Accounting For Business Decisions MCQ With Answers (2021)

Given below are Accounting for Business Decisions MCQ with answers for MBA, BBA, B Com, M Com, MMS and other management students. These ABD multiple choice questions and solutions also can be used for SET, UGC NET, UPSC, MPSC entrance & competitive exams.

The main aim of management accounting is to help management in its functions of _________.

A. planning

B. directing

C. controlling

D. all of the above

_______ is the act of choosing between manufacturing a product in house or purchasing it from an external supplier.

A. Pricing decision

B. Make or buy decision

C. Budgeting decision

D. EOQ

In a make or buy decision, the most important factor(s) to consider is ________.

A. cost of production

B. availability of production capacity

C. marketing of the product

D. Both A & B

GAAP in financial accounting stands for _______

A. Globally Accepted Accounting Principles

B. Globally Accepted Accounting Practices

C. Generally Accepted Accounting Principles

D. Generally Accepted Accounting Provisions

An enterprise may decide to purchase the product rather than producing it if is _________.

A. cheaper to buy than make

B. cheaper to make than buy

C. costlier to buy than make

D. Both B & C

A ________ is the catalog of items one should sell at their business.

A. Price mix

B. Product Mix

C. Distribution mix

D. Promotion Mix

Optimizing product mix can ________ the profits.

A. minimize

B. stagnant

C. maximize

D. neither minimize nor maximize

Advantages of break even analysis includes ______.

A. optimum level of profit

B. self production

C. payment of dividend

D. all of the above.

A budget is a ________ financial plan.

A. Backward

B. Upward

C. Forward

D. All of the above

The excess of actual or budgeted sales over the break even sales are called ________.

A. margin of safety

B. factor of safety

C. profit

D. margin of exposure