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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-6 section-4

Each section contains 100 MCQs on Management Accounting .
51
An estimated cost per unit in long run, which enables company to achieve it's per unit target, operating income is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
An estimated cost per unit in long run, which enables company to achieve it's per unit target, operating income is classified as target cost per unit. The target cost of a product is the expected selling price of the product minus the desired profit from selling it. In other words, target cost is really a measure of how low costs need to be to make a certain profit.
52
Concept, which states that resources are used to meet particular goals is
Discuss
Answer & Solution
Answer: Option A
Solution:
Concept, which states that resources are used to meet particular goals is cost incurrence. Cost incurrence refers to the receipt of goods or services at a bargained price in an exchange.
53
Target price is subtracted from per unit target operating income to calculate
Discuss
Answer & Solution
Answer: Option D
Solution:
Target price is subtracted from per unit target operating income to calculate target cost per unit. The target cost of a product is the expected selling price of the product minus the desired profit from selling it. In other words, target cost is really a measure of how low costs need to be to make a certain profit.
54
Selection of target price, understanding customer requirements, improving product designs and use of cross functional teams are considered as aspects of
Discuss
Answer & Solution
Answer: Option D
Solution:
Selection of target price, understanding customer requirements, improving product designs and use of cross functional teams are considered as aspects of target pricing, target costing and value engineering.
55
Kind of cost which on elimination, would not reduce perceived usefulness that customers can obtain by using market offering is known as
Discuss
Answer & Solution
Answer: Option D
Solution:
Kind of cost which on elimination, would not reduce perceived usefulness that customers can obtain by using market offering is known as non-value added cost. A non-value added cost is a production expense that does not increase the amount customers are willing to pay for the finished product.
56
Companies that perform in competitive markets using pricing approach are known as
Discuss
Answer & Solution
Answer: Option B
Solution:
Companies that perform in competitive markets using pricing approach are known as market based approach. In the Market-Based Approach, the value of an asset is determined by comparing it with the market prices of recently sold similar sized assets in recent time period like a quarter.
57
An income, which a company aims to earn by selling each unit of market offering is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
An income, which a company aims to earn by selling each unit of market offering is classified as target operating income per unit. Target income is the profit that the managers of a company expect to attain for a designated accounting period.
58
Systematic evaluation of value chain, to reduce costs and high quality to achieve satisfied customers is known as
Discuss
Answer & Solution
Answer: Option B
Solution:
Systematic evaluation of value chain, to reduce costs and high quality to achieve satisfied customers is known as value engineering. Value engineering is a systematic and organized approach to providing the necessary functions in a project at the lowest cost. Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality.
59
Major approaches to make decisions about pricing include
Discuss
Answer & Solution
Answer: Option D
Solution:
Major approaches to make decisions about pricing include market based and cost based.
60
Practice of seller to charge higher price for same market offering is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Practice of seller to charge higher price for same market offering is classified as peak-load pricing. The Peak Load Pricing is the pricing strategy wherein the high price is charged for the goods and services during times when their demand is at peak.