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Quiz 11
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Q.1
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
Q.2
Minimum freedom for managers and maximum constraints are main features of
total autonomy
total centralization
total decentralization
total congruency
Q.3
Price charged by one subunit to supply products or services to another unit is called
subunit autonomy cost
transfer price
performance prices
effort cost
Q.4
A desire to achieve a particular goal with pursuit of that goal is called
motivation
goal congruence
effort
autonomy
Q.5
Decision making methods, used for subunits of company are highly interdependent on each other is called
incongruent decision making
functional decision making
congruent decision making
duplication decision making
Q.6
Method of pricing, when two separate pricing methods are used to price transfer of products from one subunit to another, is called
dual pricing
functional pricing
congruent pricing
optimal pricing
Q.7
Cost of new machine is considered as
relevant
bunk
dispose value
sunk
Q.8
An investment of money in idle inventory, in place of investing same amount of money somewhere else is an example of
offshore cost
outsource cost
in-source cost
opportunity cost
Q.9
When an essential information for calculation of income statement is missing, then costs that can be considered for this purpose is called
expected cost
expected revenues
irrelevant costs
relevant costs
Q.10
In relevance concepts, relevant revenues are also termed as
parallel revenues
abnormal revenues
expected future revenues
serial revenues
Q.11
First step in decision making process is to
identify problem
identify linear variable
identify certainty
identify multiplier
Q.12
Second step in decision making process is
multi-collinearity information
quantitative information
qualitative analysis
obtaining information
Q.13
Costs that behaves as irrelevant costs in process of decision making are classified as
past costs
future costs
expected costs
sunk costs
Q.14
An example of qualitative factor is
employee morale
cost of materials
cost of workers
cost of marketing
Q.15
Fourth step in decision making process is
linear correlation
making decisions
implement decisions
evaluate performance
Q.16
Production of goods or services that can be bought from outside suppliers is classified as
idle sourcing
sunk sourcing
outsourcing
in-sourcing
Q.17
Cost such as dispose value of an old machine is $6000 is classified as
irrelevant
depreciated cost
salvages
relevant
Q.18
Book value of existing equipment is a historical cost and not necessary for deciding equipment replacement, thus it can be considered as
operating cost
sunk cost
in-house cost
out-house cost
Q.19
Some of methods used for determining transfer prices are
market-based transfer prices
cost-based transfer prices
negotiated transfer prices
all of above
Q.20
A situation when groups and individuals work together for achieving a particular goal can be classified as
motivation
goal congruence
effort
autonomy
Q.21
Buying of goods or services from suppliers or vendors of some other country instead of local supplier is classified as
outsourcing
insourcing
idle sourcing
sunk sourcing
Q.22
In broader categories, outcomes of decisions are classified as
sunk factors
quantitative factors
qualitative factors
both B and C
Q.23
An amount of additional cost incurred for any particular activity is classified as
incremental cost
differential cost
dependent cost
independent cost
Q.24
In today's global world, an outsourcing of products or services from lower cost countries is classified as
differential in-sourcing
off-shoring
incremental outsourcing
differential outsourcing
Q.25
Costs that are unavoidable and remain unchanged no matter what done are classified as
sunk costs
bunked costs
unrecorded costs
recorded costs
Q.26
Formal method of making choices, considering help of quantitative and qualitative analysis is classified as
quantitative analysis
decision method
qualitative method
linearity method
Q.27
Costs which are related to different functions of value chain of company, such as marketing and manufacturing costs are considered as
value costs
future function costs
business function costs
sunk function costs
Q.28
If fixed cost is $65000 and contribution margin percentage for bundle is 0.575, then breakeven revenue will be
$113,043.48
$1,200,000
$130,000
$140,000
Q.29
relevant costs are classified in relevance concepts as
expected future costs
serial costs
parallel costs
abnormal costs
Q.30
Companies that perform in competitive markets using pricing approach are known as
independent revenue approach
market based approach
dependent revenue approach
cost based approach
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