Management Accounting Questions and Answers Part-4

1. Translation of organization strategy, and mission into performance measures to provide framework for strategy implementation is termed as
a) differentiation scorecard
b) bargaining scorecard
c) leadership scorecard
d) balanced scorecard

Answer: d

2. An example of direct engineered cost is
a) indirect material cost
b) direct material cost
c) direct labour cost
d) indirect labour cost

Answer: b

3. If net initial investment is $985000, returned working capital is $7500, then an average investment over five years will be
a) $596,300
b) $485,300
c) $496,250
d) $486,250

Answer: c

4. If an initial investment is $765000, payback period is 4.5 years, then increase in future cash flow will be
a) $5,645,000
b) $6,442,500
c) $3,442,500
d) $5,442,500

Answer: c

5. Categories of cash flows include
a) net initial investment
b) cash flow from operations after paying taxes
c) cash flow from terminal disposal after paying taxes
d) all of above

Answer: d

6. An example of customer perspective in balanced scorecard is
a) employee turnover rates
b) operating capabilities and number of patents
c) operating income and revenue growth
d) customer satisfaction and market share

Answer: d

7. Considering two fiscal years 2013 and 2014, if selling price in 2013 and 2014 is $55 and $60 per unit respectively and actual units sold in 2013 are 25000 units, then revenue effect of price recovery will be
a) $14,500
b) $135,000
c) $125,000
d) $12,500

Answer: c

8. Way an organization matches its capabilities with available opportunities to accomplish its goals is called
a) elasticity incurrence
b) off shoring
c) strategy
d) engineering

Answer: c

9. Which of following is an example of internal business perspective in balanced scorecard?
a) employee turnover rates
b) operating capabilities and number of patents
c) operating income and revenue growth
d) customer satisfaction and market share

Answer: b

10. Balanced scorecard perspective, which measures strategy profitability and amount of operating income results from cost reduction is classified as
a) learning perspective
b) financial perspective
c) internal business process perspective
d) customer perspective

Answer: b