Management Accounting MCQs

4/8/22, 2:13 PM Management Accounting MCQs | Multiple Choice Questions and Answers
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Management Accounting MCQs | Multiple Choice

Questions and Answers
by Kumar Nirmal Prasad - September 14, 2021 0
MBA - Data Science & Analytics
Management
Accounting MCQs
Multiple Choice Questions and Answers
for B.Com / BBA / MBA / CMA / CA / CS examination
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page, you will get chapter wise Management Accounting MCQs for various exams
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B.Com, BBA, MBA, CMA, CS and ICAI. In this post you will also get
Introduction to Management
Accounting MCQs, management accounting MBA MCQ,
management accounting MCQs questions
Chapter wise.
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through various links given below in the article for Chapter wise Management
Accounting
MCQs.
Table
of Contents
https://www.dynamictutorialsandservices.org/2020/11/management-accounting-mcqs-bcom-bba-mba.html 1/19
1. Management accounting MCQs
a) Multiple Choice Questions and Answers (34

Questions)
b) Fill in the blanks (64 Questions)
c) True or False (59 Questions)
Also read:
2. Financial Statements & Financial

Statement Analysis MCQs
3. Ratio Analysis MCQs
4. Funds Flow Statement MCQs
5. Cash Flow Statement MCQs
6. Marginal Costing MCQs
7. Budget and Budgetary Control MCQs
8. Standard Costing MCQs
Multiple choice questions

and answers (34 Questions)
1. Management accounting deals with what kind
of information?
a) Qualitative
b) Quantitative
c) Both
d) None of the above
Ans: c) Both Qualitative and Quantitative

information
2. Management accounting provides valuable

services to management in performing:
a) Coordinating
b) Controlling
c) Planning
d) All managerial functions
Ans: d) All managerial functions
3. Which of the following are tools of

management accounting?
a) Standard Costing
b) Marginal Costing
c) Budget and Budgetary control
d) All of the above
Ans: d) All of the above
4. Which of the following are not the tools of

a) Funds flow statement
b) Cash Flow Statement
c) Ratio analysis
d) Process costing
Ans: d) Process costing
5. Which of the following are tools of

a) Financial Planning
b) Analysis of financial statements
c) Historical cost accounting
d) All of the above
6. Management accounting is suitable for:
a) Small trading organization
b) Large industrial and trading organization
c) NPOs
d) Co-operative societies
Ans: b) large industrial and trading organization
7. Management accounting is a structure for:
a) Cost Accounting
b) Financial accounting
c) Decision making
d) Budgeting
Ans: c) Decision making
8. Management accounting and cost accounting

are:
a) Contradictory in nature
b) Complementary in nature
c) Neutral in effect
Ans: b) Complementary in nature
9. Who coined the concept of management

accounting?
a) James H. Bliss
b) R. N. Carter
c) Philip Cotler
d) F. W. Taylor
Ans: a) James H. Bliss
10. Management accounting maintains
a) Journal
b) Ledger
c) Trial Balance
d) None of these
Ans: d) None of these
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11. Management accounting provides invaluable

(a) all management functions
(b) interpret the financial data
(c) controlling functions
(d) none of the above
Ans: (a) all management functions
12. Management accounting is the branch of

accounting concerned with reporting to:
a) internal managers
b) shareholders
c) the government
d) bankers
Ans: a) internal managers
13. Which of the following is not an objective

of managerial accounting?
a) To help in planning and decision making
b) To
provide data about the latest position of the firm
c) To help in policy formulation
d) To find profit or loss of the firm
Ans: d) To find profit or loss of the firm
14. Which of the following statement is true

about management accounting?
a) Management accounting is mainly concerned

with future. True
b) The use of management accounting is

compulsory.
c) Management accounting is objective in

nature.
d) Management Accounting and Cost Accounting

are Synonymous.
Ans: a) Management accounting is mainly

concerned with future.
15. The branch of accounting which primarily

deals with processing and presenting accounting data for
internal use in a
concern is:
a) management accounting
b) financial accounting
c) cost accounting
d) inflation accounting
Ans: a) management accounting
16. Management accounting provides valuable

a) planning function
b) controlling function
c) co-coordinating functions
d) all managerial functions
Ans: d) all managerial functions
17. Which statement is prepared in the process

of funds flow analysis?
a) Schedule of changes in working capital
b) Funds Flow statement
c) Calculation of funds from operations
d) All of the above
18. Which of the following are not the tools

