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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-7 section-2

Each section contains 100 MCQs on Management Accounting .
61
Point at which control functions and planning of management come together is known as
Discuss
Answer & Solution
Answer: Option B
Solution:
Point at which control functions and planning of management come together is known as variance. A variance in management accounting may be favourable (costs lower than expected or revenues higher than expected) or adverse (costs higher than expected or revenues lower than expected).
62
Difference between actual quantity use and input quantity for output is multiplied with budgeted price to calculate
Discuss
Answer & Solution
Answer: Option B
Solution:
Difference between actual quantity use and input quantity for output is multiplied with budgeted price to calculate efficiency variance. The efficiency variance is the difference between the actual unit usage of something and the expected amount of it. The expected amount is usually the standard quantity of direct materials, direct labor, machine usage time, and so forth that is assigned to a product.
63
Level of used input to achieve a determined level of output is termed as
Discuss
Answer & Solution
Answer: Option A
Solution:
Level of used input to achieve a determined level of output is termed as efficiency. Efficiency is the (often measurable) ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result.
64
Flexible budget variance is subtracted from actual cost to calculate
Discuss
Answer & Solution
Answer: Option A
Solution:
Flexible budget variance is subtracted from actual cost to calculate flexible budget cost. A flexible budget is a budget that adjusts or flexes with changes in volume or activity. The flexible budget is more sophisticated and useful than a static budget. (The static budget amounts do not change. They remain unchanged from the amounts established at the time that the static budget was prepared and approved.)
65
An efficiency variance is subtracted from actual input quantity to calculate
Discuss
Answer & Solution
Answer: Option D
Solution:
An efficiency variance is subtracted from actual input quantity to calculate budgeted input quantity.
66
An actual cost is subtracted from flexible budget cost to calculate
Discuss
Answer & Solution
Answer: Option C
Solution:
An actual cost is subtracted from flexible budget cost to calculate flexible budget variance. A flexible budget variance is any difference between the results generated by a flexible budget model and actual results. If actual revenues are inserted into a flexible budget model, this means that any variance will arise between budgeted and actual expenses, not revenues.
67
Difference between an actual budget and corresponding amount in static budget is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Difference between an actual budget and corresponding amount in static budget is classified as static budget variance. Static budget variances are the differences between what a company or individual thought it would spend in its budget versus what it actually did.
68
If an actual input price is $70 and budgeted input price is $40, then price variance will be
Discuss
Answer & Solution
Answer: Option D
Solution:
Price variance = Actual input price - Budgeted input price
= $70 - $40 = $30.
69
If an actual result is $50000 and static budget variance is $25000, then static budget amount will be
Discuss
Answer & Solution
Answer: Option B
Solution:
Static budget amount = Actual result - Static budget variance
= $50000 - $25000 = $25,000.
70
If actual price input is $500, budgeted price of input is $300 and actual quantity of input is 50 units, then price variance would be
Discuss
Answer & Solution
Answer: Option D
Solution:
Price variance = (actual price input - budgeted price of input) × Actual quantity of input
= ($500 - $300) × 50 = $10,000.