PRACTICE QUESTIONS

SESSION 1
1. Which of the following statements abot manage!ial accontants is false"
A. #anage!ial accontants mo!e an$ mo!e a!e consi$e!e$ %bsiness &a!tne!s.%
'. #anage!ial accontants often a!e &a!t of c!oss(fnctional teams.
C. An inc!easing nmbe! of o!gani)ations a!e seg!egating manage!ial accontants in
se&a!ate manage!ial(acconting $e&a!tments.
*. In a nmbe! of com&anies+ manage!ial accontants ma,e significant bsiness
$ecisions an$ !esol-e o&e!ating &!oblems.
E. The !ole of manage!ial accontants has change$ consi$e!abl. o-e! the &ast $eca$e.
/. The $a.(to($a. wo!, of management teams will t.&icall. com&!ise all of the following
acti-ities e0ce&t1
A. $ecision ma,ing.
'. &lanning.
C. cost minimi)ing.
*. $i!ecting o&e!ational acti-ities.
E. cont!olling.
2. Which of the following fnctions is best $esc!ibe$ as choosing among a-ailable
alte!nati-es"
A. *ecision ma,ing.
'. Planning.
C. *i!ecting o&e!ational acti-ities.
*. Cont!olling.
E. '$geting.
1
3. Which of the following manage!ial fnctions in-ol-es a $etaile$ financial an$
o&e!ational $esc!i&tion of antici&ate$ o&e!ations"
A. *ecision ma,ing.
'. Planning.
C. *i!ecting o&e!ational acti-ities.
*. Cont!olling.
E. #eas!ing.
4. Which of the following in-ol-es the coo!$ination of $ail. bsiness fnctions within an
o!gani)ation"
A. *ecision ma,ing.
'. Planning.
C. *i!ecting o&e!ational acti-ities.
*. Cont!olling.
E. #oti-ating.
5. Ta!s Com&an. has set -a!ios goals+ an$ management is now ta,ing a&&!o&!iate action
to ens!e that the fi!m achie-es these goals. One sch action is to !e$ce otla.s fo!
o-e!hea$+ which ha-e e0cee$e$ b$gete$ amonts. Which of the following fnctions
best $esc!ibes this &!ocess"
A. *ecision ma,ing.
'. Planning.
C. Coo!$inating.
*. Cont!olling.
E. O!gani)ing.
6. Which of the following is not an ob7ecti-e of manage!ial acconting"
A. P!o-i$ing info!mation fo! $ecision ma,ing an$ &lanning.
'. Assisting in $i!ecting an$ cont!olling o&e!ations.
C. #a0imi)ing &!ofits an$ minimi)ing costs.
*. #eas!ing the &e!fo!mance of manage!s an$ sbnits.
E. #oti-ating manage!s towa!$ the o!gani)ation8s goals.
9. The !ole of manage!ial acconting info!mation in assisting management is a:n;1
A. financial($i!ecting !ole.
'. attention($i!ecting !ole.
C. &lanning an$ cont!olling !ole.
*. o!gani)ational !ole.
E. &!oblem(sol-ing !ole.
<. Which of the following bsiness mo$els consi$e!s financial+ cstome!+ inte!nal
o&e!ating+ an$ othe! meas!es in the e-alation of &e!fo!mance"
A. *ete!ministic simlation.
'. 'alance$ sco!eca!$.
C. Pa.off mat!i0.
*. *ecision t!ee.
E. Cha!t of o&e!ating &e!fo!mance :COP;.
/
1=. Which of the following &e!s&ecti-es is no!mall. absent in a balance$ sco!eca!$"
A. >inancial.
'. Cstome!.
C. Inte!nal o&e!ations.
*. ?ea!ning an$ inno-ation@g!owth.
E. None of these.

11. #anage!ial acconting1
A. focses onl. on histo!ical $ata.
'. is go-e!ne$ b. AAAP.
C. focses &!ima!il. on the nee$s of &e!sonnel within the o!gani)ation.
*. &!o-i$es info!mation fo! &a!ties e0te!nal to the o!gani)ation.
