Management Accounting MCQs

✅ The correct answer is option A.
An estimated price, which is expected to be paid by customers for particular market offering is classified as target price. Target price is on which Investor want to sell the security.so investor put his target price in his/her demat account while place selling order.

✅ The correct answer is option D.
Second step in decision making process is obtaining information. Gather relevant information Collect some pertinent information before you make your decision: what information is needed, the best sources of information, and how to get it. This step involves both internal and external “work.” Some information is internal: you’ll seek it through a process of self-assessment.

✅ The correct answer is option B.
Price variance for direct manufacturing labour is referred as rate variance. A rate variance is the difference between the actual price paid for something and the expected price, multiplied by the actual quantity purchased. The concept is used to track down instances in which a business is overpaying for goods, services, or labor.

✅ The correct answer is option C.
Process of making long term decisions, for capital investment in projects is called capital budgeting. Capital budgeting is the process a business undertakes to evaluate potential major projects or investments.

✅ The correct answer is option B.
Sum of returned working capital and net initial investment is divided by 2 to calculate average investment over five years.

✅ The correct answer is option A.
Revenue = Units sold × Selling price
= 800 × $20 = $16,000.

✅ The correct answer is option D.
Flexible budget cost = Flexible budget variance – An actual cost
= $95000 – $40000 = $55,000.

✅ The correct answer is option B.
Variable costs = Revenue – Contribution margin
= $9000 – $3000 = $6,000.

✅ The correct answer is option D.
Means of collecting and using information, to coordinate decision and planning through an organization are termed as management control systems. Management control systems are the formal and informal structures put in place by a business that compare the goals and strategy of the organization against the actual outcomes.

✅ The correct answer is option D.
According to net present value, projects that would be acceptable must have a zero net present value and positive net present value.