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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-3

Each section contains 100 MCQs on Management Accounting .
71
Gross margin is added to cost of sold goods to calculate
Discuss
Answer & Solution
Answer: Option A
Solution:
Gross margin is added to cost of sold goods to calculate revenues. Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. It is the top line or gross income figure from which costs are subtracted to determine net income.
72
Type of distribution, which describes whether events to be occurred are mutually exclusive or collectively exhaustive can be classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Type of distribution, which describes whether events to be occurred are mutually exclusive or collectively exhaustive can be classified as probability distribution. A probability distribution is a list of all of the possible outcomes of a random variable along with their corresponding probability values. To give a concrete example, here is the probability distribution of a fair 6-sided die.
73
Fixed cost is divided by break-even revenues to calculate
Discuss
Answer & Solution
Answer: Option D
Solution:
Fixed cost is divided by break-even revenues to calculate contribution margin. Contribution margin is a product's price minus all associated variable costs, resulting in the incremental profit earned for each unit sold. The total contribution margin generated by an entity represents the total earnings available to pay for fixed expenses and to generate a profit.
74
If gross margin is $2000 and revenue is $5000, then cost of goods sold would be
Discuss
Answer & Solution
Answer: Option B
Solution:
Cost of goods sold = Revenue - Gross margin
= $5000 - $2000 = $3,000.
75
Fixed cost is added to target operating income and then divided to contribute margin per unit to calculate
Discuss
Answer & Solution
Answer: Option A
Solution:
Fixed cost is added to target operating income and then divided to contribute margin per unit to calculate quantity of units required to sold.
76
Contribution margin is $34000 and operating income is $12000, then degree of operating leverage will be
Discuss
Answer & Solution
Answer: Option B
Solution:
Degree of operating leverage = Contribution margin ÷ Operating income
= $34000 ÷ $12000 = 2.84.
77
If budgeted sales in unit is 50 and breakeven sales in unit is 12, then margin of safety in units will be
Discuss
Answer & Solution
Answer: Option B
Solution:
Margin of safety = Budgeted sales - Breakeven sales
= 50 - 12 = 38 units.
78
Type of distribution, which consists of alternative outcomes and probabilities of events is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Type of distribution, which consists of alternative outcomes and probabilities of events is classified as decision table. Decision tables are a concise visual representation for specifying which actions to perform depending on given conditions.
79
An effect of fixed cost to change in operating income is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
An effect of fixed cost to change in operating income is classified as operating leverage. Operating leverage is a cost-accounting formula that measures the degree to which a firm or project can increase operating income by increasing revenue. A business that generates sales with a high gross margin and low variable costs has high operating leverage.
80
Target operating income is multiplied to tax rate and then subtracted from target operating income to calculate
Discuss
Answer & Solution
Answer: Option B
Solution:
Target operating income is multiplied to tax rate and then subtracted from target operating income to calculate target net income. Target income is the profit that the managers of a company expect to attain for a designated accounting period.