McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Business Administration (MBA) .
| 1. |
Capital Budgeting Decisions are: |
| A. | Reversible |
| B. | Irreversible |
| C. | for short term |
| D. | involves small amount |
| Answer» B. Irreversible | |
| 2. |
Which of the following is not incorporated in Capital Budgeting? |
| A. | Tax-Effect |
| B. | Time Value of Money |
| C. | Required Rate of Return |
| D. | Rate of Cash Discount |
| Answer» D. Rate of Cash Discount | |
| 3. |
PERT / CPM have to be used for proper ……………….. of all projects |
| A. | planning |
| B. | controlling |
| C. | staffing |
| D. | coordinating |
| Answer» B. controlling | |
| 4. |
BSC is important for ……… |
| A. | creating strategy |
| B. | controlling strategy |
| C. | evaluating the performance of a strategy |
| D. | mapping strategy |
| Answer» C. evaluating the performance of a strategy | |
| 5. |
Classification of responsibility center is based on the nature of the monetary …………… |
| A. | Inputs and/or outputs |
| B. | Inputs and outputs |
| C. | Inputs only |
| D. | Outputs only |
| Answer» A. Inputs and/or outputs | |
| 6. |
Discretionary expenses are expenses ……… |
| A. | that do not create value |
| B. | that do not hamper the operations immediately |
| C. | that are completely unnecessary |
| D. | that are necessary |
| Answer» B. that do not hamper the operations immediately | |
| 7. |
For the board of directors of the company, the entire company is a ………………. |
| A. | Profit center |
| B. | Expense center |
| C. | Responsibility center |
| D. | Investment center |
| Answer» C. Responsibility center | |
| 8. |
In a revenue center the primary measurement is …………………. |
| A. | Output in physical terms |
| B. | Input in cost terms |
| C. | Revenue |
| D. | Cost incurred by center |
| Answer» C. Revenue | |
| 9. |
In case of discretionary expense center, the financial center is primarily exercised at ………. Stage. |
| A. | Implementation |
| B. | Quality control |
| C. | Output |
| D. | Planning |
| Answer» D. Planning | |
| 10. |
In case of revenue center the output is measured in ……………. terms, but no formal attempt is made to relate ………………. |
| A. | Physical, quantity and quality |
| B. | Monetary, efficiency and effectiveness |
| C. | Monetary, input and output |
| D. | Monetary, output only |
| Answer» C. Monetary, input and output | |
| 11. |
In financial performance measurement most important is …………… |
| A. | EVA |
| B. | ROI |
| C. | Profit Margin |
| D. | MVA |
| Answer» A. EVA | |
| 12. |
Performance management is ……………. |
| A. | Strategic tool |
| B. | Re-engineering tool |
| C. | Business process |
| D. | Strategic management tool |
| Answer» C. Business process | |
| 13. |
Profit centre profit is calculated …….... |
| A. | before debiting Corporate overheads |
| B. | after debiting corporate overheads |
| C. | without considering corporate overheads |
| D. | along with corporate overhead |
| Answer» B. after debiting corporate overheads | |
| 14. |
A major part of strategy implementation is ……. |
| A. | Planning |
| B. | Communication |
| C. | Resource allocation |
| D. | Monitoring |
| Answer» C. Resource allocation | |
| 15. |
The Enterprise Performance Management core processes does not include which of the following? |
| A. | Financial Planning |
| B. | Operational Planning |
| C. | Business Analytics |
| D. | Consolidation and Reporting |
| Answer» C. Business Analytics | |
| 16. |
The Malcolm Baldrige Award is awarded by the Government of ………. |
| A. | Japan |
| B. | Russia |
| C. | U.K. |
| D. | U.S.A. |
| Answer» D. U.S.A. | |
| 17. |
The responsibility center whose inputs are measured in monetary terms, but whose output is not, is ……………….. |
| A. | Revenue center |
| B. | Expense center |
| C. | Profit center |
| D. | Investment center |
| Answer» B. Expense center | |
| 18. |
Two step transfer prices depend on ………………. |
| A. | ROI requirement |
| B. | profit requirement |
