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 →
Which portfolio theory concept states that combining assets with imperfect positive correlation reduces overall portfolio risk?
ADiversification Effect (Markowitz Modern Portfolio Theory)
BEfficient Market Hypothesis
CArbitrage Pricing Theory
DCapital Market Line
Which financial market instrument grants the buyer the right, but not the obligation, to buy an asset at a predetermined price?
AForward Contract
BPut Option
CCall Option
DFutures Contract
What type of risk cannot be eliminated through portfolio diversification across asset classes?
AFirm-Specific Risk
BBusiness Risk
CUnsystematic Risk (Specific Risk)
DSystematic Risk (Market Risk)
In cost accounting, how is the Contribution Margin per unit calculated?
ASelling Price per unit - Variable Cost per unit
BSelling Price per unit - Fixed Cost per unit
CSelling Price per unit - Total Cost per unit
DGross Profit - Operating Expenses
Under IAS 2 (Inventories), how must inventory balances be valued on the balance sheet?
ALower of Cost and Net Realizable Value (NRV)
BHistorical Cost only
CReplacement Cost
DFair Value less Cost to Sell
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