( Best 100+ ) Management Accounting MCQ
Management accounting helps managers within a company make decisions. Also known as cost accounting, management accounting is the process of identifying, analyzing, interpreting and communicating information to managers to help achieve business goals.
What do you mean by management accounting?
Managerial accounting is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization’s goals.
What is the main purpose of management accounting?
The main objective of managerial accounting is to maximize profit and minimize losses. It is concerned with the presentation of data to predict inconsistencies in finances that help managers make important decisions.
- Marginal costing is the most useful technique for the ______
- Shareholders
- Management
- Auditors
- Creditors
- The term contribution refers to ____
- The difference between selling price and fixed cost
- The difference between selling price and variable cost
- Profit
- None of these
- Marginal costing technique helps the management in deciding _____
- Pricing
- To accept fresh orders at low price
- To make or buy
- All of the above
- The other name of marginal costing is _______
- Direct costing
- Variable costing
- Incremental costing
- All of the above
- Sales Rs. 100000, variable cost Rs. 50000 and net profit ratio is 10% on sales, find out fixed cost.
- 50000
- 40000
- 20000
- The data inadequate
- Profit volume ratio establishes the relationship between _______
- Contribution and profit
- Fixed cost and contribution
- Profit and sales
- Contribution and sales value
- Contribution/sales is equal to _______
- P/V ratio
- Net profit ratio
- BEP
- EPS
- The profit of an undertaking is affected by _______
- Selling price of the products
- Volume of sales
- Variable cost per unit and total fixed cost
- All of the above
- The profit at which total revenue is equal to total cost is called ______
- Break Even Point
- Margin of safety
- Break even analysis
- None
- The break even chart helps the management in ______
- Forecasting costs and profits
- Cost control
- Long term planning and growth
- All of the above
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