of management accounting?
a) fund flow statement
b) process costing
c) cash flow statement
d) ratio analysis
Ans: b) process costing
19. Which of the following is not a tool of

management an accounting?
a) marginal costing
b) p/l account
c) standard costing
d) variance analysis
Ans: b) p/l account
20. Which of the following is a scope of

a) budgeting
b) forecasting
c) cost accounting
d) all of the above
Ans: d) all of the above
21. Which of the following statement is not

true about management accounting?
a) It is future oriented
b) Not based on double entry system of

accounting
c) It has been done for internal users
d) Management accounting is based on

historical records
Ans: b) Not based on double entry system of

accounting
22. Management accounting analyses accounting

data with the help of
a) auditors
b) statutory forms
c) tools and techniques
d) none of these
Ans: c) tools and techniques
23. The sales objective are stated in:
a) quantitative term
b) qualitative term
c) both (a) & (b)
d) none of these
Ans: c) both (a) & (b)
24. Which one of the following is not

mandatory according to the laws?
a) financial accounting
b) cost accounting
c) management accounting
s) none of the above
Ans: c) management accounting
25. Management accounting is related with
a) the problem of choice making
b) recording of transactions
c) cause and effect relationships
Option:
a) A and b
b) A, B and C
c) A
and C
d) A only
Ans: c) A and C
26. Accounting is basically concerned with

select one:
a) forecasting
b) measurement
c) management
d) none of the above
Ans: c) management
27. Management accounting helps management in:
a) preparation of final accounts
b) raising finance
c) filing tax returns
d) decision making
Ans: d) decision making
28. The functions

of management accounting include:
a) Collection of
data.
b) Analysis of
data.
c) Presentation
of data.
d) All of the
above.
Ans: d) All of
the above.
29. Balance sheet

is a statement of:
a) Assets &
Liabilities.
b) Working
Capital.
c) Operating
Results.
d) None of the
above.
Ans: a) Assets
& Liabilities.
30. Comparative
Statement shows:
a) One year’s
performance.
b) Financial
performance.
c) Comparative
performance.
d) Profitability
performance.
Ans: c) Comparative
performance.
31. Current Ratio

shows:
a) Short term
financial position.
b) Collection
efficiency.
c) Financial
stability.
d) Higher
profitability.
Ans: a) Short
term financial position.
32. Working
Capital is the capital required to finance:
a) Day to day
operations.
b) Purchase of
fixed assets.
c) Settlement of
long term liabilities.
d) None of the
above.
Ans: a) Day to
day operations.
33. Long term decisions

are called as:
a) Profit volume
analysis.
b) Working
capital decisions.
c) Future decisions.
d) Capital
budgeting decisions.
Ans: d) Capital
budgeting decisions.
34. The basic

