MCQOPTIONS
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MCQOPTIONS
This section includes 166 Mcqs, each offering curated multiple-choice questions to sharpen your Cost Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The jackpot on a gaming machine has not 'dropped' for several weeks. Believing that the payout is imminent, a gambler feeds coins steadily to the machine. What does this behavior illustrate? |
| A. | Escalation of commitment |
| B. | A display of overconfidence |
| C. | Decision making under uncertainty |
| D. | Changing subjective probabilities |
| Answer» B. A display of overconfidence | |
| 2. |
In question No. 127 if the firm continue to operate beyond 6 labour hours as the labour cannot be declared surplus the firms should ------ to increase the output |
| A. | Increase fixed input |
| B. | Retrench the surplus labour |
| C. | Outsource the work |
| D. | All the three |
| Answer» B. Retrench the surplus labour | |
| 3. |
In the BoP statement, current account includes(i) Marchandize, invisible items(ii) Government loans from abroad(iii) Foreign direct investment. |
| A. | (i) only |
| B. | Both (i) and (ii) above |
| C. | Both (i) and (iii) above |
| D. | Both (ii) and (iii) above |
| Answer» B. Both (i) and (ii) above | |
| 4. |
A goods can be considered inferior goods in economics if increase in disposal income of the consumer causes |
| A. | An increase in demand |
| B. | No change in demand |
| C. | Decrease in demand |
| D. | Less than proportionate change in demand |
| Answer» D. Less than proportionate change in demand | |
| 5. |
A goods can be considered a normal goods in economics if increase in disposal income of the consumer causes |
| A. | An increase in demand |
| B. | No change in demand |
| C. | Decrease in demand |
| D. | Less than proportionate change in demand |
| Answer» B. No change in demand | |
| 6. |
Which answer corresponds to a person's internal desire to do something, due to such things as interest, challenge and personal satisfaction? |
| A. | Theory X |
| B. | Extrinsic motivators |
| C. | Intrinsic motivators |
| D. | Theory Y |
| Answer» D. Theory Y | |
| 7. |
Goods which are not perfect substitute of each other but have to be consumed in a fixed ratio will have rate of substitution |
| A. | Unity |
| B. | Less than 1 |
| C. | More than 1 |
| D. | Zero |
| Answer» E. | |
| 8. |
The type of unemployment that includes those persons who are unemployed for an intervening period of change over in job for better job is known as |
| A. | Seasonal unemployment |
| B. | Voluntary unemployment |
| C. | Frictional unemployment |
| D. | Technical unemployment |
| Answer» D. Technical unemployment | |
| 9. |
_____ is a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. |
| A. | Politics |
| B. | Consideration |
| C. | Power |
| D. | Conflict |
| Answer» E. | |
| 10. |
Stoner and others have shown how groups can make decisions that are much less, or much more, cautious that any member would take alone. What are these changes called? |
| A. | Diffusion of responsibility |
| B. | Risky and cautious shift |
| C. | Polarisation |
| D. | Decision arrangement |
| Answer» B. Risky and cautious shift | |
| 11. |
An individual is spending his entire income on two items A and B equally. If income elasticity of A is 4 what is income elasticity of B |
| A. | 4 |
| B. | 2 |
| C. | 3 |
| D. | 1 |
| Answer» D. 1 | |
| 12. |
If an individual is spending his entire income on two items A and B in the ratio of 60:40. If income elasticity of A is 5 what is income elasticity of B |
| A. | 4 |
| B. | 2 |
| C. | 5 |
| D. | 1 |
| Answer» D. 1 | |
| 13. |
According to the text, the categories of antecedent conditions for conflict include all of the following except: |
| A. | communication. |
| B. | structure. |
| C. | group interaction. |
| D. | personal variables. |
| Answer» D. personal variables. | |
| 14. |
Managers today realize that long-term success can be achieved primarily by satisfying the customer. Customers are demanding quicker service, higher quality, and more _____. |
| A. | Value for their money |
| B. | Personal attention |
| C. | Variety in services |
| D. | Online choices |
| Answer» B. Personal attention | |
| 15. |
What term did Lengl and Daft use for failure when face-to-face talking is used to convey routine messages? |
| A. | Data richness |
| B. | Channel richness |
| C. | Data processing |
| D. | Data glut |
| Answer» E. | |
| 16. |
Needs that impel creativity and innovation, along with the desire to have a productive impact on our surroundings are ___________ needs. |
| A. | Existence |
| B. | Relatedness |
| C. | Growth |
| D. | None of the Above |
| Answer» D. None of the Above | |
| 17. |
Who proposed that achievement, affiliation and power are three important needs that help explain motivation in workplace situations? |
