Dr.B.R.

Ambedkar University
Dept. of Commerce and Management
MBA I Semester Online Mid Bits
Accounting for Management

1. What type of planning Indian business families are doing?

a) Forward
b) Family
c) Succession
d) Joint
2. In addition to Place, Labor and Money which other internal environment Factor influences
Management?
a) Technology
b) Machines
c) Scientists
d) Professionals
3. Science is a body of which type of Knowledge?
a) Assimilated
b) Organized
c) Superior
d) Specific
4. Management is purposeful and what?
a) Objective
b) Progressive
c) Goal oriented
d) Universal
5. Management exists at which levels of the organization?
a) Top
b) Bottom
c) Decision-making
d) All
6. Profession requires definite period of what?
a) Practice
b) Discipline
c) Understanding
d) Learning
7. Professional managers help organizations in chalking out which type of strategies?
a) Multidisciplinary
b) Competitive
c) Corporate
d) Academic
8. Features of Management are as follows
a) Goal oriented
b) Universal
c) continuous process
d) Non-continuous process
9. Management is multi disciplinary, it includes knowledge/ information from
a) Economics
b) Math’s
c) Physiology
d) Psychology
10. The internal environment factors that influence management are
a) Labor
b) Climate c) Machines
d) Place
11. The external environmental factors that influence management are
a) Economic changes
b) Political
c) Technological
d) Money
12. “Management is management of Men, Money, Machinery Materials and Information?”
a) Anon ymous
b) Technological
c) Money
d) Machines
13. “Management is the creation and maintenance of internal environment in an enterprise,
where individuals working in groups can perform efficiently and effectively towards the
attainment of grade
a) Koontz & O ‘Donell
b) Peter Drucker
c) Adam Smith
d) Non of the above
14. “Management is a multiple organ that manages a business, manages a manager and manages
workers and work”?
a) Peter Drucker
b) Elton Mayo
c) A and B
d) All of the above
15. Cost is based on the following factors:
a) Volume of production
b) Product mix
c) Size of batches
d) All of the above
16. One of the external environment factors that influences Management is
a) Legal
b) Political
c) Technological
d) Money
17.Management is
a) Creative
b) An Art
c) Science
d) Art and Science
18.Management is the combination of Arts, Science and
a) Profession
b) Technological
c) Money
d) None of the above
19. The word________denotes a function, a task, a discipline.
a) Punctuality
b) Management
c) Both
d) All
20. The various characteristics of science
a) organized knowledge,
b) predictive power
c) cause and effect relationship
d) All of the above
21. The forms of companies in the service sector in our new economy are essentially
a) Communicating, entertainment co's and Information communicating (CEI)
b) Information communicating and entertainment co's (ICE's)
c) Entertainment, Information, and communicating (EIC)
d) Communication
22. What percentage does the organized sector within the retailing sector represent?
a) 1%
b)3%
c) 2%
d) 0%
23. How many approaches are following to a CVP analysis?
a)Two
b) One
c) Three
d) Four
24. What is sold when an insurance policy is sold?
a) Permission
b) Pass
c) Fail
d) Promise25. Who is the 'founder of Human Relation'?
a) Drucker
b) Peter Drucker
c) Adam Smith
d) Elton Mayo
26. The specialization where the economists consider necessary for efficiency in the use of
labour.
a) Labour of work
b)Division of work
c) control of work
d) All of the above
27.Any event that affects the financial position of an organization and requires recording is
called:
a) a transaction
b) an account
c) a posting
d) an accounting change
28._________________ is also called the statement of financial position.
a) The income statement
b) The balance sheet
c)The statement of retained earnings
d) The statement of cash flows

