Top 20 Accounting For Business Decisions MCQ With Answers (Updated)

Given below are top 20 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

The size of ________ is an important indicator of the strength of business.

A. cost of production

B. marketing activity

C. margin of safety

D. employees

Pricing is one of the most important decision areas of ________.

A. Marketing

B. Accounting

C. Human Resource Management

D. Production

Factors that make influence of firms decision to buy a part rather than produce it internally includes

A. lack of in-house expertise

B. small volume requirements

C. desire for multiple sourcing

D. All of the above

If the margin of safety is _______, the form can withstand fall of sales and can continue to be in some profit.

A. small

B. zero

C. long

D. large

Fixing ________ is a major decision taking function of any enterprise.

A. Low price

B. High price

C. Appropriate price

D. None of the above

If the price is _______ the seller may not find enough number of consumers to buy his product.

A. quite low

B. quite high

C. zero

D. dynamic

If the price fixed is ________, the seller may not be able to cover his cost.

A. too low

B. too high

C. more than cost

D. dynamic

A pricing decision is one of the __________ decision that the firm has to make.

A. most easy and important

B. most crucial and difficult

C. time taking but simple

D. important but avoidable

Pricing decisions have ________ importance in any enterprise.

A. tactical

B. policy

C. strategic

D. minimal

Internal user of accounting information for decision making is ________

A. government

B. management

C. creditor

D. Owne

This is all about MCQ on accounting for business decisions. These MCQs are equally useful for other accounting subjects like financial accounting, management accounting and cost accounting.

You’ll also like multiple choice questions on financial management.