Management Sciences
Management Sciences MCQs With Answers
0 Management Sciences MCQs for CSS, PPSC, FPSC, NTS and entry-test preparation. Take a scored quiz instead →
What term describes the cost of capital obtained by issuing an additional dollar of new capital funds?
AMarginal Cost of Capital (MCC)
BWeighted Average Cost of Capital (WACC)
CCost of Retained Earnings
DHistorical Cost of Capital
What is the cost method that allocates joint product costs based on relative market values of output at the split-off point?
ASales Value at Split-Off Method
BConstant Gross Margin Percentage Method
CNet Realizable Value Method
DPhysical Unit Method
Under IAS 16 (Property, Plant, and Equipment), how should unexpected subsequent asset revaluation increases be accounted for?
ACredited to Other Comprehensive Income and accumulated in Revaluation Surplus
BDeducted directly from retained earnings reserve
CRecognized immediately as operating profit in Income Statement
DIgnored until asset physical disposal
Which financial market theory proposes that security prices move unpredictably as random walks, making technical pattern forecasting impossible?
ADow Theory
BGordon Model
CElliot Wave Theory
DRandom Walk Theory
What ratio measures how many days on average a company takes to collect cash from credit sales customers?
ADays Sales Outstanding (DSO)
BCash Conversion Period
CDays Inventory Outstanding (DIO)
DDays Payable Outstanding (DPO)
What ratio measures a company’s ability to cover total debt obligations using annual EBITDA?
ADebt-to-EBITDA Ratio
BQuick Ratio
CCurrent Ratio
DReturn on Sales
Which cost accounting system accumulates manufacturing costs separately for each unique, custom product order?
AOperation Costing
BBatch Costing
CProcess Costing
DJob Order Costing
What type of lease allows lessee off-balance-sheet financing under legacy accounting standards, but requires balance sheet capitalization under IFRS 16?
ACapital Lease
BDirect Financing Lease
COperating Lease
DFinance Lease
What is the primary advantage of issuing Preferred Stock over Common Stock for corporate managers?
APreferred stock imposes mandatory maturity repayment obligations
BAvoids diluting common equity voting control while providing fixed dividends
CPreferred shareholders hold primary voting rights
DPreferred dividend payments are tax-deductible expenses
What is the primary objective of cash budget preparation in managerial finance?
AProjecting short-term cash inflows and outflows to anticipate liquidity surpluses or deficits
BCalculating tax liability owed to tax authorities
CDetermining historical depreciation charges
DAllocating factory overhead across product lines