This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 26 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. It is used to fix the selling price, selection of best sales mix, best use of scarce raw materials or resources, to take make or buy decision, acceptance or rejection of bulk order and foreign order and the like. A) Financial Statement Analysis. B) Fund Flow Analysis. C) Standard Costing. D) Marginal Costing. Show Answer Correct Answer: D) Marginal Costing. 2. A company manufactures a single product with a variable cost per unit of Rs. 110. The P/V Ratio is 45%. Monthly fixed costs are Rs. 9, 90, 000. What is the break-even point in units A) 4950. B) 9000. C) 11000. D) 20000. Show Answer Correct Answer: C) 11000. 3. Qualitative information does not help in taking better quality decisions. A) True. B) False. C) May be. D) None. Show Answer Correct Answer: B) False. 4. Legacies should be treated as ..... A) A Liability. B) A Revenue Receipts. C) An Income. D) None of the above. Show Answer Correct Answer: A) A Liability. 5. Semi-variable costs contain both a fixed element and a variable element A) True. B) False. Show Answer Correct Answer: A) True. 6. Ahmad has an idea for a new business. He wants to start the business as soon as possible with the minimum amount of expenses. He also wants to be the boss and keeps all of the expected profits earn for him.Identify the type of business ownership that Ahmad would prefer to set up A) Sole proprietorship. B) Partnership. C) Private limited. D) Public limited. Show Answer Correct Answer: A) Sole proprietorship. 7. The Accounting Equation is: A) Assets = Liabilities + Capital. B) Liabilities = Assets-Capital. C) Assets-Labilities = Owners Equity. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Ensure thats the subordinates do not disclose confidential information is the characteristics of ..... Based on IMA code of ethics. A) Integrity. B) Objectivity. C) Confidentiality. D) Competence. Show Answer Correct Answer: C) Confidentiality. 9. All of the following statements are correct, except for? A) Businesses can claim back GST on any purchases of supplies and equipment. B) Businesses owe the ATO GST collected on service fees. C) GST Clearing can either be an asset or a liability. D) GST Clearing is always a liability. Show Answer Correct Answer: D) GST Clearing is always a liability. 10. The statements are produced monthly A) Financial accounting. B) Management accounting. Show Answer Correct Answer: B) Management accounting. 11. The chief accountant of an organization with responsibility for financial planing and analysis, cost control and financial reporting is the explanation of ..... A) An accountant. B) A treasurer. C) A president director. D) A controller. Show Answer Correct Answer: D) A controller. 12. ..... is the process of collecting, recording, classifying and summarising financial data A) Reporting. B) Accounting. C) Writing. D) Auditing. Show Answer Correct Answer: B) Accounting. 13. Place the following steps from the five-step decision process in order:A = Make predictions about future costs B = Evaluate performance to provide feedback C = Implement the decision D = Choose an alternative A) A D B C. B) C D A B. C) A D C B. D) D C B A. Show Answer Correct Answer: C) A D C B. 14. Which of the following statements are true about labour idle time? A) Labour idle time variance is not caused by non-availability of raw material. B) Labour idle time variance is measured as:Abnormal idle hours * Actual hourly rate. C) Labour idle time variance is always unfavorable or adverse. D) All of the above. Show Answer Correct Answer: C) Labour idle time variance is always unfavorable or adverse. 15. What is not included in the budget benefits is A) Control. B) Planning. C) Motivation. D) Convergence. Show Answer Correct Answer: D) Convergence. 16. A company has a creditors turnover ratio of 4 times per year. What is the average payment period of the company? A) 45 days. B) 60 days. C) 91.25 days. D) 120 days. Show Answer Correct Answer: C) 91.25 days. 17. Bad debts in cost accounting will come under A) Factory overhead. B) Office and Administrative Overhead. C) Selling and Distribution Overhead. D) Prime Cost. Show Answer Correct Answer: C) Selling and Distribution Overhead. 18. ..... is an indicator of a company's short-term liquidity position and measures a company's ability to meet its short-term obligations with its most liquid assets. A) Current Ratio. B) Quick Ratio. C) Debt Ratio. D) Gearing Ratio. Show Answer Correct Answer: B) Quick Ratio. 19. Which is a capital receipt for the owner of the bicycle shop? A) Purchase of bicycle delivery vehicle by cheque. B) Sale of old bicycle delivery vehicle for cash. C) Sale of bicycles for cash. D) Purchase of bicycles by cheque. Show Answer Correct Answer: B) Sale of old bicycle delivery vehicle for cash. 20. The following would appear in which section of the cash flow statement? Cash payment made to bank to pay down principal on long-term loan A) Operating. B) Investing. C) Financing. D) None of above. Show Answer Correct Answer: C) Financing. ← 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