| A. | McClelland |
| B. | Maslow |
| C. | Alderfer |
| D. | Herzberg |
| Answer» B. Maslow | |
| 18. |
Which source of power is based on an individual's knowledge, special skills, abilities, or previous experience? |
| A. | Referent power |
| B. | Expert power |
| C. | Referent power |
| D. | Legitimate power |
| Answer» C. Referent power | |
| 19. |
___________ involves allocating resources by detailing what activities haveto be done, the order in which they are to be completed, who is to do each,and when they are to be complete(d) |
| A. | Benchmarking |
| B. | Budgeting |
| C. | Scheduling |
| D. | Competitor intelligence |
| Answer» C. Scheduling | |
| 20. |
Which type of departmentalization achieves economies of scale by placing people with common skills and orientations into common units? |
| A. | Geographic |
| B. | Product |
| C. | Process |
| D. | Functional |
| Answer» E. | |
| 21. |
Which of the following is/are pre-judgement(s) of the Hawthorne Studies? I. Perceived meaning and importance of the work determine the output. II. Job performance depends on the individual worker. III. Workplace culture sets its own production standards. |
| A. | Only (I) above |
| B. | Only (II) above |
| C. | Only (III) above |
| D. | Both (II) and (III) above |
| Answer» C. Only (III) above | |
| 22. |
If a dealer is prepared to supply 1000 sets of a 29 Color TV if the price is `12,000 per set, however if the price raises to `15,000 he is prepared to supply 1,500 pieces. The elasticity of supply of TV set is |
| A. | 1 |
| B. | 2 |
| C. | 0.75 |
| D. | 1.4 |
| Answer» C. 0.75 | |
| 23. |
Which management concept suggests that low-importance decisions be handled by subordinates, so that managers can focus on high-importance decisions? |
| A. | management by objective |
| B. | management by exception |
| C. | Participatory management |
| D. | inclusionary management |
| Answer» C. Participatory management | |
| 24. |
Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a . |
| A. | short-range time horizon |
| B. | long-range time horizon |
| C. | naive method, because there is no data history |
| D. | all of the above |
| Answer» C. naive method, because there is no data history | |
| 25. |
People with which type of personality trait commonly make poor decisions because they make them too fast? |
| A. | Type As |
| B. | Type Bs |
| C. | Self-monitors |
| D. | Extroverts |
| Answer» B. Type Bs | |
| 26. |
The external environment factor that includes: Factors that have a less immediate effect on a business such as the nation's rate of inflation or recession, unemployment rate, or standard of living, is |
| A. | Political factors |
| B. | Sociological factors |
| C. | Indirect economic factors |
| D. | Direct economic factors |
| Answer» D. Direct economic factors | |
| 27. |
Yalom's curative factors within a group often affect the interactions of members and the group as a whole in complex ways. As members begin experiencing and expressing feelings, Yalom would assert that __________ is the curative factor. |
| A. | Catharsis |
| B. | Altruism |
| C. | Interpersonal learning |
| D. | Existential factor |
| Answer» B. Altruism | |
| 28. |
If the disposal income of a household increases by 10% and the demand for X commodity increased by 25%. The income elasticity of X is |
| A. | 1.5 |
| B. | -0.5 |
| C. | 2.5 |
| D. | -2.5 |
| Answer» D. -2.5 | |
| 29. |
If the disposal income of a household increases by 10% and the demand for X commodity increased by 10% the income elasticity of X is |
| A. | 1.5 |
| B. | 0.5 |
| C. | 1.5 |
| D. | 1.0 |
| Answer» E. | |
| 30. |
If the disposal income of a household decreases by 10% and the demand for X commodity remains same. The income elasticity of X is |
| A. | 0 |
| B. | 0.5 |
| C. | 0.5 |
| D. | 2.5 |
| Answer» B. 0.5 | |
| 31. |
If prices of petrol rises from `40. To `48 per lt., the demand for cars falls from 60 per month to 45 per month, the cross elasticity of petrol and Car is |
| A. | 1.5 |
| B. | 1.25 |
| C. | 1.0 |
| D. | 1.59 |
| Answer» C. 1.0 | |
| 32. |
If the price of coffee falls by 8% and the demand for Tea declines by 2%. The corss price elasticity of demand for Tea is |
| A. | 0.45 |
| B. | 0.25 |
| C. | +0.44 |
| D. | -0.30 |
| Answer» C. +0.44 | |
| 33. |
If prices of Eggs rises from `25 per dozen to `30 per dozen, the demand for vegetable burger increases from 30 per day to 40 per day, then the cross elasticity of eggs and vegetable burger is |
| A. | 1.5 |
| B. | 1.25 |
| C. | 1.65 |
| D. | 1.86 |
| Answer» D. 1.86 | |
| 34. |
According to ---------- the managers and workers should work together as partners and of equal importance for the organizations success |
| A. | X theory |
| B. | Y theory |
| C. | Z theory |
| D. | 2 Factor theory |
