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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
  1.    decentralization
  2.    centralization
  3.    autonomy of effort
  4.    congruency
 Discuss Question
Answer: Option A. -> decentralization
Answer: (a).decentralization
Question 2. The products or services that are transferred between different subunits of a company are classified as
  1.    mobile products
  2.    dysfunctional products
  3.    intermediate product
  4.    territorial product
 Discuss Question
Answer: Option C. -> intermediate product
Answer: (c).intermediate product
Question 3. The means of collecting and using information, to coordinate decision and planning through an organization are termed as
  1.    customer control system
  2.    business control system
  3.    financial control system
  4.    management control systems
 Discuss Question
Answer: Option D. -> management control systems
Answer: (d).management control systems
Question 4. The minimum freedom for managers and maximum constraints are the main features of
  1.    total autonomy
  2.    total centralization
  3.    total decentralization
  4.    total congruency
 Discuss Question
Answer: Option B. -> total centralization
Answer: (b).total centralization
Question 5. The price charged by one subunit to supply products or services to another unit is called
  1.    subunit autonomy cost
  2.    transfer price
  3.    performance prices
  4.    effort cost
 Discuss Question
Answer: Option B. -> transfer price
Answer: (b).transfer price
Question 6. The difference of current assets and the working capital is equal to
  1.    current liabilities
  2.    long-term liabilities
  3.    residual assets value
  4.    net residual income
 Discuss Question
Answer: Option A. -> current liabilities
Answer: (a).current liabilities
Question 7. If the working capital is $265000 and the current liabilities are $378000, then the current assets can be
  1.    $113,000
  2.    $643,000
  3.    $743,000
  4.    $543,000
 Discuss Question
Answer: Option B. -> $643,000
Answer: (b).$643,000
Question 8. The sum of all the resources used to generate income is classified as
  1.    DuPont investment
  2.    return on investment
  3.    investment
  4.    investment turnover
 Discuss Question
Answer: Option C. -> investment
Answer: (c).investment
Question 9. An operating income is divided by the revenues to calculate
  1.    residual income
  2.    return on after-tax operating income
  3.    return on sales
  4.    return on investment
 Discuss Question
Answer: Option C. -> return on sales
Answer: (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
  1.    $30,500
  2.    $20,500
  3.    $25,500
  4.    $32,500
 Discuss Question
Answer: Option A. -> $30,500
Answer: (a).$30,500

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