Q. .A cost centre is …………………
✅ Correct Answer: (D)
an area for which costs are accumulated
Accounting for Management MCQs and Notes
Q. ABC system is used for ………………
✅ Correct Answer: (C)
overhead allocation
Q. Responsibility accounting is used for ……………….
✅ Correct Answer: (A)
cost control
Q. The performance of investment centre is based on ……………….
✅ Correct Answer: (C)
profit and investment of the centre
Q. A centre where the manager is responsible for sales is …………..
✅ Correct Answer: (B)
revenue centre
Q. cost driver for activities is called …………….
✅ Correct Answer: (A)
activity driver
Q. A …………….is that factor which causes cost.
✅ Correct Answer: (A)
cost driver
Q. Both costs and revenues are measured in ………………… centers
✅ Correct Answer: (B)
profit
Q. A cost centre is a segment of the organization where the manager is responsible for …………………..
✅ Correct Answer: (C)
a or b
Q. In responsibility accounting the organization is divided into different ………centers
✅ Correct Answer: (A)
responsibility