On This Page
This set of Advanced Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Advanced Management Accounting Set 3
Q1 | which of the following cannot be a reason of unfavorable direct materials price variance?
- Sudden rise in price of materials
- Quality of materials purchased
- Appointment of inexperienc
- workers D Inefficient standard setting
Q2 | Which of the following is not likely to be a reason of unfavorable direct labor efficiencyvariance?
- Increase in direct materials prices
- Lack of proper supervision
- Frequent break downs during production process
- Use of old, outdated or faulty equipment
Q3 | Question Selling price per tonne is Rs. 69.50, variable cost per tonne is Rs. 35.50 and fixedcost is Rs. 18, 02,000. Find out the BEP in units
- 49000
- 51000
- 53000
- 55000
Q4 | Labour Efficiency Standards are decided by considering following factor(s)
- Records of past performance
- Time & Motion Study
- Trial Runs
- All of the above
Q5 | A good _____ system will not punish the workers for the matters beyond the control of theworkers.
- Wage payment
- Appraisal
- Promotion
- none of the above
Q6 | ________ do not give the returns during the same period during which they are paid for
- Intangible assets
- Fixed assets
- Both (A) a
- (B) (D) None of the above
Q7 | --------------- Following is (are) called the element(s) of Cost
- Material
- Labour
- Expenses
- All of the above
Q8 | The cause(s) of idle time can be analysed as
- Administrative causes
- Productive causes
- Economic causes
- All of the above
Q9 | __________ Accounting becomes a source of information for Management Accounting.
- Financial
- Cost
- Both (A) a
- (B) (D) None of the above
Q10 | Which of the following cannot be a reason of unfavorable direct materials quantityvariance?
- Unmotivated workers
- Lack of supervision
- Frequent power failures
- Uneconomical order size
Q11 | Which of the following is not likely to be a reason of unfavorable direct labor rate variance?
- Poor estimates while setting direct labor standards
- An increase in labor rates and overtime premium
- Frequent break downs
- Assignment of easy tasks to highly skilled workers
Q12 | Standard Costing specifically relates to the function of
- Finance
- Production
- Quality
- None of the above
Q13 | Cost Accounting restrict itself with _____ transactions
- Financial
- Spot
- Historical
- Administrative
Q14 | In Cash budget, Non- operating cash inflow include(s)
- Receipt of loan/borrowings
- Issue of shares
- Sale of fix
- assets (D) All of the above
Q15 | Sales Budget is a forecast expressed in
- Quantity
- Money
- Both (A) a
- (B) (D) None of the above
Q16 | Following is used as tool for Cost Control
- Marginal cost
- Historical cost
- Standa
- cost (D) All of the above
Q17 | The term management accounting was first coined in
- 1960
- 1950
- 1945
- 1955
Q18 | Management accounting is 1) Subjective 2) Objective
- Only 1
- Only 2
- Both 1 a
- 2 (D) None of the above
Q19 | The use of management accounting is
- Optional
- Compulsory
- Legally obligatory
- Compulsory to some and optional to others
Q20 | The management accounting can be stated an extension of 1) Cost Accounting 2 ) Financial Accounting 3) Responsibility Accounting
- Both 1 and 2
- Both 1 and 3
- Both 2 a 3
- 1, 2, 3
Q21 | Who coined the concept of management accounting?
- R.N Anthony
- James H. Bliss
- J. Batty
- American Accounting Association
Q22 | The definition ‘Management Accounting is the presentation of accounting information insuch 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
Q23 | During the month of December actual direct labor cost amounted to Rs. 39,550, thestandard direct labor rate was Rs.10 per hour and the direct labor rate variance amounted toRs.450 favorable. The actual direct labor hours worked was:
- 3,955 hours
- 4,000 hours
- 3,910 hours
- 4,500 hours
Q24 | Responsibility centres are departments or organizational functions whose performance is thedirect responsibility of specific managers. One type of responsibility centre is a revenue centre, which is responsible for
- Investments and costs
- sales and profits
- profits
- sales
Q25 | Key motivational factors in budgeting do not include
- Training in the budget process
- correct identification of the blame for below budget performance
- the feedback of information
- the setting of fair, achievable standards