Fundamentals Of Management Accounting - MCQs with answers1. The term management accounting was first coined in Show
a) 1960 View Answer / Hide Answer 2. Management accounting is A) Subjective a) Only A View Answer / Hide Answer 3. The use of management accounting is a) Optional View Answer / Hide Answer 4. The management accounting can be stated an extension of A) Cost Accounting a) Both A and B View Answer / Hide Answer 5. Which of the following is true about management accounting? A) Management accounting is associated with presentation of accounting data. a) Only A View Answer / Hide Answer 6. Management accounting assists the management a) Only in control View Answer / Hide Answer ANSWER: d) In planning, direction and control 7. Which of the following are tools of management accounting? A) Decision accounting a) A, B and D View Answer / Hide Answer 8. Management accounting is related with a) The problem of choice making a) A and B View Answer / Hide Answer 9. Management accountancy is a structure for a) Costing View Answer / Hide Answer ANSWER: c) Decision making 10. Who coined the concept of management accounting? a) R.N Anthony View Answer / Hide Answer ANSWER: b) James H. Bliss 11. Which of the following statements are false about management accounting? A) Management accounting is concerned with historical events. B) Management accounting is related only with such instances which can be expressed in monetary terms. C) Management accounting is a part of Financial Management D) Management accounting information can be disclosed to outsiders. a) A, B & D View Answer / Hide Answer 12. Management accounting deals with a) Quantitative
information View Answer / Hide Answer 13. Management accounting highlights staff relationship with top management as well as other personnel. a) True View Answer / Hide Answer 14. The definition ‘Management Accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and the day-to-day operation of an undertaking.’ a) Ango-American Council on Productivity View Answer / Hide Answer ANSWER: a) Ango-American Council on Productivity It is also known as management accounting. Accounting for a company’s income and costs is one of its many subspecialties. An organisation’s financial performance may be enhanced with the aid of management accounting. Identifying, evaluating, analysing and communicating financial information to management are all part of the curriculum. Performance reports are used to identify any out-of-the-ordinary increases or decreases in revenue or costs. Obtaining financial data necessitates the use of specialised expertise and methodologies. This accounting is used by managers to develop policies and determine future choices. Multiple Choice Questions (MCQs)-1. What is considered the language of business used to communicate financial information?
Answer- D) Accounting Explanation- Accounting is considered the way of communication to attract customers through marketing. 2. When was the term Management Accounting coined?
Answer- B) 1950 Explanation- In 1950, management accounting was considered in its original form to keep track of the businesses. 3. What is the main objective of management accounting?
Answer- A) To identify and analyse the result of business operations. Explanation- Management accounting is focused on analysing the financial performance of a company and creating reports for future use. 4. Which personnel of a financial firm play a key role in management accounting?
Answer- B)Managers Explanation- Management accounting helps the managers in initiating policies and in decision making. 5. What are the instruments/ tools related to management accounting?
Answer- D)All of the above Explanation- Marginal costing, standard costing, and budget control are tools based on cost-accounting information and for future information on management accounting. 6. Where is management accounting applied?
Answer- D) Large industrial and trading organisations Explanation- Large-scale companies use management accounting to get an idea about the competition, business environment and production of technology. 7. Who discovered the term Management Accounting?
Answer- B) James H Bliss Explanation- James discovered the term Management through accounts, and he contributed to accounting through his book with the same title. 8. What is the main function of management accounting?
Answer- D) Provision of information to management Explanation- Management accounting analyses and creates reports related to the financial performance management of a company with the help of available information. 9. Which of the following options is not characteristic of management accounting?
Answer- C) Compulsory accounting Explanation- Management accounting is not mandatorily done in all financial institutions or companies. 10. Who stated the definition of management accounting as “Management Accounting is concerned with accounting information which is useful to management”?
Answer- A) Robert Antony Explanation- Robert Anthony has introduced the hierarchy of management in an organisation and created a framework related to managerial accounting. 11. Management accounting is used as …………
Answer- B) Optional Explanation- The reports and business performance results may not be compulsorily maintained in all the organisations so management accounting is optional. 12. The management is provided with invaluable services by management accounting through?
Answer- C) All managerial functions Explanation- The
management accounting handles and regulates all the management functions of a company. 13. Which of the following statements are true according to management accounting?
Answer– A) It is only focused on the future. Explanation- Management accounting helps in evaluating and keeping records of the activities and performance of the business which will be important for managers in the future. 14. Which of the following is not a management accounting tool?
Answer- D)Process costing Explanation- Process costing is a part of the management accounting which is used to ascertain the cost, process and operations of manufacture. 15. What is the scope of management accounting?
Answer- D)All of the above Explanation- Management accounting aims to perform correct budgeting, forecasting and cost accounting based on the information source. 16. The accounting data are analysed and evaluated with the help of …………
Answer- A) tools and techniques Explanation– It facilitates the financial and accounting data by using appropriate tools and techniques. 17. Management accounting deals with managing …………
Answer- A) Decision making Explanation- Decision making is the most important function of a management account which helps the managers to resolve any financial problems. 18. What are the decisions that are made for a long term period called?
Answer- C) Capital budgeting decisions Explanation- These decisions are made for long term investment whether or not the project will be fruitful in terms of cash flow. 19. What is the basic function of management accounting?
Answer- B) To manage the performance the financial function Explanation- The financial operations are managed and regulated by management accounting. 20. Which type of information can be recorded in management accounting?
Answer- A) Quantitative information Explanation- Management accounting identifies and stores the quantitative information of the operations performed in a company. Which of the following is not a management accounting role?The answer is B) Reporting financial information to the shareholders.
Which of the following is the role of management accounting?A Management accountant works within a business to prepare and present financial reports to senior management teams in order to give an insight into business performance. The reports are used to aid with business strategy and also in decision making within the business, to ensure growth and profitability.
Which of the following is not true about management accounting?Answer and Explanation: The correct answer is b. managerial accounting information is not required by various laws is the correct answer.
Which of the following is not a characteristic of management accounting?Answer and Explanation: This is the correct option because mandatory external reports are not a characteristic of management accounting. The characteristic of management accounting is objectivity, comparability, reliability, and relevance.
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Which of the following is not concerned with the role of management accounting?
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