This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Minimum price is calculated as A) Variable cost + Fixed cost. B) Marginal cost + Contribution. C) Marginal cost-Contribution. D) None of the above. Show Answer Correct Answer: A) Variable cost + Fixed cost. 2. Budgets can be used as A) All true. B) Predict financial plans. C) Management planning and control. D) Unit and individual performance assessment. Show Answer Correct Answer: A) All true. 3. Indirect Costs A) Are not directly linked to a particular product or service. B) Are directly linked to a particular product or service. C) Remain the same regardless of output levels. D) Are costs that vary with the level of production. Show Answer Correct Answer: A) Are not directly linked to a particular product or service. 4. Fixed cost + profit = A) Semi-variable cost. B) Margin of safety. C) Contribution. D) Standard profit. Show Answer Correct Answer: C) Contribution. 5. Management Accounting provide data to A) Only management. B) Both management and itself. C) Lower level of employees. D) Outside stakeholders. Show Answer Correct Answer: B) Both management and itself. 6. Current ratio is 2.7:1, quick ratio is 1.8:1 and current liabilities are Rs. 60, 000 or so confirm the value of the consignment A) Rs. 54, 000. B) Rs. 60, 000. C) Rs. 1, 62, 000. D) Rs. 1, 08, 000. Show Answer Correct Answer: A) Rs. 54, 000. 7. The rule "Debit all expenses and losses and credit all gains and incomes" is applicable to Personal Account A) True. B) False. Show Answer Correct Answer: B) False. 8. Which one of these is a period cost? A) Finance costs. B) Admin costs. C) Selling & distribution. D) Production overheads. Show Answer Correct Answer: B) Admin costs. 9. Absorption costing is also known as A) Historical costing. B) Total costing. C) Both a & b. D) None of the above. Show Answer Correct Answer: C) Both a & b. 10. Target price is A) Price = cost + a fair share of profit. B) The price a competitor sets. Show Answer Correct Answer: B) The price a competitor sets. 11. Which of the following normally have a debit balance? A) Liability accounts. B) Equity or capital accounts. C) Income or revenue accounts. D) Asset accounts. Show Answer Correct Answer: D) Asset accounts. 12. If Capital is $ 27, 500 and Liabilities are $ 5, 400, how much are Assets? A) $ 32, 900. B) $ 27, 500. C) $ 22, 100. D) None of above. Show Answer Correct Answer: A) $ 32, 900. 13. The ..... of a business firm is measured by its ability to satisfy its short-term obligations as they become due. A) Liquidity. B) Debt. C) Profitability. D) Activity. Show Answer Correct Answer: A) Liquidity. 14. What is the term used to describe what the company needed to spend in order to generate its Net Sales? A) Sales Statement. B) Sales Optimization. C) Cost of Sales. D) Sales Profit. Show Answer Correct Answer: C) Cost of Sales. 15. What is the decrease side of Accounts Payable ..... Clark Company? A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 16. Owner's capital and sales increase with a A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 17. Find the current liability from the following:Current ratio-2:5 Liquid ratio-1:5 Prepaid expenses-Nil Stock-7 4, 000 A) 20, 000. B) 40, 000. C) 80, 000. D) 4, 000. Show Answer Correct Answer: A) 20, 000. 18. A manufacturing firm is very busy and overtime is being worked. How would the amount of overtime premium contained in direct wages normally be classed? A) Part of prime cost. B) Factory overheads. C) Direct labour costs. D) Administrative overheads. Show Answer Correct Answer: B) Factory overheads. 19. Decision to buy an article should be taken when: A) Purchase price is more than marginal cost. B) Purchase price is less than marginal cost. C) Purchase price is more than total cost. D) Purchase price is less than total cost. Show Answer Correct Answer: B) Purchase price is less than marginal cost. 20. Which of the following is true about Standard Costing? A) It is a technique of implementing cost control within the organisation. B) It helps in planning out business activities within the organisation. C) Both are incorrect. D) Both are correct. Show Answer Correct Answer: A) It is a technique of implementing cost control within the organisation. ← 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