MCQOPTIONS
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MCQOPTIONS
This section includes 1713 Mcqs, each offering curated multiple-choice questions to sharpen your General Management knowledge and support exam preparation. Choose a topic below to get started.
| 651. |
In responsibility centre, the output is called as… |
| A. | Revenue |
| B. | Costs |
| C. | Both |
| D. | None |
| Answer» B. Costs | |
| 652. |
The control ratios used by the management to know whether the deviations of the actual performance from the budgeted performance are favourable or unfavourable are __________. |
| A. | Capacity ratio and calendar ratio. |
| B. | Efficiency ratio and calendar ratio. |
| C. | Both A a |
| D. | B D. None of these |
| Answer» B. Efficiency ratio and calendar ratio. | |
| 653. |
Analyzers tend to emphasis both ______ and _______ and employee extensive trainingprogrammes. |
| A. | Skill building and skill acquisition |
| B. | Current performance and past performance |
| C. | Strategy a |
| D. | behaviour |
| Answer» B. Current performance and past performance | |
| 654. |
Responsibility centres are departments or organizational functions whose performance is thedirect responsibility of specific managers. One type of responsibility centre is a revenue centre, which is responsible for |
| A. | Investments and costs |
| B. | sales and profits |
| C. | profits |
| D. | sales |
| Answer» E. | |
| 655. |
Internal transfer of process at profit _________ of the company |
| A. | Will not increase the asset |
| B. | Will increase the asset |
| C. | Can’t say |
| D. | Inadequate information |
| Answer» B. Will increase the asset | |
| 656. |
During the month of December actual direct labor cost amounted to Rs. 39,550, thestandard direct labor rate was Rs.10 per hour and the direct labor rate variance amounted toRs.450 favorable. The actual direct labor hours worked was: |
| A. | 3,955 hours |
| B. | 4,000 hours |
| C. | 3,910 hours |
| D. | 4,500 hours |
| Answer» C. 3,910 hours | |
| 657. |
What would be the most likely cause of an unfavourable labour rate variance together with afavourable labour efficiency variance? |
| A. | The employment of more highly skilled staff than budgeted |
| B. | Poor wage negotiation by the Human Resources manager |
| C. | The employment of less well-train |
| D. | staff than in |
| Answer» B. Poor wage negotiation by the Human Resources manager | |
| 658. |
The valuation of stock in marginal costing as compared to absorption costing is |
| A. | Higher |
| B. | Lower |
| C. | Same |
| D. | None of the above |
| Answer» E. | |
| 659. |
The “standard hours allowed” or “standard quantity allowed” is equal to: |
| A. | Actual output in units × standard input allowed |
| B. | Actual output in units × standard output allowed |
| C. | Actual output in units × standa |
| D. | output allowed |
| Answer» C. Actual output in units × standa | |
| 660. |
Cost Accounting restrict itself with _____ transactions |
| A. | Financial |
| B. | Spot |
| C. | Historical |
| D. | Administrative |
| Answer» D. Administrative | |
| 661. |
The use of management accounting is |
| A. | Optional |
| B. | Compulsory |
| C. | Legally obligatory |
| D. | Compulsory to some and optional to others |
| Answer» B. Compulsory | |
| 662. |
Which of the following is not likely to be a reason of unfavorable direct labor rate variance? |
| A. | Poor estimates while setting direct labor standards |
| B. | An increase in labor rates and overtime premium |
| C. | Frequent break downs |
| D. | Assignment of easy tasks to highly skilled workers |
| Answer» D. Assignment of easy tasks to highly skilled workers | |
| 663. |
A good _____ system will not punish the workers for the matters beyond the control of theworkers. |
| A. | Wage payment |
| B. | Appraisal |
| C. | Promotion |
| D. | none of the above |
| Answer» B. Appraisal | |
| 664. |
Management accounting is 1) Subjective 2) Objective |
| A. | Only 1 |
| B. | Only 2 |
| C. | Both 1 a |
| D. | 2 (D) None of the above |
| Answer» B. Only 2 | |
| 665. |
Which of the following cannot be a reason of unfavorable direct materials quantityvariance? |
| A. | Unmotivated workers |
| B. | Lack of supervision |
| C. | Frequent power failures |
| D. | Uneconomical order size |
| Answer» E. | |
| 666. |
The following information belongs to John Manufacturing Company that uses a standardcosting system: • Basic wage rate:Rs.12 per hour • Fringe benefits: Rs. 2 per hour • Basic time: 2 hours per unit • Allowance for down time: 0.3 hours per unit • Allowance for brakes: 0.2 hours per unit Based on the above information, what is the standard direct labor cost per unit? |
