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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 16

Q1 | For preparing an effective budget it needs accounting information which is
  • Structured around the past data need of the management
  • Structured around the line communication needs of the management
  • Structured around financial needs of the management
  • Structured around the planning and control needs of the management
Q2 | Long period budgets are prepared under
  • Receipts and payment method
  • Balance sheet method
  • Adjusted profit and loss method
  • Receipts and payments, balance sheet method
Q3 | A budget specifies the operations to be performed during the next year is called __________
  • Operation budget
  • Responsibility budget
  • Activity budget
  • Flexible budget
Q4 | The branch of accounting which primarily deals with processing and presenting accounting data fro internal use is ________________
  • Cost accounting
  • Financial accounting
  • Management accounting
  • Inflation accounting
Q5 | The term management accounting was used in
  • 1950
  • 1939
  • 1910
  • 1947
Q6 | Management accounting is also known as _______________
  • Price level accounting
  • Historical accounting
  • Decision accounting
  • None of these
Q7 | Which of the following is not a technique of management accounting
  • Budgetary control
  • Standard costing
  • Marginal costing
  • Process costing
Q8 | Management accounting is helpful in increasing _______________
  • Performance
  • Profitability
  • Efficiency
  • Production
Q9 | Management accounting has a ___________ scope than cost accounting
  • Wider
  • Narrower
  • Smaller
  • None of these
Q10 | Management accounting helps in ___________ data
  • Analysis
  • Interpretation
  • Analysis and interpretation
  • None of these
Q11 | Management accounting provides alternative choices for managerial ___________
  • Decisions
  • Policies
  • Uses
  • None of these
Q12 | Publication of management accounting statements are ______________
  • Compulsory
  • Not optional
  • Optional
  • None of these
Q13 | Management accounting deals only with that information which is useful to the ___________
  • Accountant
  • Owners
  • Management
  • All of the above
Q14 | The prime function of management accounting is to -------------------------------
  • Interpret financial data
  • Assist the management in performing its functions
  • Record business transaction
  • None of these
Q15 | Management accounting relates to ________
  • Recording of accounting data
  • Recording of costing data
  • Presentation of accounting data
  • None of these
Q16 | Management accounting analyses accounting data with the help of -------------------------
  • Auditors
  • Statutory forms
  • Tools and techniques
  • None of these
Q17 | Management accounting and cost accounting functions are --------------------------
  • Neutral in effect
  • Complementary in nature
  • Contradictory in nature
  • None of these
Q18 | Management accounting provides valuable services to management in performing ____
  • Coordinating functions
  • Controlling functions
  • Planning functions
  • All managerial functions
Q19 | Management accounting and financial accounting differ in that management accountinginformation is prepared
  • following prescribed rules
  • using whatever methods, the company finds beneficial.
  • for shareholders.
  • to summarize the whole company with little detail.
Q20 | Management accounting is the branch of accounting concerned with reporting to
  • internal managers.
  • shareholders.
  • the government
  • bankers.
Q21 | The use of management accounting is
  • Optional
  • Compulsory
  • Legally obligatory
  • Compulsory to some and optional to others
Q22 | The management accounting can be stated an extension of A) Cost Accounting B) Financial Accounting C) Responsibility Accounting
  • Both A and B
  • Both A and C c)
  • Both B and C
  • A,
Q23 | Which of the following is true about management accounting? A) Management accounting is associated with presentation of accounting data. B) Management accounting is extremely sensitive to investors needs.
  • Only A
  • Only B
  • Both A and B
  • None of the above
Q24 | Which of the following are tools of management accounting?A) Decision accountingB) Standard costingC) Budgetary controlD) Human Resources Accounting
  • A, B and D
  • A, C and D
  • A, B and C
  • A, B , C, D
Q25 | Management accounting is related withA) The problem of choice makingB) Recording of transactionsC) Cause and effect relationships
  • A and B
  • B and C
  • A and C
  • All are false