This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 21 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The high-low method uses cost and activity data from just two data points to establish the formula for a mixed cost. A) True. B) False. Show Answer Correct Answer: A) True. 2. Determine contribution if fixed cost is Rs. 40, 000 and Profit is Rs. 30, 000 A) Rs. 60, 000. B) Rs. 70, 000. C) Rs. 30, 000. D) None of the above. Show Answer Correct Answer: B) Rs. 70, 000. 3. The amount of cash moving into and out of a business A) Cash Flow. B) Net Worth. Show Answer Correct Answer: A) Cash Flow. 4. Select the financial statement that displays the revenues and expenses of a company for a period of time. A) Balance sheet. B) Income statement. C) Cash flow statement. D) Statement of stockholder's equity. Show Answer Correct Answer: B) Income statement. 5. Which personnel of a financial firm play a key role in management accounting? A) Suppliers. B) Investors. C) Managers. D) Customers. Show Answer Correct Answer: C) Managers. 6. ..... is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers to achieve the organization's goals. A) Management Accounting. B) Financial Accounting. C) Cost Accounting. D) None of above. Show Answer Correct Answer: A) Management Accounting. 7. Which of the following is not a characteristic of a management account A) Planning, control and decision making. B) Look at both past and present. C) Not legally required. D) External reporting. Show Answer Correct Answer: D) External reporting. 8. When in a transaction, if both the aspects involved are either a current or non current, is there a flow of fund? A) YES. B) NO. Show Answer Correct Answer: B) NO. 9. Formula for net profit ratio A) Net profit-gross profitX100. B) Net profit after tax/Net sales X100. C) Net profit before tax /Net sales X 100. D) None of above. Show Answer Correct Answer: B) Net profit after tax/Net sales X100. 10. Composite cost unit for a hospital is: A) Per patient. B) Per patient-day. C) Per day. D) Per bed. Show Answer Correct Answer: B) Per patient-day. 11. This is one of the most useful financial indicators, since it represents the amount that is being paid to finance the business through its own resources. Through its metrics, a key reference point is achieved to improve the value of the company A) Debt ratio. B) Acid Ratio. C) Capital Cost. D) Inventory Rotation. Show Answer Correct Answer: C) Capital Cost. 12. Product (or manufacturing) costs consist of A) Direct materials, direct labor, and selling costs. B) Prime costs and manufacturing overhead. C) Administrative costs and conversion costs. D) Selling and administrative costs. Show Answer Correct Answer: B) Prime costs and manufacturing overhead. 13. What is the classification of the owner's capital account? A) Revenue. B) Expense. C) Owner's Equity. D) Asset. Show Answer Correct Answer: C) Owner's Equity. 14. A cost center and a cost unit are the same A) YES. Both are used to ascertain cost. B) YES. Both are used for cost control. C) NO. Cost center is a section of the business to which costs are charged. Cost unit helps to ascertain cost for a product or service. D) None of above. Show Answer Correct Answer: C) NO. Cost center is a section of the business to which costs are charged. Cost unit helps to ascertain cost for a product or service. 15. According to the Dual Aspect Concept Capital + Assets = Liability A) True. B) False. Show Answer Correct Answer: B) False. 16. Staff positions are those which do not support line positions. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 17. Short term financial position will improve with ..... A) Increase in current assets. B) Decrease in current assets in current assets. C) Increase in current Liabilities. D) None of theses. Show Answer Correct Answer: A) Increase in current assets. 18. A company began its operations by starting 40, 000 units in production. During the month, 22, 000 were completed and transferred out while the remaining units were 45% complete. The total equivalent units of production were ..... A) 22, 000 units. B) 30, 100 units. C) 30, 000 units. D) 25, 600 units. Show Answer Correct Answer: B) 30, 100 units. 19. What is the thing that makes the Financial Manager one of the scope of management accounting? A) Recording Financial Transactions & Company Activities that Require Funding. B) Details of Costs. C) Data containing all Cost Components. D) Company Financial Information. Show Answer Correct Answer: C) Data containing all Cost Components. 20. A company has Purchases of $ 1, 46, 000 and account payable of $ 1, 10, 000. What is its creditors turnover ratio? A) 0.2 times. B) 1.327 times. C) 5 times. D) 10 times. Show Answer Correct Answer: B) 1.327 times. ← 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