1713 + Mcqs in Management Accounting Page 23 McqOptions

1101.	Gross margin is added into cost of sold goods is to calculate the
A.	evenues
B.	perating leverage
C.	ontribution margin
D.	perating margin
Answer» B. perating leverage

Discussion

1102.	If fixed cost is $65000 and contribution margin percentage for bundle is 0.575, then breakeven revenue will be
A.	113,043.48
B.	1,200,000
C.	130,000
D.	140,000
Answer» B. 1,200,000

Discussion

1103.	executive salaries, rent and other general administration cost in corporate costs are classified under
A.	uman resource management costs
B.	orporate administration costs
C.	reasury costs
D.	iscretionary costs
Answer» C. reasury costs

Discussion

1104.	Difference between budgeted contribution margin for actual sales mix and budgeted sales mix is called
A.	ales quantity variance
B.	ost mix variance
C.	olume mix variance
D.	ales mix variance
Answer» E.

Discussion

1105.	Difference between corresponding static budget and flexible budget amount is called
A.	ales volume variance
B.	ales mix variance
C.	ales quantity variance
D.	arket share variance
Answer» B. ales mix variance

Discussion

1106.	If an actual result is $5500 and corresponding amount of flexible budget on basis of actual level of output is $3500, then flexible budget variance will be
A.	2,500
B.	5,500
C.	3,500
D.	2,000
Answer» E.

Discussion

1107.	In customer cost hierarchy, costs of all activities incurred to sell group of units to end consumers are classified as
A.	ustomer sustaining costs
B.	ustomer output unit-level costs
C.	ustomer batch-level costs
D.	orporate sustaining costs
Answer» D. orporate sustaining costs

Discussion

1108.	Corporate sustaining costs and distribution channel costs are also classified as
A.	ndirect costs
B.	ariable costs
C.	ixed costs
D.	irect costs
Answer» D. irect costs

Discussion

1109.	Kind of cost which on elimination, would not reduce perceived usefulness that customers can obtain by using market offering is known as
A.	esigned-in costs
B.	ocked-in costs
C.	alue added cost
D.	on-value added cost
Answer» E.

Discussion

1110.	Selection of target price, understanding customer requirements, improving product designs and use of cross functional teams are considered as aspects of
A.	arget pricing
B.	arget costing
C.	alue engineering
D.	ll of above
Answer» E.

Discussion

1111.	Target price is subtracted from per unit target operating income to calculate
A.	otal current full cost
B.	otal cost per unit
C.	arget operating income per unit
D.	arget cost per unit
Answer» E.

Discussion

1112.	In broader categories, outcomes of decisions are classified as
A.	unk factors
B.	uantitative factors
C.	ualitative factors
D.	oth B and C
Answer» E.

Discussion

1113.	Buying of goods or services from suppliers or vendors of some other country instead of local supplier is classified as
A.	utsourcing
B.	nsourcing
C.	dle sourcing
D.	unk sourcing
Answer» B. nsourcing

Discussion

1114.	First step in decision making process is to
A.	dentify problem
B.	dentify linear variable
C.	dentify certainty
D.	dentify multiplier
Answer» B. dentify linear variable

Discussion

1115.	Some of methods used for determining transfer prices are
A.	arket-based transfer prices
B.	ost-based transfer prices
C.	egotiated transfer prices
D.	ll of above
Answer» E.

Discussion

1116.	Book value of existing equipment is a historical cost and not necessary for deciding equipment replacement, thus it can be considered as
A.	perating cost
B.	unk cost
C.	n-house cost
D.	ut-house cost
Answer» C. n-house cost

Discussion

1117.	Method of pricing, when two separate pricing methods are used to price transfer of products from one subunit to another, is called
A.	ual pricing
B.	unctional pricing
C.	ongruent pricing
D.	ptimal pricing
Answer» B. unctional pricing

Discussion

1118.	Decision making methods, used for subunits of company are highly interdependent on each other is called
A.	ncongruent decision making
B.	unctional decision making
C.	ongruent decision making
D.	uplication decision making
Answer» B. unctional decision making

Discussion

1119.	Price charged by one subunit to supply products or services to another unit is called
A.	ubunit autonomy cost
B.	ransfer price
C.	erformance prices
D.	ffort cost
Answer» C. erformance prices

Discussion

1120.	Minimum freedom for managers and maximum constraints are main features of
A.	otal autonomy
B.	otal centralization
C.	otal decentralization
D.	otal congruency
Answer» C. otal decentralization

Discussion

1121.	Means of collecting and using information, to coordinate decision and planning through an organization are termed as
A.	ustomer control system
B.	usiness control system
C.	inancial control system
D.	anagement control systems
Answer» E.

