This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 40 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 40 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the cost unit for electricity cost used for machinery? A) Kilowatt hours. B) Liters. C) Tons. D) Square feet. Show Answer Correct Answer: A) Kilowatt hours. 2. Non-manufacturing cost are cost incurred to produce the goods. It is sometimes known as non-manufacturing overhead or period cost. A) True. B) False. Show Answer Correct Answer: B) False. 3. What is the neoclassical theory of the firm's postulate for optimal pricing? A) Equating marginal product cost and marginal revenue. B) Considering fixed costs irrelevant for pricing decisions. C) Maximizing sales volume and profit. D) Aligning cost and demand conditions. Show Answer Correct Answer: A) Equating marginal product cost and marginal revenue. 4. Which of the following is not a part of Profit and loss Adjustment Account? A) Depreciation on Machinery. B) Amortization of goodwill. C) Loss on sale of an asset. D) Salaries paid. Show Answer Correct Answer: D) Salaries paid. 5. Management accounting deals with what kind of information? A) Qualitative Information. B) Quantitative Information. C) Both. D) None of the above. Show Answer Correct Answer: C) Both. 6. The significance of capital budgeting arises mainly due to the A) Complicacies of Investment decisions. B) Irreversible in nature. C) Large Investment. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. Indirect expenses are called A) Unabsorbed costs. B) Prime cost. C) Overheads. D) Factory expenses. Show Answer Correct Answer: C) Overheads. 8. Commission paid A) Asset. B) Expense. C) Revenue. D) None of above. Show Answer Correct Answer: B) Expense. 9. Which of the following is false regarding transfer pricing? A) If no market price exists, the transfer price may be based on cost. B) It measures exchanges between a company and its external customers. C) If a market price exists, this price may be used as transfer price between segments. D) It measures the value of goods or services furnished by one responsibility center to another. Show Answer Correct Answer: B) It measures exchanges between a company and its external customers. 10. These budgets are extended into the future as time passes. A) Rolling Budgets. B) Incremental Budgeting. C) Zero Based Budgeting. D) Activity Based Budgeting. Show Answer Correct Answer: A) Rolling Budgets. 11. Costs are classified according elements, nature, behaviour and function A) True. B) False. Show Answer Correct Answer: A) True. 12. Which cost is exclusive to this product? A) Overheads. B) Direct material and direct labour. Show Answer Correct Answer: B) Direct material and direct labour. 13. The future plan of all money transactions for a specific time frame A) Cash flow statement. B) Cash flow projection. Show Answer Correct Answer: B) Cash flow projection. 14. Cost of goods manufactured will include opening and closing stock for ..... A) Raw material and work in progress only. B) Work in progress only. C) Raw material only. D) Raw material, work in progress and finished goods. Show Answer Correct Answer: A) Raw material and work in progress only. 15. Dividend paid, under AS-3, is A) Cash flow from financing activity. B) Cash flow from operating activity. C) Cash flow from investing activity. D) None of above. Show Answer Correct Answer: A) Cash flow from financing activity. 16. Which of the following is added while calculating cash from operations? A) Decrease in current assets. B) Refund of taxes. C) Increase in Current Liabilities. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. The gross margin is added to the cost of sold goods to calculate A) Revenues. B) Selling price. C) Unit price. D) Bundle price. Show Answer Correct Answer: A) Revenues. 18. Manufacturing costs are usually combined o form prime cost and conversion cost. Which of these combination is for conversion cost. A) Direct material + Direct labor. B) Direct material + Manufacturing overhead. C) Direct labor + Manufacturing overhead. D) Direct labor + Administrative Expense. Show Answer Correct Answer: C) Direct labor + Manufacturing overhead. 19. The analysis of working capital to analyse the ability of firm to meet the short term needs of a company A) Short term. B) Long term. C) External. D) Internal. Show Answer Correct Answer: A) Short term. 20. The main objective of management accounting is A) To maintain the accounting records. B) To know the amount due from customers and suppliers. C) To ascertain analyze and interpret the results of business operations. D) To record all the business transactions. Show Answer Correct Answer: C) To ascertain analyze and interpret the results of business operations. ← 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