Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Budget period depends upon -
a. The type of budget
b. The nature of business
c. The length of trade cycles
d. All of the above
Q. Usually the production budget is stated in terms of -
a. Money
b. Quantity
c. Both (a) and (b)
d. None
Q. Recording of actual performance is -
a. An advantage of budgetary control
b. A step in budgetary control
c. A limitation of budgetary control
d. None of the above
Q. Budgetary control system helps the management to eliminate -
a. Undercapitalization
b. Overcapitalization
c. Both (a) and (b)
d. None
Q. Budgetary control facilitates easy introduction of the -
a. Marginal costing
b. Ratio analysis
c. Standard costing
d. Subjective matter
Q. Budgetary control system acts as a friend, philosopher and guide to the -
a. Management
b. Share holders
c. Creditors
d. Employees
Q. Budgetary control system defines the objectives and policies of the -
a. Production department
b. Finance department
c. Marketing department
d. Subjective matter
Q. A budget is tool which helps the management in planning and control of -
a. All business activities
b. Production activities
c. Purchase activities
d. Sales activities
Q. In responsibility centre, the output is called as -
a. Revenue
b. Cost
c. Both (a) and (b)
d. None
Q. If the responsibility centre gets more revenue from output, then it is called -
a. Investment centre
b. Cost centre
c. Profit centre
d. Expense centre
Q. Cost Unit is defined as -
a. Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed
b. A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control.
c. Centres having the responsibility of generating and maximising profits
d. Centres concerned with earning an adequate return on investment
Q. Fixed cost is a cost -
a. Which changes in total in proportion to changes in output
b. Which is partly fixed and partly variable in relation to output
c. Which do not change in total during a given period despise changes in output
d. Which remains same for each unit of output
Q. Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking. -
a. can not
b. can
c. may or may not
d. must
Q. Element/s of Cost of a product are -
a. Material only
b. Labour only
c. Expenses only
d. Material, Labour and expenses
Q. Overhead refers to -
a. Direct or Prime Cost
b. All Indirect costs
c. Only Factory indirect costs
d. Only indirect expenses