This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 36 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 36 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following would be an example of a direct materials cost? A) Engine on an airplane. B) Lubricant used to manufacture a lighting fixture. C) Glue used to build cabinets. D) Nails used to manufacture a table. Show Answer Correct Answer: A) Engine on an airplane. 2. R&D budget and Capital expenditure budget are examples of A) Short-term budget. B) Current budget. C) Long-term budget. D) None of the above. Show Answer Correct Answer: C) Long-term budget. 3. Revenue is the positive difference between a firm's revenues and its costs. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 4. The analysis and interpretations of financial statement will reveal A) The profitability. B) The financial position. C) Both A & B. D) None of the above. Show Answer Correct Answer: C) Both A & B. 5. Corporate governance does not have any impact on the share price. A) True. B) False. Show Answer Correct Answer: B) False. 6. Which of the following is an example of a service? A) Motorcycle. B) Eye exam. C) Stereo. D) Television. Show Answer Correct Answer: B) Eye exam. 7. WHAT IS THE DEFINITION OF THE ENVIRONMENT ACCORDING TO LAW NO. 23 YEAR 1997? A) THE UNITONE OF SPACE WITH ALL THINGS, POWER, CONDITIONS, AND LIVING THINGS, INCLUDING HUMANS, AND THEIR BEHAVIOR THAT AFFECTS THE CONTINUITY OF LIFE AND THE WELFARE OF HUMANS AND OTHER LIVING BEHAVIORS. B) THE UNITONE WITH ALL OBJECTS, POWERS, CONDITIONS, AND LIVING THINGS, INCLUDING HUMANS, AND THEIR BEHAVIOR THAT AFFECTS THE CONTINUITY OF LIFE AND WELFARE OF HUMANS AND OTHER PLANET LIVING BEHAVIORS. C) THE UNITONE OF SPACE WITH ALL OBJECTS, RESOURCES, AND LIVING THINGS, INCLUDING HUMANS, AND THEIR HABITAT THAT AFFECT THE CONTINUITY OF LIFE AND WELFARE OF HUMANS AND OTHER LIVING BEINGS. D) A UNIT WITH ALL OBJECTS, POWER, CONDITIONS, AND LIVING THINGS, INCLUDING HUMANS, AND THEIR BEHAVIOR THAT AFFECT LIFE AND WELFARE OF HUMANS AND OTHER LIVING BEHAVIORS. Show Answer Correct Answer: A) THE UNITONE OF SPACE WITH ALL THINGS, POWER, CONDITIONS, AND LIVING THINGS, INCLUDING HUMANS, AND THEIR BEHAVIOR THAT AFFECTS THE CONTINUITY OF LIFE AND THE WELFARE OF HUMANS AND OTHER LIVING BEHAVIORS. 8. An individual or organisation to whom money or service is owed by the company. A) Creditor. B) Debtor. C) Shareholder. D) Purchaser. Show Answer Correct Answer: A) Creditor. 9. If the cost of goods sold is $ 8000, the gross margin is $ 5000 then the revenue will be A) $ 13, 000. B) -$ 13000. C) $ 3, 000. D) -$ 3000. Show Answer Correct Answer: A) $ 13, 000. 10. TEK, Inc., is considering whether to replace a production machine with a newer model of the same machine. If TEK keeps the old machine, the trade-in value of the old machine is an example of a(n) A) Avoidable cost. B) Sunk cost. C) Opportunity cost. D) Variable Cost. Show Answer Correct Answer: C) Opportunity cost. 11. What is the reporting frequency for management accounting? A) Once at the end of accounting period. B) As frequently as information needed for decision making purposes. Show Answer Correct Answer: B) As frequently as information needed for decision making purposes. 12. If Liabilities are $ 23, 000 and Capital is $ 9, 750, how much are Assets? A) $ 23, 000. B) $ 32, 750. C) $ 13, 250. D) None of above. Show Answer Correct Answer: B) $ 32, 750. 13. "The allotment of overheads to cost units" is a definition for A) ABC method. B) Absorption method. C) High and low method. D) Period cost manufacturing method. Show Answer Correct Answer: B) Absorption method. 14. As volume/unit decreases, total fixed costs A) Are constant and cost per unit decreases. B) Are constant and cost per unit increases. C) Increase. D) Decrease. Show Answer Correct Answer: B) Are constant and cost per unit increases. 15. The price that one division of a company charges another division for goods and services provided is called A) Market price. B) Outlay price. C) Distress price. D) Transfer price. Show Answer Correct Answer: D) Transfer price. 16. "Managemnt Accounting is the process of identification measurement accumulation analysis preparation interpretation and communication of information that assist executives in fulfilling organisational objectives" this definition given by A) Charles T Horngren. B) American Accountants. C) Smith. D) Asburne. Show Answer Correct Answer: A) Charles T Horngren. 17. Which of these is not a component of Prime Cost A) Direct Material. B) Direct Labour. C) Direct Expenses. D) Factory Expenses. Show Answer Correct Answer: D) Factory Expenses. 18. Can we afford to give our employees a pay raise? A) Human Resource. B) Finance. C) Management. D) Labour Union. Show Answer Correct Answer: A) Human Resource. 19. Capital Expenditure is money spent by the business on non-current assets that will stay in the business for a reasonable period of time; (E.g Land) A) True. B) False. Show Answer Correct Answer: A) True. 20. Payment of Electricity Bill A) Capital Expenditure. B) Revenue Expenditure. Show Answer Correct Answer: B) Revenue Expenditure. ← 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