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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-1 section-2

Each section contains 100 MCQs on Management Accounting .
1
An approach is used to manage unused capacity is
Discuss
Answer & Solution
Answer: Option B
Solution:
An approach is used to manage unused capacity is downsizing. Downsizing (also called rightsizing) is an integrated approach configuring processes, products, and people to match costs to the activities that need to be performed to operate effectively and efficiently in the present and future. Downsizing is an attempt to eliminate unused capacity.
2
An example of learning and growth perspective in balanced scorecard is
Discuss
Answer & Solution
Answer: Option A
Solution:
An example of learning and growth perspective in balanced scorecard is employee turnover rates. Employee turnover rate is calculated by dividing the number of employees who left the company by the average number of employees in a certain period in time. This number is then multiplied by 100 to get a percentage.
3
In an innovation process, operation process and post sales services are all sub processes of a perspective named
Discuss
Answer & Solution
Answer: Option A
Solution:
In an innovation process, operation process and post sales services are all sub processes of a perspective named internal business process perspective. This perspective explains how the company is going to satisfy customer needs and meet financial goals.
4
Fundamental redesigning and rethinking of business processes to improve critical measures such as quality, speed, cost and customer satisfaction is called
Discuss
Answer & Solution
Answer: Option A
Solution:
Fundamental redesigning and rethinking of business processes to improve critical measures such as quality, speed, cost and customer satisfaction is called reengineering. Reengineering is most commonly defined as the redesign of business processes and the associated systems and organizational structures to achieve a dramatic improvement in business performance.
5
Considering two fiscal years 2013 and 2014, an input price in 2013 and 2014 are $9 and $11 per unit respectively and input required units in 2013 to produce output in 2014 are 30000 units, then cost effect of price recovery will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Cost effect of price recovery = ($11 - $9) × 30000 units
= $60,000.
6
Translation of organization strategy, and mission into performance measures to provide framework for strategy implementation is termed as
Discuss
Answer & Solution
Answer: Option D
Solution:
Translation of organization strategy, and mission into performance measures to provide framework for strategy implementation is termed as balanced scorecard. A balanced scorecard is a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes. Balanced scorecards are used to measure and provide feedback to organizations.
7
An example of direct engineered cost is
Discuss
Answer & Solution
Answer: Option B
Solution:
An example of direct engineered cost is direct material cost. Direct material cost is the cost of the raw materials and components used to create a product. The materials must be easily identifiable with the resulting product (otherwise they are considered to be joint costs).
8
If net initial investment is $985000, returned working capital is $7500, then an average investment over five years will be
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
9
If an initial investment is $765000, payback period is 4.5 years, then increase in future cash flow will be
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
10
Categories of cash flows include
Discuss
Answer & Solution
Answer: Option D
Solution:
Categories of cash flows include net initial investment, cash flow from operations after paying taxes and cash flow from terminal disposal after paying taxes.