Management Accounting MCQ Quiz - Objective Question with Answer for Management Accounting - Download Free PDF
Last updated on Jul 12, 2025
Latest Management Accounting MCQ Objective Questions
Management Accounting Question 1:
K Co had 4,000 employees at the start of 20X6, which reduced to 3,800 employees at the end of the year due to redundancies.
- 210 staff took voluntary redundancy, which was 10 more than expected.
- These 10 additional employees were replaced during the year.
What is the labour turnover rate for the year, expressed as a percentage to two decimal places?
Answer (Detailed Solution Below) 0.26
Management Accounting Question 1 Detailed Solution
Correct Answer: 0.26
Explanation:
Management Accounting Question 2:
In a typical cost ledger, what is the correct double-entry for indirect labour cost incurred?
Answer (Detailed Solution Below)
Management Accounting Question 2 Detailed Solution
Correct Answer: C
Explanation:
Indirect wages are 'collected' in the overhead control account, for subsequent absorption into work in progress.
Management Accounting Question 3:
Jane works as part of a three-person team in the assembly department of a factory. The team is rewarded under a group bonus scheme with the following structure:
- The team leader receives 40% of any bonus earned by the team.
- The remaining 60% is shared equally between Jane and one other team member.
- Hours Worked by the Team: 8 hours (per person) × 3 people = 24 hours
- Team Production Achieved: 80 units
- Standard Time Allowed per Unit: 9 minutes
- Group Bonus Payable: $6 per hour
- Bonus Rate: 70% of time saved
What is the bonus element of Jane’s pay for this particular day?
Answer (Detailed Solution Below)
Management Accounting Question 3 Detailed Solution
Correct Answer: A
Explanation:
Management Accounting Question 4:
X Co has recorded the following wages costs for its direct production workers for the month of November:
| Description | Amount ($) |
|---|---|
| Basic Pay | 70,800 |
| Overtime Premium | 2,000 |
| Holiday Pay | 500 |
| Total Gross Wages | 73,300 |
Note: The overtime was not worked for any specific job.
What are the correct accounting entries for recording these wage costs?
Answer (Detailed Solution Below)
Work in Progress Account – Debit: $70,800
Overhead Control Account – Debit: $2,500
Wages Control Account – Credit: $73,300
Management Accounting Question 4 Detailed Solution
Correct Answer: B
Explanation:
- The overtime premium of $2,000 was not worked for any specific job.
- Therefore, it is classified as an indirect wage cost and should be debited to the Overhead Control Account.
- The holiday pay of $500 is also considered an indirect cost, and should likewise be debited to the Overhead Control Account.
- The basic pay of $70,800 is a direct wage cost and should be debited to the Work in Progress Account.
- The total gross wages of $73,300 should be credited to the Wages Control Account.
Management Accounting Question 5:
An employee is paid on a piecework basis, with the following tiered pay structure:
- 1 to 100 units: $0.20 per unit
- 101 to 200 units: $0.30 per unit
- 201 to 299 units: $0.40 per unit
(Only the additional units in each range qualify for the higher rates. Rejected units do not qualify for payment.)
On a particular day, the employee produced 210 units, of which 17 units were rejected as faulty.
What is the employee’s total earnings for that day?
Answer (Detailed Solution Below)
Management Accounting Question 5 Detailed Solution
Correct Answer: A
Explanation:
Top Management Accounting MCQ Objective Questions
Management Accounting Question 6:
Fast Co had 3,000 employees at the beginning of 20X8. At the end of 20X8 there were 3,500 employees. 120 employees resigned in the year and were immediately replaced. Additional employees were recruited for new jobs during the year.
What is the labour turnover rate to two decimal places?
Answer (Detailed Solution Below)
Management Accounting Question 6 Detailed Solution
Correct Answer: A
Explanation:
The labour turnover rate is calculated as follows:
Average no. of employees in period = (3,000 + 3,500) ÷ 2 = 3,250
Labour turnover rate = (Replacements ÷ Average number of employees in period) × 100%
= 120 ÷ 3,250 × 100% = 3.69%
Management Accounting Question 7:
The following data relate to work in the Finishing Department of a factory:
- Normal Working Day: 7 hours
- Basic Rate of Pay: $5.00 per hour
- Standard Time Allowed per Unit: 4 minutes
- Premium Bonus: 60% of time saved, paid at the basic rate
On a particular day, one employee finishes 180 units.
What is the employee's gross pay for the day?
Answer (Detailed Solution Below) 50
Management Accounting Question 7 Detailed Solution
Correct Answer: 50
Explanation:
Management Accounting Question 8:
There are 27,500 units of Part Number X35 on order with suppliers, and 16,250 units are outstanding on existing customers' orders.
If the free inventory is 13,000 units, what is the physical inventory?
