This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An important aspect of CIA is the recognition that cash flows received in later years have ..... value than those received in earlier years. A) Less. B) Equal. C) More. D) None of above. Show Answer Correct Answer: A) Less. 2. Litres were used to ascertain cost of ..... A) Sugar. B) Flour. C) Cooking oil. D) Petrol. Show Answer Correct Answer: D) Petrol. 3. Unskilled 12000 hours required for a new contract. Current Workforce is fully utilised.Rate per hour is Rs.2.What is relevant labour cost? A) Nil. B) 24000. C) 6000. D) 12000. Show Answer Correct Answer: B) 24000. 4. What are the 4 activities involved in management accounting? A) Planning, Controlling, Organising, Decision Making. B) Planning, Organising, Decision Making, Controlling. C) Planning, Organising, Controlling, Decision Making. D) Organising, Planning, Controlling, Decision Making. Show Answer Correct Answer: C) Planning, Organising, Controlling, Decision Making. 5. The following statements have been made about Cost-Volume-Profit analysis:(1) CVP analysis allows for fluctuating selling prices. (2) CVP analysis assumes productivity remains unchanged. (3) CVP analysis assumes that the only factor affecting cost is volume. Which of the above statements is/are true? A) Only. B) Only. C) , (2) and (3). D) And (3) only. Show Answer Correct Answer: D) And (3) only. 6. One method of absorption of overheads is A) Cost sheet. B) Machine hour rate. C) Apportionment. D) Ratio analysis. Show Answer Correct Answer: B) Machine hour rate. 7. Management accounting assists the management A) Decision Making. B) Planning. C) Control. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 8. Which is not the limitation of management accounting? A) Lack of Knowledge. B) Effect of time factor. C) Need of continuity. D) Determination of objects. Show Answer Correct Answer: D) Determination of objects. 9. The success of any business depends upon the proper ..... A) Organizing. B) Planning. C) Timing. D) None of above. Show Answer Correct Answer: B) Planning. 10. The ascertainment of costs after they have been incurred is known as A) Marginal costing. B) Historical costing. C) Sunk cost. D) Notional cost. Show Answer Correct Answer: B) Historical costing. 11. The net profit of a company is ₹ 2, 00, 000, preference dividend ₹ 25, 000, and taxes paid ₹ 15, 000. The number of equity shares is 1, 00, 000. The earnings per share (EPS) is- A) 1.6. B) 1.7. C) 1.8. D) 1.9. Show Answer Correct Answer: A) 1.6. 12. Drawings A) Expense. B) Asset. C) Owner's Equity. D) None of above. Show Answer Correct Answer: C) Owner's Equity. 13. Which method of budgeting is usually used to manage indirect costs within production? A) Priority Based Budgeting. B) Incremental Budgeting. C) Zero Based Budgeting. D) Activity Based Budgeting. Show Answer Correct Answer: D) Activity Based Budgeting. 14. Liquid assets are determined by A) Current Assets-Stock-prepaid expenses. B) Current Assets + Stock + prepaid expenses. C) Current Assets + prepaid expenses. D) None of the above. Show Answer Correct Answer: A) Current Assets-Stock-prepaid expenses. 15. Which of the following is NOT a benefit of using a budget? A) A budget can help you decide the importance of your expenses. B) A budget can help you keep track of your money. C) A budget can help you make plans to reach your financial goals. D) A budget can help you purchase anything you want. Show Answer Correct Answer: D) A budget can help you purchase anything you want. 16. Financial accounting includes bookkeeping; management accounting includes costing A) True. B) False. Show Answer Correct Answer: A) True. 17. The sum of all direct expenses is called A) Chargeable cost. B) Cost of goods sold. C) Prime cost. D) Overaheads. Show Answer Correct Answer: D) Overaheads. 18. Which is not included in the recognizing and measuring impacts of using Environmental Management Accounting (EMA) A) ECONOMIC IMPACTS. B) COSTS IMPACTS. C) ENVIRONMENTAL IMPACTS. D) SOCIAL IMPACTS. Show Answer Correct Answer: B) COSTS IMPACTS. 19. Which of the following statements is/are correct?(i) A management control system is a term used to describe the hardware and software used to drive a database system which produces information outputs that are easily assimilated by management.(ii) An objective is a course of action that an organisation might pursue in order to achieve its strategy.(iii) Information is data that has been processed into a form meaningful to the recipient. A) (i), (ii) and (iii). B) (i) and (iii). C) (ii) and (iii). D) (iii) only. Show Answer Correct Answer: D) (iii) only. 20. At the point of break-even A) Contribution = Fixed Costs. B) Profit = Revenue. C) Fixed Costs = Variable Costs. D) Contribution = Profit. Show Answer Correct Answer: A) Contribution = Fixed Costs. ← PreviousNext →Related QuizzesAccounting QuizzesManagement Accounting Quiz 1Management Accounting Quiz 2Management Accounting Quiz 3Management Accounting Quiz 4Management Accounting Quiz 5Management Accounting Quiz 6Management Accounting Quiz 7Management Accounting Quiz 8Management Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books