E. focses on financial statements an$ othe! financial !e&o!ts.
1/. #anage!ial acconting1
A. is n!eglate$.
'. &!o$ces info!mation that is sefl onl. fo! manfact!ing o!gani)ations.
C. is base$ e0clsi-el. on histo!ical $ata.
*. is !eglate$ b. the Sec!ities an$ E0change Commission :SEC;.
E. gene!all. focses on !e&o!ting info!mation abot the ente!&!ise in its enti!et. !athe!
than b. sbnits.
12. Which of the following wol$ li,el. be consi$e!e$ an inte!nal se! of acconting
info!mation !athe! than an e0te!nal se!"
A. Stoc,hol$e!s.
'. Consme! g!o&s.
C. ?en$e!s.
*. #i$$le(le-el manage!s.
E. Ao-e!nment agencies.
2
13. >inancial acconting focses &!ima!il. on !e&o!ting1
A. to &a!ties otsi$e of an o!gani)ation.
'. to &a!ties within an o!gani)ation.
C. to an o!gani)ation8s boa!$ of $i!ecto!s.
*. to financial instittions.
E. fo! financial instittions.
14. Which of the following statements !e&!esents a simila!it. between financial an$
manage!ial acconting"
A. 'oth a!e sefl in &!o-i$ing info!mation fo! e0te!nal se!s.
'. 'oth a!e go-e!ne$ b. AAAP.
C. 'oth $!aw &on $ata f!om an o!gani)ation8s acconting s.stem.
*. 'oth !el. hea-il. on &blishe$ financial statements.
E. 'oth a!e solel. conce!ne$ with histo!ical t!ansactions.
15. Which of the following em&lo.ees at *elta Ai!lines wol$ not be consi$e!e$ as hol$ing a
line &osition"
A. Pilot.
'. Chief financial office! :C>O;.
C. >light atten$ant.
*. Tic,et agent.
E. 'aggage han$le!.
16. Which of the following em&lo.ees wol$ be consi$e!e$ as hol$ing a line &osition"
A. E00on Co!&o!ation8s -ice(&!esi$ent fo! go-e!nment !elations.
'. The cont!olle! of Aene!al #oto!s.
C. A sec!eta!. em&lo.e$ b. Be!i)on Commnications.
*. The manage! of foo$ an$ be-e!age se!-ices at *isne.8s #agic Cing$om.
E. None of these.
19. The chief manage!ial an$ financial accontant of an o!gani)ation is the1
A. chief e0ecti-e office! :CEO;.
'. t!eas!e!.
C. -ice(&!esi$ent of acconting.
*. inte!nal a$ito!.
E. chief financial office! :C>O;.
1<. Which of the following t.&icall. $oes not !elate to the !ole of a cont!olle!"
A. A cont!olle! s&e!-ises the acconting $e&a!tment.
'. A cont!olle! safega!$s an o!gani)ation8s assets.
C. A cont!olle! o-e!sees the &!e&a!ation of !e&o!ts !eDi!e$ b. go-e!nmental atho!ities.
*. A cont!olle! no!mall. assmes a na!!ow !ole within the o!gani)ation+ often &!e-enting
the in$i-i$al8s !ise to to& management !an,s.
E. Choices %'% an$ %*% abo-e.
3
/=. A cont!olle! is no!mall. in-ol-e$ with1
A. &!e&a!ing financial statements.
'. managing in-estments.
C. !aising ca&ital.
*. safega!$ing assets.
E. managing the fi!m8s c!e$it &olic..
/1. Which of the following is not a fnction of the t!eas!e!"
A. Safega!$ing assets.
'. #anaging in-estments.
C. P!e&a!ing financial statements.
*. 'eing !es&onsible fo! an entit.8s c!e$it &olic..
E. Raising ca&ital.
//. #anage!ial accontants1
A. often wo!, on c!oss(fnctional teams.
'. a!e locate$ th!oghot an o!gani)ation.
C. a!e fon$ &!ima!il. at lowe! le-els of the o!gani)ational hie!a!ch..
*. a!e fon$ &!ima!il. at highe! le-els of the o!gani)ational hie!a!ch..
