Top 550+ Solved Management Accounting MCQ Questions Answer
Q. The area of focus on responsibility center is
a. Quantum of sales
b. Quantum of production
c. Optimum utilization of resources
d. All of the above
Q. In responsibility cost accounting the costs in focus are
a. Controllable costs
b. Uncontrollable costs
c. Both a and b
d. None of the above
Q. The term standard cost refers to the:
a. average unit cost of product produced in the previous period
b. budgeted unit cost of product produced in a particular period
c. average unit cost of product produced by other companies
d. average unit cost of product produced in the current period
Q. The sub-variance of material usage variance, known as Material mix variance is measured as
a. Total standard cost - Total actual cost
b. Standard cost of revised standard mix - Standard cost of actual mix
c. Standard unit price - Actual unit price) * Actual quantity used
d. Standard quantity - Actual quantity) * Unit standard price
Q. Volume variance arises when
a. There is rise in overhead rate per hour
b. There is decline in overhead rate per hour
c. There is decrease or increase in actual output compared to the budgeted output
d. None of the above
Q. The corrective actions after the analysis of variances has to be taken by
a. Cost accountant
b. Management
c. Both a and b
d. None of the above
Q. Sales margin variance due to sales quantities is measured as
a. Standard profit - Revised standard profit
b. Revised standard profit - Budgeted profit
c. Standard profit + Revised standard profit
d. Revised standard profit + Budgeted profit
Q. .Which of the following statements are true about labor idle time?
a. Labour idle time variance is not caused by non-availability of raw material
b. Labour idle time variance is measured as : Abnormal idle hours * Actual hourly rate
c. Labour idle time variance is always unfavorable or adverse
d. All of the above
Q. The formula used for calculation of labor rate variance is
a. Total standard labour cost of actual output - Total actual cost of actual output
b. (Standard rate per hour - Actual rate per hour) * Actual Hours
c. (Standard time - Actual time) * Standard rate per hour
d. Abnormal idle hours * Standard hourly rate
Q. Idle time variance arises when
a. Only one grade of labour is used
b. Time is lost due to abnormal reasons
c. Both a and b
d. None of the above
Q. Material price, mix, usage and revised quantity variances are measured on _______ basis, whereas material yield variance is measured on _______ basis.
a. Output, Input
b. Output, Output
c. Input, Output
d. None of the above
Q. Marginal cost is computed as
a. Prime cost + All Variable overheads
b. Direct material + Direct labour + Direct Expenses + All variable overheads
c. Total costs – All fixed overheads
d. All of the above
Q. Marginal costing is also known as Direct costing
a. Variable costing
b. Both a and b
c. None of the above
d. none
Q. Which of the following statements are true?(a) Marginal costing is not an independent system of costing.(b) In marginal costing all elements of cost are divided into fixed and variable components.(c) In marginal costing fixed costs are treated as product cost.(d) Marginal costing is not a technique of cost analysis.
a. A and B
b. B and C
c. A and D
d. B and D
Q. While computation of profit in marginal costing
a. Total marginal cost is deducted from total sales revenues
b. Total marginal cost is added to total sales revenues
c. Fixed cost is added to contribution
d. None of the above