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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-4

Each section contains 100 MCQs on Management Accounting .
81
An example of qualitative factor is
Discuss
Answer & Solution
Answer: Option A
Solution:
An example of qualitative factor is employee morale. Employee morale describes the overall outlook, attitude, satisfaction, and confidence that employees feel at work.
82
Fourth step in decision making process is
Discuss
Answer & Solution
Answer: Option B
Solution:
Fourth step in decision making process is making decisions. Decision Making Process helps manager and other professional to make choices by examining a decision , collecting information for solving problem.
83
Formal method of making choices, considering help of quantitative and qualitative analysis is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Formal method of making choices, considering help of quantitative and qualitative analysis is classified as decision method. Decision-making is the process of identifying and choosing alternatives based on the values, preferences and beliefs of the decision-maker. Every decision-making process produces a final choice, which may or may not prompt action.
84
Type of outcomes, which can never be measured in numerical terms in books of accounts are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Type of outcomes, which can never be measured in numerical terms in books of accounts are classified as qualitative factors. Qualitative factors are outcomes from certain actions that are difficult or impossible to measure.
85
Decisions made by company, which products to manufacture and sell and in what quantities out, of many product lines are called
Discuss
Answer & Solution
Answer: Option C
Solution:
Decisions made by company, which products to manufacture and sell and in what quantities out, of many product lines are called product mix decisions. Product mix decision refers to the decisions regarding adding a new or eliminating any existing product from the product mix, adding a new product line, lengthening any existing line, or bringing new variants of a brand to expand the business and to increase the profitability.
86
Production of goods or services that can be bought from outside suppliers is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Production of goods or services that can be bought from outside suppliers is classified as in-sourcing. Insourcing is a business practice in which work that would otherwise have been contracted out is performed in house. Insourcing often involves bringing in specialists to fill temporary needs or training existing personnel to perform tasks that would otherwise have been outsourced.
87
Cost such as dispose value of an old machine is $6000 is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Cost such as dispose value of an old machine is $6000 is classified as relevant cost. Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions.
88
Costs which are related to different functions of value chain of company, such as marketing and manufacturing costs are considered as
Discuss
Answer & Solution
Answer: Option C
Solution:
Costs which are related to different functions of value chain of company, such as marketing and manufacturing costs are considered as business function costs. Business function costs are the total sum of all expenses both fixed and variable for a specific step in the value chain. In other words, it's the total cost associated with each step a product takes from the manufacturer to the consumer.
89
Type of outcomes that can be measured in numerical terms are classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Type of outcomes that can be measured in numerical terms are classified as quantitative factors. Quantitative factors are outcomes from certain actions that are measurable in numbers or numeric terms. In other words, managers can quantify the effects of a decision. This could include measuring costs, revenues, or even non-financial data for outcomes to a decision.
90
Low level managers in organizations are to make decisions about
Discuss
Answer & Solution
Answer: Option B
Solution:
Low level managers in organizations are to make decisions about operating income maximization. Income smoothing is the shifting of revenue and expenses among different reporting periods in order to present the false impression that a business has steady earnings. Management typically engages in income smoothing to increase earnings in periods that would otherwise have unusually low earnings.