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This set of Advanced Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Advanced Management Accounting Set 2
Q1 | A 'direct' cost is a cost that is classified by:
- behaviour
- traceability
- controllability
- Relevance
Q2 | Which of the following costs is not capitalized as inventory?
- costs of delivering finished goods
- factory (manufacturing) overhead
- insurance of factory building a
- equipment
Q3 | A management concept under which all managers and employees at all stages of companyoperations strive toward higher standards and a reduced number of defective units are called:
- Continuous Improvement
- Total Quality Management (TQM)
- Theory of Constraints (TOC)
- Total Quality Control (TQC)
Q4 | The following information belongs to John Manufacturing Company that uses a standardcosting system: • Basic wage rate:Rs.12 per hour • Fringe benefits: Rs. 2 per hour • Basic time: 2 hours per unit • Allowance for down time: 0.3 hours per unit • Allowance for brakes: 0.2 hours per unit Based on the above information, what is the standard direct labor cost per unit?
- RS.35
- RS.28
- RS.30
- RS.32.2
Q5 | Which of the following is a correct formula for computing direct materials price variance?
- Standard quantity purchased × (Actual rate - Standard rate)
- Actual quantity purchased × (Actual rate - Standard rate)
- Standa
- quantity purchased × (Actual rate + Standard rate)
Q6 | A favorable direct materials price variance occurs when:
- Actual rate of direct materials is higher than standard rate of direct materials
- Actual rate of direct materials is equal to standard rate of direct materials
- Actual rate of direct materials is less than standa
- rate of direct materials
Q7 | The “standard hours allowed” or “standard quantity allowed” is equal to:
- Actual output in units × standard input allowed
- Actual output in units × standard output allowed
- Actual output in units × standa
- output allowed
Q8 | During the month of January, the standard cost of actual hours worked amounted toRs.25, 000, the standard direct labor rate was Rs.10 per hour and the direct labor efficiency variance amounted to Rs.1, 000 favorable. The standard hours allowed for actual production were:
- 2,500 hours
- 2,400 hours
- 10,000 hours
- 2,600 hours
Q9 | Which one of the following does measure risk?
- Coefficient of variation
- Standard deviation
- Expect
- value D. All of the above are measures of risk.
Q10 | A situation in which a decision maker knows all of the possible outcomes of a decision and also knows the probability associated with each outcome is referred to as
- Certainty.
- Risk.
- Uncertainty.
- Strategy.
Q11 | A situation in which a decision maker must choose between strategies that have more thanone possible outcome when the probability of each outcome is unknown is referred to as
- Diversification.
- Certainty.
- Risk.
- Uncertainty.
Q12 | Circumstances that influence the profitability of a decision are referred to as
- Strategies.
- A payoff matrix.
- States of nature.
- The marginal utility of money.
Q13 | The analysis of a complex decision situation by constructing a mathematical model of thesituation and then performing a large number of iterations in order to determine the probability distribution of outcomes is called
- Sensitivity analysis.
- Expected utility analysis.
- Simulation
- A decision tree.
Q14 | The tendency for low-quality cars to drive high quality cars out of the used car market is anexample of
- Hedging.
- Adverse selection.
- Portfolio analysis.
- Moral hazard.
Q15 | Which of the following is a way to deal with decision making under uncertainty?
- Simulation
- Diversification
- Acquisition of additional information
- Application of the maximin criterion
Q16 | ______ is an objective assessment of an individual's performance against well-definedbenchmarks.
- Performance Appraisal
- HR Planning
- Information for goal identification
- None of the above
Q17 | what is linked with performance appraisal?
- J
- Design B Development
- Job analysis
- None of the above
Q18 | which of the following is an alternate term used for performance appraisal?
- Quality and quantity of output
- Job knowledge
- Employee assessment
- None of the above
Q19 | Match the following general applications of performance assessment with their specificpurposes I. Administrative Uses/ Decisions ----- A. Performance Feedback II. Documentation ------ B. Lay - offs III Organizational Maintenance/ Objectives ---- C. Helping to meet legal requirements IV. Developmental Uses ----- D. Evaluation of HR systems
- I-C, II-D, III-B, IV-A
- I-B, II-C, III-D, IV-A
- I-B, II-C, III-D, IV
- D. I-A, II-B, III-D, IV-C
Q20 | Which of these is the main purpose of employee assessment?
- Making correct decisions
- To effect promotions based on competence and performance
- Establish job expectations
- None of the above
Q21 | How performance appraisal can contribute to a firm's competitive advantage?
- Ensures legal compliances
- Minimizing job dissatisfaction and turnover
- Improves performance
- All of the above
Q22 | From the strategic point of view, in which three categories can an organisation, be grouped?
- Defenders
- Prospectors
- Analyzers
- All of the above
Q23 | Successful defenders use performance appraisal for identifying ____________.
- Staffing needs
- Job behaviour
- Training needs
- None of the above
Q24 | Analyzers tend to emphasis both ______ and _______ and employee extensive trainingprogrammes.
- Skill building and skill acquisition
- Current performance and past performance
- Strategy a
- behaviour
Q25 | What do successful analyzers tend to examine?
- Division and corporate performance evaluation
- Ideal appraisal process
- Current performance with past performance
- None of the above