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  • MCQ 2 Epm

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    Charu Lata
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    This document contains a 10 question multiple choice quiz on expense centers, responsibility centers, and other management accounting concepts. The questions cover topics like the characteristics of different types of centers, objectives of responsibility centers, primary measurements of revenue centers, the process of management by objectives, which stage financial control is exercised for discretionary expense centers, principles of an effective balanced scorecard, approaches to improving financial performance, and classification of organizational units like a raw materials purchasing department and an Asian manufacturing division. The answer key is provided at the end.

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    For MBA Students, mcq on EPM for IIIrd Sem.

    Original Title

    MCQ 2 EPM

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    This document contains a 10 question multiple choice quiz on expense centers, responsibility centers, and other management accounting concepts. The questions cover topics like the characteristics of different types of centers, objectives of responsibility centers, primary measurements of revenue centers, the process of management by objectives, which stage financial control is exercised for discretionary expense centers, principles of an effective balanced scorecard, approaches to improving financial performance, and classification of organizational units like a raw materials purchasing department and an Asian manufacturing division. The answer key is provided at the end.

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    © All Rights Reserved
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    225 views3 pages

    MCQ 2 Epm

    Uploaded by

    Charu Lata
    This document contains a 10 question multiple choice quiz on expense centers, responsibility centers, and other management accounting concepts. The questions cover topics like the characteristics of different types of centers, objectives of responsibility centers, primary measurements of revenue centers, the process of management by objectives, which stage financial control is exercised for discretionary expense centers, principles of an effective balanced scorecard, approaches to improving financial performance, and classification of organizational units like a raw materials purchasing department and an Asian manufacturing division. The answer key is provided at the end.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 3

    Sub.

    (302)EPM MBA III sem

    MCQ

    1. Which of the following is true for an engineered expense center?


    a. Their inputs can be measured in monetary terms
    b. Their outputs can be measured in physical terms
    c. The optimal rupee amount of input required to produce one unit of output can be determined.
    d. All of the above

    2. If each organizational unit is a responsibility center then every organizational unit’s objective
    should be the same as that of the entire organization.
    a. True
    b. False

    3. 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

    4. Management by objective is the process in which-


    a. Top management sets objectives for the sub-ordinate managers.
    b. Budgetee proposes to accomplish specific jobs and prepares budget for it.
    c. A manager decides his own area of operations and prepares budget for it
    d. Budget is not prepared at all.

    5. In case of discretionary expense center, the financial center is primarily exercised at — stage.
    a. Implementation
    b. Quality control
    c. Output
    d. Planning
    6. Which one is a principle of effective balance scorecard ?

    a. Believing in the BSC as facilitator of organizational and cultural change.

    b. Cascading the scorecard to team, division and functional levels

    c. Deploying appropriate budgeting, IT, communication and reward systems

    d. All of the above

    7. The company’s financial performance improves through two basic approaches

    a. Employee growth and revenue b. Revenue growth and productivity

    c. Productivity and departments d. Sales and sharholders

    8. A manufacturer’s raw material purchasing department would likely be classified as a-

    a. Cost centre b. Revenue centre c. Invetment centre d. contribution centre

    9. Economic value added or residual income is a measurement mainly used to evaluate

    a. Revenue centres b. Cost centres c. Profit Centres d. Investment centres

    10. Asian Division of a manufacturing organization would likely be classified as a –

    a. Cost centre b. Revenue centre c. Profit centre d. Investment centre


    Sub. (302)EPM MBA III sem

    ANSWER KEY

    1- d
    2- b
    3- c
    4- b
    5- d
    6- d
    7- b
    8- a
    9- d
    10- d

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