Top 80+ Solved Cost and Management Accounting and Financial Management MCQ Questions Answer
Q. Joint cost is suitable for:
a. Infrastructure industry
b. Ornament industry
c. Oil industry
d. Fertilizer industry
Q. Which statement best describes the role of the management accountant?
a. Management accountants prepare the financial statements for an organization.
b. Management accountants facilitate the decision making process within an organization.
c. Management accountants make the principal decisions within an organization.
d. Management accountants are basically information collectors.
Q. The main objective of budgetary control is:
a. to define the goal of the firm
b. to coordinate different departments
c. to plan to achieve its goals
d. all of the above
Q. Method of pricing, when two separate pricing methods are used to price transfer of products from one subunit to another, is called:
a. dual pricing
b. functional pricing
c. congruent pricing
d. optimal pricing
Q. When are overhead variances recorded in a standard costing system?
a. when the goods are transferred out of work-in-progress.
b. when the factory overhead is applied to work-in-progress.
c. when the cost of goods sold is recorded
d. when the direct labour is recorded
Q. Management Accounting is an integral part of management concerned with_______information.
a. identifying, presenting and interpreting
b. identifying and presenting
c. identifying
d. None of the above
Q. Management Accounting is related with _____________.
a. formulating strategy
b. planning and controlling activities
c. optimizing the use of resources
d. All of the above
Q. Despite the development of Management Accounting as an effective discipline to improve the managerial performance, it has some limitations. Which of the following is a limitation of management accounting?
a. Psychological Resistance
b. Physiological Resistance
c. Both of the above
d. None of the above
Q. The primary objective of Management Accounting is to _______________.
a. maximize profits
b. minimize losses
c. maximize profits or minimize losses
d. All of the above
Q. Management accounting is concerned with data collection from _____________.
a. internal sources
b. external sources
c. internal and external sources
d. internal or external sources
Q. Management Accounting is concerned with accounting information, which is usefulto the management — This definition is given by ______________.
a. Robert N. Anthony
b. Brown and Howard
c. CIMA
d. The Institute of Chartered Accountants of England and Wales
Q. Marginal costs is taken as equal to
a. Prime Cost plus all variable overheads
b. Prime Cost minus all variable overheads
c. Variable overheads
d. None of the above
Q. Marginal costing is also known as
a. Direct costing
b. Variable costing
c. Both A and B
d. None of the above
Q. Which of the following costs is relevant in decision-making?
a. committed costs
b. accounting costs
c. historical costs
d. cash costs
Q. An opportunity cost is the cost of
a. lost business
b. unplanned new business
c. obtaining new business opportunities
d. the next best alternative course of action