| A. | RS.35 |
| B. | RS.28 |
| C. | RS.30 |
| D. | RS.32.2 |
| Answer» B. RS.28 | |
| 667. |
A document that records the standard cost of a single unit of product is known as: |
| A. | Bill of materials |
| B. | Bill of product |
| C. | Standa |
| D. | cost card D. product expense card |
| Answer» D. cost card D. product expense card | |
| 668. |
Which of the following is not likely to be a reason of unfavorable direct labor efficiencyvariance? |
| A. | Increase in direct materials prices |
| B. | Lack of proper supervision |
| C. | Frequent break downs during production process |
| D. | Use of old, outdated or faulty equipment |
| Answer» B. Lack of proper supervision | |
| 669. |
The essence of marginal costing is that ……………… cost is considered on the whole asseparate. |
| A. | Fixed |
| B. | variable |
| C. | both of these |
| D. | none of these |
| Answer» B. variable | |
| 670. |
Labour Efficiency Standards are decided by considering following factor(s) |
| A. | Records of past performance |
| B. | Time & Motion Study |
| C. | Trial Runs |
| D. | All of the above |
| Answer» E. | |
| 671. |
According to responsibility accounting, the entire organization is divided into various… |
| A. | Business centre |
| B. | Profit centre |
| C. | Responsibility centre |
| D. | none of these |
| Answer» D. none of these | |
| 672. |
……………is concerned with providing information to management for taking managerialdecisions. |
| A. | Management Accounting |
| B. | Financial accounting |
| C. | Cost accounting |
| D. | All of these |
| Answer» B. Financial accounting | |
| 673. |
which of the following cannot be a reason of unfavorable direct materials price variance? |
| A. | Sudden rise in price of materials |
| B. | Quality of materials purchased |
| C. | Appointment of inexperienc |
| D. | workers D Inefficient standard setting |
| Answer» D. workers D Inefficient standard setting | |
| 674. |
During the month of January, the standard cost of actual hours worked amounted toRs.25, 000, the standard direct labor rate was Rs.10 per hour and the direct labor efficiency variance amounted to Rs.1, 000 favorable. The standard hours allowed for actual production were: |
| A. | 2,500 hours |
| B. | 2,400 hours |
| C. | 10,000 hours |
| D. | 2,600 hours |
| Answer» E. | |
| 675. |
Sales Budget is a forecast expressed in |
| A. | Quantity |
| B. | Money |
| C. | Both (A) a |
| D. | (B) (D) None of the above |
| Answer» D. (B) (D) None of the above | |
| 676. |
A situation in which a decision maker must choose between strategies that have more thanone possible outcome when the probability of each outcome is unknown is referred to as |
| A. | Diversification. |
| B. | Certainty. |
| C. | Risk. |
| D. | Uncertainty. |
| Answer» E. | |
| 677. |
In Cash budget, Non- operating cash inflow include(s) |
| A. | Receipt of loan/borrowings |
| B. | Issue of shares |
| C. | Sale of fix |
| D. | assets (D) All of the above |
| Answer» E. | |
| 678. |
A management concept under which all managers and employees at all stages of companyoperations strive toward higher standards and a reduced number of defective units are called: |
| A. | Continuous Improvement |
| B. | Total Quality Management (TQM) |
| C. | Theory of Constraints (TOC) |
| D. | Total Quality Control (TQC) |
| Answer» C. Theory of Constraints (TOC) | |
| 679. |
which of the following is an alternate term used for performance appraisal? |
| A. | Quality and quantity of output |
| B. | Job knowledge |
| C. | Employee assessment |
| D. | None of the above |
| Answer» D. None of the above | |
| 680. |
what is linked with performance appraisal? |
| A. | J |
| B. | Design B Development |
| C. | Job analysis |
| D. | None of the above |
| Answer» D. None of the above | |
| 681. |
Which of the following costs is not capitalized as inventory? |
| A. | costs of delivering finished goods |
| B. | factory (manufacturing) overhead |
| C. | insurance of factory building a |
| D. | equipment |
| Answer» C. insurance of factory building a | |
| 682. |
Given production is 1,00,000 units, fixed costs is Rs 2,00,000 Selling price is Rs 10 per unitand variable cost is Rs 6 per unit. Determine profit using technique of marginal costing. |
| A. | Rs 2, 00,000 |
| B. | Rs 8, 00,000 |
| C. | Rs 6, 00,000 |
| D. | None of the above |
| Answer» B. Rs 8, 00,000 | |
| 683. |
