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Management Accounting

Though the questions are True and False, the questions are so framed as to test the conceptual clarity on the part of the student.

25 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

Business firms will never price the sales at or below the marginal cost.

  1. True
  2. False
Question 2 Multiple Choice (Single Answer)

Marginal costing is one of the techniques to find out the behaviour of costs with the volume of output.

  1. True
  2. False
Question 3 Multiple Choice (Single Answer)

Breakeven Analysis helps the management to determine the volume of production, achieving the desired sales and profits.

  1. True
  2. False
Question 4 Multiple Choice (Single Answer)

Price fixation through marginal costing is an important aspect of management accounting.

  1. True
  2. False
Question 5 Multiple Choice (Single Answer)

Prime cost means the cost of direct materials and direct labour involved.

  1. True
  2. False
Question 6 Multiple Choice (Single Answer)

Breakeven point is the point at which the selling price covers the marginal cost.

  1. True
  2. False
Question 7 Multiple Choice (Single Answer)

Performance budget cannot be adopted in service organisations as well.

  1. True
  2. False
Question 8 Multiple Choice (Single Answer)

Budget is a good control mechanism in the hands of the management.

  1. True
  2. False
Question 9 Multiple Choice (Single Answer)

Budgeting means numerical expression of financial statement for a defined time period.

  1. True
  2. False
Question 10 Multiple Choice (Single Answer)

Zero Based Budgeting is an approach on the principle that all activities are started afresh each time the budget is formulated.

  1. True
  2. False
Question 11 Multiple Choice (Single Answer)

Variance Analysis is one of the budgetary control mechanisms.

  1. True
  2. False
Question 12 Multiple Choice (Single Answer)

Cost control and cost reduction are two different terminologies.

  1. True
  2. False
Question 13 Multiple Choice (Single Answer)

The prime function of management accounting is to assist the management in discharging its functions effectively.

  1. True
  2. False
Question 14 Multiple Choice (Single Answer)

Short term sources of funds can be utilized for long term applications.

  1. True
  2. False
Question 15 Multiple Choice (Single Answer)

Management accounting is designed for use in the operational needs.

  1. True
  2. False
Question 16 Multiple Choice (Single Answer)

Management accounting provides information to the management only for control purposes.

  1. True
  2. False
Question 17 Multiple Choice (Single Answer)

Budgetary control is not a management accounting tool.

  1. True
  2. False
Question 18 Multiple Choice (Single Answer)

Marginal costing, differential costing, standard costing and opportunity costing are tools of management accounting.

  1. True
  2. False
Question 19 Multiple Choice (Single Answer)

Management accountants help the management to adopt the management by exception.

  1. True
  2. False
Question 20 Multiple Choice (Single Answer)

Management accountant need not have direct contact with the top management.

  1. True
  2. False
Question 21 Multiple Choice (Single Answer)

Financial accounting is historic and management accounting is current and future.

  1. True
  2. False
Question 22 Multiple Choice (Single Answer)

Management accountant carries out appraisal of external economic and social factors influencing the business.

  1. True
  2. False
Question 23 Multiple Choice (Single Answer)

Management accountant is responsible for interpretation of financial statements.

  1. True
  2. False
Question 24 Multiple Choice (Single Answer)

Management accountants consider both the historical data and the projected data.

  1. True
  2. False
Question 25 Multiple Choice (Single Answer)

Management accountant is not responsible for classification and codification of accounts.

  1. True
  2. False
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