This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 22 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The formal process of choosing between alternatives is known as a(n): A) Relevant model. B) Decision model. C) Alternative model. D) Prediction model. Show Answer Correct Answer: B) Decision model. 2. The tool for evaluating the performance of two or more firms in same industry A) Average analysis. B) Intra firm comparison. C) Inter firm comparison. D) Comparative analysis. Show Answer Correct Answer: C) Inter firm comparison. 3. ..... sales revenue variance based on a flexed budget could arise when goods are sold above budgeted prices A) A favourable. B) An Adverse. C) A Balance. D) None of above. Show Answer Correct Answer: A) A favourable. 4. What is the increase side of Accounts Receivable ..... Little Tykes Nursery? A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 5. Helps managers run the business A) Financial accounting. B) Management accounting. Show Answer Correct Answer: B) Management accounting. 6. Which of the following will not impair the independence of a CPA in the rendition of Management Services? A) The CPA performs decision-making services for his client. B) The CPA performs services wherein he is in effect, acting as an employee of the client. C) The CPA losses his objectivity and acts in a manner as if he is advocating for the interest of his client. D) The CPA does not extend his services beyond the presentation of recommendation or giving advice. Show Answer Correct Answer: D) The CPA does not extend his services beyond the presentation of recommendation or giving advice. 7. Purchase of property for new office A) Capital Expenditure. B) Revenue Expenditure. Show Answer Correct Answer: A) Capital Expenditure. 8. Repayment of long term borrowings is shown in A) Financial activity. B) Operational activity. C) Investing activity. D) None. Show Answer Correct Answer: A) Financial activity. 9. ..... is stated as a budget which is made to change as per the levels of activity attained. A) Fixed budget. B) Flexible budget. C) Both a and b. D) None of the above. Show Answer Correct Answer: B) Flexible budget. 10. Following the Code of Ethics is really important within management accounting; name all 5 of them A) Professional Behaviour, Integrity, Professional competence and due care, Confidentiality and Objectivity. B) Professional Behaviour, Integrity, Professional due care and attention, Confidence and Objectivity. C) Professional Bad Behaviour, Integrity, Professional competence and due care, Confidentiality and Objection. D) None of above. Show Answer Correct Answer: A) Professional Behaviour, Integrity, Professional competence and due care, Confidentiality and Objectivity. 11. What is UnFavorable (U)? A) Revenue Increased, Spending Increased. B) Revenue Increased, Spending Decreased. C) Revenue Decreased, Spending Increased. D) Revenue Decreased, Spending Decreased. Show Answer Correct Answer: C) Revenue Decreased, Spending Increased. 12. It refers to a company's use of borrowed capital in order to acquire assets and increase its return on investments. A) InventoryTurnover Analysis. B) ConstraintAnalysis. C) FinancialLeverage Metrics. D) AccountsReceivable (AR) Management. Show Answer Correct Answer: C) FinancialLeverage Metrics. 13. Current assets (minus) current liabilities is the A) Current ratio. B) Net worth. C) Working capital. D) Quick ratio. Show Answer Correct Answer: C) Working capital. 14. Which are associated with Job Order Costing? A) Cost accumulate by each operation. B) Unit cost of items determined dividing costs of production by number of units produced. C) Companies produce large quantities of identical items. D) Companies produce goods to a customer's unique specifications. Show Answer Correct Answer: D) Companies produce goods to a customer's unique specifications. 15. What information is shown by a business's Trading Account? A) If the business assets equal the liabilities. B) If the business has made a gross profit. C) If the business has made a profit for the year. D) If the business income exceeds expenditure. Show Answer Correct Answer: B) If the business has made a gross profit. 16. Which of the following types of information are used in management accounting? A) Financial information. B) Non-financial information. C) Information focused on the long term. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Direct costs are those which A) Can be accurately traced to a product. B) Are significant in the production process. C) Are incurred in a specific period. D) Include only purchase of materials. Show Answer Correct Answer: A) Can be accurately traced to a product. 18. Juanita Corporation uses a job-order costing system and applies overhead on the basis of direct labor cost. At the end of October, Juanita had one job still in process. The job cost sheet for this job contained the following information:Direct materials:$ 480Direct labor:$ 150Manufacturing overhead applied:$ 600An additional $ 100 of labor was needed in November to complete this job. For this job, how much should Juanita have transferred to finished goods inventory in November when it was completed? A) $ 1, 330. B) $ 500. C) $ 1, 230. D) $ 1, 730. Show Answer Correct Answer: D) $ 1, 730. 19. The three parameters are quality, cost and time are called A) Steel Triangle. B) Iron Triangle. C) Gold Triangle. D) None of the above. Show Answer Correct Answer: B) Iron Triangle. 20. Consumption of raw material is based on ..... budget A) Flexible budget. B) Cost budget. C) Sales budget. D) Production budget. Show Answer Correct Answer: D) Production budget. ← 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