Accounting for Management MCQ

Table of Contents

Given below are Accounting for Management MCQ with answers. These MCQs are equally useful for managerial accounting, accounting for managers & accounting for management subject. This is also useful to explore subtopics like Financial Statements, Budgeting, cost accounting, marginal costing, corporate accounting etc.

Accounting for Management MCQ

MBA, BBA, B Com, M Com, MMS, PGDBM, PGDM, BA, MA and CA students can use these multiple choice questions for university exams. These solved MA MCQ sets are also helpful for entrance exams like UPSC, UGC NET, SET, MPSC etc.

Accounting for Management MCQ

121. ABC system is used for ………………

A. material control

B. wages control

C. overhead allocation

D. pricing decisions

122. .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

123. An investment centre is a responsibility centre where the manager has
control of ………………

A. costs and profits

B. cost profits and product quality

C. costs profits and assets

D. costs

124. 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

125. 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

126. 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

127. The weighted average method of stock valuation would be most
appropriate for ………….

A. chemical manufacturer

B. a food retailer

C. a building contractor

D. a motor components retailer

128. 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

129. 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.

130. Which one of the following is not a recognised cost classification?

A. time

B. function

C. performance

D. type

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