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UGC NET Management Unit - IV Flashcards
50 question-and-answer cards covering Unit - IV as it is examined in UGC NET Management. 24 of them are printed below, taken from across the deck — no signup, no paywall on the preview.
24 sample cards from the Unit - IV deck
Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.
Differentiate between standard costing and budgetary control.
Standard costing sets per-unit cost standards for products/operations; budgetary control sets overall financial targets for the whole organisation/departments. Standards are intensive; budgets are extensive.
What is Variance Analysis?
The process of computing and analysing the differences between standard (budgeted) costs and actual costs to identify causes and fix responsibility for control.
What is a favourable versus an adverse (unfavourable) variance?
A favourable variance arises when actual cost is less than standard (or actual revenue exceeds standard), improving profit; an adverse variance is the opposite, reducing profit.
State the formula for Material Cost Variance.
Material Cost Variance = (Standard Quantity x Standard Price) - (Actual Quantity x Actual Price).
State the formula for Material Price Variance.
Material Price Variance = Actual Quantity x (Standard Price - Actual Price).
State the formula for Material Usage (Quantity) Variance.
Material Usage Variance = Standard Price x (Standard Quantity - Actual Quantity).
State the formula for Labour Cost Variance.
Labour Cost Variance = (Standard Hours x Standard Rate) - (Actual Hours x Actual Rate).
State the formula for Labour Rate Variance and Labour Efficiency Variance.
Labour Rate Variance = Actual Hours x (Standard Rate - Actual Rate); Labour Efficiency Variance = Standard Rate x (Standard Hours - Actual Hours).
What is Capital Structure?
The composition or mix of a firm's long-term sources of finance — equity share capital, preference share capital, retained earnings and long-term debt — used to finance its assets.
What is an optimal capital structure?
The debt-equity mix that minimises the firm's overall cost of capital (WACC) and maximises the market value of the firm (and shareholder wealth).
Name the major theories of capital structure.
Net Income (NI) approach, Net Operating Income (NOI) approach, Traditional approach, and Modigliani-Miller (MM) approach.
What does the Net Operating Income (NOI) approach state about capital structure?
That capital structure is irrelevant — the overall cost of capital and firm value remain constant regardless of the debt-equity mix, because changes in financial risk offset cheaper debt.
What is the core proposition of the Modigliani-Miller (MM) approach (without taxes)?
In a perfect market without taxes, firm value and WACC are independent of capital structure; value depends only on operating earnings and business risk (capital structure is irrelevant).
What is 'trading on equity'?
The practice of using fixed-cost debt (and preference capital) in the capital structure to magnify returns to equity shareholders when the return on assets exceeds the cost of debt.
What is a Budget?
A quantitative and financial statement, prepared and approved before a defined period, expressing the policy to be pursued to attain a given objective.
What is Budgetary Control?
The system of establishing budgets, comparing actual performance with budgeted figures, analysing variances, and taking corrective action to control operations.
What is a Fixed Budget versus a Flexible Budget?
A fixed budget is prepared for a single level of activity and does not change; a flexible budget is designed to change with the actual level of activity by distinguishing fixed and variable costs.
What is Zero-Base Budgeting (ZBB)?
A budgeting method where every expense must be justified from a 'zero base' for each new period, rather than basing it on the previous year's budget.
What is the principal (key/limiting) factor in budgeting?
The factor that restricts or limits the level of activity (e.g., sales demand, material, labour, capacity); the budget for this factor is prepared first as it governs all other budgets.
What is a Master Budget?
A consolidated summary budget that integrates all functional budgets into a projected income statement and balance sheet for the organisation as a whole.
What is Leverage in financial management?
The use of fixed-cost assets or fixed-cost funds to magnify the effect of changes in sales on a firm's earnings (returns).
What is Operating Leverage and its formula?
Operating leverage measures the effect of fixed operating costs on EBIT. Degree of Operating Leverage (DOL) = Contribution / EBIT (or % change in EBIT / % change in sales).
What is Financial Leverage and its formula?
Financial leverage measures the effect of fixed financial charges (interest) on EPS. Degree of Financial Leverage (DFL) = EBIT / (EBIT - Interest) (or % change in EPS / % change in EBIT).
What is Combined (Total) Leverage and its formula?
Combined leverage measures the overall effect of fixed operating and financial costs. DCL = DOL x DFL = Contribution / (EBIT - Interest) (or % change in EPS / % change in sales).
What this deck covers
The Unit - IV deck follows the UGC NET Management Unit - IV syllabus — 3 chapters and 9 topics — so questions land on material that is genuinely examinable rather than trivia around it. That works out to roughly 16.7 cards per chapter.
Answers are written to be recallable, not just readable — averaging about 154 characters, which is long enough to carry the reasoning and short enough to say out loud.
A deck like this earns its keep on the second and third pass. Read the syllabus first so you know the shape of the subject, then use the cards to find the specific facts that have not stuck.
Unit - IV flashcards FAQ
How many Unit - IV flashcards are in this UGC NET Management deck?
50 cards. This page previews 24 of them, sampled evenly across the deck so you can judge the difficulty before installing anything.
Are these UGC NET Management flashcards free?
Yes. The preview here is free to read with no signup, and the full 50-card deck is free inside the Examius app.
What do the Unit - IV cards cover?
They follow the UGC NET Management Unit - IV syllabus — 3 chapters and 9 topics — so the questions track what is actually examinable.
How should I use these flashcards?
Read the syllabus first so you know the shape of the subject, then drill the deck. Examius schedules each card with spaced repetition, so cards you keep missing come back sooner and ones you know drift further apart.