E. choices %A% an$ %'% abo-e.

/2. The two $imensions of manage!ial acconting a!e1
A. a $ecision(facilitating $imension an$ a $ecision(inflencing $imension.
'. a $ecision(facilitating $imension an$ a financial(inflencing $imension.
C. a $ecision(inflencing $imension an$ a cost(minimi)ing $imension.
*. a cost(minimi)ing $imension an$ a &!ofit(ma0imi)ing $imension.
E. a $ecision(inflencing $imension an$ a &!ofit(ma0imi)ing $imension.
/3. #ch of manage!ial acconting info!mation is base$ on1
A. a cost(benefit theme.
'. &!ofit ma0imi)ation.
C. cost minimi)ation.
*. the gene!ation of e0te!nal info!mation.
E. effecti-eness bt not efficienc..
/4. Which of the following is not no!mall. consi$e!e$ to be an element of e(bsiness"
A. E(b$geting.
'. S&&l.(chain management.
C. E(comme!ce.
*. 'alance$ sco!eca!$s.
E. Choices %'% an$ %*% abo-e.
/5. #anage!ial acconting has change$ in !ecent .ea!s becase of1
A. the g!owth of e(bsiness.
'. inc!ease$ global com&etition.
C. the eme!gence of new in$st!ies.
*. an inc!ease$ focs on the cstome!.
E. All of these facto!s.
4
/6. #anage!ial acconting has change$ in !ecent .ea!s becase of1
A. a g!owing se!-ice econom. in the Unite$ States.
'. the g!owing &o&la!it. of c!oss(fnctional teams.
C. an inc!ease in global com&etition.
*. time(base$ com&etition.
E. All of these facto!s.
/9. Which of the following statement:s; abot 7st(in(time :EIT; in-ento!. management is
:a!e; t!e"
I. The em&hasis of EIT is on %&ll% manfact!ing.
II. Raw mate!ials a!e &!chase$ 7st in time to be se$ in &!o$ction.
III. EIT is an in-ento!. techniDe that focses on !e$ction of both in-ento!. an$ !elate$
in-ento!. costs.
A. I onl..
'. II onl..
C. III onl..
*. II an$ III.
E. I+ II+ an$ III.
/<. I$aho Co!&o!ation !ecentl. im&lemente$ a 7st(in(time :EIT; &!o$ction s.stem along
with a se!ies of continos im&!o-ement &!og!ams. If the fi!m is now consi$e!ing
a$o&ting a total Dalit. management :TQ#; &!og!am+ it wol$ li,el. fin$ that TQ#1
A. is consistent with both EIT an$ continos im&!o-ement.
'. is consistent with EIT bt inconsistent with continos im&!o-ement.
C. is consistent with continos im&!o-ement bt inconsistent with EIT.
*. is inconsistent with both EIT an$ continos im&!o-ement.
E. is an antiDate$ management techniDe.
2=. Cai)en costing is consistent with1
A. cost !e$ction.
'. continos im&!o-ement.
C. &oo! Dalit..
*. financial acconting an$ income statements.
E. both choices %A% an$ %'% abo-e.
21. Cost management s.stems ten$ to focs on an o!gani)ation8s1
A. machines.
'. em&lo.ees.
C. acti-ities.
*. cstome!s.
E. !les an$ !eglations.
5
2/. The &&e! limit on the &!o$ction of goo$s an$ se!-ices if e-e!.thing wo!,s &e!fectl. is
,nown as1
A. &!actical ca&acit..
'. theo!etical ca&acit..
C. tili)e$ ca&acit..
*. management ca&acit..
E. ca&acit. ma0imi)ation.
22. The ca&acit. conce&t that allows fo! no!mal occ!!ences sch as machine $owntime an$
em&lo.ee fatige is ,nown as1
A. &!actical ca&acit..
'. theo!etical ca&acit..
C. tili)e$ ca&acit..
*. management ca&acit..
E. ca&acit. ma0imi)ation.
23. The cost of !eso!ces s&&lie$ bt nse$ is ,nown as1
A. &!actical ca&acit. costs.
'. the cost of theo!etical ca&acit..
