Management Accounting MCQ Quiz in हिन्दी - Objective Question with Answer for Management Accounting - मुफ्त [PDF] डाउनलोड करें
Last updated on Mar 19, 2025
Latest Management Accounting MCQ Objective Questions
Top Management Accounting MCQ Objective Questions
Management Accounting Question 1:
A company uses 9,000 units of a component per year. The component has a purchase price of $40 per unit The cost of placing an order is $160 The annual holding cost per unit is 8% of its purchase price.
What is the Economic Order Quantity (EOQ), to the nearest unit?
Answer (Detailed Solution Below)
Management Accounting Question 1 Detailed Solution
Correct Answer: C
Explanation:
Management Accounting Question 2:
Organisations often have to make a trade-off between short-term and long-term objectives. Which of the following statements are correct?
A. Making short-term targets realistic can encourage a long-term view
B. Linking managers' rewards to share price may encourage a long-term view Select the correct option:
Answer (Detailed Solution Below)
Management Accounting Question 2 Detailed Solution
Correct Answer: C
Explanation:
If budget targets are unrealistically tough, a manager will be forced to make trade-offs between the short and long term. Linking managers' rewards to share price may encourage goal congruence.
Management Accounting Question 3:
An investment will produce an annual return of $1,500 in perpetuity, with the first receipt starting in 3 years’ time.
What is the present value of this perpetuity, discounted at 6%?
Answer (Detailed Solution Below)
Management Accounting Question 3 Detailed Solution
Correct Answer: B
Explanation:
Value of income one year before first receipt is due: $1,500 / 0.06 = $25,000
Discounting back to today using a discount factor of 6% over 2 years:
PV = $25,000 × 0.890 = $22,250
Management Accounting Question 4:
Which TWO of the following will lead to an abnormal loss arising?
Answer (Detailed Solution Below)
Management Accounting Question 4 Detailed Solution
Correct Answer: B & C
Explanation:
Abnormal loss happens when production is worse than expected — either more losses or less output than normal.
Management Accounting Question 5:
A company has two production departments and two service departments with the following fixed overheads:
| Department | Fixed Overheads ($'000) |
|---|---|
| Production A | 1,000 |
| Production B | 1,200 |
| Service C | 1,200 |
| Service D | 1,600 |
Service department C divides its time between departments A, B, and D in the ratio 3:2:1. Department D spends 40% of its time servicing Department A and 60% servicing Department B.
If all service departments' overheads are allocated to production departments, What is the total fixed overhead cost of Department A?
Answer (Detailed Solution Below)
Management Accounting Question 5 Detailed Solution
Correct Answer: D
Explanation:
Management Accounting Question 6:
Which of the following best describes tactical information?
Answer (Detailed Solution Below)
Management Accounting Question 6 Detailed Solution
Correct Answer: D
Explanation:
Tactical information is medium term and drawn largely from internal/operational sources. It is the job of middle management to analyse it further in order to use it for decision making. Quantitative information that is generated frequently is normally found at the operational level, and qualitative information from a range of sources will be found more at the strategic level.
Management Accounting Question 7:
Which of the following statements best describe critical success factors?
(i) The financial ratios used by analysts to evaluate the organisation
(ii) The personal objectives of the strategic management team
(iii) Derived from the mission statement and objectives of the organisation
(iv) The key areas that a business needs to succeed in, to ensure it achieves overall aims
Answer (Detailed Solution Below)
Management Accounting Question 7 Detailed Solution
Correct Answer: D
Explanation:
By monitoring the critical success factors, management ensure that they are on track to succeed in their mission and objectives. The personal objectives of the strategic management team should mirror the critical success factors of the organisation, but are likely to contain personal objectives such as individual development targets. The CSFs may contain some of the financial ratios used by analysts to evaluate the organisation but there will be other qualitative factors as well. The CSFs should drive the information requirements of the organisation – not the other way round.
Management Accounting Question 8:
How does setting objectives relate to the mission statement of an organisation?
Answer (Detailed Solution Below)
Management Accounting Question 8 Detailed Solution
Correct Answer: A
Explanation:
The mission statement gives the purpose and strategy of the organisation. The business will then use this asa focus for setting appropriate objectives.
Management Accounting Question 9:
Value analysis can achieve which TWO of the following?
Answer (Detailed Solution Below)
Management Accounting Question 9 Detailed Solution
Correct Answer: A & B
Explanation:
Value analysis focuses on costs, not sales volumes or prices.
Management Accounting Question 10:
A company operates a standard absorption costing system. The standard fixed production overhead rate is $15 per hour.
The following data relate to last month:
Actual hours worked: 5,500
Budgeted hours:5,000
Standard hours for actual production: 4,800
What was the fixed production overhead capacity variance?
Answer (Detailed Solution Below)
Management Accounting Question 10 Detailed Solution
Correct Answer: B
Explanation:
| Description | Calculation | Amount |
|---|---|---|
| Budgeted hours of work | 5,000 hours | |
| Actual hours of work | 5,500 hours | |
| Difference (Actual – Budgeted) | 5,500 – 5,000 | 500 hours (Favourable) |
| Standard fixed production overhead rate | $15 per hour | |
| Fixed production overhead capacity variance | 500 hours × $15 | $7,500 (F) |