Management Accounting
| Description: Though the questions are True and False, the questions are so framed as to test the conceptual clarity on the part of the student. | |
| Number of Questions: 25 | |
| Created by: Chandra Bhatti | |
| Tags: Management Accounting Marginal Costing and Differential Cost Analysis Cost Accounting Marginal Costing and Break-Even Analysis Budgeting and Budgetary Control Standard Costing and Variance Analysis Principles of Public Finance Nature and Scope of Management Accounting Mgt. Accounting and Business Finance |
Business firms will never price the sales at or below the marginal cost.
Marginal costing is one of the techniques to find out the behaviour of costs with the volume of output.
Breakeven Analysis helps the management to determine the volume of production, achieving the desired sales and profits.
Price fixation through marginal costing is an important aspect of management accounting.
Prime cost means the cost of direct materials and direct labour involved.
Breakeven point is the point at which the selling price covers the marginal cost.
Performance budget cannot be adopted in service organisations as well.
Budget is a good control mechanism in the hands of the management.
Budgeting means numerical expression of financial statement for a defined time period.
Zero Based Budgeting is an approach on the principle that all activities are started afresh each time the budget is formulated.
Variance Analysis is one of the budgetary control mechanisms.
Cost control and cost reduction are two different terminologies.
The prime function of management accounting is to assist the management in discharging its functions effectively.
Short term sources of funds can be utilized for long term applications.
Management accounting is designed for use in the operational needs.
Management accounting provides information to the management only for control purposes.
Budgetary control is not a management accounting tool.
Marginal costing, differential costing, standard costing and opportunity costing are tools of management accounting.
Management accountants help the management to adopt the management by exception.
Management accountant need not have direct contact with the top management.
Financial accounting is historic and management accounting is current and future.
Management accountant carries out appraisal of external economic and social factors influencing the business.
Management accountant is responsible for interpretation of financial statements.
Management accountants consider both the historical data and the projected data.
Management accountant is not responsible for classification and codification of accounts.