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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. Page-2 section-3

Each section contains 100 MCQs on Management Accounting .
11
If required rate of return is 13%, operating income is $375000 and total investment is $2650000, then residual income would be
Discuss
Answer & Solution
Answer: Option A
No explanation is given for this question. Let's Discuss on Board
12
If working capital is $265000 and current liabilities are $378000, then current assets can be
Discuss
Answer & Solution
Answer: Option B
Solution:
Current assets = Working capital + Current liabilities
= $265000 + $378000 = $643,000
13
If current assets are $856000 and working capital is $654500, then current liabilities will be
Discuss
Answer & Solution
Answer: Option C
Solution:
Current liabilities = Working capital - Current assets
= $856000 - $654500 = $201,500.
14
In an accounting measurement, income and investment is divided to calculate
Discuss
Answer & Solution
Answer: Option D
Solution:
In an accounting measurement, income and investment is divided to calculate return on investment. Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.
15
Costs that are not incorporated in accounting records, but are recognized in different situations are classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Costs that are not incorporated in accounting records, but are recognized in different situations are classified as imputed costs. An imputed cost is a cost that is incurred by virtue of using an asset instead of investing it or undertaking an alternative course of action. An imputed cost is an invisible cost that is not incurred directly, as opposed to an explicit cost, which is incurred directly.
16
A desire of an individual to give good performance for self-satisfaction is known as
Discuss
Answer & Solution
Answer: Option A
Solution:
A desire of an individual to give good performance for self-satisfaction is known as intrinsic motivation. Intrinsic motivation refers to behavior that is driven by internal rewards. In other words, the motivation to engage in a behavior arises from within the individual because it is naturally satisfying to you.
17
Return on investment is also known as
Discuss
Answer & Solution
Answer: Option D
Solution:
Return on investment is also known as accrual accounting rate of return and accounting rate of return.
18
After-tax average cost of funds used by company in long run is equal to
Discuss
Answer & Solution
Answer: Option A
Solution:
After-tax average cost of funds used by company in long run is equal to weighted average cost of capital.
19
System in an organization, which defines behavior standards and code of conduct is known as
Discuss
Answer & Solution
Answer: Option C
Solution:
System in an organization, which defines behavior standards and code of conduct is known as boundary system. A boundary system is a set of standards relating to acceptable behavior in an organization.
20
An economic value added method is specific type of method to calculate
Discuss
Answer & Solution
Answer: Option C
Solution:
An economic value added method is specific type of method to calculate residual income. Residual income is excess income generated more than the minimum rate of return. Residual income is a measurement of internal corporate performance, whereby a company's management team evaluates the income generated relative to the company's minimum required return.