Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Which is the mostly likely purpose of budgeting?
a. Planning and control of an organization's income and expenditure
b. Preparation of a five-year business plan
c. Company valuation
d. Assess the non-financial performance of an organization
Q. __________ Accounting becomes a source of information for Management Accounting.
a. Financial
b. Cost
c. Both (a) and (b)
d. None of the above
Q. Calculate the production budget from the following data: sales 89,350 units; opening inventory 23,864 units; closing inventory 33,156 units.
a. 80,058 units
b. 1,46,370 units
c. 32,320 units
d. 98,642 units
Q. Fixed budget is useless for comparison when the level of activity -
a. Increases
b. Fluctuates both ways
c. Decreases
d. Constant
Q. The budget committee consists of -
a. Managers
b. Budget officers
c. Creditors
d. None of the above
Q. A budget centre is -
a. Department or part of the department
b. Meeting place for budget committee
c. Office of the budget officer
d. None of the above
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. Production budget is -
a. Dependent on purchase budget
b. Dependent on sales budget
c. Dependent on cash budget
d. None of the above
Q. Sales budget shows the sales details as -
a. Month wise
b. Product wise
c. Area wise
d. All of the above
Q. An example of long period budget is -
a. R & D budget
b. Master budget
c. Sales budget
d. Personnel budget
Q. The budgets are classified on the basis of -
a. Time
b. Function
c. Flexibility
d. All of the above
Q. Budget relating to the key factor is prepared -
a. After other budgets
b. With other budgets
c. Before other budgets
d. None of the above
Q. Key factor is also known as -
a. Limiting factor
b. Governing factor
c. Principal factor
d. All of the above
Q. In responsibility accounting system -
a. Budgets are prepared
b. Actual performance is recorded
c. The performance is reported
d. All of the above
Q. The responsibility accounting emphasizes the performance of -
a. System
b. Men
c. Both (a) and (b)
d. None of these