______ is an objective assessment of an individual's performance against well-definedbenchmarks. |
| A. | Performance Appraisal |
| B. | HR Planning |
| C. | Information for goal identification |
| D. | None of the above |
| Answer» B. HR Planning | |
| 684. |
Period cost means |
| A. | Variable cost |
| B. | Fixed costs |
| C. | Prime cost |
| D. | Factory cost |
| Answer» C. Prime cost | |
| 685. |
Which of the following are advantages of marginal costing? |
| A. | Makes the process of cost accounting more simple |
| B. | Helps in proper valuation of closing stock |
| C. | Useful for standa |
| D. | and budgetary control D. All of the above |
| Answer» E. | |
| 686. |
Which one of the following does measure risk? |
| A. | Coefficient of variation |
| B. | Standard deviation |
| C. | Expect |
| D. | value D. All of the above are measures of risk. |
| Answer» D. value D. All of the above are measures of risk. | |
| 687. |
The term budgeted cost refers to the: |
| A. | Estimated expenses of budgeted production |
| B. | Actual expenses of budgeted production |
| C. | Estimat |
| D. | expenses of actual production |
| Answer» B. Actual expenses of budgeted production | |
| 688. |
Flexible manufacturing systems (FMS) are reported to have a number of benefits. Which isNOT a reported benefit of FMS? |
| A. | Lead time and throughput time reduction |
| B. | Increased quality |
| C. | More flexible than the manufacturing systems they replace |
| D. | Increased utilisation |
| Answer» D. Increased utilisation | |
| 689. |
__________ contains the picture of total plans during the budget period and it comprisesinformation relating to sales, profit, cost, production etc. |
| A. | Master budget |
| B. | Functional budget |
| C. | Cost budget |
| D. | None of the above |
| Answer» B. Functional budget | |
| 690. |
Question Selling price per tonne is Rs. 69.50, variable cost per tonne is Rs. 35.50 and fixedcost is Rs. 18, 02,000. Find out the BEP in units |
| A. | 49000 |
| B. | 51000 |
| C. | 53000 |
| D. | 55000 |
| Answer» D. 55000 | |
| 691. |
The definition ‘Management Accounting is the presentation of accounting information insuch a way as to assist management in the creation of policy and the day-to-day operation of an undertaking.’ |
| A. | Anglo –American Council on Productivity |
| B. | AICPA |
| C. | Robert N. Anthony |
| D. | All of the above |
| Answer» B. AICPA | |
| 692. |
___________ is not suitable where selling price is determined on the basis of cost-plus method. |
| A. | Absorption costing |
| B. | Marginal costing |
| C. | Both A a |
| D. | B D. None of the above |
| Answer» C. Both A a | |
| 693. |
A situation in which a decision maker knows all of the possible outcomes of a decision and also knows the probability associated with each outcome is referred to as |
| A. | Certainty. |
| B. | Risk. |
| C. | Uncertainty. |
| D. | Strategy. |
| Answer» C. Uncertainty. | |
| 694. |
Who coined the concept of management accounting? |
| A. | R.N Anthony |
| B. | James H. Bliss |
| C. | J. Batty |
| D. | American Accounting Association |
| Answer» C. J. Batty | |
| 695. |
The business environmental factors are _________. |
| A. | Static |
| B. | Dynam |
| C. | C. Both of the above |
| D. | None of the above |
| Answer» C. C. Both of the above | |
| 696. |
A budgeting process which demands each manager to justify his entire budget in detailfrom beginning is |
| A. | Functional budget |
| B. | Master budget |
| C. | Zero base budgeting |
| D. | none of the above |
| Answer» D. none of the above | |
| 697. |
Successful defenders use performance appraisal for identifying ____________. |
| A. | Staffing needs |
| B. | Job behaviour |
| C. | Training needs |
| D. | None of the above |
| Answer» D. None of the above | |
| 698. |
Which of the following statements regarding graphs of fixed and variable costs is true? |
| A. | Variable costs can be represented by a straight line where costs are the same for each data point. |
| B. | Fixed costs can be represented by a straight line starting at the origin and continuing through each data point. |
| C. | Fix |
| D. | costs are zero when production is equal to zero. |
| Answer» E. | |
| 699. |
Standard Costing specifically relates to the function of |
| A. | Finance |
| B. | Production |
| C. | Quality |
| D. | None of the above |
| Answer» C. Quality | |
| 700. |
How performance appraisal can contribute to a firm's competitive advantage? |
| A. | Ensures legal compliances |
| B. | Minimizing job dissatisfaction and turnover |
| C. | Improves performance |
| D. | All of the above |
| Answer» E. | |