Cost Accounting MANAGEMENT ACCOUNTING IN ORGANIZATIONS MCQs Total Questions : 80 Page 1 of 8 pages 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 See Solution Discuss Question Answer is Option A. -> decentralizationAnswer: (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 See Solution Discuss Question Answer is Option C. -> intermediate productAnswer: (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 See Solution Discuss Question Answer is Option D. -> management control systemsAnswer: (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 See Solution Discuss Question Answer is Option B. -> total centralizationAnswer: (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 See Solution Discuss Question Answer is Option B. -> transfer priceAnswer: (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 See Solution Discuss Question Answer is Option A. -> current liabilitiesAnswer: (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 See Solution Discuss Question Answer is Option B. -> $643,000Answer: (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 See Solution Discuss Question Answer is Option C. -> investmentAnswer: (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 See Solution Discuss Question Answer is Option C. -> return on salesAnswer: (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 $30,500 $20,500 $25,500 $32,500 See Solution Discuss Question Answer is Option A. -> $30,500Answer: (a).$30,500 12345678Next → Share on Facebook! Share on Pinterest!