Management Accounting Quiz 24 (20 MCQs)

Quiz Instructions

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1. The zero-based budget is the best method of budgeting because:

Correct Answer: D) The zero-based budget ensures that every dollar you make is assigned a specific purpose.

2. A managing director must be an individual (a real person) and can be appointed for a maximum period of five years.

Correct Answer: A) True.

3. An unfavorable sales-volume variance could result from:

Correct Answer: B) Competitors taking market share.

4. Which type of bank account typically offers the least (if any) interest?

Correct Answer: D) Checking account.

5. A budgeted income statement can be used by the business to predict:

Correct Answer: D) All of the above.

6. Statement prepared to show the relationship of different individual item with total

Correct Answer: B) Common size statement.

7. In Flexible budget Works overhead is (60% fixed) for Rupees 10.00 rs per unit what is the remaining value under semi variable over head.

Correct Answer: A) 4 Rs.

8. Standard material cost depends on specification, consumption and .....

Correct Answer: C) Price.

9. In Toll Road costing, the repetitive costs includes:

Correct Answer: A) Maintenance cost.

10. The basic difference between a flexible budget and fixed budget is that a fixed budget is

Correct Answer: C) Is a budget for single measure of activity whereas flexible budget is on different activity levels.

11. If sales are Rs. 10, 00, 000 sales returns are Rs. 50, 000 profit before tax is Rs. 2, 00, 000 Income tax is 40%, Net profit ratio is

Correct Answer: A) 12.63%.

12. Step Fixed Costs

Correct Answer: B) Rent.

13. Managerial accounting is an important aid to assist the management in

Correct Answer: C) Both dcision making and control.

14. Contribution Margin Ratio is calculated

Correct Answer: C) (Sales-Variable costs)/Sales revenue.

15. Gross profit ratio is calculated by

Correct Answer: B) (Gross profit / Net Sales) * 100.

16. Which of the following is not a functional budget?

Correct Answer: D) Budgeted Balance Sheet.

17. Objectives, tend to be narrow, specific statements.

Correct Answer: A) TRUE.

18. Management carelessness in making the budget is called

Correct Answer: B) Padding the Budget.

19. While sending the goods for distribution, packing the goods in Carton box will be considered

Correct Answer: C) Secondary Packing.

20. Revenue and expenses are recorded under:

Correct Answer: C) Owner's equity.