Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Who coined the concept of management accounting?
a. R.N Anthony
b. James H. Bliss
c. J. Batty
d. American Accounting Association
Q. Which of the following statements are false about management accounting?(i) Management accounting is concerned with historical events.(ii) Management accounting is related only with such instances which can be expressed in monetary terms.(iii) Management accounting is a part of Financial Management(iv) Management accounting information can be disclosed to outsiders.
a. (i), (ii) and (iii)
b. (i), (iii) and (iv)
c. (i),(ii) and (iii)
d. (i), (ii), (iii), (iv)
Q. Management accounting deals with
a. Quantitative information
b. Qualitative information
c. Both a and b
d. None of the above
Q. The definition ‘Management Accounting is the presentation of accounting information in such 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. The prime function of accounting is to:
a. record economic data
b. provide the informational basis for action
c. classify and record business transactions
d. attain non-economic goals.
Q. The basic function of management accounting is to:
a. record all business transactions
b. interpret the financial data
c. assist the management in performing its functions effectively
d. None of the above
Q. Management accounting involves
a. Preparation of financial statements
b. Analysis and interpretation of data
c. Recording of transactions
d. None of the above
Q. Management accounting provides invaluable services to management in performing:
a. All management functions
b. Coordination functions
c. Controlling functions
d. Directing function
Q. Cost accounting mainly helps the management in:
a. Earning extra profits
b. Providing information to the management for decision-making.
c. Fixing process of the products.
d. Selling products
Q. Variable cost per unit:
a. Remains fixed
b. Fluctuates with the volume of production
c. Varies in sympathy with ‘the volume of sales.
d. None of the above
Q. If the activity level increases 10%, total variable costs will
a. remain the same
b. increase by more than 10%
c. decrease by less than 10%
d. increase by10%
Q. Opportunity cost helps in:
a. Ascertainment of cost
b. Controlling cost
c. Making managerial decisions
d. Fixing selling price
Q. Conversion cost is the sum total of:
a. Direct material cost and direct wages cost
b. Direct wages, direct expenses and factory overheads
c. Indirect wages and factory overheads
d. Indirect wages , direct wages & factory overheads
Q. Fixed cost per unit increases when:
a. Production volume decreases
b. Production volume increases
c. Variable cost per unit decreases
d. None of the above
Q. Cost behaviour analysis is a study of how a firm's costs
a. relate to competitors' costs
b. relate to general price level changes
c. respond to changes in activity levels within the company
d. respond to changes in the gross national product