Top 550+ Solved Management Accounting MCQ Questions Answer
Q. The primary objective of management accounting is
a. to provide shareholders and potential investors with useful information for decision making.
b. to provide banks and other creditors with information useful in making credit decisions.
c. to provide management with information useful for planning and control of operations.
d. to provide the relevant taxation authorities with information about taxable income.
Q. Management accounting is the branch of accounting concerned with reporting to
a. internal managers.
b. shareholders.
c. the government.
d. bankers.
Q. Management accounting reports are prepared
a. to meet the needs of decision makers within the firm.
b. whenever shareholders request them.
c. according to guidelines prepared by the shares and Financial Services Authority.
d. according to financial accounting standards.
Q. Cost accounting
a. is concerned with assigning costs to various cost objects.
b. attempts to satisfy the costing objectives of both financial accounting and management accounting.
c. provides cost information that supports planning, controlling, and decision making.
d. All of the above descriptions are true.
Q. Which of the following costing activities is associated with the financial accountingsystem?
a. determining the cost of a department
b. determining the cost of goods sold for financial statements
c. preparing budgets
d. determining the cost of a customer
Q. Which of the following activities is NOT associated with the financial accounting information system?
a. reporting on the cost of quality
b. reporting to the shareholders
c. preparing reports for the tax authorities
d. preparing a statement of cash flows
Q. Which of the following cost management tools supports the firm's concentration on the delivery of value to the customer?
a. service industry growth
b. global competition
c. preparing an earnings report for external reporting
d. value-chain analysis
Q. Factors that have led to a global market for manufacturing and service firms are
a. improved transportation and communications systems.
b. improved telemarketing and communications.
c. improved distribution and transportation systems.
d. None of these factors have contribute
Q. Which of the following activities is NOT significant to the advancement of informationtechnology?
a. enterprise resource planning software
b. emergence of electronic commerce
c. theory of constraints
d. decision support systems
Q. Software that has integrated system capability using real time data is
a. enterprise resource planning software.
b. on-line analytic programs.
c. computer-assisted engineering software.
d. none of the above.
Q. Automation of the manufacturing environment is associated with increases in
a. inventory.
b. capacity.
c. processing time.
d. none of these.
Q. Total quality management emphasizes
a. zero defects.
b. continual improvement.
c. elimination of waste.
d. all of the above.
Q. Which of the following emerging themes in cost accounting deals with managers striving to create an environment that will enable workers to manufacture perfect (zero-defect) products?
a. advances in information technology
b. time as a competitive element
c. global competition
d. total quality management
Q. Competitive advantage is established by
a. providing more customer products than competitors.
b. providing better quality than competitors.
c. providing greater customer value for less cost than competitors.
d. providing greater efficiencies than competitors.
Q. Improvement in time performance is most likely NOT enhanced by
a. redesign of products.
b. adding processes in production.
c. eliminating waste.
d. eliminating nonvalue-added activities.