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Management Accounting MCQ Questions and Solutions with Explanations | Management

Management Accounting MCQ Questions and answers with easy and logical explanations. Management provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Management MCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management department exam.

Each section contains 100 MCQs on Management Accounting .
1
In value chain analysis, coordination, acquiring and assembling of resources to produce a product is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
In value chain analysis, coordination, acquiring and assembling of resources to produce a product is classified as production. Value chain analysis is a strategy tool used to analyze internal firm activities. Its goal is to recognize, which activities are the most valuable (i.e. are the source of cost or differentiation advantage) to the firm and which ones could be improved to provide competitive advantage.
2
Examining of past performance, exploring alternative and planning future is
Discuss
Answer & Solution
Answer: Option A
Solution:
Examining of past performance, exploring alternative and planning future is learning. Learning is the process of acquiring new, or modifying existing, knowledge, behaviors, skills, values, or preferences.
3
Time that a company takes to create and produce a new product is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Time that a company takes to create and produce a new product is classified as time factor.
4
Purpose of management accounting is to
Discuss
Answer & Solution
Answer: Option C
Solution:
Purpose of management accounting is to help managers make decisions. Management accounting helps organizations improve their ability to control costs and plan for the future through financial forecasts. It also focuses on providing reports to ensure comprehensive management oversight.
5
An accounting approach, in which expected benefits exceed expected cost is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
An accounting approach, in which expected benefits exceed expected cost is classified as cost-benefit approach. A cost-benefit analysis is a process businesses use to analyze decisions. The business or analyst sums the benefits of a situation or action and then subtracts the costs associated with taking that action.
6
Flow of goods and services, from start of gathering materials until delivery of products, is known as
Discuss
Answer & Solution
Answer: Option B
Solution:
Flow of goods and services, from start of gathering materials until delivery of products, is known as supply chain analysis. Supply chain analysis is the process of evaluating every stage of a supply chain starting from the time the business acquires raw materials or supplies from its suppliers to the delivery of final products to the customers.
7
Step by step business functions, in which product or services must have customer usefulness is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Step by step business functions, in which product or services must have customer usefulness is classified as value chain. A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product (i.e., good and/or service) for the market.
8
Decisions regarding usage of material, kind and changes in plant processing are a part of
Discuss
Answer & Solution
Answer: Option D
Solution:
Decisions regarding usage of material, kind and changes in plant processing are a part of cost management. Cost management is the process of planning and controlling the budget of a business. Cost management is a form of management accounting that allows a business to predict impending expenditures to help reduce the chance of going over budget.
9
Function of management accountant, who works as business partner comes under category of
Discuss
Answer & Solution
Answer: Option D
Solution:
Function of management accountant, who works as business partner comes under category of staff function. A staff function is a secondary business activity that supports the line functions of a business to achieve the objectives. In business management, staff functions are usually defined as all functions that are not line functions. The nature of this function is advisory.
10
An officer responsible for financial operations of organization is considered as
Discuss
Answer & Solution
Answer: Option A
Solution:
An officer responsible for financial operations of organization is considered as chief financial officer. A Chief Financial Officer is an executive who is in charge of monitoring cash flow, financial planning and other financial activities within an organization.