Top 550+ Solved Management Accounting MCQ Questions Answer

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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

  • a. Planning and control of an organization's income and expenditure

Q. __________ Accounting becomes a source of information for Management Accounting.

a. Financial

b. Cost

c. Both (a) and (b)

d. None of the above

  • c. Both (a) and (b)

Q. Fixed budget is useless for comparison when the level of activity -

a. Increases

b. Fluctuates both ways

c. Decreases

d. Constant

  • b. Fluctuates both ways

Q. The budget committee consists of -

a. Managers

b. Budget officers

c. Creditors

d. None of the above

  • b. Budget officers

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

  • a. Department or part of the department

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

  • c. To plan to achieve its goals

Q. Production budget is -

a. Dependent on purchase budget

b. Dependent on sales budget

c. Dependent on cash budget

d. None of the above

  • b. Dependent on sales budget

Q. Sales budget shows the sales details as -

a. Month wise

b. Product wise

c. Area wise

d. All of the above

  • 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

  • a. R & D budget

Q. The budgets are classified on the basis of -

a. Time

b. Function

c. Flexibility

d. All of the above

  • 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

  • c. Before other budgets

Q. Key factor is also known as -

a. Limiting factor

b. Governing factor

c. Principal factor

d. All of the above

  • 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

  • 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

  • b. Men
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