function of management accounting is:
a) To serve
Government.
b) To serve the
management in performing it’s function effectively.
c) To serve the
public.
Ans: b)
To serve the management in performing it’s function effectively.
Management
Accounting MCQs
Fill in
the blanks (64 Questions)
1.
Management accounting is related with presentation of
accounting data.
2.
Management accounting assists the management in
creation of policy.
3.
Management accounting is suitable for large industrial
and trading organizations.
4.
Management accounting is a structure for decision making.
5.
Management accounting is an offshoot (branch on a plant) of cost
and financial accounting.
6.
Management accounting is also known as managerial
accounting.
7.
Management accounting is simply a use of financial and
cost accounting data in taking various
managerial
decisions.
8.
management accounting is also called managerial accounting.
9.
The use of management accounting is optional.
10.
Management accounting is subjective in
nature.
11.
Management accounting is basically concerned with accounting
information which is useful to
management.
12.
Management Accounting is based on accounting information.
13.
Financial accounting is governed by GAAP.
14.
Management accounting is a tool of management but
not a substitute of management.
15.
Management accounting analysis accounting data with the help of
tools and techniques.
16.
Management accounting deals with both quantitative and
qualitative information.
17.
Only Quantitative information is recorded
in accounting.
18.
Accounting is an art of recording financial transactions.
19.
Management Accountant is Superior in
position to Cost Accountant.
20.
Management accounting and cost accounting are complementary in
nature.
21.
Accounting information is analyzed and interpreted to
make it useful.
22.
Management Accounting supplies information to the management so
that later may be able to
discharge all its functions properly.
23.
the focus of management accounting is on future growth.
24.
Standard costing is a cost control method used
in management accounting.
25.
Management accounting helps in analysis and
interpretation of data.
26.
Management accounting uses no fixed norms in
its function.
27.
The accounting data are analyzed by the management for effective
planning and decision making.
28.
The management accountant is a member of management
team.
29.
Management accounting system cannot be installed
without financial and cost accounting system.
30.
The scope of management accounting is wider than
that of cost accounting.
31.
Management accounting assures maximum return
on capital employed.
32.
Revaluation accounting is also known as replacement or
price level accounting.
33.
Publication of Management Accounting Report is not
compulsory.
34.
The term management accounting refers to accounting for
managers.
35.
In a Funds Flow Statement, all receipts are
treated as source of funds.
36.
Purchase of plant will mean decrease in
working capital.
37.
Funds flow statement is also known as a statement of
Sources and Applications of funds.
38.
Issue of equity shares in a cash flow from financing activities.
39.
Income from investment is a cash flow from Investing activities.
40.
Cash receipt from issue of shares is a Financing activity.
41.
Repayment of borrowing causes cash Outflow.
42.
Decrease in creditor is outflow of cash.
43.
Goodwill is a non-cash transaction.
44.
Fixed cost per unit Decreases when
volume of production increases.
45.
Variable cost per unit remains same/increases/decreases
due to increase in production.
46.
The practice of charging all costs to product is marginal costing/absorption
costing/standard costing.
47.
P/V ratio exhibits the percentage of contribution included
in Sales
48.
Margin of safety can be improved by reducing the variable cost.
49.
Contribution is the difference between sales and variable.
50.
Margin of safety can be improved by reducing the Variable cost.
51.
P/V ratio exhibits the percentage of contribution included
in Sales.
52.
In marginal costing system, fixed cost is considered as Period cost.
53.
In marginal costing system, variable cost is considered as product cost.
54.
Any transaction that increases working capital is a application of
fund.
55.
Repayment of borrowing causes cash Outflow.
56.
Funds flow statements are based upon accrual basis of
accounting.
57.
Master budget
is a summary of all functional budgets.
58.
Budgetary Control is a system of controlling Cost.
59.
A budget manual spells out Duties and Responsibilities of
various executives concerned with budget.
60.
Flexible budget is a capacity budget.
61.
Budgetary control is a system of controlling cost.
62.
Zero-base budgeting was first used by carter.
63.
Standard cost is a predetermined cost.
64.
Direct Labour Cost Variance = Standard Cost for actual production
x actual Cost of Production.
Management
Accounting MCQs
State whether the following statements are True or False (59 Questions):
1.
The origin of management accounting is due to limitations of
financial accounting and cost accounting.
True
2.
The term management accounting was first coined in the year
1981. False,
1950
3.
Management accounting is basically concerned with accounting
information which is useful to
management. True
(Definition by R. N. Anthony)
4.
Management Accounting and Cost Accounting are
Synonymous. False
5.
Management accounting provides decision to
management. False,
information
6.
Management accounting provides only data which is helpful to the
management in decision making, not
the decisions. True
7.
Management accounting is a technique of selective
nature. True
8.
Management accounting is not helpful to management in discharging
its functions. False
9.
Management accounting is based on the past records provided by
financial and cost accounting for
making decision for the future. True
10.
Management accounting is mainly concerned with
future. True
11.
The use of management accounting is compulsory. False
12.
Who coined the concept of management accounting? James H. Bliss
13.
Management accounting is objective in
nature. False
14.
Publication of management accounting statement is mandatory
15.
Management Accounting is concerned with accounting information
that is useful to the
management. True
16.
Management accounting deals only with the information which is
useful to the management. True
17.
In management accounting, only those figures are used which can be
measured in monetary
terms. False
18.
Management accounting deals with both qualitative and quantitative
information. True
19.
Management accounting will not provide information in a prescribed
Proforma like that of financial
accounting. True
20.
Management accounting analyze the effect of different variables on
the profits and profitability of the
concern. True
21.
The main objective of management accounting is to help the internal
management. True
22.
Management accounting is a structure of decision
making. True
23.
In management accounting no emphasis is given to the actual
figures. True
24.
Management accounting uses historical data for planning and
forecasting. True
25.
Management accounting is not bound by the accounting
standards. True
26.
Period of reporting in management accounting may be weekly,
fortnightly and monthly. True
27.
Auditing of management accounting is
compulsory. False
28.
Management accounting needs cost and financial accounting as its
base for its installation. True
29.
Management accountant is senior in position to cost
accountant. True
30.
Maintaining management accounts are a statutory requirement for
all limited companies. False
31.
Management accounting information is used by the management
only. True
32.
In management accounting, approximate figures presented timely are
more important than accurate
figures presenting late. True
33.
Management accounting is based on double entry system. False
34.
Financial statements are only interim
reports. True
35.
Management accounting is only a blend of financial and cost
accounting. True
36.
Accountability is one of the concepts of management
accounting. True
37.
Machinery sold for cash is an application of
fund. False, source
38.
Building sold on credit is a source of
fund. False
39.
Depreciation of machinery is a source of
funds. True
40.
Cash flow statement is useful for short-term financial
analysis. True
41.
Cash Flow Statement is a substitute of Cash
Account. False
42.
Cash Flow Statement is based upon accrual basis of
accounting. False, Cash Basis
43.
Cash Flow Statement is a statement of sources and application of
cash during a particular period of
time. True
44.
Cash flow statement is also known as statement of cash
flows. True
45.
Contribution is the difference between sales and total cost of
sales. False,
sales -vc
46.
In marginal costing, the problem of over and under absorption of
overhead is avoided. True
47.
Margin of Safety = Fixed Cost/PV
Ratio. False
48.
P/V ratio can be improved by reducing the fixed cost. False
49.
Material Cost Variance = Material Price Variance x Material Usage
Variance. False
50.
Marginal Cost = Total Cost – Variable
Cost. False, Fixed Cost
51.
Idle Time Variance = Idle Hours x Standard
Rate. False
52.
The difference between actual cost and standard cost is known as
differential cost. Variance
53.
Profit changes in the same proportion of the changes in
contribution. False
54.
At break-even point, the company earns only a marginal
profit. False
55.
Break-even analysis is also known as CVP analysis. True
56.
Budget is related to a definite future
period. True
57.
Budgeting may be said to be an act of determining costing
standards. False
58.
A system of budgetary control cannot be used in an organization
where standard costing is in use. False
59.
Budgetary control is a system of controlling cost. True
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4/8/22, 2:13 PM Management Accounting MCQs | Multiple Choice Questions and Answers

