Top 150+ Solved Accounting for Management MCQ Questions Answer
Q. ABC system is used for ………………
a. material control
b. wages control
c. overhead allocation
d. pricing decisions
Q. .A cost centre is …………………
a. a production department where all production costs are aggregated
b. an area of business accountable for both costs and revenues
c. the part of the business where all costs are paid to suppliers
d. an area for which costs are accumulated
Q. An investment centre is a responsibility centre where the manager hascontrol of ………………
a. costs and profits
b. cost profits and product quality
c. costs profits and assets
d. costs
Q. Responsibility accounting aims to …………….
a. ensure that costs become the responsibility of a specific manager
b. reduce the costs that a department incurs
c. allocate costs to all areas of a business
d. ensure that a manager is punished if things go wrong
Q. Prime costs may be defined as
a. the total costs of manufacturing a product
b. the total direct costs of manufacturing a product
c. the cost of the first stage of manufacturing
d. the total cost of production
Q. Which of the following best describes a fixed cost ?
a. remains constant irrespective of the level of activity
b. represents a fixed proportion of total costs
c. increases proportionately with output
d. has a direct relationship with output
Q. The weighted average method of stock valuation would be mostappropriate for ………….
a. chemical manufacturer
b. a food retailer
c. a building contractor
d. a motor components retailer
Q. Direct labour costs will include……………
a. all labor costs attributable to product
b. direct labor costs plus any bonuses
c. total direct labor hours at the normal hourly rate of pay
d. direct labor costs plus any bonuses and overtime premium
Q. Management accounting is said to meet:
a. the internal accounting needs of the organization
b. the needs of laws that govern company financial reporting.
c. the regulatory requirements of the organization
d. the external accounting needs of the organisation.
Q. Which one of the following is not a recognised cost classification?
a. time
b. function
c. performance
d. type
Q. Direct costs are also known as:
a. indirect cost
b. overhead costs
c. prime costs
d. marginal costs
Q. Indirect costs are also known as
a. direct cost
b. overhead costs
c. prime costs
d. marginal costs
Q. Which of the following is not true?
a. managerial accounting information is prepared for internal users
b. managerial accounting information is not required by various laws
c. there are specific standards of acceptability for managerial accounting
d. the structure of managerial accounting practice is relatively flexible
Q. Which of the following are basic inventories for a manufacturer?
a. indirect materials, goods in process, and raw materials
b. finished goods, raw materials, and direct materials
c. raw materials, goods in process, and finished goods
d. raw materials, factory overhead, and direct labour
Q. The three basic elements of the cost of a manufactured product are:
a. indirect materials, indirect labour, and manufacturing overhead
b. merchandise inventory, work in process, and finished goods inventory
c. direct materials, work in process, and finished goods inventory
d. direct materials, direct labour, and manufacturing overhead