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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-8 section-1

Each section contains 100 MCQs on Management Accounting .
71
Types of costs of quality consist of
Discuss
Answer & Solution
Answer: Option D
Solution:
Types of costs of quality consist of appraisal costs, internal and external failure costs and prevention costs.
72
If cost of direct materials use in goods sold is $5000 and total revenues are $9000 then throughput contribution would be
Discuss
Answer & Solution
Answer: Option C
Solution:
Throughput contribution = Total revenues - Cost of direct materials use in goods sold
= $9000 - $5000
= $4,000.
73
Time a company takes until a good is produced after order placement is known as
Discuss
Answer & Solution
Answer: Option A
Solution:
Time a company takes until a good is produced after order placement is known as manufacturing lead time. The manufacturing lead time is the time period between the placement of an order and the shipment of the completed order to the customer.
74
Factors identified by cause and effect diagrams include
Discuss
Answer & Solution
Answer: Option D
Solution:
Factors identified by cause and effect diagrams include component and material factors, machine-related factors and human factors.
75
Delivery of goods by time it is contracted to be delivered is known as
Discuss
Answer & Solution
Answer: Option D
Solution:
Delivery of goods by time it is contracted to be delivered is known as on-time performance. On time performance, sometimes referred to as on time running, is normally expressed as a percentage, with a higher percentage meaning more vehicles are on time.
76
Value added manufacturing time is divided by total manufacturing is to calculate
Discuss
Answer & Solution
Answer: Option D
Solution:
Value added manufacturing time is divided by total manufacturing is to calculate manufacturing cycle efficiency. Manufacturing cycle efficiency measures the proportion of production time spent on value-added activities.
77
Chart which represents how regularly defect occurs in production process is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Chart which represents how regularly defect occurs in production process is classified as Pareto chart. A Pareto chart is a type of chart that contains both bars and a line graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line.
78
If manufacturing cycle efficiency is 0.725 and total manufacturing time is 45 minute, then value added manufacturing time will be
Discuss
Answer & Solution
Answer: Option C
Solution:
Value added manufacturing time = Manufacturing cycle efficiency × Total manufacturing time
= 0.725 × 45
= 32.625.
79
In response to challenges arisen by competitors and new entrants, strategy which must be considered by company does include
Discuss
Answer & Solution
Answer: Option D
Solution:
In response to challenges arisen by competitors and new entrants, strategy which must be considered by company does include cost leadership and differentiated products.
80
Considering two fiscal years 2013 and 2014, actual units sold in 2013 and 2014 are 11000 and 12500 units respectively, and selling price in year 2013 is $50, then revenue effect of growth will be
Discuss
Answer & Solution
Answer: Option B
Solution:
Revenue effect of growth = (12500 - 11000) × $50
= $75,000.