29.______________ is (are) economic resources that are expected to benefit future activities.
a)Stockholders’ equity
b) Liabilities
c) Assets
d) Retained earnings
30.For a corporation, the excess of the assets over the liabilities is called:
a)retained earnings
b)paid-in capital
c)common stock
d)owners’ equity
31.The entity’s economic obligations to nonowners is(are) called:
a)owners’ equity
b)liabilities
c)assets
d) retained earnings
32.Identify which one of the following statements is false.
a)Owners’ equity solely represents the profits made by an organization in the current period.
b)Assets are economic resources which are expected to benefit future cash inflows or reduce
future cash outflows.
c)Liabilities are economic obligations or claims against the assets of an organization by
outsiders.
d)Assets must always equal the sum of liabilities and owners’ equity.
33. Variable costs include the following:
a) Direct materials
b) Direct labor
c) Direct chargeable expenses
d) None of the above
34. The balance in the Cash account is:
a)RM1,600 debit balance
b)RM4,900 debit balance
c)RM4,900 credit balance
d)RM7,800 debit balance
RM8,000 - RM2,000 - (1/3 x RM3,300) = RM4,900
35. Which of the following would be considered a tangible asset?
1. leasehold improvements
2. goodwill
3. land
4. mineral deposits
5. patent
a. 1, 3, and 4
b. 2 and 4
c. 2 and 5
d. 2, 3, 4, and 5
36. Which of the following is not a cost driver of customer services costs?
a. Hours spent servicing products are not a cost driver of customer services costs.
b. Travel costs are not a cost driver of customer services costs.
c. Number of service calls is not a cost driver of customer services costs.
d All of the answers.
37. Which of the following would be a good cost driver for salaries of product and supervisory
salaries?
a. Number of hours worked is a good cost driver for salaries of product and supervisorysalaries.
b. Number of people supervised is a good cost driver for salaries of product and supervisory
salaries.
c.Number of department transactions is a good cost driver for salaries of product and supervisory
salaries.
d.Number of customers served is a good cost driver for salaries of product and supervisory
salaries.
38. As the cost driver activity level decreases within the relevant range:
a. total fixed costs increase
b. fixed costs per unit decreases
c. total variable costs decrease
d. variable costs per unit decreases
39. An increase in fixed costs usually indicates:
a. cost driver activity is decreasing
b. cost driver activity is increasing
c. relevant range is increasing
d. relevant range is decreasing
40. The level of sales at which revenues equal expenses and net income is zero is called the:
a. margin of safety
b. contribution margin
c. break-even point
d) marginal income point
41. The margin of safety:
a. equals planned unit sales less break-even unit sales
b. shows how actual sales differ from planned sales
c. is the sales price minus all the fixed expenses
d) is the same as contribution margin
42. If the sales price per unit is RM20, the unit contribution margin is RM8, and total fixed costs
areRM24, 000, the break-even point in units is:
a. 3,000
b. 1,200
c. 857
d. 2,000
RM24,000 / RM8 = 3,000 units
43. The cost of using the telephone, which involves a flat rate per month plus a fee for extra
usage, would be considered a:
a. step cost
b. fixed cost
c. variable cost
d. mixed cost
44. Costs that change abruptly at intervals of activity because the resources and their costs
come in indivisible chunks are called:
a. mixed costs
b. variable costs
c. fixed costs
d. step costs
45. A thorough knowledge of cost behavior helps managers to:
 a. plan costs
b. obtain feedback
c. decide on the efficient use of resources
d. All of these answers are correct.
46. The following three data points appear to be:
Units Costs
100 RM400
110 440
120 480
a. a variable cost
b. a mixed cost
c. a fixed cost
d. a step cost
47. The following three data points appear to be:
Units Costs
600 RM700
650 700
700 700
a. a variable cost
b. a mixed cost
c. a fixed cost
d) a step cost
48. In a small construction firm, another crew supervisor is added for every 10 workers
employed. This is an example of a:
a. purely variable cost
b. discretionary fixed cost
c. step cost
d) mixed cost
49. A lump sum amount of research and development planned for Senko Corporation would
most likely be identified as a:
a. purely variable cost
 b. discretionary fixed cost
c. step cost
d. mixed cost
50. A company could temporarily reduce or eliminate:
a. depreciation
b. bond interest payment
c. property taxes
d. advertising and promotion
51. Costs arising from the possession of facilities, equipment, and a basic organization are:
a. capacity costs
b. discretionary costs
c. committed fixed costs
d) engineered costs

52.______________ arise as a result of strategic decisions about the scale and scope of an
organization's activities.
a. Capacity costs
b. Discretionary costs
c. Mixed costs
d. Engineered costs
53. _____________ have no obvious relationship to levels of output activity, but are
determined as part of the periodic planning process.
a. Discretionary fixed costs
b. Committed fixed costs
c. Capacity costs
d) Engineered costs

54.An algebraic equation used by managers to describe the relationship between a cost and its
cost driver(s) is called a:
 a. cost behavior
b. cost function
c. budget
d) cost analysis
55.Cost prediction is used to:
a. calculate annual gains and losses
b. negotiate with supplies
c. estimate future costs
d) All of the above
56. calculate management compensation An activity analysis is used to:
a. identify relevant costs for decision making
b. classify costs
c. choose an appropriate cost driver
d. predict future costs
57. ____________ of approximating cost functions does not involve the analysis of past
costs.
a. High-low analysis
b. Visual-fit analysis
c. Engineering analysis
d) Simple least-squares regression

58. The process of identifying appropriate cost drivers and their effects on the costs of
making a product or providing a service is called:
a. cost prediction
b. cost measurement
c. activity analysis
d. budgeting
59. Selecting a volume- related cost driver and classifying each account as a variable cost or
a fixed cost is called:
a. engineering analysis
b. high-low analysis
 c. visual-fit analysis
d. account analysis

60. Managers should apply two principles to obtain accurate and useful cost functions. These
principles are:
a. plausibility and believability
b. plausibility and reliability
c. reliability and validity
d. believability and validity

Q.no Ans Q.no Ans Q.no Ans Q.no Ans

1 c 16 a 31 b 46 a
2 b 17 a 32 a 47 c
3 b 18 a 33 d 48 c
4 c 19 b 34 b 49 b
5 d 20 d 35 a 50 d
6 d 21 b 36 b 51 c
7 c 22 c 37 b 52 a
8 c 23 c 38 c 53 a
9 d 24 d 39 c 54 b
10 b 25 d 40 c 55 c
11 a 26 d 41 a 56 c
12 a 27 a 42 a 57 c
13 a 28 b 43 d 58 c
14 a 29 c 44 d 59 d
15 d 30 d 45 c 60 b