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 is the key difference between economic depreciation and accounting depreciation?
AEconomic depreciation measures decline in market value, while accounting depreciation allocates historic cost over useful life
BAccounting depreciation measures market value losses, while economic depreciation is tax-focused
CEconomic depreciation applies only to current assets, while accounting depreciation applies to fixed assets
DThere is no difference between the two terms
What budgeting variance occurs when actual total fixed overhead costs exceed budgeted fixed overhead costs?
ALabor Rate Variance
BFixed Overhead Volume Variance
CFixed Overhead Budget (Spending) Variance
DFixed Overhead Efficiency Variance
Which capital budgeting decision metric ignores all cash inflows occurring after the initial investment payout period is reached?
AInternal Rate of Return (IRR)
BNet Present Value (NPV)
CProfitability Index (PI)
DPayback Period
Which capital budgeting index divides the present value of future cash inflows by the initial capital investment outlay?
AInternal Rate of Return (IRR)
BAccounting Rate of Return (ARR)
CProfitability Index (PI)
DNet Present Value (NPV)
What is the primary function of an internal audit within a corporation?
AEvaluating risk management, control, and governance processes
BExpressing an external opinion on published statutory statements
CFiling corporate tax returns with government authorities
DSetting accounting standards for public enterprises
What is the key characteristic of an efficient capital market according to the Strong-Form Efficient Market Hypothesis (EMH)?
AShare prices are predictable using technical analysis
BShare prices reflect historical price patterns only
CShare prices reflect all publicly available news information
DShare prices reflect all public and private (insider) information
Under IFRS, how are intangible assets with indefinite useful lives tested for valuation?
AWritten off completely in the year of acquisition
BTested annually for impairment, not amortized
CAmortized over a mandatory 20-year period
DAmortized using the straight-line method
Which type of financial risk arises from potential adverse movements in foreign exchange rates affecting international transactions?
ACredit Risk
BDefault Risk
CTransaction Risk
DOperational Risk
What is the main driver of the Price-to-Earnings (P/E) ratio in market stock valuation?
ATotal retained earnings cash balance
BExpected future growth rates and risk perception
CHistorical book value of tangible assets only
DCurrent liability balances on balance sheet
Which cost component represents direct materials plus direct labor in manufacturing cost accounting?
AConversion Cost
BSunk Cost
CPeriod Cost
DPrime Cost