Top 80+ Solved Advanced Management Accounting MCQ Questions Answer
Q. Which of the following is not likely to be a reason of unfavorable direct labor rate variance?
a. Poor estimates while setting direct labor standards
b. An increase in labor rates and overtime premium
c. Frequent break downs
d. Assignment of easy tasks to highly skilled workers
Q. Standard Costing specifically relates to the function of
a. Finance
b. Production
c. Quality
d. None of the above
Q. Cost Accounting restrict itself with _____ transactions
a. Financial
b. Spot
c. Historical
d. Administrative
Q. In Cash budget, Non- operating cash inflow include(s)
a. Receipt of loan/borrowings
b. Issue of shares
c. Sale of fix
d. assets (D) All of the above
Q. Sales Budget is a forecast expressed in
a. Quantity
b. Money
c. Both (A) a
d. (B) (D) None of the above
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. Management accounting is 1) Subjective 2) Objective
a. Only 1
b. Only 2
c. Both 1 a
d. 2 (D) None of the above
Q. The use of management accounting is
a. Optional
b. Compulsory
c. Legally obligatory
d. Compulsory to some and optional to others
Q. The management accounting can be stated an extension of 1) Cost Accounting 2 ) Financial Accounting 3) Responsibility Accounting
a. Both 1 and 2
b. Both 1 and 3
c. Both 2 a 3
d. 1, 2, 3
Q. Who coined the concept of management accounting?
a. R.N Anthony
b. James H. Bliss
c. J. Batty
d. American Accounting Association
Q. The definition ‘Management Accounting is the presentation of accounting information insuch a way as to assist management in the creation of policy and the day-to-day operation of an undertaking.’
a. Anglo –American Council on Productivity
b. AICPA
c. Robert N. Anthony
d. All of the above
Q. During the month of December actual direct labor cost amounted to Rs. 39,550, thestandard direct labor rate was Rs.10 per hour and the direct labor rate variance amounted toRs.450 favorable. The actual direct labor hours worked was:
a. 3,955 hours
b. 4,000 hours
c. 3,910 hours
d. 4,500 hours
Q. Responsibility centres are departments or organizational functions whose performance is thedirect responsibility of specific managers. One type of responsibility centre is a revenue centre, which is responsible for
a. Investments and costs
b. sales and profits
c. profits
d. sales
Q. Key motivational factors in budgeting do not include
a. Training in the budget process
b. correct identification of the blame for below budget performance
c. the feedback of information
d. the setting of fair, achievable standards