Management Accounting MCQ Quiz in हिन्दी - Objective Question with Answer for Management Accounting - मुफ्त [PDF] डाउनलोड करें
Last updated on Mar 16, 2025
Latest Management Accounting MCQ Objective Questions
Top Management Accounting MCQ Objective Questions
Management Accounting Question 1:
Which of the following statements about big data analytics in organisations is/are TRUE?
(1)It will provide a deeper understanding of customer behaviour and purchasing preferences
(2)It will require investment in technology to manage the volume and speed of information accumulated
Answer (Detailed Solution Below)
Management Accounting Question 1 Detailed Solution
Explanation:
Big data analytics allow organisations to process large volumes of data from numerous internal and external sources. This will allow an organisation to gain detailed insights into its customer behaviour. As the volume of data is large and in real time then organisations have to invest in technology to manage this.
Management Accounting Question 2:
In the last period an organization budgeted to work 116,000 hours manufacturing 29,000 units. Actual output last period was 26,000 units which took 108,000 hours to manufacture.
What was the labour efficiency ratio for the last period (expressed as a % correct to one decimal place)?
Answer (Detailed Solution Below)
Management Accounting Question 2 Detailed Solution
Explanation:
Budgeted hours per unit = 4 (116,000 / 29,000)
Actual hours per unit = 4.15 (108,000 / 26,000)
Labour efficiency ratio = 96.3% (4 / 4.15)
Management Accounting Question 3:
A company uses absorption costing with a predetermined hourly fixed overhead rate. The following situations arose last year. Would each of these situations cause overheads to be under absorbed or over absorbed?
(1) Actual overhead expenditure was less than the budgeted expenditure
(2) Actual hours worked were less than the budgeted hours used to set the predetermined overhead absorption rate
Answer (Detailed Solution Below)
Management Accounting Question 3 Detailed Solution
Explanation:
Absorption rates are calculated by dividing the budgeted overhead by the budgeted level of activity. These rates are then applied to actual activity levels to calculate how much overhead is absorbed. Where the actual overhead is less than budget then the overhead will be over absorbed because the absorption rate is based on a higher value of overhead.
Where actual activity levels are less than budget then the overhead will be under absorbed as not enough activity has occured at the budgeted rate to cover the overhead.
Management Accounting Question 4:
Which of the following about mission statements is/are TRUE?
(1)They are stated in a standard format
(2)They play an important role in the planning process
(3)They help ensure consistency in decision-making
Answer (Detailed Solution Below)
Management Accounting Question 4 Detailed Solution
Correct Answer: D
Explanation:
Mission statements do not have a standard format. Statement 1 is therefore false. They do play an important role in the planning process. They can be used to help evaluate and implement plans. They help to ensure consistency in decision making and goal congruence.
Management Accounting Question 5:
Which of the following are benefits of using activity based costing?
(1)It recognises that overhead costs are not always driven by the volume of production
(2)It does not result in under or over absorption of fixed overheads
(3)It avoids all arbitrary cost apportionments
(4)It is particularly useful in single product businesses
Answer (Detailed Solution Below)
Management Accounting Question 5 Detailed Solution
Explanation:
Activity based costing recognises that there are other factors than production volume which drive overheads. Overheads may still be under or over absorbed and arbitrary cost apportionments may still be required if activity based costing is used. Activity based costing is most likely to be useful where there is a wide and diverse product range.
Management Accounting Question 6:
A company uses the Economic Order Quantity (EOQ) model and holds no buffer inventory. Its annual cost of holding one unit in inventory has decreased.
What is the effect, if any, of this decrease in holding costs on the EOQ and on the total annual cost of placing orders?
Answer (Detailed Solution Below)
Management Accounting Question 6 Detailed Solution
Correct Answer: B
Explanation:
The EOQ is the number of items of inventory which it is most economic to order. If holding costs fall then more items of inventory can be held for the same cost and the EOQ will increase. The annual cost of placing orders will decrease as by ordering more inventory at a time the organisation will make fewer orders during the year.
Management Accounting Question 7:
One material is used in the manufacture of product X. The total cost of the material (purchased and used) in a period was $4,000. In the period, the direct material price and usage variances were $200 adverse and $300 favorable respectively and 1,000 units were manufactured.
What is the standard direct material cost per unit for product X?
Answer (Detailed Solution Below)
Management Accounting Question 7 Detailed Solution
Explanation:
Total cost = $4,000
Less the adverse direct material price variance $200 plus the favourable direct material usage variance = $4,100 (total standard material cost)
Total standard cost per unit = $4.10 (4,100 / 1,000)
Management Accounting Question 8:
Last month the opening inventory was 6,000 units and the closing inventory was 4,000 units. Using absorption costing, this closing inventory was valued at $33,000. Using marginal costing last month's profit was $50,000 and using absorption costing it was $41,000.
What was the variable production cost per unit last month?
Answer (Detailed Solution Below)
Management Accounting Question 8 Detailed Solution
Explanation:
Inventory value per unit = $8.25 (33,000 / 4,000)
This value is made up of variable and fixed costs as it was calculated under the absorption costing method.
The difference between marginal and absorption costing profit is fixed cost.
Fixed cost per unit = $4.50 ((50,000 - 41,000) / 2,000)
Variable cost per unit = $3.75 (8.25 - 4.50)
Management Accounting Question 9:
A company manufactures two main products, J and K, and the by-product L. The by-product has a net realisable value of $2 per litre. The following information relates to last month, when there were no opening inventories.
| J | K | L | |
| Litres | Litres | Litres | |
| Production | 50,000 | 40,000 | 10,000 |
| Sales | 45,000 | 30,000 | 10,000 |
Company policy is to apportion joint costs on a physical measure basis and to treat the net realizable value of the by-product as a deduction from the cost of the main products.
What was the cost value of last month's closing inventory of product J?
Answer (Detailed Solution Below)
Management Accounting Question 9 Detailed Solution
Explanation:
Net realisable value of by-product L = $20,000 (10,000 x $2)
Joint costs of products J and K = $270,000 (290,000 - 20,000)
Costs allocated to product J = $150,000 (270,000 x (50,000 / (50,000 + 40,000)))
Production of J = 50,000 litres
Costs allocated to J = $3 per litre ($150,000 / 50,000)
Cost value in product J inventory at the end of the month = $15,000 ($3 x 5,000)
Management Accounting Question 10:
Which of the following defines the prime cost of a product?
Answer (Detailed Solution Below)
Management Accounting Question 10 Detailed Solution
Correct Answer: D
Explanation:
The prime cost of a product is the total of all the direct production costs of the product.