This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 38 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 38 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is not correct about ABC: A) Less accurate. B) Difficult to implement. C) Time consuming. D) Massive amount of data. Show Answer Correct Answer: A) Less accurate. 2. Fixed cost is also known as ..... A) Flexible cost. B) Marginal cost. C) Period cost. D) All of the above. Show Answer Correct Answer: C) Period cost. 3. Book value is defined as the: A) Sum of the original cost of an asset and the accumulated depreciation. B) Difference between the market value of an asset and the accumulated depreciation. C) Difference between the original cost of an asset and the accumulated depreciation. D) Sum of the market value of an asset and the accumulated depreciation. Show Answer Correct Answer: C) Difference between the original cost of an asset and the accumulated depreciation. 4. The company purchases land by paying half in cash and signing a note A) Assets (NE). B) Liabilities (I). C) Equity (I). D) None of above. Show Answer Correct Answer: B) Liabilities (I). 5. Given Production at 60% activity, 600 units, Material Rs 50 per unit, Labour Rs 20 per unit, Direct expenses Rs 5 per unit, Factory overheads Rs 20, 000 ( 60% variable) and Administration expenses Rs 15, 000 ( 60% fixed). What will be the total cost per unit for production at 80% capacity? A) Rs 1, 01, 000. B) Rs 126.25. C) Rs 122. D) Rs 1, 22, 000. Show Answer Correct Answer: B) Rs 126.25. 6. Fixed cost includes ..... A) Property taxes. B) Rent. C) Insurance premium. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. Dividend received by the financing company is classified under ..... activity. A) Operating. B) Financing. C) Investing. D) None. Show Answer Correct Answer: A) Operating. 8. Cost accounting concepts include all the following except A) Planning. B) Controlling. C) Profit sharing. D) Product costing. Show Answer Correct Answer: C) Profit sharing. 9. A trader wishes to know the cost of goods sold during the year.Which financial statement will provide the answer? A) Statement of Financial Position (Balance Sheet). B) Profit and Loss Account. C) Trading Account. D) Trial Balance. Show Answer Correct Answer: C) Trading Account. 10. It is an offer of service. When accepted or approved, it becomes a contractual agreement. A) Proposal letter. B) Confirmation letter. C) Engagement letter. D) Contract. Show Answer Correct Answer: A) Proposal letter. 11. In evaluating an investment center, top management should concentrate on A) Net income. B) Salt weight. C) Profit percentages. D) Return on investment. Show Answer Correct Answer: D) Return on investment. 12. The following is the formula to calculate Gross Profit A) Revenue-Cost of Sales. B) Revenue-All Expenses. C) Revenue + Cost of Sales. D) Expenses + Cost of Sales. Show Answer Correct Answer: A) Revenue-Cost of Sales. 13. If total cost of 100 units is Rs. 5000 and those of 101 units is Rs. 5030 then increase of Rs. 30 in total cost is A) Marginal cost. B) All variable cost. C) Prime cost. D) None of the above. Show Answer Correct Answer: A) Marginal cost. 14. Operating Budget produces A) Project Income Statement. B) Cash Budget. C) Budget report for production activities. D) Direct Material Budget. Show Answer Correct Answer: A) Project Income Statement. 15. Transport inwards is an example of Ordering costs A) True. B) False. Show Answer Correct Answer: A) True. 16. Budget A) A budget that is based on several possible levels of sales activity, also known as a variable budget. B) A budget that allows an establishment to plan for the replacement of high-cost equipment that wears out, and to purchase new types of equipment that may come on the market. C) A budget from one year to five years in the future. D) A plan that indicates an operation's financial objectives or financial standards. Show Answer Correct Answer: D) A plan that indicates an operation's financial objectives or financial standards. 17. The part of total cost which changes due to change in output by 1 unit is ..... A) Opportunity Cost. B) Relevant Cost. C) Marginal Cost. D) Imputed Cost. Show Answer Correct Answer: C) Marginal Cost. 18. Why management of a company need to know the cost of a product? A) To make the products famous. B) To determine the selling price. C) To determine the GST. D) To get profit. Show Answer Correct Answer: B) To determine the selling price. 19. Operating Profit is ..... A) Operating expenses only. B) Cost of goods only. C) Non operating expenses. D) Gross profit less Operating expenses. Show Answer Correct Answer: D) Gross profit less Operating expenses. 20. Jenny's Corporation manufactured 25, 000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $ 20.00 per machine-hour. The following fixed overhead data pertain to March:Actual Static Budget Production 25, 000 units 24, 000 units Machine-hours 6, 100 hours 6, 000 hours Fixed overhead costs for March $ 123, 000 $ 120, 000 What is the fixed overhead spending variance? A) $ 1, 000 unfavorable. B) 2, 000 favorable. C) $ 3, 000 unfavorable. D) $ 5, 000 favorable. Show Answer Correct Answer: C) $ 3, 000 unfavorable. ← 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