Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Which of the following statements is NOT true about world-class firms?
a. World-class firms are firms that are poor in customer support.
b. World-class firms know their market and their products.
c. World-class firms strive continually to improve product design, manufacture, and delivery.
d. World-class firms can compete with the best of the best in a global environment.
Q. Monitoring the number of defects produced is an example of the management function of
a. planning.
b. control.
c. decision making.
d. both a and c.
Q. Performance reports are accounting reports that compare
a. planned data with actual dat
b. audited data with actual data.
c. managers' bonuses with performance ratings by supervisors.
d. actual data with industry standards.
Q. Which of the following statements correctly distinguishes between financial andmanagement accounting?
a. Management accounting reports on the whole organization.
b. Financial accounting is oriented toward the future.
c. Financial accounting is primarily concerned with providing information for internal users.
d. Management accounting is oriented more toward the planning and control
Q. Setting the company's profit targets for the upcoming year is an example of the management function of
a. planning.
b. control.
c. variance analysis.
d. internal auditing.
Q. The planning process includes
a. setting objectives.
b. identifying means of achieving the objectives.
c. making decisions.
d. all of the above.
Q. Management accounting is concerned with which kind of decision?
a. product costing and pricing
b. continuous operational improvement
c. financial control
d. all of the above
Q. Management accounting:
a. provides a framework to evaluate information in light of an organization's goals.
b. provides relevant information to managers.
c. provides relevant information to meet specific needs of persons inside the organization.
d. all of the above
Q. Management accounting is primarily concerned with:
a. providing investors with useful information for valuing securities.
b. providing creditors information on the status of their loans.
c. providing managers with relevant information to help achieve organizational goals.
d. providing the relevant taxation authorities with information to determine the amount of taxes owe
Q. Vertical analysis is made to review and analyze the financial statements of -----------------accounting period.
a. One
b. Two
c. Three
d. Four
Q. Comparison of financial variables of a firm over a period of time is known as--------------
a. Comparative
b. Common-size
c. Trend analysis
d. None of the above
Q. Interpretation requires analysis and ----------------------------------
a. Comparison
b. Determination
c. Decision Making
d. Conclusion
Q. The process of deriving conclusions from the analysis is commonly termed as ----------------
a. Analysis
b. Conclusion
c. Comparison
d. Interpretation
Q. Common size Income Statement present the various items as a percentage of ----------------
a. Sales
b. Credit sales
c. Cash sales
d. None of the above
Q. External analysis is based on ------------- financial statements
a. Annual
b. Published
c. Prepared
d. Previous