This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 35 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 35 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The transfering of work from a specific area of the company ( e.g. accounting, manufacturing) to an outside supplier, which can be done to a company that is located in the home country or anywhere else is called ..... A) Offshoring. B) Outsourcing. C) Globalization. D) None of above. Show Answer Correct Answer: B) Outsourcing. 2. This is concerned with 'the provision of information to assist management with planning, decision-making and control.' A) Financial Accounting. B) Management Accounting. Show Answer Correct Answer: B) Management Accounting. 3. If income is ₹ .16, 000 and 'deficit' debited to capital fund is ₹ .4, 300, then expenditure is ..... A) ₹ .20, 300. B) ₹ .16, 000. C) ₹ .4, 300. D) None of the above. Show Answer Correct Answer: A) ₹ .20, 300. 4. When machine-hours are used as an overhead cost-allocation base and annual leasing costs for equipment unexpectedly increase, the most likely result would be to report a(n): A) Unfavorable variable overhead spending variance. B) Favorable variable overhead efficiency variance. C) Unfavorable fixed overhead flexible-budget variance. D) Favorable production-volume variance. Show Answer Correct Answer: C) Unfavorable fixed overhead flexible-budget variance. 5. How many people does your company ..... ? A) Employ. B) Produce. C) Profit. D) Cost. Show Answer Correct Answer: A) Employ. 6. What is the first level of pricing decision making? A) Strategic decision making. B) Tactical decision making. C) Operational decision making. D) Market strategy decision making. Show Answer Correct Answer: A) Strategic decision making. 7. Which of the following is never included in product cost? A) Overhead. B) Direct materials. C) Variable selling expense. D) Fixed factory overhead. Show Answer Correct Answer: C) Variable selling expense. 8. Generally Accepted Accounting Principles (GAAP) require the use of which accounting method for external reporting? A) Absorption costing. B) Variable costing. C) Transfer price costing. D) Responsibility costing. Show Answer Correct Answer: A) Absorption costing. 9. Variable costing is A) A good way to value inventories for the balance sheet. B) Used for external reporting purposes. C) Not useful for companies with multiple segments. D) A useful tool for management decision making. Show Answer Correct Answer: D) A useful tool for management decision making. 10. ..... requires the management to look a head and establish objectives. A key objective of management is to add value to the business. A) Planning. B) Controlling. C) Decision Making. D) None of above. Show Answer Correct Answer: A) Planning. 11. Telephone costs for the office forms part of the factory overheads? A) True. B) False. Show Answer Correct Answer: B) False. 12. What is the second level of pricing decision making? A) Tactical decision making. B) Strategic decision making. C) Operational decision making. D) Market strategy decision making. Show Answer Correct Answer: A) Tactical decision making. 13. The total cost tend to change as to level of activity changes A) Period cost. B) Fixed cost. C) Variable cost. D) Change order cost. Show Answer Correct Answer: C) Variable cost. 14. Emigh Corporation's cost of goods manufactured for the just completed month was $ 146, 000 and its overhead was overapplied by $ 5, 000. The beginning finished goods inventory was $ 35, 000 and the ending finished goods inventory was $ 37, 000. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. How much was the adjusted cost of goods sold on the Schedule of Cost of Goods Sold? A) $ 144, 000. B) $ 146, 000. C) $ 181, 000. D) $ 139, 000. Show Answer Correct Answer: D) $ 139, 000. 15. ..... collects, analyses, and understands the financial, qualitative, and statistical information to help the management make effective decisions about the business. A) Financial accounting. B) Cost accounting. C) Management accounting. D) None of above. Show Answer Correct Answer: C) Management accounting. 16. Piekos Corporation incurred $ 90, 000 of actual Manufacturing Overhead costs during June. During the same period, the Manufacturing Overhead applied to Work in Process was $ 92, 000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a: A) Debit to Manufacturing Overhead of $ 92, 000. B) Debit to Work in Process of $ 90, 000. C) Credit to Manufacturing Overhead of $ 92, 000. D) Credit to Work in Process of $ 90, 000. Show Answer Correct Answer: C) Credit to Manufacturing Overhead of $ 92, 000. 17. Does the following transaction result in Change in Working Capital as per Funds flow statement?" Income Tax paid" A) Yes. B) No. Show Answer Correct Answer: A) Yes. 18. Liquid ratio is also known asA. Quick ratioB. Acid test ratioC. Working capital ratioD. Stock turnover ratio A) A & B. B) A & C. C) B & C. D) C & D. Show Answer Correct Answer: A) A & B. 19. Person's reputation for paying bills on time. A) Net worth. B) Credit card. C) Bankruptcy. D) Credit rating. Show Answer Correct Answer: D) Credit rating. 20. Corporate governance is ..... mechanism A) Self regulatory. B) Government controlled. C) External controlled. D) None of above. Show Answer Correct Answer: A) Self regulatory. ← 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