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.
| 851. |
In responsibility accounting the organization is divided into different………centers |
| A. | responsibility |
| B. | cost |
| C. | profit |
| D. | none of these |
| Answer» B. cost | |
| 852. |
A cost centre is a segment of the organization where the manager isresponsible for ………………….. |
| A. | costs |
| B. | inputs |
| C. | a or b |
| D. | none of these |
| Answer» D. none of these | |
| 853. |
Both costs and revenues are measured in ………………… centers |
| A. | cost |
| B. | profit |
| C. | revenue |
| D. | all of these |
| Answer» C. revenue | |
| 854. |
A …………….is that factor which causes cost. |
| A. | cost driver |
| B. | profit driver |
| C. | all of these |
| D. | none of these |
| Answer» B. profit driver | |
| 855. |
cost driver for activities is called ……………. |
| A. | activity driver |
| B. | expense driver |
| C. | driver |
| D. | none of these |
| Answer» B. expense driver | |
| 856. |
The performance of investment centre is based on ………………. |
| A. | cost of the centre |
| B. | profit of the centre |
| C. | profit and investment of the centre |
| D. | revenue of the centre |
| Answer» D. revenue of the centre | |
| 857. |
.A cost centre is ………………… |
| A. | a production department where all production costs are aggregated |
| B. | an area of business accountable for both costs and revenues |
| C. | the part of the business where all costs are paid to suppliers |
| D. | an area for which costs are accumulated |
| Answer» E. | |
| 858. |
A centre where the manager is responsible for sales is ………….. |
| A. | cost centre |
| B. | revenue centre |
| C. | investment centre |
| D. | none of these |
| Answer» C. investment centre | |
| 859. |
ABC system is used for ……………… |
| A. | material control |
| B. | wages control |
| C. | overhead allocation |
| D. | pricing decisions |
| Answer» D. pricing decisions | |
| 860. |
Responsibility accounting is used for ………………. |
| A. | cost control |
| B. | planning |
| C. | decision making |
| D. | pricing |
| Answer» B. planning | |
| 861. |
An investment centre is a responsibility centre where the manager hascontrol of ……………… |
| A. | costs and profits |
| B. | cost profits and product quality |
| C. | costs profits and assets |
| D. | costs |
| Answer» D. costs | |
| 862. |
Responsibility accounting aims to ……………. |
| A. | ensure that costs become the responsibility of a specific manager |
| B. | reduce the costs that a department incurs |
| C. | allocate costs to all areas of a business |
| D. | ensure that a manager is punished if things go wrong |
| Answer» B. reduce the costs that a department incurs | |
| 863. |
Prime costs may be defined as |
| A. | the total costs of manufacturing a product |
| B. | the total direct costs of manufacturing a product |
| C. | the cost of the first stage of manufacturing |
| D. | the total cost of production |
| Answer» C. the cost of the first stage of manufacturing | |
| 864. |
Which of the following best describes a fixed cost ? |
| A. | remains constant irrespective of the level of activity |
| B. | represents a fixed proportion of total costs |
| C. | increases proportionately with output |
| D. | has a direct relationship with output |
| Answer» B. represents a fixed proportion of total costs | |
| 865. |
The weighted average method of stock valuation would be mostappropriate for …………. |
| A. | chemical manufacturer |
| B. | a food retailer |
| C. | a building contractor |
| D. | a motor components retailer |
| Answer» B. a food retailer | |
| 866. |
Direct labour costs will include…………… |
| A. | all labor costs attributable to product |
| B. | direct labor costs plus any bonuses |
| C. | total direct labor hours at the normal hourly rate of pay |
| D. | direct labor costs plus any bonuses and overtime premium |
| Answer» D. direct labor costs plus any bonuses and overtime premium | |
| 867. |
Which one of the following is not a recognised cost classification? |
| A. | time |
| B. | function |
| C. | performance |
| D. | type |
| Answer» D. type | |
| 868. |
Management accounting is said to meet: |
| A. | the internal accounting needs of the organization |
| B. | the needs of laws that govern company financial reporting. |
| C. | the regulatory requirements of the organization |
