Management Accounting Set 5 MCQs

Q1 | Following is used as tool for Cost Control

Marginal cost

Historical cost

Standard cost

All of the above

Q2 | Management accounting assists the management

Only in control

Only in direction

Only in planning

In planning, direction and control

Q3 | Management accounting is deals with -

Quantitative Information

Qualitative Information

Both (a) and (b)

None of the above

Q4 | Which of the following is an advantage of standard costing?

Measuring efficiency

Facilitates cost control

Determination of variance

All of the above

Q5 | Which of the following is not a functional budget?

Labour budget

Cash budget

Materials budget

Expenses budget

Q6 | Which is the mostly likely purpose of budgeting?

Planning and control of an organization's income and expenditure

Preparation of a five-year business plan

Company valuation

Assess the non-financial performance of an organization

Q7 | __________ Accounting becomes a source of information for Management Accounting.

Financial

Cost

Both (a) and (b)

None of the above

Q8 | Calculate the production budget from the following data: sales 89,350 units; opening inventory 23,864 units; closing inventory 33,156 units.

80,058 units

1,46,370 units

32,320 units

98,642 units

Q9 | Fixed budget is useless for comparison when the level of activity -

Increases

Fluctuates both ways

Decreases

Constant

Q10 | The budget committee consists of -

Managers

Budget officers

Creditors

None of the above

Q11 | A budget centre is -

Department or part of the department

Meeting place for budget committee

Office of the budget officer

None of the above

Q12 | The main objective of budgetary control is -

To define the goal of the firm

To coordinate different departments

To plan to achieve its goals

All of the above

Q13 | Production budget is -

Dependent on purchase budget

Dependent on sales budget

Dependent on cash budget

None of the above

Q14 | Sales budget shows the sales details as -

Month wise

Product wise

Area wise

All of the above

Q15 | An example of long period budget is -

R & D budget

Master budget

Sales budget

Personnel budget

Q16 | The budgets are classified on the basis of -

Time

Function

Flexibility

All of the above

Q17 | Budget relating to the key factor is prepared -

After other budgets

With other budgets

Before other budgets

None of the above

Q18 | Key factor is also known as -

Limiting factor

Governing factor

Principal factor

All of the above

Q19 | In responsibility accounting system -

Budgets are prepared

Actual performance is recorded

The performance is reported

All of the above

Q20 | The responsibility accounting emphasizes the performance of -

System

Men

Both (a) and (b)

None of these

Q21 | The responsibility accounting is also called -

Profitability accounting

Activity accounting

Both (a) and (b)

None of these

Q22 | The responsibility accounting is the part of -

Financial accounting

Management accounting

Mechanized accounting

None of these

Q23 | The responsibility accounting is a controlling tool for -

Top?level management

Lower level management

Middle level management

None of these

Q24 | Which of the following system emphasizes on cost control ?

Cost accounting

Responsibility accounting

Financial accounting

None of these

Q25 | The responsibility centres come under the responsibility of -

Cost accountants

Management accountant

Responsibility managers

Auditor