Management Accounting Set 21
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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 21
Q1 | The form of balance sheet is
- Vertical
- Horizontal
- Horizontal and vertical
- Horizontal or vertical
Q2 | The term current asset doesn’t cover
- Car
- Debtors
- Stock
- Prepaid expenses
Q3 | A budgeting process which demands each manager to justify his entire budget in detail from beginning is
- Functional budget
- Master budget
- Zero base budgeting
- None of the above
Q4 | Match the columns(i) Activity Ratio -------------------- i) (Actual hours worked / Budgeted hours) * 100(ii) Capacity Ratio ------------------ ii) (Standard hours of actual production / Actual hours worked) * 100(iii) Efficiency Ratio ----------------- iii) (Standard hours for actual output / Budgeted hours) * 100
- A-ii, B-iii, C-i
- A-i, B-ii, C-iii
- A-iii, B-i, C-ii
- None of the above
Q5 | While preparing sales budget, which of the following factors are considered?
- Non-operational factors
- Environmental factors
- Both a and b
- None of the above
Q6 | _______ provides an estimate of the capital amount that may be required for buying fixed assets needed for meeting production requirements.
- Production budget
- Cash budget
- Capital expenditure budget
- None of the above
Q7 | Plant utilization budget and Manufacturing overhead budgets are types of
- Production budget
- Sales budget
- Cost budget
- None of the above
Q8 | _______ is designed after assessment of the volume of output to be produced during budgetperiod.
- Cost budget
- Sales budget
- Production budget
- None of the above
Q9 | ________ is the first step of budgetary system and all other budgets depends on it.
- Cost budget
- Sales budget
- Production budget
- None of the above
Q10 | _______also known as subsidiary budgets.
- Master budget
- Functional budget
- Cost budget
- None of the above
Q11 | _________ is stated as a budget which is made to change as per the levels of activity attained.
- Fixed budget
- Flexible budget
- Both a and b
- None of the above
Q12 | _______ is prepared for single level of activity and single set of business conditions.
- Fixed budget
- Flexible budget
- Both a and b
- None of the above
Q13 | The process of budgeting helps in the control of
- Cost of production
- Liquidity
- Capital Expenditure
- All of the above
Q14 | Which of the following statements are not true about budget, budgeting & budgetary control?
- Budgetary control works on the basis of best option
- Budget is one of the important mediums of communication
- Budgeting develops the quality of objectivity in planning
- None of the above
Q15 | Which of the following statements are true about responsibility accounting?
- Responsibility accounting results in inter-departmental conflicts
- In responsibility center more focus is paid on products, processes or jobs
- No focus is paid on controlling costs
- None of the above
Q16 | In profit center revenue represents a monetary measure of output emanating from a profitcenter in a given period irrespective whether
- The revenue is realized or not
- The output is sold or not
- Both a and b
- None of the above
Q17 | Contribution margin center is also known as
- Expense center
- Profit center
- Investment center
- (All of the above
Q18 | Which of the following is responsibility center?
- Expense center
- Profit center
- Investment center
- All of the above
Q19 | The responsibility centers, for control purposes, may be classified into _____ types.
- Five
- Three
- Four
- None of the above
Q20 | The area of focus on responsibility center is
- Quantum of sales
- Quantum of production
- Optimum utilization of resources
- All of the above
Q21 | In responsibility cost accounting the costs in focus are
- Controllable costs
- Uncontrollable costs
- Both a and b
- None of the above
Q22 | The term standard cost refers to the:
- average unit cost of product produced in the previous period
- budgeted unit cost of product produced in a particular period
- average unit cost of product produced by other companies
- average unit cost of product produced in the current period
Q23 | The sub-variance of material usage variance, known as Material mix variance is measured as
- Total standard cost - Total actual cost
- Standard cost of revised standard mix - Standard cost of actual mix
- Standard unit price - Actual unit price) * Actual quantity used
- Standard quantity - Actual quantity) * Unit standard price
Q24 | Volume variance arises when
- There is rise in overhead rate per hour
- There is decline in overhead rate per hour
- There is decrease or increase in actual output compared to the budgeted output
- None of the above
Q25 | The corrective actions after the analysis of variances has to be taken by
- Cost accountant
- Management
- Both a and b
- None of the above