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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-4

Each section contains 100 MCQs on Management Accounting .
41
Practice by seller of offering same product at different prices, to different customers is known as
Discuss
Answer & Solution
Answer: Option B
Solution:
Practice by seller of offering same product at different prices, to different customers is known as price discrimination. Price discrimination is a selling strategy that charges customers different prices for the same product or service based on what the seller thinks they can get the customer to agree to.
42
Total cost incur by customer to use, acquire, maintain and dispose service or product is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Total cost incur by customer to use, acquire, maintain and dispose service or product is classified as customer life cycle. The customer lifecycle is a term that describes the different steps a customer goes through when they are considering, buying, using, and remaining loyal to a particular product or service. This lifecycle has been broken down into five distinct stages: reach, acquisition, conversion, retention, and loyalty.
43
If cost is eliminated, then reducing perceived usefulness that customers can obtain by using market offering will come under
Discuss
Answer & Solution
Answer: Option C
Solution:
If cost is eliminated, then reducing perceived usefulness that customers can obtain by using market offering will come under value added cost. A value added cost is incurred when an asset is consumed in order to increase the value of goods or services to the consumer.
44
If total production is 25000 units and target annual operating income is $300000 then target operating income per unit would be
Discuss
Answer & Solution
Answer: Option B
Solution:
Target operating income = Target annual operating income ÷ Total production
= $300000 ÷ 25000 = $12.
45
Costs that are planned in future and has not been incurred are known as
Discuss
Answer & Solution
Answer: Option A
Solution:
Costs that are planned in future and has not been incurred are known as designed-in costs. Design to cost is the process of reducing cost in the requirements and design phase of a project.
46
Target annual operating income is divided with invested capital to calculate
Discuss
Answer & Solution
Answer: Option A
Solution:
Target annual operating income is divided with invested capital to calculate target rate of return on investment. A rate of return (RoR) is the net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.
47
A technique, which accumulates and tracks costs of business function in value chain attributed to each market offering from R&D to final customer support, is called
Discuss
Answer & Solution
Answer: Option C
Solution:
A technique, which accumulates and tracks costs of business function in value chain attributed to each market offering from R&D to final customer support, is called life cycle costing. Life cycle costing is the process of compiling all costs that the owner or producer of an asset will incur over its lifespan.
48
If cost base is $350 and markup component is 11% then prospective selling price will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Prospective selling price = $350 × 111% = 388.5.
49
An estimated price, which is expected to be paid by customers for particular market offering is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
An estimated price, which is expected to be paid by customers for particular market offering is classified as target price. Target price is on which Investor want to sell the security.so investor put his target price in his/her demat account while place selling order.
50
An insensitivity of demand in relevance to change in price will be called
Discuss
Answer & Solution
Answer: Option D
Solution:
An insensitivity of demand in relevance to change in price will be called demand inelasticity. Inelastic demand is when the buyer's demand does not change as much as the price changes.