Top 550+ Solved Management Accounting MCQ Questions Answer
Q. While preparing sales budget, which of the following factors are considered?
a. Non-operational factors
b. Environmental factors
c. Both a and b
d. None of the above
Q. _______ provides an estimate of the capital amount that may be required for buying fixed assets needed for meeting production requirements.
a. Production budget
b. Cash budget
c. Capital expenditure budget
d. None of the above
Q. Plant utilization budget and Manufacturing overhead budgets are types of
a. Production budget
b. Sales budget
c. Cost budget
d. None of the above
Q. _______ is designed after assessment of the volume of output to be produced during budgetperiod.
a. Cost budget
b. Sales budget
c. Production budget
d. None of the above
Q. ________ is the first step of budgetary system and all other budgets depends on it.
a. Cost budget
b. Sales budget
c. Production budget
d. None of the above
Q. _______also known as subsidiary budgets.
a. Master budget
b. Functional budget
c. Cost budget
d. None of the above
Q. _________ is stated as a budget which is made to change as per the levels of activity attained.
a. Fixed budget
b. Flexible budget
c. Both a and b
d. None of the above
Q. _______ is prepared for single level of activity and single set of business conditions.
a. Fixed budget
b. Flexible budget
c. Both a and b
d. None of the above
Q. The process of budgeting helps in the control of
a. Cost of production
b. Liquidity
c. Capital Expenditure
d. All of the above
Q. Which of the following statements are not true about budget, budgeting & budgetary control?
a. Budgetary control works on the basis of best option
b. Budget is one of the important mediums of communication
c. Budgeting develops the quality of objectivity in planning
d. None of the above
Q. Which of the following statements are true about responsibility accounting?
a. Responsibility accounting results in inter-departmental conflicts
b. In responsibility center more focus is paid on products, processes or jobs
c. No focus is paid on controlling costs
d. None of the above
Q. In profit center revenue represents a monetary measure of output emanating from a profitcenter in a given period irrespective whether
a. The revenue is realized or not
b. The output is sold or not
c. Both a and b
d. None of the above
Q. Contribution margin center is also known as
a. Expense center
b. Profit center
c. Investment center
d. (All of the above
Q. Which of the following is responsibility center?
a. Expense center
b. Profit center
c. Investment center
d. All of the above
Q. The responsibility centers, for control purposes, may be classified into _____ types.
a. Five
b. Three
c. Four
d. None of the above