Friday, 9 December 2011

Management Accounting Multiple Choice Questions

Greetings to fellow blog readers......

1.    Management accounting is for ….
(a) shareholders                                                    (b) creditors
(c) government                                                     (d) management

2.    Management accounting helps the management in ………
(a) planning                                                           (b) organizing
(c) staffing and control                                          (d) all of the above

3.    According to …, Management accounting is concerned with accounting information that is useful for management.
(a) RN Anthony                                                     (b) Batty
(c) ICWAI                                                              (d) None of these

4.    In management accounting, the analysis is done for ….
(a) monetary transactions                                     (b) non-monetary transactions
(c) both                                                                  (d) none of these

5.    The scope of management accounting is extended to ….
(a) financial accounting                                        (b) cost accounting
(c) statistical methods                                           (d) all of the above

6.    Which of the following is the function of management accounting ?
(a) forecasting , planning, organizing                    (b) coordination and control
(c) analysis, interpretations and communications           
(d) all of the above

7.    Management accounting provides information to ….
(a) shareholders                                                    (b) creditors
(c) tax authorities                                                  (d) management

8.    Match the following :
(A) Cost control & reduction                                 (I) Management accounting
(B) Net result of a business                                  (II) Cost accounting
(C) Overall efficiency of the management          (III) Financial accounting
(a) A-II, B-III, C-I               (b) A-III, B-II, C-I         (c) A-I, B-II, C-II          (d) A-I, B-III, C-II

9.    The basis for cost accounting is ……
(a) management accounting                                (b) financial accounting
(c) responsibility accounting                                 (d) none of these

10.  Which of the following accounting system helps in pricing, make or buy decisions and selection of suitable product Mix ?
(a) financial accounting                                        (b) responsibility accounting
(c) management accounting                                (d) None of these

11.  Make or buy decision and selection of suitable product mix are taken with the help of :
(a) marginal costing technique                             (b) standard costing technique
(c) budgetary control                                            (d) none of these

12.  Management accounting uses … for sound organization structure.
(a) budgeting                                                         (b) standard costing
(c) responsibility accounting                                 (d) all of the above.

13.  …helps the management in the evaluation of performance and control.
(a) marginal costing                                              (b) budgetary control
(c) periodical reports                                             (d) none of these

14.  Statement [S] The inefficiency of financial accounting will affect the management accounting.
Explanation [E] The source of information for management accounting is from financial accounting.
(a) the statement is wrong                                    (b) the explanation is wrong
(c) both explanation and statement are correct
(d) both are incomplete

15.  Which of the following accounting system has a wider scope ?
(a) financial accounting                                        (b) management accounting
(c) both                                                                  (d) none of these

16.  Management accounting system is suitable for …
(a) cement industry                                               (b) rubber industry
(c) service sector                                                  (d) all of the above
17.  Management accounting system cannot replace …
(a) management                                                   (b) administration
(c) both                                                                  (d) none of these

18.  The management accounting provides information to the management where as financial accounting provides information to ….
(a) shareholders                                                    (b) creditors
(c) government                                                     (d) all of the above

19.  Financial accounting is concerned with … but management accounting is concerned with … of the business.
(a)  overall performance, departments or divisions
(b)  departments or divisions; overall performance
(c)  financial management; management
(d)  financial management; administration

20.  Financial accounting is concerned with … but management accounting is concerned with
(a) past events; current events                             (b) past events; future events
(c) future events; past events                               (d) current events; future events

1.d       2.d       3.a       4.c       5.d       6.d       7.d       8.a       9.b       10.c     11.a     12.d
13.c     14.c     15.b     16.d     17.c     18.d     19.a     20.b 

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