This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following words complete the statement below? ..... accounts are prepared for external users. Managerial accounts are prepared for ..... users. A) Internal, budget. B) Shadow, internal. C) Financial, internal. D) Financial, external. Show Answer Correct Answer: C) Financial, internal. 2. Financial statements are legally required in A) Financial accounting. B) Management accounting. Show Answer Correct Answer: A) Financial accounting. 3. A budget is prepared for.....period A) Present. B) Past. C) Future. D) All the above. Show Answer Correct Answer: C) Future. 4. The first step in implementing target pricing and target costing is A) Choosing a target price. B) Determining a target cost. C) Developing a product that satisfies needs of potential customers. D) Performing value engineering. Show Answer Correct Answer: C) Developing a product that satisfies needs of potential customers. 5. The accounting rate of return is better measured; A) Total annual accounting profit expressed as a percentage of estimated average investment. B) Average annual accounting profits expressed as a percentage of Estimated average investment. C) Average accounting annual profits expressed as a percentage of total funds invested. D) None. Show Answer Correct Answer: B) Average annual accounting profits expressed as a percentage of Estimated average investment. 6. The Meaning of Social Impacts A) Impact of an organization's activities on society including community, employees, customers and suppliers. B) Financial measures, such as profit based measure and cost performance government. C) Impact of an organization's activities on the environment. D) Economic impact such organization impact on the economy and the organization relationship with the. Show Answer Correct Answer: A) Impact of an organization's activities on society including community, employees, customers and suppliers. 7. What is the main objective of management accounting? A) To identify and analyse the result of business operations. B) To study business transactions. C) To check and maintain accounting records. D) To remind the amount due to customers. Show Answer Correct Answer: A) To identify and analyse the result of business operations. 8. An unfavorable variable overhead efficiency variance indicates that: A) Variable overhead items were not used efficiently. B) The price of variable overhead items was less than budgeted. C) The variable overhead cost-allocation base was not used efficiently. D) The denominator level was not accurately determined. Show Answer Correct Answer: C) The variable overhead cost-allocation base was not used efficiently. 9. A company's actual performance should be compared against budgeted amounts for the same accounting period so that: A) Adjustments for future conditions can be included. B) No feedback is possible. C) No feedback is possible. D) Rolling budget can be implemented. Show Answer Correct Answer: A) Adjustments for future conditions can be included. 10. Validity of current ratio A) 2:1. B) 1:1. C) 1:2. D) 4:1. Show Answer Correct Answer: A) 2:1. 11. Continuous improvement is synonymous with: A) Process benchmarking. B) Total quality management. C) Management by objectives. D) Management by exception. Show Answer Correct Answer: B) Total quality management. 12. The primary benefit of activity-based costing is to provide ..... A) More cost pools. B) More accurate product costing. C) Better management decisions. D) Enhanced control over overhead costs. Show Answer Correct Answer: B) More accurate product costing. 13. The total Profit @ sale of INR 25, 000 is INR 5000 and profit for INR 40000 is INR 8000. What is the PV Ratio? A) 80%. B) 20%. C) 40%. D) 60%. Show Answer Correct Answer: B) 20%. 14. Marginal cost is computed as A) Prime cost + all variable overheads. B) Direct materials + Direct labor + Direct expenses. C) Total costs. D) All fixed overheads. Show Answer Correct Answer: A) Prime cost + all variable overheads. 15. Absolute Tonne-km. is an example of: A) Composite units in power sector. B) Composite unit of transport sector. C) Composite unit for bus operation. D) Composite unit for oil and natural gas. Show Answer Correct Answer: B) Composite unit of transport sector. 16. Cost accounting systems provide information to support decision making. Which of the following is not true? A) Planning and control functions. B) Determining unit manufacturing costs. C) Assessing the efficiency and effectiveness of operations. D) All answers are true. Show Answer Correct Answer: D) All answers are true. 17. Companies may choose to use variable costing because it A) Accords with GAAP. B) Is useful for external reporting. C) Is most useful for management decision making. D) Provides the gross margin. Show Answer Correct Answer: C) Is most useful for management decision making. 18. The role of management accounting does not normally include the function of A) Cash management. B) Planning and control. C) Decision-making. D) None of above. Show Answer Correct Answer: A) Cash management. 19. The following terms relate to ABC concept except A) Marginal Cost. B) Cost Driver. C) Cost Pool. D) Cost Driver Rates. Show Answer Correct Answer: A) Marginal Cost. 20. Which of the following are tools of management accounting? A) Decision accounting. B) Standard costing. C) Budgetary control. D) Human Resources Accounting. E) A, B, C. Show Answer Correct Answer: E) A, B, C. ← 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