Management accounting is also referred to as managerial accounting and is a discipline that is helpful in providing the management with financial information and the appropriate resources that will help managers in decision making.
As per the Institute of Cost and Management Accountants, London, management accounting is defined as
“The application of professional knowledge and skills in preparing accounting information in such a way as to assist the management in formulating policies and help in planning and control of the undertaking”
Management accounting is used internally within the organization and this is a differentiating feature from financial accounting.
Following are some of the management accounting multiple choice questions and answers that will help the students in brushing up their understanding of the concept of management accounting
Q1. The term management accounting was first coined in
a)1950
b) 1945
c) 1955
d) 1960
Answer: A
Q.2 The purpose of management accounting is to
a). Help banks make decisions
b). Past orientation
c). Help investors make decision
d). Help managers make decisions
Answer: D
Q.3 The correct order of process of establishing the standards, is
a). Decision about types of standards to be used, Study of technical details, Study of existing costing system
b). Study of existing costing system, Study of technical details, Decision about types of standards to be used
c). Study of technical details, Study of existing costing system, Decision about types of standards to be used
d). None of the above
Answer: C
Q4. Management accounting assists the management
a) In planning, direction and control
b) Only in planning
c) Only in direction
d) Only in control
Answer: A
Q5. Which of the following are tools of management accounting?
A) Standard costing
B) Decision accounting
C) Human Resources Accounting
D) Budgetary control
a) A, C and D
b) A, B and D
c) A, B , C, D
d) A, B and C
Answer: b) A, B and D
Q6. The concept of management accounting was coined by?
a) R.N Anthony
b) J. Batty
c) James H. Bliss
d) American Accounting Association
Answer: C
Q.7 An accounting approach, in which the expected benefits exceed the expected cost is classified as
a) cost-benefit approach
b) benefit approach
c) cost approach
d) accounting approach
Answer: A
Q8. Management accounting deals with
a) Qualitative information
b) Quantitative information
c) None of the above
d) Both a and b
Answer: D
Q9. Decisions regarding usage of material, kind and changes in plant processing are a part of
a) help management
b) future management
c) cost management
d) past management
Answer: C
Q.10 In management accounting, an emphasis and focus must be
a) past oriented
b) future oriented
c) bank oriented
d) communication oriented
Answer: B
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