| C. | corporate profit requirement |
| D. | SBU profit requirement |
| Answer» C. corporate profit requirement | |
| 19. |
Which of the following does not belong to the category of quantitative performance indicators? |
| A. | Number of |
| B. | Proportion of |
| C. | Levels of |
| D. | Amount of |
| Answer» C. Levels of | |
| 20. |
Which of the following is correct? ROI = |
| A. | Income / Asset employed |
| B. | Revenue / Asset employed |
| C. | Cost / Revenue |
| D. | Profit / No. of shares outstanding |
| Answer» A. Income / Asset employed | |
| 21. |
Which of the following is not a financial performance measure? |
| A. | Opening cash flow |
| B. | Return on assets |
| C. | Market Cap |
| D. | Market share/growth |
| Answer» D. Market share/growth | |
| 22. |
Which of the following is not an entity with reference to Baldrige Criteria / Framework? |
| A. | Team Focus |
| B. | Customer Focus |
| C. | Operations Focus |
| D. | Work Force Focus |
| Answer» A. Team Focus | |
| 23. |
The selective and analytical approach to control investment in various types of inventories is known as …………………………… |
| A. | ABC Analysis |
| B. | Gross Margin Return on Investment (GMROI) |
| C. | Multiple Attribute Method |
| D. | Sell Through Analysis |
| Answer» A. ABC Analysis | |
| 24. |
The Sell Through Analysis is not about ……………………… |
| A. | Sales |
| B. | Inventory/ Sales Turn Over |
| C. | Sales Velocity |
| D. | Merchandise Management |
| Answer» A. Sales | |
| 25. |
The Non-profit Organization focus more on ……….. |
| A. | Social welfare/interests |
| B. | Surplus generation |
| C. | Funds mobilization |
| D. | Governance |
| Answer» A. Social welfare/interests | |
| 26. |
The time the activity would take if things did not go well is known as |
| A. | Pessimistic time |
| B. | Most likely time |
| C. | Optimistic time |
| D. | Average time |
| Answer» A. Pessimistic time | |
| 27. |
Which of the following is responsible for establishing a private company’s internal control? |
| A. | Management |
| B. | Auditors |
| C. | Management and auditors |
| D. | Committee of Sponsoring Organizations |
| Answer» A. Management | |
| 28. |
A responsibility center in which the manager is held accountable for the profitable use of assets and capital is commonly known as a(n) |
| A. | Cost center |
| B. | Revenue center |
| C. | Profit center |
| D. | Investment center |
| Answer» D. Investment center | |
| 29. |
In the balanced scorecard approach quality would come under which perspective? |
| A. | The internal perspective |
| B. | The customer perspective |
| C. | The financial perspective |
| D. | The innovation and learning perspective |
| Answer» A. The internal perspective | |
| 30. |
Performance management is believed to have originated from which country? |
| A. | Japan |
| B. | France |
| C. | Denmark |
| D. | USA |
| Answer» D. USA | |
| 31. |
The overall purpose of the balanced scorecard approach is to: |
| A. | Help turn strategy into action |
| B. | Benchmark against competitors |
| C. | Measure financial performance |
| D. | Measure product quality |
| Answer» A. Help turn strategy into action | |
| 32. |
The process of evaluating an employee’s current and/or past performance relative to his or her performance standards is called |
| A. | recruitment |
| B. | employee selection |
| C. | performance appraisal |
| D. | organizational development |
| Answer» C. performance appraisal | |
| 33. |
The term 'EVA' is used for: |
| A. | Extra Value Analysis |
| B. | Economic Value Added |
| C. | Expected Value Analysis |
| D. | Engineering Value Analysis |
| Answer» B. Economic Value Added | |
| 34. |
The U.S. National Quality Award is named after |
| A. | Joseph Juran |
| B. | Genichi Taguchi |
| C. | W. Edwards Deming |
| D. | Malcolm Baldrige |
| Answer» D. Malcolm Baldrige | |
| 35. |
Which of the following statements is false? Balanced scorecards |
| A. | Are one type of performance dashboard |