| Answer» D. 2 Factor theory | |
| 35. |
Which of the following is/are advantage(s) of a functional structure? I. Permits growth and diversity of products and services. II. Power and prestige. III. Clarity about career paths. IV. Furnishes measurable training ground for general managers. |
| A. | Only (I) above |
| B. | Both (I) and (IV) above |
| C. | Both (II) and (III) above |
| D. | (I), (II) and (III) above |
| Answer» D. (I), (II) and (III) above | |
| 36. |
Which role in a group setting contributes to the social-emotional bonding of members and the group's overall success? |
| A. | Facilitative/building role |
| B. | Individualizing |
| C. | Maintenance |
| D. | Blocking |
| Answer» D. Blocking | |
| 37. |
When a subordinate or lower level manager passes information or offers suggestions to higher level management, they're using which level of communication? |
| A. | Upward communication |
| B. | Downward communication |
| C. | Lateral communication |
| D. | Diagonal communication |
| Answer» B. Downward communication | |
| 38. |
Cultivating a learning culture where organizational members systematically gather knowledge and share it with others in the organization so as to achieve better performance is called: |
| A. | Knowledge management |
| B. | Technical management |
| C. | Software management |
| D. | Systems management |
| Answer» B. Technical management | |
| 39. |
The ______________ style of leadership is where the focus of power is with the manager. The manager alone exercises decision-making, authority and the control of rewards or punishments. |
| A. | democratic |
| B. | laissez-faire |
| C. | authoritarian |
| D. | None of the above |
| Answer» D. None of the above | |
| 40. |
Another contingency model of leadership is the path-goal theory. This suggests that subordinates will see leadership behaviour as a motivating influence if |
| A. | their effective performance will satisfy their needs |
| B. | the necessary direction, guidance, training and support is provided |
| C. | path-goal relationships are clarified |
| D. | all the above |
| Answer» E. | |
| 41. |
Organizational structure is made up of key elements. Which of the following is not one of these elements? |
| A. | Span of control |
| B. | Centralization |
| C. | Decentralization |
| D. | Co-ordination |
| Answer» E. | |
| 42. |
If a manager develops a new idea and gives a plan for development of a new product in his workplace, then he is carrying out which of the following roles? |
| A. | Liaison |
| B. | Entrepreneur |
| C. | Disseminator |
| D. | Disturbance handler |
| Answer» C. Disseminator | |
| 43. |
Which of the following is characterized by wide spans of control, little formalization, a low degree of departmentalization, and authority centralized in a single person |
| A. | Bureaucracy |
| B. | Simple structure |
| C. | Matrix organization |
| D. | Mechanistic structure |
| Answer» C. Matrix organization | |
| 44. |
Which organization is characterized by very formal rules, centralized authority, and narrow spans of control? |
| A. | Boundaryless |
| B. | Matrix |
| C. | Virtual |
| D. | Bureaucracy |
| Answer» E. | |
| 45. |
Division of labor, authority hierarchy, formal selection, formal rules and regulations, impersonality, and career orientation are all features of: |
| A. | Weber's ideal type bureaucracy. |
| B. | General administrative theory. |
| C. | Fayol's principles of management. |
| D. | Taylor's principles of management. |
| Answer» B. General administrative theory. | |
| 46. |
An organizational design with low departmentalization, wide spans of control, authority centralized in a single person and little formalization are characteristics of ________. |
| A. | Simple structure |
| B. | Functional structure |
| C. | Divisional structure |
| D. | None of given option |
| Answer» B. Functional structure | |
| 47. |
The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom is termed |
| A. | Unity of command |
| B. | Authority |
| C. | Power and authority structure |
| D. | Chain of command |
| Answer» E. | |
| 48. |
If there are 5000 customers for the product, the aggregate market demand for the product at market price `2 in the question No. 269 will be . |
| A. | 40,000 |
| B. | 30,000 |
| C. | 20,000 |
| D. | 16,000 |
| Answer» B. 30,000 | |
| 49. |
The philosophy of management known as total quality management developed primarily out of the work of: |
| A. | Henri Fayol |
| B. | Frederick Taylor |
| C. | Robert McNamara |
| D. | W. Edwards Deming |
| Answer» E. | |
| 50. |
Which leadership theory suggests that management style should adapt itself to changing circumstances? |
| A. | Contingency theory |
| B. | Delegation theory |
| C. | Autocratic theory |
| D. | Participatory theory |
| Answer» B. Delegation theory | |