This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The company purchases equipment with its cash A) Assets (NE). B) Liabilities (I). C) Equity (I). D) None of above. Show Answer Correct Answer: A) Assets (NE). 2. Identify the following characteristics of management in business which isNOT TRUE. A) It is a process or series of continuing and related activities. B) It involves and concentrates on reaching organizational goals. C) It reaches these goals by working with and through people and otherorganizational resources. D) It includes every form of trade, commerce, craftsmanship, occupation, profession or other activities that is carried out. Show Answer Correct Answer: D) It includes every form of trade, commerce, craftsmanship, occupation, profession or other activities that is carried out. 3. The primary objective of just-in-time processing is to A) Accumulate overhead in activity cost pools. B) Eliminate or reduce all manufacturing inventories. C) Identify relevant activity cost drivers. D) None of them. Show Answer Correct Answer: B) Eliminate or reduce all manufacturing inventories. 4. Revenue DECREASES owners equity. A) True. B) False. Show Answer Correct Answer: B) False. 5. Which of the following is not included in the operating budget? A) Sales Budget. B) Cost of good sold budget. C) Direct labor budget. D) Cash inflow budget. Show Answer Correct Answer: D) Cash inflow budget. 6. Machinery A) Owner's Equity. B) Asset. C) Liability. D) None of above. Show Answer Correct Answer: B) Asset. 7. 1) Which one of the following is a withdrawal account? A) Cash account. B) Dividend account. C) Salaries account. D) Capital account. Show Answer Correct Answer: B) Dividend account. 8. When the Marriott decided to improve the quality of service it offered its customers, it asked special corporate guests to comment on the good and bad issues of their stay and also to advise what the competition is doing better than the Marriott. The Marriott used: A) Information processing. B) Mirroring. C) Data decentralisation. D) Benchmarking. Show Answer Correct Answer: D) Benchmarking. 9. Which of the following relates to management advisory services by CPAs? A) Cost analysis of major investment decisions. B) Design and/or installation of accounting systems. C) Financial analysis for project feasibility studies. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. A flexible budget is A) Budget for different Departments. B) Budget for different capacity levels. C) Budget for receipts and payments. D) None of above. Show Answer Correct Answer: B) Budget for different capacity levels. 11. 1 Which of the following does not represents the characteristics of Management Accounting? A) Helps in finding out cost of products and control costs. B) Measures the operating efficiency of the enterprise. C) Helps in identifying the financial position of the business. D) Process of determining and accumulating the cost of products or activity. Show Answer Correct Answer: C) Helps in identifying the financial position of the business. 12. Which method of budgeting uses the previous period's budget as a base for the current budget? A) Zero Based Budgeting. B) Activity Based Budgeting. C) Incremental Budgeting. D) Rolling Budgets. Show Answer Correct Answer: C) Incremental Budgeting. 13. Data about Anabelle Company's production and inventories for the month of June are as follows:Purchases-direct materials P143, 440Freight in P5, 000Purchase returns and allowances P2, 440Direct Labor P175, 000Actual Factory Overhead P120, 000InvetoriesJune 1:Finished Goods P68, 000Work in Process P110, 000Direct Materials P52, 000June 30:Finished goods P56, 000Work in Process P135, 000Direct Materials P44, 000Annabelle Company applied factory overhead to production at 80% of direct labor cost. Over-or underapplied overhead is closed to cost of goods sold at year-end. The company's accounting period is on the calendar year basis.The cost of goods sold for the month of June should be increased or decreased by the amount of over/under applied factory overhead of A) 20, 000 increase. B) 20, 000 decrease. C) 120, 000 decrease. D) 0. Show Answer Correct Answer: D) 0. 14. Audit fees paid to auditors is part of A) Administration Cost. B) Production cost. C) Selling & Distribution cost. D) Not shown in cost sheet. Show Answer Correct Answer: A) Administration Cost. 15. Owner's capital and sales decrease with a A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 16. A series of fixed budget set for different levels A) Set of Fixed budget. B) Fixed budget sets. C) Flexible budget. D) Master budget. Show Answer Correct Answer: C) Flexible budget. 17. Oerther Corporation reports that at an activity level of 5, 000 units, its total variable cost is $ 131, 750 and its total fixed cost is $ 31, 200. What would be the average fixed cost per unit at an activity level of 5, 200 units? Assume that this level of activity is within the relevant range. A) $ 6.24. B) $ 6.00. C) $ 14.94. D) $ 32.59. Show Answer Correct Answer: B) $ 6.00. 18. Which of these is not an objective of Cost Accounting? A) Ascertainment of Cost. B) Determination of Selling Price. C) Cost Control and Cost reduction. D) Assisting Shareholders in decision making. Show Answer Correct Answer: D) Assisting Shareholders in decision making. 19. Choose the most appropriate answer for the question.Why management of a company need to know the cost of a product? A) To make the products famous. B) To determine the selling price. C) To determine the GST. D) To promote the product in social media. Show Answer Correct Answer: B) To determine the selling price. 20. Formula for Gross profit ratio A) Gross profit/Gross sales X100. B) Gross profit/Net sales X100. C) Operating profit/Net sales X100. D) Gross profit/Operating profitX100. Show Answer Correct Answer: B) Gross profit/Net sales X100. ← 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