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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-2

Each section contains 100 MCQs on Management Accounting .
71
If an actual result is $250000 and static budget amount is $150000, then static budget variance for operating income will be
Discuss
Answer & Solution
Answer: Option C
Solution:
Static budget amount = Actual result - Static budget variance
= $250000 - $150000 = $100,000.
72
Master budget, which is based on planned output level at start of budget period is considered as
Discuss
Answer & Solution
Answer: Option A
Solution:
Master budget, which is based on planned output level at start of budget period is considered as static budget. A static budget is a budget in which the amounts will not change even with significant changes in volume. In contrast to a static budget, a company's sales department might have a flexible budget. In the flexible budget, the sales commissions expense budget would be stated as a percentage of sales.
73
Price variance for direct manufacturing labour is referred as
Discuss
Answer & Solution
Answer: Option B
Solution:
Price variance for direct manufacturing labour is referred as rate variance. A rate variance is the difference between the actual price paid for something and the expected price, multiplied by the actual quantity purchased. The concept is used to track down instances in which a business is overpaying for goods, services, or labor.
74
If input used in manufacturing is smaller in quantity and output produced is greater in quantity, this will be categorized under
Discuss
Answer & Solution
Answer: Option B
Solution:
If input used in manufacturing is smaller in quantity and output produced is greater in quantity, this will be categorized under greater efficiency. Greater Efficiency Means Greater Success.
75
If static budget variance is $46000 and static budget amount is $15000, then an actual result would be
Discuss
Answer & Solution
Answer: Option D
Solution:
Actual result = Static budget variance - Static budget amount
= $46000 - $15000 = $31,000.
76
If budgeted input quantity is 350 units and efficiency variance is 100, then an actual input quantity will be
Discuss
Answer & Solution
Answer: Option B
Solution:
Actual input quantity = Budgeted input quantity + Efficiency variance
= 350 + 100 = 450 units.
77
If budgeted input price is $80 and price variance is $40, then an actual price will be
Discuss
Answer & Solution
Answer: Option B
Solution:
Actual price = Budgeted input price + Price variance
= $80 + $40 = $120.
78
If price variance is $20 and budgeted input price is $70, then an actual price will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Actual price = Budgeted input price + Price variance
= $70 + $20 = $90.
79
An unfavourable variance in static budget is also known as
Discuss
Answer & Solution
Answer: Option B
Solution:
An unfavourable variance in static budget is also known as adverse variance. 'Unfavorable variance' is an accounting term that describes instances where actual costs are greater than the standard or expected costs.
80
If price variance is $30 and budgeted input price is $80, then an actual price would be
Discuss
Answer & Solution
Answer: Option C
Solution:
Actual price = Budgeted input price + Price variance
= $80 + $30 = $110.