Top 550+ Solved Management Accounting MCQ Questions Answer
Q. The scarce factor of production is known as
a. Key factor
b. Linking factor
c. Critical factor
d. All of the above
Q. Which of the following is a budget designed to furnish budgeted costs for any level of activity attained
a. Fixed budget
b. Flexible budget
c. Master budget
d. Production budget
Q. Flexible budgets are useful for
a. Planning purpose only
b. Planning, performance evaluation and feedback control
c. Control of performance only
d. Nothing at all
Q. The budget that summarize future plans for acquisition of plant facilities and equipment is the
a. Cash budget
b. Sales budget
c. Capital expenditure budget
d. None of the above
Q. A report comparing actual results with the budget figure is called a ___________
a. Budget report
b. Budget performance report
c. Flexible budget report
d. None of the above
Q. Profit plan(or budget) is a
a. Long term financial plan
b. Short term financial plan
c. Long term non financial plan
d. Short term non financial plan
Q. The objectives, procedures, organizational structure and authority and responsibility in writing about a budget is shown in
a. Budget manual
b. Budget plans
c. Budget titles
d. None of the above
Q. Which budget is prepared after the preparation of all functional budgets
a. Flexible budget
b. Cash budget
c. Master budget
d. Production budget
Q. The overall responsibility for the functions of the budget committee lies on the _____________
a. Chief accountant
b. Financial executive or controller
c. Budget director or budget officer
d. Top management
Q. For preparing an effective budget it needs accounting information which is
a. Structured around the past data need of the management
b. Structured around the line communication needs of the management
c. Structured around financial needs of the management
d. Structured around the planning and control needs of the management
Q. Long period budgets are prepared under
a. Receipts and payment method
b. Balance sheet method
c. Adjusted profit and loss method
d. Receipts and payments, balance sheet method
Q. A budget specifies the operations to be performed during the next year is called __________
a. Operation budget
b. Responsibility budget
c. Activity budget
d. Flexible budget
Q. The branch of accounting which primarily deals with processing and presenting accounting data fro internal use is ________________
a. Cost accounting
b. Financial accounting
c. Management accounting
d. Inflation accounting
Q. Management accounting is also known as _______________
a. Price level accounting
b. Historical accounting
c. Decision accounting
d. None of these