Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Which of the following is not a method of cost absorption?
a. Percentage of direct material cost
b. Machine hour rate
c. Labour hour rate
d. Repeated distribution method
Q. A Local Authority is preparing cash Budget for its refuse disposal department. Which ofthe following items would not be included in the cash budget?
a. Capital cost of a new collection vehicle
b. Depreciation of the machinery
c. Operatives wages
d. Fuel for the collection Vehicles
Q. Which of the following characteristics does NOT pertain to management accounting?
a. Provides information and estimates about future activity
b. Generates specific-purpose financial statements and reports
c. Provides financial and operating data multidisciplinary in scope
d. Has externally imposed standards
Q. A budget which is prepared in a manner so as to give the budgeted cost for any level ofactivity is known as -
a. Master budget
b. Zero base budget
c. Functional budget
d. Flexible budget
Q. ___________ is a summary of all functional budgets in a capsule form.
a. Functional Budget
b. Master Budget
c. Long Period Budget
d. Flexible Budget
Q. When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000,the P/V ratio is -
a. 20%
b. 30%
c. 25%
d. 40%
Q. From following which is not a principle of good reporting ?
a. Simplicity
b. Accountability
c. Promptness
d. Accuracy
Q. From day to day operation which report is prepare ?
a. Routine
b. Special
c. Investigative
d. External
Q. Any special event happen into the business then which report is prepared ?
a. Routine
b. Special
c. External
d. Control
Q. Internal report use for _______________ .
a. Share holders
b. Government
c. Managerial personnel
d. Creditors
Q. External report use for _______________ .
a. Top level management
b. Middle level management
c. Lower level management
d. Shareholders
Q. From following which is not a routine report ?
a. Production report
b. Sales report
c. Investigation
d. Administration report
Q. _______ is devoted to providing information for external users.
a. Management accounting
b. Financial accounting
c. Internal accounting
d. Cost accounting
Q. Financial accounting is primarily concerned with providing financial reports to all ofthe following EXCEPT
a. creditors such as banks and other financial institutions.
b. creditors such as suppliers.
c. shareholders of the company.
d. management of the firm.
Q. Management accounting and financial accounting differ in that management accountinginformation is prepared
a. following prescribed rules.
b. using whatever methods the company finds beneficial.
c. for shareholders.
d. to summarize the whole company with little detail.