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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-2

Each section contains 100 MCQs on Management Accounting .
81
Static budget variance for operating income is added in to static budget amount to calculate
Discuss
Answer & Solution
Answer: Option A
Solution:
Static budget variance for operating income is added in to static budget amount to calculate actual result.
82
In management control, point of reference for making comparisons of performance is
Discuss
Answer & Solution
Answer: Option D
Solution:
In management control, point of reference for making comparisons of performance is expected performance. The expected performance is based on the overall distribution that is fit to your data and estimates the nonconforming parts that you can expect to be outside the specification limits.
83
In budget hierarchy, material handling cost is
Discuss
Answer & Solution
Answer: Option B
Solution:
In budget hierarchy, material handling cost is batch level cost. A batch-level cost is a cost related to a group of units, but which is not associated with specific individual units.
84
If actual payment to labour is $1200 and budgeted rate is $1000, then labour price variance would be
Discuss
Answer & Solution
Answer: Option D
Solution:
If actual payment to labour is $1200 and budgeted rate is $1000, then labour price variance would be unfavourable. An unfavorable variance means that the cost of labor was more expensive than anticipated, while a favorable variance indicates that the cost of labor was less expensive than planned.
85
An expected performance of company is also known as
Discuss
Answer & Solution
Answer: Option C
Solution:
An expected performance of company is also known as budgeted performance. Performance budgets reflect the input of resources and the output of services for each department or unit of an organization.
86
Determined price at which company expects to pay for every single unit is called
Discuss
Answer & Solution
Answer: Option A
Solution:
Determined price at which company expects to pay for every single unit is called standard price. Standard price is the pre-established uniform price for a good or service, based on its historical price, replacement cost, or an analysis of its competitive position in the market.
87
If actual result is $65000 and static budget variance is $35000, then static budget amount will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Static budget amount = Actual result - Static budget variance
= $65000 - $35000 = $30,000.
88
Consideration of increased operating income relative to budgeted amount is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Consideration of increased operating income relative to budgeted amount is classified as favourable variance. A favorable budget variance indicates that an actual result is better for the company (or other organization) than the amount that was budgeted.
89
If an actual price of material is $700 and budgeted price is $900, then the
Discuss
Answer & Solution
Answer: Option C
Solution:
If an actual price of material is $700 and budgeted price is $900, then the price variance is favourable. If the actual cost incurred is lower than the standard cost, this is considered a favorable price variance.
90
In costing and budgeting hierarchy, an example of product sustaining cost is
Discuss
Answer & Solution
Answer: Option D
Solution:
In costing and budgeting hierarchy, an example of product sustaining cost is product design cost.