Top 80+ Solved Advanced Management Accounting MCQ Questions Answer
Q. ……………is concerned with providing information to management for taking managerialdecisions.
a. Management Accounting
b. Financial accounting
c. Cost accounting
d. All of these
Q. Which among the following is not a management accounting technique?
a. Standard costing
b. marginal costing
c. Project appraisal
d. None
Q. The essence of marginal costing is that ……………… cost is considered on the whole asseparate.
a. Fixed
b. variable
c. both of these
d. none of these
Q. A document that records the standard cost of a single unit of product is known as:
a. Bill of materials
b. Bill of product
c. Standa
d. cost card D. product expense card
Q. Following is used as tool for Cost Control
a. Marginal cost
b. Historical cost
c. Standa
d. cost (D) All of the above
Q. Which phrase best describes the current role of the managerial accountant?
a. Managerial accountants prepare the financial statements for an organization.
b. Managerial accountants facilitate the decision-making process within an organization.
c. Managerial accountants make the key decisions within an organization.
d. Managerial accountants are primarily information collectors.
Q. In comparison to the traditional manufacturing environment, overhead costs in a JITenvironment all the following are true except
a. is more easily tracked to products.
b. is frequently direct in nature.
c. includes rent, insurance a
d. utilities.
Q. As production increases within the relevant range,
a. variable costs will vary on a per unit basis.
b. variable costs will vary in total.
c. fix
d. costs will vary in total.
Q. Which of the following statements regarding graphs of fixed and variable costs is true?
a. Variable costs can be represented by a straight line where costs are the same for each data point.
b. Fixed costs can be represented by a straight line starting at the origin and continuing through each data point.
c. Fix
d. costs are zero when production is equal to zero.
Q. All of the following statements regarding budgeting is true except
a. Budgeting helps managers determine the resources needed to meet their goals and objectives.
b. Budgeting is a key ingredient in good decision-making.
c. Budgeting is a bookkeeping task
d. The focus of budgeting is planning.
Q. A 'direct' cost is a cost that is classified by:
a. behaviour
b. traceability
c. controllability
d. Relevance
Q. Which of the following costs is not capitalized as inventory?
a. costs of delivering finished goods
b. factory (manufacturing) overhead
c. insurance of factory building a
d. equipment
Q. A management concept under which all managers and employees at all stages of companyoperations strive toward higher standards and a reduced number of defective units are called:
a. Continuous Improvement
b. Total Quality Management (TQM)
c. Theory of Constraints (TOC)
d. Total Quality Control (TQC)
Q. Which of the following is a correct formula for computing direct materials price variance?
a. Standard quantity purchased × (Actual rate - Standard rate)
b. Actual quantity purchased × (Actual rate - Standard rate)
c. Standa
d. quantity purchased × (Actual rate + Standard rate)