| B. | Can be cascaded to different levels/parts of organisations |
| C. | Cannot be used in conjunction with budgetary control systems |
| D. | Can be used to produce strategy maps |
| Answer» C. Cannot be used in conjunction with budgetary control systems | |
| 36. |
Which of the following statements regarding flaws suffered by financial measures is not correct: |
| A. | They are hard to quantify |
| B. | They do little to motivate employees to improve accounting profits |
| C. | They are not effective in getting managers' attention |
| D. | They are useful in identifying operational problems |
| Answer» D. They are useful in identifying operational problems | |
| 37. |
Which of the following variable does ROI examine? |
| A. | EBIT |
| B. | EVA |
| C. | ROI |
| D. | DuPont chart |
| Answer» B. EVA | |
| 38. |
A sound Capital Budgeting technique is based on: |
| A. | Cash Flows |
| B. | Accounting Profit |
| C. | Interest Rate on Borrowings |
| D. | Last Dividend Paid |
| Answer» A. Cash Flows | |
| 39. |
Capital Budgeting deals with: |
| A. | Long-term Decisions, |
| B. | Short-term Decisions |
| C. | Both (a) and (b) |
| D. | Neither a) nor (b) |
| Answer» A. Long-term Decisions, | |
| 40. |
Capital Budgeting Decisions are based on: |
| A. | Incremental Profit |
| B. | Incremental Cash Flows |
| C. | Incremental Assets, |
| D. | Incremental Capital. |
| Answer» B. Incremental Cash Flows | |
| 41. |
Capital Budgeting is a part of: |
| A. | Investment Decision |
| B. | Working Capital Management |
| C. | Marketing Management |
| D. | Capital Structure |
| Answer» A. Investment Decision | |
| 42. |
Which of the following is not applied in capital budgeting? |
| A. | Cash flows be calculated in incremental terms |
| B. | All costs and benefits are measured on cash basis |
| C. | All accrued costs and revenues be incorporated |
| D. | All benefits are measured on after-tax basis |
| Answer» C. All accrued costs and revenues be incorporated | |
| 43. |
Which of the following is not followed in capital budgeting? |
| A. | Cash flows Principle |
| B. | Interest Exclusion Principle |
| C. | Accrual Principle |
| D. | Post-tax Principle |
| Answer» C. Accrual Principle | |
| 44. |
Which of the following is not true for capital budgeting? |
| A. | Sunk costs are ignored |
| B. | Opportunity costs are excluded |
| C. | Incremental cash flows are considered |
| D. | Relevant cash flows are considered |
| Answer» B. Opportunity costs are excluded | |
| 45. |
Which of the following is not used in Capital Budgeting? |
| A. | Time Value of Money |
| B. | Sensitivity Analysis |
| C. | Net Assets Method |
| D. | Cash Flows |
| Answer» C. Net Assets Method | |
| 46. |
Which one is the Capital Expenditure? |
| A. | Capital invested by the owner |
| B. | Selling expense for machine |
| C. | Machine purchased |
| D. | Daily expenses to operate business |
| Answer» C. Machine purchased | |
| 47. |
Who among the following have the authority to inspect the books of accounts? |
| A. | Directors |
| B. | Members |
| C. | Officer of Sebi |
| D. | Both (a) and (c) |
| Answer» D. Both (a) and (c) | |
| 48. |
Under responsibility accounting, the evaluation of a manager’s performance is based on matters that the manager: |
| A. | Directly controls |
| B. | Directly and indirectly controls |
| C. | Indirectly controls |
| D. | Has shared responsibility for with another manager |
| Answer» A. Directly controls | |
| 49. |
Return on Assets and Return on Investment Ratios belong to: |
| A. | Liquidity Ratios |
| B. | Profitability Ratios |
| C. | Solvency Ratios |
| D. | Turnover |
| Answer» B. Profitability Ratios | |
| 50. |
………….. costs are not easily changed and are often fixed, for ex, once a company has decided to rent a place. |
| A. | Committed |
| B. | Discretionary |
| C. | Engineered |
| D. | Marginal |
| Answer» A. Committed | |
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