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This set of Advanced Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Advanced Management Accounting Set 4
Q1 | Which of the following does not help to minimize the problems encountered in budgeting?
- Ensuring adequate budget planning
- identifying the responsibility for key performance areas
- Encouraging manager participation
- keeping bad news from the managing director
Q2 | What would be the most likely cause of an unfavourable labour rate variance together with afavourable labour efficiency variance?
- The employment of more highly skilled staff than budgeted
- Poor wage negotiation by the Human Resources manager
- The employment of less well-train
- staff than in
Q3 | A budgeting process which demands each manager to justify his entire budget in detailfrom beginning is
- Functional budget
- Master budget
- Zero base budgeting
- none of the above
Q4 | ________ is the first step of budgetary system and all other budgets depends on it.
- Cost budget
- Sales budget
- Production budget
- None of the above
Q5 | __________ contains the picture of total plans during the budget period and it comprisesinformation relating to sales, profit, cost, production etc.
- Master budget
- Functional budget
- Cost budget
- None of the above
Q6 | Budgetary control system acts as a friend, philosopher and guide to the…
- Management
- Share holders
- Creditors
- Employees
Q7 | Budgetary control facilitates easy introduction of the…
- Marginal costing
- Ratio analysis
- Standa
- costing D) Subjective matter
Q8 | Key factor is also known as…
- Limiting factor
- Governing factor
- Principal factor
- All
Q9 | The responsibility accounting stresses on _________
- Decentralization
- Centralization
- Both (a) & (b)
- None of these
Q10 | In responsibility accounting system…
- Budgets are prepared
- Actual performance is recorded
- The performance is report
- D) All of the above
Q11 | The responsibility accounting emphasizes the performance of ____
- System
- Men
- Both
- None of these
Q12 | The responsibility accounting is also called…
- Profitability accounting
- Activity accounting
- Both
- None of these
Q13 | The responsibility accounting is the part of …
- Financial accounting
- Management accounting
- Mechaniz
- accounting D) none of these
Q14 | The responsibility accounting is a controlling tool for…
- Top‐level management
- Lower level management
- Middle level management
- none of these
Q15 | The accounting department in an organization is…
- Investment centre
- Expense centre
- Profit centre
- All of the above
Q16 | The responsibility accounting is a system by which the responsibility is assigned to theconcerned persons…
- To increase sales
- To control cash
- To increase production
- All of the above
Q17 | According to responsibility accounting, the entire organization is divided into various…
- Business centre
- Profit centre
- Responsibility centre
- none of these
Q18 | In responsibility centre, the output is called as…
- Revenue
- Costs
- Both
- None
Q19 | If the responsibility centre gets more revenue from output, then it is called…
- Investment centre
- Cost centre
- Profit centre
- Expense centre
Q20 | Internal transfer of process at profit _________ of the company
- Will not increase the asset
- Will increase the asset
- Can’t say
- Inadequate information
Q21 | The determination of actual value of assets employed in a responsibility centre is…
- Easy
- Can’t determine
- Difficult
- Not necessary
Q22 | Flexible manufacturing systems (FMS) are reported to have a number of benefits. Which isNOT a reported benefit of FMS?
- Lead time and throughput time reduction
- Increased quality
- More flexible than the manufacturing systems they replace
- Increased utilisation
Q23 | The use of Internet-based technology, either to support existing business processes or tocreate entirely new business opportunities, has become known as what?
- E-globalization
- E-business
- E-value creation
- E-process management
Q24 | Which one of the following is not one of the Balanced Scorecard’s four generic perspectives?
- Marketing and advertising
- internal business processes
- Innovation a
- learning D) financial
Q25 | Which one of the following statements is true?
- Balanced Scorecards are a feedback mechanism
- Balanced Scorecards always have four perspectives
- Balanc
- Scorecards can be used in Not-for-Profit organisations