Management Accounting Set 19

Bachelor of Business Administration (BBA),

Bachelor of Banking and Insurance (BBI),

Bachelor of Commerce (B Com)

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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 19

Q1 | _________ Accounting becomes a source of information for Management Accounting.
  • Financial
  • Cost
  • Both (A) and (B)
  • None of the above
Answer: Financial
Q2 | Profit and Loss Account debit side includes
  • Salary
  • Discount allowed
  • Postage & telegram
  • All of the above
Answer: All of the above
Q3 | The following is (are) the indirect labour cost(s)
  • Wages paid to storekeeper
  • Salary of works manager
  • Wages paid to gatekeeper
  • All of the above
Answer: All of the above
Q4 | The term management accounting was first coined in
  • 1960
  • 1950
  • 1945
  • 1955
Answer: 1950
Q5 | Management accounting is(i) Subjective(ii) Objective
  • Only (i)
  • Only (ii)
  • Both (i) and (ii)
  • None of the above
Answer: Only (i)
Q6 | The management accounting can be stated an extension of(i) Cost Accounting(ii) Financial Accounting(iii) Responsibility Accounting
  • Both (i) and (ii)
  • Both (i) and (iii)
  • Both (ii) and (iii)
  • (i), (ii), (iii)
Answer: (i), (ii), (iii)
Q7 | Which of the following is true about management accounting?(i) Management accounting is associated with presentation of accounting data.(ii) Management accounting is extremely sensitive to investors needs.
  • Only (i)
  • Only (ii)
  • Both (i) and (ii)
  • None of the above
Answer: Only (i)
Q8 | Which of the following are tools of management accounting?(i) Decision accounting(ii) Standard costing(iii) Budgetary control(iv) Human Resources Accounting
  • (i), (ii) and (iii)
  • (i), (iii) and (iv)
  • (i),(ii) and (iii)
  • (i), (ii), (iii), (iv)
Answer: (i),(ii) and (iii)
Q9 | Management accounting is related with(i) The problem of choice making(ii) Recording of transactions(iii) Cause and effect relationships
  • (i) and (ii)
  • (ii) and (iii)
  • (i) and (iii)
  • All are false
Answer: (i) and (iii)
Q10 | Who coined the concept of management accounting?
  • R.N Anthony
  • James H. Bliss
  • J. Batty
  • American Accounting Association
Answer: James H. Bliss
Q11 | Which of the following statements are false about management accounting?(i) Management accounting is concerned with historical events.(ii) Management accounting is related only with such instances which can be expressed in monetary terms.(iii) Management accounting is a part of Financial Management(iv) Management accounting information can be disclosed to outsiders.
  • (i), (ii) and (iii)
  • (i), (iii) and (iv)
  • (i),(ii) and (iii)
  • (i), (ii), (iii), (iv)
Answer: (i),(ii) and (iii)
Q12 | Management accounting deals with
  • Quantitative information
  • Qualitative information
  • Both a and b
  • None of the above
Answer: Both a and b
Q13 | The definition ‘Management Accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and the day-to-day operation of an undertaking.’
  • Anglo-American Council on Productivity
  • AICPA
  • Robert N. Anthony
  • All of the above
Answer: Anglo-American Council on Productivity
Q14 | The prime function of accounting is to:
  • record economic data
  • provide the informational basis for action
  • classify and record business transactions
  • attain non-economic goals.
Answer: provide the informational basis for action
Q15 | The basic function of management accounting is to:
  • record all business transactions
  • interpret the financial data
  • assist the management in performing its functions effectively
  • None of the above
Answer: assist the management in performing its functions effectively
Q16 | Management accounting involves
  • Preparation of financial statements
  • Analysis and interpretation of data
  • Recording of transactions
  • None of the above
Answer: Analysis and interpretation of data
Q17 | Management accounting provides invaluable services to management in performing:
  • All management functions
  • Coordination functions
  • Controlling functions
  • Directing function
Answer: All management functions
Q18 | Cost accounting mainly helps the management in:
  • Earning extra profits
  • Providing information to the management for decision-making.
  • Fixing process of the products.
  • Selling products
Answer: Providing information to the management for decision-making.
Q19 | Variable cost per unit:
  • Remains fixed
  • Fluctuates with the volume of production
  • Varies in sympathy with ‘the volume of sales.
  • None of the above
Answer: Fluctuates with the volume of production
Q20 | If the activity level increases 10%, total variable costs will
  • remain the same
  • increase by more than 10%
  • decrease by less than 10%
  • increase by10%
Answer: remain the same
Q21 | Opportunity cost helps in:
  • Ascertainment of cost
  • Controlling cost
  • Making managerial decisions
  • Fixing selling price
Answer: Making managerial decisions
Q22 | Conversion cost is the sum total of:
  • Direct material cost and direct wages cost
  • Direct wages, direct expenses and factory overheads
  • Indirect wages and factory overheads
  • Indirect wages , direct wages & factory overheads
Answer: Indirect wages and factory overheads
Q23 | Fixed cost per unit increases when:
  • Production volume decreases
  • Production volume increases
  • Variable cost per unit decreases
  • None of the above
Answer: None of the above
Q24 | Cost behaviour analysis is a study of how a firm's costs
  • relate to competitors' costs
  • relate to general price level changes
  • respond to changes in activity levels within the company
  • respond to changes in the gross national product
Answer: respond to changes in activity levels within the company
Q25 | Cash Flow Statement is also known as
  • Statement of Changes in Financial Position on Cash basis
  • Statement accounting for variation in cash
  • Both a and b
  • None of the above
Answer: Both a and b
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