It is also known as management accounting. Accounting for a company’s income and costs is one of its many subspecialties. An organisation’s financial performance may be enhanced with the aid of management accounting. Identifying, evaluating, analysing and communicating financial information to management are all part of the curriculum. Performance reports are used to identify any out-of-the-ordinary increases or decreases in revenue or costs. Obtaining financial data necessitates the use of specialised expertise and methodologies. This accounting is used by managers to develop policies and determine future choices.

1. What is considered the language of business used to communicate financial information?

Answer- D) Accounting

Explanation- Accounting is considered the way of communication to attract customers through marketing.

2. When was the term Management Accounting coined?

Answer- B) 1950

Explanation- In 1950, management accounting was considered in its original form to keep track of the businesses. 

3. What is the main objective of management accounting?

Answer- A) To identify and analyse the result of business operations.

Explanation- Management accounting is focused on analysing the financial performance of a company and creating reports for future use.

4. Which personnel of a financial firm play a key role in management accounting?

Answer- B)Managers

Explanation- Management accounting helps the managers in initiating policies and in decision making.

5. What are the instruments/ tools related to management accounting?

Answer- D)All of the above

Explanation- Marginal costing, standard costing, and budget control are tools based on cost-accounting information and for future information on management accounting.

6. Where is management accounting applied?

Answer- D) Large industrial and trading organisations

Explanation- Large-scale companies use management accounting to get an idea about the competition, business environment and production of technology. 

7. Who discovered the term Management Accounting?

Answer- B) James H Bliss

Explanation- James discovered the term Management through accounts, and he contributed to accounting through his book with the same title.

8. What is the main function of management accounting?

Answer- D) Provision of information to management

Explanation- Management accounting analyses and creates reports related to the financial performance management of a company with the help of available information.

9. Which of the following options is not characteristic of management accounting? 

Answer- C) Compulsory accounting

Explanation- Management accounting is not mandatorily done in all financial institutions or companies.

10. Who stated the definition of management accounting as “Management Accounting is concerned with accounting information which is useful to management”?

Answer- A) Robert Antony

Explanation- Robert Anthony has introduced the hierarchy of management in an organisation and created a framework related to managerial accounting.

11. Management accounting is used as …………

Answer- B) Optional

Explanation- The reports and business performance results may not be compulsorily maintained in all the organisations so management accounting is optional.

12. The management is provided with invaluable services by management accounting through?

Answer- C) All managerial functions

Explanation- The management accounting handles and regulates all the management functions of a company. 

13. Which of the following statements are true according to management accounting?

Answer– A) It is only focused on the future.

Explanation- Management accounting helps in evaluating and keeping records of the activities and performance of the business which will be important for managers in the future.

14. Which of the following is not a management accounting tool?

Answer- D)Process costing

Explanation- Process costing is a part of the management accounting which is used to ascertain the cost, process and operations of manufacture.

15. What is the scope of management accounting?

Answer- D)All of the above

Explanation- Management accounting aims to perform correct budgeting, forecasting and cost accounting based on the information source.

16. The accounting data are analysed and evaluated with the help of …………

Answer- A) tools and techniques

Explanation– It facilitates the financial and accounting data by using appropriate tools and techniques.

17. Management accounting deals with managing …………

Answer- A) Decision making 

Explanation- Decision making is the most important function of a management account which helps the managers to resolve any financial problems.

18. What are the decisions that are made for a long term period called?

Answer- C) Capital budgeting decisions

Explanation- These decisions are made for long term investment whether or not the project will be fruitful in terms of cash flow.

19. What is the basic function of management accounting?

Answer- B) To manage the performance the financial function

Explanation- The financial operations are managed and regulated by management accounting.

20. Which type of information can be recorded in management accounting?

Answer- A) Quantitative information

Explanation- Management accounting identifies and stores the quantitative information of the operations performed in a company.