61.
Which of the following is NOT a type of budget?
A
Master budget
B
Flexible budget
C
Static budget
D
Variable budget
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Which of the following is NOT a type of budget?
Master budget
Flexible budget
Static budget
Variable budget
Which of the following is a limitation of using financial ratios for performance evaluation?
Ratios can be manipulated
Ratios are based on historical data
Ratios may not be comparable across companies
All of the above
Which of the following is NOT a characteristic of management accounting information?
Future-oriented
Subjective
Highly aggregated
Relevant
Which of the following is NOT a benefit of decentralization?
Improved decision-making
Increased motivation
Reduced workload for top management
Increased control for top management
Which of the following is a method of transfer pricing?
Market-based pricing
Cost-based pricing
Negotiated pricing
All of the above
Which of the following is NOT a type of responsibility center?
Cost center
Revenue center
Profit center
Expense center
Which of the following is a technique used for performance measurement?
Benchmarking
Key performance indicators (KPIs)
Management by objectives (MBO)
All of the above
Which of the following is NOT a component of the balanced scorecard?
Financial perspective
Customer perspective
Internal business process perspective
None of the above (all are components)
A just-in-time (JIT) inventory system is designed to:
Minimize inventory levels
Maximize inventory levels
Reduce production costs
Improve product quality
Which of the following is NOT a benefit of using standard costs?
Cost control
Performance evaluation
Inventory valuation
Increased complexity
Activity-based costing (ABC) is a method of:
Inventory valuation
Cost allocation
Budgeting
Performance evaluation
Which of the following is a technique used for capital budgeting?
Payback period
Net present value (NPV)
Internal rate of return (IRR)
All of the above
Return on investment (ROI) is calculated as:
Net income / Sales
Sales / Total assets
Net income / Total assets
Total assets / Net income
Management accounting is primarily concerned with:
Providing information to external users
Providing information to internal users
Auditing financial statements
Filing tax returns