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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-9 section-1

Each section contains 100 MCQs on Management Accounting .
81
Balanced scorecard perspective measures company's success in targeted segments of customers, this perspective can also be classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Balanced scorecard perspective measures company's success in targeted segments of customers, this perspective can also be classified as customer perspective. Customer perspective measures consider the organization's performance through the eyes of its customers, so that the organization retains a careful focus on customer needs and satisfaction.
82
An amount of available capacity other than employed capacity, to meet customer's demand, is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
An amount of available capacity other than employed capacity, to meet customer's demand, is classified as unused capacity. Idle capacity is the remaining amount of capacity left in a company after productive capacity and protective capacity have been eliminated from consideration.
83
In operating income strategic analysis, strategic component which measures change in cost attributed to price of input in current year, relative to price of input material in last year can be classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
In operating income strategic analysis, strategic component which measures change in cost attributed to price of input in current year, relative to price of input material in last year can be classified as productivity component.
84
An organization's ability to offer market offerings at lower prices, in comparison with its competitors is known as
Discuss
Answer & Solution
Answer: Option C
Solution:
An organization's ability to offer market offerings at lower prices, in comparison with its competitors is known as cost leadership. Cost Leadership is the mechanism of establishing a competitive advantage by having the lowest cost of operation in the industry.
85
Balanced scorecard perspective focuses on all operations, which leads to value creation process for customers, can be categorized as
Discuss
Answer & Solution
Answer: Option C
Solution:
Balanced scorecard perspective focuses on all operations, which leads to value creation process for customers, can be categorized as internal business process perspective. This perspective explains how the company is going to satisfy customer needs and meet financial goals.
86
Quantity of produced output is divided with cost of all used inputs to calculate
Discuss
Answer & Solution
Answer: Option D
Solution:
Quantity of produced output is divided with cost of all used inputs to calculate total factor productivity. Total factor productivity (TFP) is a measure of productivity calculated by dividing economy-wide total production by the weighted average of inputs i.e. labor and capital. It represents growth in real output which is in excess of the growth in inputs such as labor and capital.
87
In operating income strategic analysis, a component which measures change in operating income attributed to change in output quantity is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
In operating income strategic analysis, a component which measures change in operating income attributed to change in output quantity is classified as growth component. Operating income is an accounting figure that measures the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS).
88
An example of financial perspective in balanced scorecard is
Discuss
Answer & Solution
Answer: Option C
Solution:
An example of financial perspective in balanced scorecard is operating income and revenue growth. For organisations that do not have shareholders, the financial perspective indicates how well the strategy and operations contribute to improving the organisation's financial health.
89
An ability of an organization, to offer its services or products that must be perceived by customers as unique and superior, in comparison to its competitors is called
Discuss
Answer & Solution
Answer: Option B
Solution:
An ability of an organization, to offer its services or products that must be perceived by customers as unique and superior, in comparison to its competitors is called product differentiation. Product differentiation (or just differentiation) is a marketing process of differentiating an offering (product or service) from others in the market, to make it more appealing to the target audience.
90
If quantity of manufactured jackets is 2250000 units and leather used to produce output is 3500000 sq.m, then direct materials' partial productivity will be
Discuss
Answer & Solution
Answer: Option A
Solution:
DIrect materials' partial productivity = Quantity of manufactured jackets ÷ Leather used to produce output
= 2250000 units ÷ 3500000 sq.m
= 0.642 unit of jacket per sq.m of leather.