Discussion

1122.	Practice of seller to charge higher price for same market offering is classified as
A.	eak-load pricing
B.	lastic pricing
C.	lastic demand
D.	nelastic demand
Answer» B. lastic pricing

Discussion

1123.	Major approaches to make decisions about pricing include
A.	arket based
B.	unk cost
C.	ost based
D.	oth a and c
Answer» E.

Discussion

1124.	Systematic evaluation of value chain, to reduce costs and high quality to achieve satisfied customers is known as
A.	everse engineering
B.	alue engineering
C.	arget engineering
D.	peration engineering
Answer» C. arget engineering

Discussion

1125.	Per unit opportunity cost to selling subunit of company, is added into per unit incremental cost is incurred at point of transfer to calculate
A.	inimum operating cost
B.	aximum operating costs
C.	aximum transfer price
D.	inimum transfer price
Answer» E.

Discussion

1126.	Degree to which freedom is given to lower level managers for decision making is classified as
A.	ecentralization
B.	entralization
C.	utonomy
D.	ongruency
Answer» D. ongruency

Discussion

1127.	Maximum freedom for managers and minimum constraints are main features of
A.	otal autonomy
B.	otal centralization
C.	otal decentralization
D.	otal congruency
Answer» D. otal congruency

Discussion

1128.	Dysfunctional decision making is also known as
A.	ysfunctional decision making
B.	ongruent decision making
C.	ncongruent decision making
D.	oth a and c
Answer» E.

Discussion

1129.	Product costing technique in which markup component is added into cost base, to set a target price is known as
A.	arket based approach
B.	ost incurrence pricing
C.	ost plus pricing
D.	ocked-in cost pricing
Answer» D. ocked-in cost pricing

Discussion

1130.	Major influential factors on supply and demand include
A.	ustomers
B.	osts
C.	ompetitors
D.	ll of above
Answer» B. osts

Discussion

1131.	Technique, which accumulates and tracks revenues of business function in value chain attributed to each market offering from R&D to final customer support is called
A.	roduct life cycle
B.	ife cycle budgeting
C.	ife cycle costing
D.	arget costing
Answer» C. ife cycle costing

Discussion

1132.	Costs such as book value of old machines are $25000 can be a classified as an example of
A.	alvages
B.	elevant
C.	rrelevant
D.	epreciated cost
Answer» D. epreciated cost

Discussion

1133.	Difference of cost, which occurs while considering alternatives can be classified as
A.	ependent cost
B.	ndependent cost
C.	ncremental cost
D.	ifferential cost
Answer» E.

Discussion

1134.	Forgone contribution of resources, in to revenues because of not using resources, in next best use is classified as
A.	n-source cost
B.	pportunity cost
C.	ffshore cost
D.	utsource cost
Answer» C. ffshore cost

Discussion

1135.	An example of quantitative factor is
A.	mployee behavior at workplace
B.	mployee satisfaction
C.	mployee morale
D.	ost of materials
Answer» E.

Discussion

1136.	Difference that exists between total revenues, can be earned from two different alternatives is termed as
A.	ndependent revenue
B.	ncremental revenue
C.	ifferential revenue
D.	ependent revenue
Answer» D. ependent revenue

Discussion

1137.	Decisions made by team of individuals or single person, whether to outsource products or in-source are classified as
A.	emand or supply decisions
B.	ake or buy decisions
C.	elevant or irrelevant decision
D.	dle or busy decisions
Answer» C. elevant or irrelevant decision

Discussion

1138.	Decisions made by company, which products to manufacture and sell and in what quantities out, of many product lines are called
A.	ncremental decisions
B.	utsource decisions
C.	roduct mix decisions
D.	n-source decisions
Answer» D. n-source decisions

Discussion

1139.	Type of outcomes, which can never be measured in numerical terms in books of accounts are classified as
A.	xpected factors
B.	ecorded factors
C.	ualitative factors
D.	uantitative factors
Answer» D. uantitative factors

Discussion

1140.	Formal method of making choices, considering help of quantitative and qualitative analysis is classified as
A.	uantitative analysis
B.	ecision method
C.	ualitative method
D.	inearity method
Answer» C. ualitative method

Discussion

1141.	Fourth step in decision making process is
A.	inear correlation
B.	aking decisions
C.	mplement decisions
D.	valuate performance
Answer» C. mplement decisions

Discussion

1142.	Factor, which are largely considered in making or buying decisions is
A.	uality of suppliers
B.	ependability of suppliers
C.	roduction irrelevancy
D.	oth a and b
Answer» E.