| D. | the external accounting needs of the organisation. |
| Answer» B. the needs of laws that govern company financial reporting. | |
| 869. |
Direct costs are also known as: |
| A. | indirect cost |
| B. | overhead costs |
| C. | prime costs |
| D. | marginal costs |
| Answer» D. marginal costs | |
| 870. |
Indirect costs are also known as |
| A. | direct cost |
| B. | overhead costs |
| C. | prime costs |
| D. | marginal costs |
| Answer» C. prime costs | |
| 871. |
Which of the following are basic inventories for a manufacturer? |
| A. | indirect materials, goods in process, and raw materials |
| B. | finished goods, raw materials, and direct materials |
| C. | raw materials, goods in process, and finished goods |
| D. | raw materials, factory overhead, and direct labour |
| Answer» D. raw materials, factory overhead, and direct labour | |
| 872. |
The three basic elements of the cost of a manufactured product are: |
| A. | indirect materials, indirect labour, and manufacturing overhead |
| B. | merchandise inventory, work in process, and finished goods inventory |
| C. | direct materials, work in process, and finished goods inventory |
| D. | direct materials, direct labour, and manufacturing overhead |
| Answer» E. | |
| 873. |
A cost which changes in proportion to changes in volume of activity iscalled |
| A. | fixed cost |
| B. | controllable cost |
| C. | variable cost |
| D. | opportunity cost |
| Answer» D. opportunity cost | |
| 874. |
A 'direct' cost is a cost that is classified by: |
| A. | behaviour |
| B. | traceability |
| C. | controllability |
| D. | relevance |
| Answer» C. controllability | |
| 875. |
Which of the following is not an internal user of management information? |
| A. | creditor |
| B. | department manager |
| C. | controller |
| D. | treasurer |
| Answer» B. department manager | |
| 876. |
A 'product' cost is a cost that is classified by: |
| A. | behaviour |
| B. | function |
| C. | controllability |
| D. | relevance |
| Answer» C. controllability | |
| 877. |
Which of the following is a period cost? |
| A. | direct materials |
| B. | indirect materials |
| C. | factory utilities |
| D. | administrative expenses |
| Answer» E. | |
| 878. |
A firm consumes 90000 units of a certain item of raw material in its production process annually. It costs Rs. 3 per unit, the cost per purchase order is Rs. 300 and the inventory carrying cost is 20% per year. What is the EOQ? |
| A. | 9470 units |
| B. | 9487 units |
| C. | 9480 units |
| D. | 9840 units |
| Answer» C. 9480 units | |
| 879. |
A company proposes to introduce a new product in the market. The company wants to maintain P/V Ratio at 25%. If variable cost of the product is Rs. 300, what will be the selling price? |
| A. | Rs. 100 |
| B. | Rs 200 |
| C. | Rs. 300 |
| D. | Rs. 400 |
| Answer» E. | |
| 880. |
Process Costing is appropriate for which of the following firms?A. Logistic and Transportation firmsB. Pharmaceutical and healthcare firmsC. Tourism and hospitality firmsD. Oil refining firmsChoose the correct answer from the options given below: |
| A. | A and C |
| B. | B and C |
| C. | A, B and C |
| D. | D only |
| Answer» E. | |
| 881. |
Following are the steps in the activity-based cost allocation:a) Identification of the main activitiesb) Collection of cost poolc) Determination of the activity cost driversd) Calculation of activity driver ratee) Charging the cost of activities to productsSelect the correct sequence of the above steps: |
| A. | a, b, c, e, d |
| B. | a, b, e, d, c |
| C. | a, b, c, d, e |
| D. | a, d, c, b, e |
| Answer» D. a, d, c, b, e | |
| 882. |
A manufacturing enterprise monthly consumes 1,350 units of raw material at the cost of Rs. 20 per unit. Determine its economic order quantity given the ordering cost of Rs. 2,400 and carrying cost of inventory being 30 percent of the price paid. |
| A. | 3,600 units |
| B. | 2,400 units |
| C. | 4,800 units |
| D. | 2,700 units |
| Answer» B. 2,400 units | |
| 883. |
A company raises Rs. 1,00,000 by issue of 1000, 10% debentures of Rs. 100 each at a discount of 2% redeemable after 10 years. If the corporate tax rate is 40%, what would be the cost of capital?1. 6.82%2. 5.98%3. 6.18%4. 5.5% |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» D. 4 | |
