decisions through budgeting, cost analysis, and performance evaluation.

This section covers key topics including:

Cost accounting methods and techniques
Budgeting and variance analysis
Break-even analysis and margin of safety
Standard costing and cost control
Financial planning and forecasting
Performance measurement and KPIs
Decision-making tools like CVP analysis
Internal financial reporting for management

Interview questions typically focus on practical scenarios where candidates demonstrate their understanding of how management accounting aids business strategy and operational efficiency.

Sample questions you’ll find include:

What is the difference between financial and management accounting?
How do you prepare a flexible budget?
Explain the importance of variance analysis in cost control.
What are the key components of a break-even analysis?
How does management accounting influence decision-making?

Whether you’re targeting roles like Cost Accountant, Finance Manager, or Management Accountant, this category will help you build the confidence to answer with clarity and precision.

At takluu.com, we regularly update our content to include the latest trends and industry-relevant questions, helping you stay ahead in your career journey.

Start your preparation today and crack your next finance interview with ease.

Questions in: Management Accounting

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