Discussion

1143.	Kind of costs that has been occurred in past are also known as
A.	nrecorded costs
B.	ecorded costs
C.	unk costs
D.	unked costs
Answer» D. unked costs

Discussion

1144.	Span time from initial research and development of product till support and customer service, if not offered for that particular product will be called
A.	roduct life cycle
B.	ife cycle budgeting
C.	ife cycle costing
D.	arget costing
Answer» B. ife cycle budgeting

Discussion

1145.	Low level managers in organizations are to make decisions about
A.	et income irrelevancy
B.	perating income maximization
C.	perating income minimization
D.	perating income relevancy
Answer» C. perating income minimization

Discussion

1146.	Type of outcomes that can be measured in numerical terms are classified as
A.	ualitative factors
B.	uantitative factors
C.	xpected factors
D.	ecorded factors
Answer» C. xpected factors

Discussion

1147.	Costs which are related to different functions of value chain of company, such as marketing and manufacturing costs are considered as
A.	alue costs
B.	uture function costs
C.	usiness function costs
D.	unk function costs
Answer» D. unk function costs

Discussion

1148.	Costs that are unavoidable and remain unchanged no matter what done are classified as
A.	unk costs
B.	unked costs
C.	nrecorded costs
D.	ecorded costs
Answer» B. unked costs

Discussion

1149.	In today's global world, an outsourcing of products or services from lower cost countries is classified as
A.	ifferential in-sourcing
B.	ff-shoring
C.	ncremental outsourcing
D.	ifferential outsourcing
Answer» C. ncremental outsourcing

Discussion

1150.	An amount of additional cost incurred for any particular activity is classified as
A.	ncremental cost
B.	ifferential cost
C.	ependent cost
D.	ndependent cost
Answer» B. ifferential cost

Discussion

Explore topic-wise MCQs in General Management.

Gross margin is added into cost of sold goods is to calculate the

If fixed cost is $65000 and contribution margin percentage for bundle is 0.575, then breakeven revenue will be

executive salaries, rent and other general administration cost in corporate costs are classified under

Difference between budgeted contribution margin for actual sales mix and budgeted sales mix is called

Difference between corresponding static budget and flexible budget amount is called

If an actual result is $5500 and corresponding amount of flexible budget on basis of actual level of output is $3500, then flexible budget variance will be

In customer cost hierarchy, costs of all activities incurred to sell group of units to end consumers are classified as

Corporate sustaining costs and distribution channel costs are also classified as

Kind of cost which on elimination, would not reduce perceived usefulness that customers can obtain by using market offering is known as

Selection of target price, understanding customer requirements, improving product designs and use of cross functional teams are considered as aspects of

Target price is subtracted from per unit target operating income to calculate

In broader categories, outcomes of decisions are classified as

Buying of goods or services from suppliers or vendors of some other country instead of local supplier is classified as

First step in decision making process is to

Some of methods used for determining transfer prices are

Book value of existing equipment is a historical cost and not necessary for deciding equipment replacement, thus it can be considered as

Method of pricing, when two separate pricing methods are used to price transfer of products from one subunit to another, is called

Decision making methods, used for subunits of company are highly interdependent on each other is called

Price charged by one subunit to supply products or services to another unit is called

Minimum freedom for managers and maximum constraints are main features of

Means of collecting and using information, to coordinate decision and planning through an organization are termed as

Practice of seller to charge higher price for same market offering is classified as

Major approaches to make decisions about pricing include

Systematic evaluation of value chain, to reduce costs and high quality to achieve satisfied customers is known as

Per unit opportunity cost to selling subunit of company, is added into per unit incremental cost is incurred at point of transfer to calculate

Degree to which freedom is given to lower level managers for decision making is classified as

Maximum freedom for managers and minimum constraints are main features of

Dysfunctional decision making is also known as

Product costing technique in which markup component is added into cost base, to set a target price is known as

Major influential factors on supply and demand include

Technique, which accumulates and tracks revenues of business function in value chain attributed to each market offering from R&D to final customer support is called

Costs such as book value of old machines are $25000 can be a classified as an example of

Difference of cost, which occurs while considering alternatives can be classified as

Forgone contribution of resources, in to revenues because of not using resources, in next best use is classified as

An example of quantitative factor is

Difference that exists between total revenues, can be earned from two different alternatives is termed as

Decisions made by team of individuals or single person, whether to outsource products or in-source are classified as

Decisions made by company, which products to manufacture and sell and in what quantities out, of many product lines are called

Type of outcomes, which can never be measured in numerical terms in books of accounts are classified as

Formal method of making choices, considering help of quantitative and qualitative analysis is classified as

Fourth step in decision making process is

Factor, which are largely considered in making or buying decisions is

Kind of costs that has been occurred in past are also known as

Span time from initial research and development of product till support and customer service, if not offered for that particular product will be called

Low level managers in organizations are to make decisions about

Type of outcomes that can be measured in numerical terms are classified as

Costs which are related to different functions of value chain of company, such as marketing and manufacturing costs are considered as

Costs that are unavoidable and remain unchanged no matter what done are classified as

In today's global world, an outsourcing of products or services from lower cost countries is classified as

An amount of additional cost incurred for any particular activity is classified as