| 884. |
An accounting approach, in which expected benefits exceed expected cost is classified as |
| A. | enefit approach |
| B. | ost approach |
| C. | ost-benefit approach |
| D. | ccounting approach |
| Answer» D. ccounting approach | |
| 885. |
Purpose of management accounting is to |
| A. | ast orientation |
| B. | elp banks make decisions |
| C. | elp managers make decisions |
| D. | elp investors make decision |
| Answer» D. elp investors make decision | |
| 886. |
Time that a company takes to create and produce a new product is classified as |
| A. | anagement factor |
| B. | ime factor |
| C. | ustomer factor |
| D. | hain factor |
| Answer» C. ustomer factor | |
| 887. |
A product performance in comparison to its features and design is classified as |
| A. | earning quality |
| B. | esign quality |
| C. | onformance quality |
| D. | usiness process quality |
| Answer» D. usiness process quality | |
| 888. |
Statistical quality control is also called |
| A. | tatistical process control |
| B. | tatistical failure control |
| C. | tatistical control of prevention cost |
| D. | tatistical control of sunk cost |
| Answer» B. tatistical failure control | |
| 889. |
A process by which employees can make decisions is divided by total number of processes to calculate |
| A. | mployee turnover ratio |
| B. | mployee empowerment ratio |
| C. | mployee satisfaction ratio |
| D. | mployee training percentage |
| Answer» C. mployee satisfaction ratio | |
| 890. |
Basic aspects of product quality must include the |
| A. | esign quality |
| B. | onformance quality |
| C. | corecard quality |
| D. | oth a and b |
| Answer» E. | |
| 891. |
Carrying costs of inventories and price discounts related to delayed deliveries are examples of |
| A. | easures of growth and learning |
| B. | easures of internal business processes |
| C. | ustomer measures |
| D. | inancial measures |
| Answer» E. | |
| 892. |
Revenues are subtracted from cost of direct materials of sold goods is to calculate |
| A. | hroughout contribution |
| B. | perating cost contribution |
| C. | perating contribution |
| D. | arginal contribution |
| Answer» B. perating cost contribution | |
| 893. |
Time between a customer's order placement till customer receives its delivery is known as |
| A. | anufacturing lead time |
| B. | anufacturing cycle time |
| C. | ustomer response time |
| D. | ystem process time |
| Answer» D. ystem process time | |
| 894. |
If number of processes, in which employees who can make decisions are 20 and number of processes are 50, then employee empowerment ratio will be |
| A. | 0.9 |
| B. | 0.4 |
| C. | 0.3 |
| D. | 0.8 |
| Answer» C. 0.3 | |
| 895. |
Number of employees that indicate high ratings of satisfaction, divided by number of surveyed employees are to calculate |
| A. | mployee satisfaction |
| B. | mployee turnover |
| C. | mployee training |
| D. | mployee failures |
| Answer» B. mployee turnover | |
| 896. |
Timeframe between placement of order until a finished good produces is classified as |
| A. | ustomer response time |
| B. | anufacturing lead time |
| C. | anufacturing cycle time |
| D. | oth b and c |
| Answer» E. | |
| 897. |
Graph which plots series of successive observations of specific procedure, operation or step at regular time intervals is called |
| A. | elevant costing diagram |
| B. | ause and effect diagram |
| C. | ontrol chart |
| D. | areto diagram |
| Answer» D. areto diagram | |
| 898. |
Employees that are trained to manage bottlenecks, during production operations and employee satisfaction are related to |
| A. | easures of growth and learning |
| B. | easures of internal business processes |
| C. | ustomer measures |
| D. | inancial measures |
| Answer» B. easures of internal business processes | |
| 899. |
On-time performance and customer-response time are examples of |
| A. | ustomer measures |
| B. | inancial measures |
| C. | easures of growth and learning |
| D. | easures of internal business processes |
| Answer» B. inancial measures | |
| 900. |
If total number of employees surveyed are 200 and employees that indicate higher rating for satisfaction are 195, then employee satisfaction would be |
| A. | 4.00% |
| B. | 3.00% |
| C. | 5.00% |
| D. | 7.50% |
| Answer» E. | |