Management Accounting MCQs | ASK BY PEOPLE

1 The cost that tends to remain constant irrespective of the level of activity is called
_______.
(a) Variable cost
(b) Fixed cost
(c) Total cost
(d) All of the above

2 Cost Accounting restrict itself with _______ transactions.
(a) Financial
(b) Spot
(c) Historical
(d) Administrative

3 Following is (are) the method(s) of measuring labour turnover.
(a) Replacement Method
(b) Separation Method
(c) Flux Method
(d) All of the above

4 Following is (are) the example(s) of semi-variable overheads.
(a) Maintenance cost
(b) Electricity
(c) Health and Accident Insurance
(d) All of the above

5 _________ indicates the financial status of the business at given period.
(a) Balance sheet
(b) Accounting ledger
(c) General ledger
(d) All of the above

6 In Cash budget, Non operating cash inflow include(s)
(a) Receipt of loan/borrowings
(b) Issue of shares
(c) Sale of fixed assets
(d) All of the above

7 Sales Budget is a forecast expressed in -
(a) Quantity
(b) Money
(c) Both (a) and (b)
(d) None of the above

8 Following is used as tool for Cost Control
(a) Marginal cost
(b) Historical cost
(c) Standard cost
(d) All of the above

9 Management accounting assists the management
(a) Only in control
(b) Only in direction
(c) Only in planning
(d) In planning, direction and control

10 Management accounting is deals with -
(a) Quantitative Information
(b) Qualitative Information
(c) Both (a) and (b)
(d) None of the above

11 Which of the following is an advantage of standard costing?
(a) Measuring efficiency
(b) Facilitates cost control
(c) Determination of variance
(d) All of the above

12 Which of the following is not a functional budget?
(a) Labour budget
(b) Cash budget
(c) Materials budget
(d) Expenses budget

13 Which is the mostly likely purpose of budgeting?
(a) Planning and control of an organization's income and expenditure
(b) Preparation of a five-year business plan
(c) Company valuation
(d) Assess the non-financial performance of an organization

14 __________ Accounting becomes a source of information for Management Accounting.
(a) Financial
(b) Cost
(c) Both (a) and (b)
(d) None of the above

15 Calculate the production budget from the following data: sales 89,350 units; opening
inventory 23,864 units; closing inventory 33,156 units.
(a) 80,058 units
(b) 1,46,370 units
(c) 32,320 units
(d) 98,642 units