This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 28 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Decision to make should be taken when- A) Marginal cost is more than purchase cost. B) Marginal cost is less than purchase cost. C) Total cost is more than purchase cost. D) Total cost is less than purchase cost. Show Answer Correct Answer: B) Marginal cost is less than purchase cost. 2. Fixed cost is also referred to as ..... in the marginal costing technique. A) Total cost. B) Product cost. C) Period cost. D) None of the above. Show Answer Correct Answer: C) Period cost. 3. Every department of the organization prepares ..... for management within specified period- A) House. B) Guest House. C) New Office. D) Reports. Show Answer Correct Answer: D) Reports. 4. Which one of the following is not a real account? A) Machinery account. B) Sales account. C) Goodwill account. D) Equipment account. Show Answer Correct Answer: B) Sales account. 5. An important assumption of cost-volume-profit analysis is that A) Both costs and revenues are linear functions. B) The sales mix remains constant. C) All of the above are assumptions of cost-volume-profit analysis. D) There is no change in inventories. Show Answer Correct Answer: C) All of the above are assumptions of cost-volume-profit analysis. 6. John's 8-year-old Toyota Inova requires repairs estimated at $ 6, 000 to make it roadworthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Honda CRV instead for $ 6, 000 cash. Sherry estimated the following costs for the two cars:Toyota Inova Honda CRV Acquisition cost $ 25, 000 $ 6, 000 Repairs $ 6, 000 Annual operating cost $ 2, 280 $ 2, 100 The cost NOT relevant for this decision is the: A) Acquisition cost of the Toyota Inova. B) Acquisition cost of the Honda CRV. C) Repairs to the Toyota Inova. D) Annual operating costs of the Honda CRV. Show Answer Correct Answer: A) Acquisition cost of the Toyota Inova. 7. The..... is an operational concept linked to the generation of new wealth. The.....refers to the amount and participation of the income that reaches those who provide their own capital to the private company A) Utility, Profitability. B) Profit, Administration. C) Profitability, Utility. D) Maximization, Wealth. Show Answer Correct Answer: C) Profitability, Utility. 8. At a volume of 5, 000 units, Pwerson Company incurred $ 32, 000 in factory overhead costs, including $ 14, 000 in fixed costs. If volume increases to 6, 000 units and both 5, 000 units and 6, 000 units are within the relevant range, then the company would expect to incur total factory overhead costs of:(Round intermediate calculations to 2 decimal places.) A) $ 35, 600. B) $ 21, 600. C) $ 32, 000. D) $ 18, 000. Show Answer Correct Answer: A) $ 35, 600. 9. Royalty on production will be recorded in A) Trading account debit side. B) Trading account credit side. C) Profit and loss account debit side. D) Profit and loss account credit side. Show Answer Correct Answer: A) Trading account debit side. 10. What is the main function of management accounting? A) Decision making. B) Planning. C) Direction. D) Provision of information to management . Show Answer Correct Answer: D) Provision of information to management . 11. For accounting purpose, the proprietor is a separate and distinct entity from the business. A) True. B) False. Show Answer Correct Answer: A) True. 12. Quick ratio is also known as ..... A) Monetary ratio. B) Acid test ratio. C) Chemical test ratio. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. The reason we create Bad debt Reserve in the books of accounts is due to the A) Materiality Concept. B) Convention of Consistency. C) Realisation Concept. D) Convention Conservatism. Show Answer Correct Answer: D) Convention Conservatism. 14. Production cost is the sum of all manufacturing costs A) True. B) False. Show Answer Correct Answer: A) True. 15. Shows the total change in cash from operating, investing, and financing activities A) Beginning Cash Balance. B) Net Cash Flows. C) Ending Cash Balance. D) None of above. Show Answer Correct Answer: B) Net Cash Flows. 16. Planning and control are A) Different names for the same thing. B) The basic functions of management. C) Described equally well by the terms "decision making" and "performance evaluation.". D) Exemplified by, respectively, financial statements and budgeting. Show Answer Correct Answer: B) The basic functions of management. 17. The owner invests personal cash in business. A) Asset (I). B) Liabilities (I). C) Equity (NE). D) None of above. Show Answer Correct Answer: A) Asset (I). 18. Juan Dela Cruz is the marketing manager for a local recreational sports complex. Juan's role in the marketing department is to advertise events, meet potential clients, and plan future events. Juan is responsible for revenues and costs for each event and reports to the sport's complex manager. Juan's marketing department is an example of which type of responsibility center? A) Cost center. B) Profit center. C) Revenue center. D) Investment center. Show Answer Correct Answer: B) Profit center. 19. What is the thing that makes the Corporate Investors one of the scope of Management Accounting? A) Details of Costs. B) Company Financial Information. C) Recording Financial Transactions & Company Activities that Require Funding. D) Data containing all Cost Components. Show Answer Correct Answer: B) Company Financial Information. 20. Ideally, the net cash flow should be A) Positive. B) Negative. Show Answer Correct Answer: A) Positive. ← 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