C. the cost of nse$ ca&acit..
*. the cost of !eso!ces s&&lie$.
E. ca&acit. cost.

24. Ai-en the following info!mation+ what is the cost of nse$ ca&acit." Cost of mate!ial
s&&lie$ is F2+/==G Cost of mate!ial se$ is F2+===G Cost of mate!ial se$ &e! ca,e is F2G
Cost of mate!ial s&&lie$ &e! ca,e is F2./=.
A. F=./=.
'. F/==.
C. F/+===.
*. F1+===.
E. The!e is no nse$ ca&acit..
25. Ai-en the following info!mation+ what is the cost of nse$ ca&acit." Cost of mate!ial
s&&lie$ is F9+5==G Cost of mate!ial se$ is F9+===G Cost of mate!ial se$ &e! shelf is F9G
Cost of mate!ial s&&lie$ &e! shelf is F9.5=.
A. F5==.
'. F5+===.
C. F=.5=.
*. F1+===.
E. The!e is no nse$ ca&acit..
6
26. Which of the &!ece$ing acti-ities wol$ li,el. not be consi$e!e$ &a!t of The Aa&
clothing com&an.8s -ale chain"
A. *esigning a new &!o$ct line.
'. ?ocating an$ then negotiating te!ms with a clothing manfact!e!.
C. #a!,eting an e0isting &!o$ct line.
*. *ist!ibting goo$s f!om !egional wa!ehoses to local sto!es.
E. All of these acti-ities wol$ be an element in the com&an.8s -ale chain.
29. In o!$e! fo! a com&an. to achie-e a sstainable com&etiti-e a$-antage+ it mst &e!fo!m
-ale chain acti-ities1
A. at the same Dalit. le-el as com&etito!s+ at the same cost.
'. at the same Dalit. le-el as com&etito!s+ bt at a lowe! cost.
C. at a highe! Dalit. le-el than com&etito!s+ at a highe! cost.
*. at a highe! Dalit. le-el than com&etito!s+ bt at no g!eate! cost.
E. Eithe! choice %'% o! %*% abo-e.
ANSWER E
2<. The &!ocess of managing the -a!ios acti-ities in the -ale chain+ along with the
associate$ costs+ is commonl. ,nown as1
A. acti-it.(base$ costing.
'. st!ategic cost management.
C. total Dalit. management.
*. com&te!(integ!ate$ costing.
E. son$ management &!actices :S#P;.
3=. A com&an. has a bottlenec, o&e!ation that slows &!o$ction. Which of the following
tools o! a&&!oaches col$ the fi!m se to $ete!mine the most cost(effecti-e wa.s to
eliminate this &!oblem"
A. ?inea! &!og!amming.
'. Theo!. of const!aints.
C. *ecision(t!ee $iag!ams.
*. Pa.off mat!ices.
E. St!ategic &ath anal.sis :SPA;.
31. Which of the following can be lin,e$ to a wa-e of co!&o!ate scan$als that too, &lace not
too long ago"
A. A!ee$. co!&o!ate e0ecti-es.
'. #anage!s who ma$e o-e!(!eaching bsiness $eals.
C. ?ac, of o-e!sight b. com&anies8 a$it boa!$s an$ boa!$s of $i!ecto!s.
*. Sho$$. wo!, b. e0te!nal a$ito!s.
E. All of these.

3/. Which of the following is not an ethical stan$a!$ of manage!ial acconting"
A. Com&etence.
'. Confi$entialit..
C. Efficienc..
*. Integ!it..
E. C!e$ibilit..
9
32. Which of the following is not an element of com&etenc."
A. To $e-elo& a&&!o&!iate ,nowle$ge abot a &a!ticla! sb7ect.
'. To &e!fo!m $ties in acco!$ance with !ele-ant laws.
C. To &e!fo!m $ties in acco!$ance with !ele-ant technical stan$a!$s.
*. To !ef!ain f!om engaging in an acti-it. that wol$ $isc!e$it the acconting &!ofession.
E. To &!e&a!e clea! !e&o!ts afte! an anal.sis of !ele-ant an$ !eliable info!mation.
<