Answer (Detailed Solution Below) 1750
Management Accounting Question 8 Detailed Solution
Correct Answer: 1750
Explanation:
Management Accounting Question 9:
The following question is taken from the January to June 2014 exam period.
A company has prepared flexed budgets at two activity levels. The cost per unit of three. costs is given below. All three costs behave in a linear manner with respect to activity.
| Activity level (units) | ||
| 10,000 | 15,000 | |
| Cost | ||
| X | $3.0 per unit | $2.0 per unit |
| Y | $1.0 per unit | $1.0 per unit |
| Z | $3.5 per unit | $3.0 per unit |
Is each of the costs variable, semi-variable or fixed?
Answer (Detailed Solution Below)
| X | Y | Z |
| Fixed | Variable | Semi-Variable |
Management Accounting Question 9 Detailed Solution
The Correct Option is option 3
Additional Information:
- The key to the question is to understand that for variable costs the cost per unit is constant, whilst for fixed costs the total cost is constant. Cost X can quickly be identified as a fixed cost as the total cost between the two output levels is unchanged (10,000 units x $3 = 15,000 units x $2). Cost Y is a variable cost because the cost per unit is constant. Cost Z meets neither of these criteria because it contains elements of both fixed and variable cost, and therefore is a semi variable cost.
Management Accounting Question 10:
Which of the following processes occurs at the business planning stage?
Answer (Detailed Solution Below)
Management Accounting Question 10 Detailed Solution
The Correct Option is option 4
- The planning stage involves establishing objectives and selecting appropriate strategies to achieve those objectives. The other business processes occur after production has started or ended.
Management Accounting Question 11:
K Co had 4,000 employees at the start of 20X6, which reduced to 3,800 employees at the end of the year due to redundancies.
- 210 staff took voluntary redundancy, which was 10 more than expected.
- These 10 additional employees were replaced during the year.
What is the labour turnover rate for the year, expressed as a percentage to two decimal places?
Answer (Detailed Solution Below) 0.26
Management Accounting Question 11 Detailed Solution
Correct Answer: 0.26
Explanation:
Management Accounting Question 12:
In a typical cost ledger, what is the correct double-entry for indirect labour cost incurred?
Answer (Detailed Solution Below)
Management Accounting Question 12 Detailed Solution
Correct Answer: C
Explanation:
Indirect wages are 'collected' in the overhead control account, for subsequent absorption into work in progress.
Management Accounting Question 13:
Jane works as part of a three-person team in the assembly department of a factory. The team is rewarded under a group bonus scheme with the following structure:
- The team leader receives 40% of any bonus earned by the team.
- The remaining 60% is shared equally between Jane and one other team member.
- Hours Worked by the Team: 8 hours (per person) × 3 people = 24 hours
- Team Production Achieved: 80 units
- Standard Time Allowed per Unit: 9 minutes
- Group Bonus Payable: $6 per hour
- Bonus Rate: 70% of time saved
What is the bonus element of Jane’s pay for this particular day?
Answer (Detailed Solution Below)
Management Accounting Question 13 Detailed Solution
Correct Answer: A
Explanation:
Management Accounting Question 14:
X Co has recorded the following wages costs for its direct production workers for the month of November:
| Description | Amount ($) |
|---|---|
| Basic Pay | 70,800 |
| Overtime Premium | 2,000 |
| Holiday Pay | 500 |
| Total Gross Wages | 73,300 |
Note: The overtime was not worked for any specific job.
What are the correct accounting entries for recording these wage costs?
Answer (Detailed Solution Below)
Work in Progress Account – Debit: $70,800
Overhead Control Account – Debit: $2,500
Wages Control Account – Credit: $73,300
Management Accounting Question 14 Detailed Solution
Correct Answer: B
Explanation:
- The overtime premium of $2,000 was not worked for any specific job.
- Therefore, it is classified as an indirect wage cost and should be debited to the Overhead Control Account.
- The holiday pay of $500 is also considered an indirect cost, and should likewise be debited to the Overhead Control Account.
- The basic pay of $70,800 is a direct wage cost and should be debited to the Work in Progress Account.
- The total gross wages of $73,300 should be credited to the Wages Control Account.
Management Accounting Question 15:
An employee is paid on a piecework basis, with the following tiered pay structure:
- 1 to 100 units: $0.20 per unit
- 101 to 200 units: $0.30 per unit
- 201 to 299 units: $0.40 per unit
(Only the additional units in each range qualify for the higher rates. Rejected units do not qualify for payment.)
On a particular day, the employee produced 210 units, of which 17 units were rejected as faulty.
What is the employee’s total earnings for that day?
Answer (Detailed Solution Below)
Management Accounting Question 15 Detailed Solution
Correct Answer: A
Explanation: