Management
Accounting Multiple Choice Questions and Answers (MCQs)
For
B.Com / BBA / MBA / CMA / CA / CS examination
In this exclusive page, you will get chapter wise Management Accounting MCQs for various exams.
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Table of Contents |
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1. Management accounting MCQs a) Fill in the
blanks b) True or
False c) Multiple
Choice Questions and Answers 2. Financial Statements & Financial
Statement Analysis MCQs |
Choose the correct option (Multiple choice questions and answers)
1. Management accounting deals with
which information?
a) Qualitative
b) Quantitative
c) Both
d) None of the
above
2.
Management accounting provides valuable services to management in performing:
a) Coordinating
b) Controlling
c) Planning
d)
All managerial functions
3.
Which of the following are tools of management accounting?
a) Standard Costing
b) Marginal Costing
c) Budget and Budgetary control
d)
All of the above
4.
Which of the following are not the tools of management accounting?
a) Funds flow statement
b) Cash Flow Statement
c) Ratio analysis
d)
Process costing
5.
Which of the following are tools of management accounting?
a) Financial Planning
b) Analysis of financial statements
c) Historical cost accounting
d)
All of the above
6.
Management accounting is suitable for:
a) Small trading organisation
b)
Large industrial and trading organisation
c) NPOs
d) Co-operative societies
7.
Management accounting is a structure for:
a) Cost Accounting
b) Financial accounting
c)
Decision making
d) Budgeting
8.
Management accounting and cost accounting are:
a) Contradictory in nature
b)
Complementary in nature
c) Neutral in effect
d) None of the above
9. Who coined the concept of
management accounting?
a) James H. Bliss
b) R. N. Carter
c) Philip Cotler
d) F. W. Taylor
10.
Management accounting maintains
a) Journal
b) Ledger
c) Trial Balance
d)
None of these
Fill in the blanks:
1.
Management accounting is related with presentation of accounting data.
2.
Management accounting assists the management in creation of policy.
3.
Management accounting is suitable for large industrial and trading
organizations.
4.
Management accounting is a structure for decision making.
5.
Management accounting is an offshoot (branch
on a plant) of cost and financial
accounting.
6.
Management accounting is also known as managerial accounting.
7.
Management accounting is simply a use of financial and cost accounting data
in taking various managerial decisions.
8.
The use of management accounting is optional.
9.
Management accounting is subjective in nature.
10.
Management accounting is basically concerned
with accounting information which is
useful to management.
11.
Management Accounting is based on accounting information.
12.
Financial accounting is governed by GAAP.
13.
Management accounting is a tool of management but not a substitute of management.
14.
Management accounting analysis accounting data
with the help of tools and
techniques.
15.
Management accounting deals with both quantitative and qualitative
information.
16.
Only Quantitative information is
recorded in accounting.
17.
Accounting is an art of recording financial transactions.
18.
Management Accountant is Superior in position to Cost Accountant.
19.
Management accounting and cost accounting are complementary in nature.
20.
Accounting information is analysed and interpreted to make it useful.
21.
Management Accounting supplies information to
the management so that later
may be able to discharge all its functions properly.
22.
Standard costing is a cost control method used in management
accounting.
23.
Management accounting helps in analysis and interpretation of data.
24.
Management accounting uses no fixed norms in its function.
25.
The accounting data are analysed by the
management for effective planning
and decision making.
26.
The management accountant is a member of management team.
27.
Management accounting system cannot be installed without
financial and cost accounting system.
28.
The scope of management accounting is wider than that of cost
accounting.
29.
Management accounting assures maximum return on capital employed.
30.
Revaluation accounting is also known as replacement or price level accounting.
State whether the following statements are true or false:
1.
The origin of management accounting is due to
limitations of financial accounting and cost accounting. True
2.
The term management accounting was first
coined in the year 1981. False,
1950
3.
Management accounting is basically concerned
with accounting information which is useful to management. True (Definition by R.
N. Anthony)
4.
Management Accounting and Cost Accounting are
Synonymous. False
5.
Management accounting provides decision to
management. False,
information
6.
Management accounting provides only data which
is helpful to the management in decision making, not the decisions. True
7.
Management accounting is a technique of
selective nature. True
8.
Management accounting is not helpful to
management in discharging its functions. False
9.
Management accounting is based on the past
records provided by financial and cost accounting for making decision for the
future. True
10.
Management accounting is mainly concerned with
future. True
11.
The use of management accounting is
compulsory. False
12.
Who coined the concept of management
accounting? James H. Bliss
13.
Management accounting is objective in nature. False
14.
Publication of Management Accounting Report is
not compulsory. True
15.
Management Accounting is concerned with
accounting information that is useful to the management. True
16.
Management
accounting deals only with the information which is useful to the management. True
17.
In management accounting, only those figures
are used which can be measured in monetary terms. False
18.
Management accounting deals with both
qualitative and quantitative information. True
19.
Management accounting will not provide
information in a prescribed proforma like that of financial accounting. True
20.
Management accounting analyse the effect of
different variables on the profits and profitability of the concern. True
21.
