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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-5 section-2

Each section contains 100 MCQs on Management Accounting .
41
Degree which predetermines target or income achieved, can be grouped under
Discuss
Answer & Solution
Answer: Option D
Solution:
Degree which predetermines target or income achieved, can be grouped under effectiveness.
42
If budgeted input price is $50, price variance is $30 then an actual price will be
Discuss
Answer & Solution
Answer: Option C
Solution:
Actual price = Budgeted input price + Price variance
= $50 + $30 = $80.
43
Quantity of input which is carefully determined is called
Discuss
Answer & Solution
Answer: Option C
Solution:
Quantity of input which is carefully determined is called standard input. The standard input device, also referred to as stdin, is the device from which input to the system is taken.
44
If actual cost is $356000 and flexible budget cost is $255000, then flexible budget variance will be
Discuss
Answer & Solution
Answer: Option C
Solution:
Flexible budget variance = Actual cost - Flexible budget cost
= $356000 - $255000 = $101,000.
45
Variance is stated difference between expected performance and the
Discuss
Answer & Solution
Answer: Option B
Solution:
Variance is stated difference between expected performance and the actual results. Variance is used to compare the relative performance of each asset in a portfolio.
46
A costing system, which focuses on individual activities as particular cost object is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
A costing system, which focuses on individual activities as particular cost object is classified as activity based costing. Activity-based costing (ABC) is a costing method that assigns overhead and indirect costs to related products and services.
47
Difference between actual input variance and budgeted input variance is called
Discuss
Answer & Solution
Answer: Option A
Solution:
Difference between actual input variance and budgeted input variance is called price variance. Price variance is the difference between the actual price paid by a company to purchase an item and its standard price, multiplied by the number of units purchased.
48
An efficiency variance is 200 units and actual input quantity is 500 units, then budgeted input quantity will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Budgeted input quantity = Actual input quantity - Efficiency variance
= 500 units - 200 units = 300 units.
49
Performance is evaluated only on basis of price variance, if performance evaluation is
Discuss
Answer & Solution
Answer: Option A
Solution:
Performance is evaluated only on basis of price variance, if performance evaluation is positive. Performance Evaluation is defined as a formal and productive procedure to measure an employee's work and results based on their job responsibilities.
50
Budget which is planned around a single output level is called
Discuss
Answer & Solution
Answer: Option C
Solution:
Budget which is planned around a single output level is called static budget. A static budget is a type of budget that incorporates anticipated values about inputs and outputs that are conceived before the period in question begins.