( 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.
- Expenses that do not vary with the volume of production are known as _______
- Fixed expenses
- Variable expenses
- Semi‐variable expenses
- None
- _______ is the excess of sales over the break even sales.
- Actual sales
- Total sales
- Margin of safety
- Net sales
- The formula for Margin of Safety is one of the following ________
- PV ratio/profit
- Profit/P/v ratio
- Profit/sales
- Contribution/fixed cost
- Managers utilizes marginal costing for
- Make or buy decision
- Utilization of additional capacity
- Determination of dumping price
- All of the above
- CVP stands for
- Cost variance profit
- Cost volume profit
- Cost variance prime
- Contribution volume profit
- Marginal cost does not include ______.
- Variable cost
- Semi variable cost
- Fixed cost
- Additional cost
- At BEP ____ is equal to fixed cost.
- Contribution
- Profit
- Sales
- Variable cost
- BEP is _____ by changes in fixed cost.
- Not affected
- Affected
- Not influenced
- Implemented
- Contribution is also called ______.
- Marginal income
- Gross profit
- Net profit
- Fixed cost
- In USA marginal costing is referred as_____.
- Direct costing
- Variable costing
- Incremental costing
- All of the above
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