The main objective of management accounting is
to help the internal management. True
22.
Management accounting is a structure of
decision making. True
23.
In management accounting no emphasis is given
to the actual figures. True
24.
Management accounting uses historical data for
planning and forecasting. True
25.
Management accounting is not bound by the
accounting standards. True
26.
Period of reporting in management accounting
may be weekly, fortnightly and monthly. True
27.
Auditing of management accounting is
compulsory. False
28.
Management accounting needs cost and financial
accounting as its base for its installation. True
29.
Management accountant is senior in position to
cost accountant. True
30.
Management accounting information is used by
the management only. True
31.
In management accounting, approximate figures
presented timely are more important than accurate figures presenting late. True
32.
Management accounting is based on double entry
system. False
33.
Financial statements are only interim reports. True
34.
Management accounting is only a blend of
financial and cost accounting. True
35.
Accountability is one of the concepts of
management accounting. True
MCQ on Funds Flow Statement (☝BACK TO TOP☝)
1.
Any transaction
that increases working capital is a application
of fund.
2.
Repayment of borrowing causes cash Outflow.
3.
Machinery sold for cash is an application of
fund. False, source
4.
Funds flow statements are based upon accrual basis of accounting.
5.
Building sold on credit is a source of fund. False
6.
Depreciation of
machinery is a source of funds. True
7.
In a Funds Flow Statement, all receipts are treated as source
of funds.
8.
Purchase of plant will mean decrease in working capital.
9.
Funds flow statement is also known as a statement of Sources and Applications of
funds.
10.
Which statement is prepared in the process of funds
flow analysis?
a) Schedule of changes in working
capital
b) Funds Flow statement
c) Calculation of funds from
operations
d) All of the above
Also Read: MCQ on Funds Flow Statement
MCQ on Cash Flow Statement (☝BACK TO TOP☝)
1.
Issue of equity shares in a cash flow from financing activities.
2.
Cash flow statement is useful for short-term
financial analysis. True
3.
Cash Flow Statement is a substitute of Cash
Account. False
4.
Cash Flow
Statement is based upon accrual basis of accounting. False, Cash Basis
5.
Cash Flow Statement is a statement of sources
and application of cash during a particular period of time. True
6.
cash flow statement is also known as statement
of cash flows. True
7.
Income from
investment is a cash flow from Investing
activities.
8.
Cash receipt from issue of shares is a Financing activity.
9.
Repayment of borrowing causes cash Outflow.
10.
Decrease in creditor is outflow of cash.
11.
Goodwill is a non-cash transaction.
Also Read: MCQ on Cash Flow Statement Full Article
MCQ on Marginal Costing (☝BACK TO TOP☝)
1.
Contribution is the difference between sales
and total cost of sales. False,
sales -vc
2.
In marginal costing, the problem of over and
under absorption of overhead is avoided. True
3.
Margin of Safety = Fixed Cost/PV Ratio. False
4.
P/V ratio can be
improved by reducing the fixed cost. False
5.
Fixed cost per unit Decreases when volume of production increases.
6.
Variable cost per unit remains same/increases/decreases due to
increase in production.
7.
The practice of charging all costs to product
is marginal costing/absorption
costing/standard costing.
8.
P/V ratio exhibits the percentage of
contribution included in Sales
9.
Margin of safety
can be improved by reducing the variable
cost.
10.
Contribution is the difference between sales
and variable.
11.
Margin of safety can be improved by reducing
the Variable cost.
12.
P/V ratio exhibits the percentage of
contribution included in Sales.
13.
In marginal
costing system, fixed cost is considered as Period cost.
14.
In marginal
costing system, variable cost is considered as product cost.
15.
Profit changes in the same proportion of the
changes in contribution. False
16.
At break-even
point, the company earns only a marginal profit. False
17.
Break-even analysis is also known as CVP analysis.
Also Read: MCQ on Marginal Costing Full Article
MCQ on Budget and Budgetary Control (☝BACK TO TOP☝)
1.
Budget is related to a definite future period. True
2.
Budgeting may be said to be an act of
determining costing standards. False
3.
A system of budgetary control cannot be used
in an organization where standard costing is in use. False
4.
Budgetary control
is a system of controlling cost. True
5.
Master budget is
a summary of all functional budgets.
6.
Budgetary Control is a system of controlling Cost.
7.
A budget manual
spells out Duties and
Responsibilities of various executives concerned with budget.
8.
Flexible budget is a capacity budget.
9.
Budgetary control is a system of controlling cost.
10.
Zero-base budgeting was first used by carter.
Also Read: MCQ on Budget and Budgetary Control Full Article
MCQ on Standard Costing (☝BACK TO TOP☝)
1.
Standard cost is a predetermined cost.
2.
Material Cost Variance = Material Price
Variance x Material Usage Variance. False
3.
Marginal Cost = Total Cost – Variable Cost. False, Fixed Cost
4.
Idle Time Variance = Idle Hours x Standard
Rate. False
5.
The difference between actual cost and
standard cost is known as differential cost.
Variance
6.
Direct Labour Cost Variance = Standard Cost
for actual production x actual Cost
of Production.