HOME B.COM QUESTION PAPERS SOLVED PAPERS CLASS 11/12

Home  CMA MCQ

Management Accounting MCQs | Multiple Choice

MBA - Data Science & Analytics

Multiple Choice Questions and Answers

for B.Com / BBA / MBA / CMA / CA / CS examination

You can also go

1. Management accounting MCQs

a) Multiple Choice Questions and Answers (34

b) Fill in the blanks (64 Questions)

c) True or False (59 Questions)

2. Financial Statements & Financial

3. Ratio Analysis MCQs

4. Funds Flow Statement MCQs

5. Cash Flow Statement MCQs

6. Marginal Costing MCQs

7. Budget and Budgetary Control MCQs

8. Standard Costing MCQs

Multiple choice questions

d) None of the above

Ans: c) Both Qualitative and Quantitative

2. Management accounting provides valuable

d) All managerial functions

Ans: d) All managerial functions

3. Which of the following are tools of

c) Budget and Budgetary control

d) All of the above

Ans: d) All of the above

4. Which of the following are not the tools of

a) Funds flow statement

b) Cash Flow Statement

Ans: d) Process costing

5. Which of the following are tools of

b) Analysis of financial statements

c) Historical cost accounting

d) All of the above

Ans: d) All of the above

6. Management accounting is suitable for:

a) Small trading organization

b) Large industrial and trading organization

Ans: b) large industrial and trading organization

7. Management accounting is a structure for:

Ans: c) Decision making

8. Management accounting and cost accounting

d) None of the above

Ans: b) Complementary in nature

9. Who coined the concept of management

Ans: a) James H. Bliss

10. Management accounting maintains

Ans: d) None of these

11. Management accounting provides invaluable

(a) all management functions

(b) interpret the financial data

(c) controlling functions

(d) none of the above

Ans: (a) all management functions

12. Management accounting is the branch of

Ans: a) internal managers

13. Which of the following is not an objective

a) To help in planning and decision making

c) To help in policy formulation

d) To find profit or loss of the firm

Ans: d) To find profit or loss of the firm