( 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.
- Which of the following is a type of budget according to function?
- Fixed Budget
- Production budget
- Long term Budget
- Flexible Budget
- Budgets can be classified according to
- Time
- Functions
- Flexibility
- All of the above
- Sales budget is ______.
- Functional budget
- Expenditure budget
- Fixed budget
- Master budget
- A budget is:
- Aid to management
- Substitute to management
- Post mortem analysis
- None of the above
- Which of the following will not appear in a cash budget?
- Wages
- Depreciation of machinery
- Sales revenue
- Machinery bought on hire purchase
- If variable and fixed costs at 60% capacity are Rs 12,000 and Rs 9,000 respectively, total cost at 80% capacity will be
- Rs 25,000
- Rs 28,000
- Rs 24,000
- None of the above
- Which one is usually a long term budget?
- Fixed budget
- Cash budget
- Sales budget
- Capital expenditure budget
- Operating budgets cover a period of_____.
- One year
- Two years
- Ten years
- Twenty years
- Fixed – variable cost classification is significant in _______.
- Fixed budget
- Cash budget
- Sales budget
- Flexible budget
- ______ budget is prepared first.
- Master
- Cash
- Key factor
- Flexible
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