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100+ Free CHSE Odisha Fundamentals of Management Accounting Practice Questions
Council of Higher Secondary Education, Odisha (CHSE Odisha) Higher Secondary (+2) Fundamentals of Management Accounting — Elective (Year 2 / Paper II) practice questions are available now; exam metadata is being verified.
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2026 Statistics
Key Facts: CHSE Odisha Fundamentals of Management Accounting Exam
Year-2 elective
Fundamentals of Management Accounting as CHSE Commerce +2 Paper II elective content
CHSE Odisha Commerce Courses of Studies
AS-3 triad
Cash flows classified as operating, investing and financing activities
AS-3 / CHSE FMA Unit IV
Ratio families
Liquidity, activity (turnover) and profitability ratios with calculations
CHSE FMA Unit III
Net WC
Current assets minus current liabilities
CHSE FMA working capital unit
In AHSE fee
No separate elective marketplace fee; included in session exam fee
CHSE Odisha AHSE fee structure via colleges
CHSE Odisha FMA is a +2 Commerce Year-2 elective on management accounting, FS analysis, ratios, working capital and AS-3 cash flows (with project/viva themes). This free 2026 bank is an English MCQ study adaptation—not a full official long-answer or viva simulation.
Sample CHSE Odisha Fundamentals of Management Accounting Practice Questions
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1In CHSE Odisha Fundamentals of Management Accounting, management accounting is best described as accounting information prepared primarily for:
A.Internal managers to plan, control and decide
B.External investors under company law only
C.Tax authorities under the Income-tax Act only
D.Stock-exchange listing disclosure only
Explanation: Management accounting supplies relevant cost, revenue and performance information to managers for planning, control and decision-making. Financial reporting to outsiders is the domain of financial accounting.
2Which statement correctly contrasts management accounting with financial accounting?
A.Management accounting is mandatory under company law for every firm; financial accounting is optional
B.Management accounting is future-oriented and flexible; financial accounting is largely historical and rule-bound
C.Management accounting reports only to shareholders; financial accounting reports only to managers
D.Management accounting never uses monetary measures; financial accounting always uses physical units
Explanation: Management accounting emphasises forward-looking, flexible information tailored to decisions. Financial accounting records past transactions under prescribed frameworks for external users.
3Cost accounting differs from management accounting mainly because cost accounting focuses on:
A.Charging GST on every sales invoice
B.Preparing the annual Balance Sheet for the Registrar
C.Ascertaining and controlling product or process costs
D.Auditing statutory financial statements
Explanation: Cost accounting specialises in recording, classifying and controlling costs of products, jobs or processes. Management accounting is broader: it uses cost data plus other information for planning and decisions.
4Which of the following is a primary function of management accounting?
A.Declaring a final dividend at the AGM
B.Issuing the company prospectus for a public issue
C.Registering a charge with the Registrar of Companies
D.Assisting management in planning, control and decision-making
Explanation: Core functions of management accounting include supplying information for planning budgets, controlling operations against standards, and supporting decisions such as make-or-buy or product mix.
5A limitation of management accounting is that:
A.Its usefulness depends heavily on the quality of underlying accounting data and managerial judgement
B.It always produces reports that are legally binding on auditors
C.It replaces the need for financial statements entirely
D.It never uses estimates or approximations
Explanation: Management accounting relies on historical cost records, estimates and judgement. Poor base data or biased assumptions reduce the quality of decisions based on those reports.
6The role of a management accountant typically includes:
A.Signing the statutory auditor's report under the Companies Act
B.Interpreting cost and financial data to advise managers on performance and choices
C.Acting as the sole director of the company
D.Collecting market-gate entry fees for municipal trade
Explanation: A management accountant analyses costs, variances, ratios and budgets and communicates insights so managers can improve performance and decide among alternatives.
7Which feature best reflects the nature and scope of management accounting?
A.It applies only to government departments and never to private firms
B.It is limited strictly to recording cash receipts in a cash book
C.It is multi-disciplinary and may draw on economics, statistics and operations research
D.It excludes all non-financial performance indicators by definition
Explanation: Management accounting is broad and multi-disciplinary: it blends accounting with economics, statistics and quantitative techniques as needed for managerial problems.
8Management accounting is often said to be oriented more toward the future than financial accounting because it emphasises:
A.Only depreciation methods already charged in past years
B.Only last year's audited Profit and Loss Account
C.Only the opening Balance Sheet balances
D.Budgets, forecasts and decision alternatives
Explanation: Planning and decision support require budgets, forecasts and what-if analysis. Historical financial statements provide a base, but management accounting looks ahead.
9Which objective is most closely associated with management accounting?
A.Helping management control operations by comparing actual results with plans
B.Publishing half-yearly results under SEBI regulations
C.Determining assessable income under income-tax law
D.Issuing share certificates to new allottees
Explanation: Control through comparison of actuals with budgets or standards (and follow-up of variances) is a classic management-accounting objective.
10Compared with cost accounting, management accounting is generally:
A.Narrower, limited only to material issue pricing
B.Broader in scope, covering planning, control and strategic decisions beyond pure costing
C.Identical in every respect with no conceptual difference
D.Concerned solely with preparing the Trial Balance
Explanation: Cost accounting centres on cost ascertainment and control. Management accounting uses cost data and much else (ratios, cash flow, budgets, non-financial measures) for wider managerial decisions.
About the CHSE Odisha Fundamentals of Management Accounting Practice Questions
Verified exam format metadata for Council of Higher Secondary Education, Odisha (CHSE Odisha) Higher Secondary (+2) Fundamentals of Management Accounting — Elective (Year 2 / Paper II) is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.