Management Accounting In Organizations(Cost Accounting ) Questions and Answers
Question 1. An organizational practice, according to which the decision making freedom is available to lower level managers is known as
decentralization
centralization
autonomy of effort
congruency
Explanation:-
Answer: Option A. -> decentralization Answer: (a).decentralization
Question 2. The products or services that are transferred between different subunits of a company are classified as
mobile products
dysfunctional products
intermediate product
territorial product
Explanation:-
Answer: Option C. -> intermediate product Answer: (c).intermediate product
Question 3. The means of collecting and using information, to coordinate decision and planning through an organization are termed as
customer control system
business control system
financial control system
management control systems
Explanation:-
Answer: Option D. -> management control systems Answer: (d).management control systems
Question 4. The minimum freedom for managers and maximum constraints are the main features of
total autonomy
total centralization
total decentralization
total congruency
Explanation:-
Answer: Option B. -> total centralization Answer: (b).total centralization
Question 5. The price charged by one subunit to supply products or services to another unit is called
subunit autonomy cost
transfer price
performance prices
effort cost
Explanation:-
Answer: Option B. -> transfer price Answer: (b).transfer price
Question 6. The difference of current assets and the working capital is equal to
current liabilities
long-term liabilities
residual assets value
net residual income
Explanation:-
Answer: Option A. -> current liabilities Answer: (a).current liabilities
Question 7. If the working capital is $265000 and the current liabilities are $378000, then the current assets can be
$113,000
$643,000
$743,000
$543,000
Explanation:-
Answer: Option B. -> $643,000 Answer: (b).$643,000
Question 8. The sum of all the resources used to generate income is classified as
DuPont investment
return on investment
investment
investment turnover
Explanation:-
Answer: Option C. -> investment Answer: (c).investment
Question 9. An operating income is divided by the revenues to calculate
residual income
return on after-tax operating income
return on sales
return on investment
Explanation:-
Answer: Option C. -> return on sales Answer: (c).return on sales
Question 10. If the required rate of return is 13%, operating income is $375000 and the total investment is $2650000, then the residual income would be
