This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 42 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 42 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the decrease side of Supplies? A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 2. Which of the following statements is true of variable overhead costs? A) Variable overhead costs always have unused capacity. B) Variable overhead costs have no production-volume variance. C) Variable overhead costs have no spending variance. D) Variable overhead costs have no efficiency variance. Show Answer Correct Answer: B) Variable overhead costs have no production-volume variance. 3. Which is a liability of a business? A) Amount owing by debtors (Trade Receivables). B) Amount owing to creditors (Trade Payables). C) Long term loan to employee. D) Property tax paid in advance. Show Answer Correct Answer: B) Amount owing to creditors (Trade Payables). 4. EMA is primarily concerned with financial management and does not consider environmental aspects. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 5. The value chain is the sequence of business functions in which: A) Value is deducted from the products or services of an organization. B) Value is proportionately added to the products or services of an organization. C) Products and services are evaluated with respect to their value to the supply chain. D) Usefulness is added to the products or services of an organization. Show Answer Correct Answer: B) Value is proportionately added to the products or services of an organization. 6. Management accounting provides information needed by management. A) True. B) False. Show Answer Correct Answer: A) True. 7. Bowden Corporation used the following data to evaluate their current operating system. The company sells items for $ 20 each and used a budgeted selling price of $ 20 per unit. Actual Budgeted Units sold 46, 000 units 45, 000 units Variable costs $ 225, 400 $ 216, 000 Fixed costs $ 47, 500 $ 50, 000 What is the static-budget variance of revenues? A) $ 20, 000 favorable. B) $ 20, 000 unfavorable. C) $ 2, 000 favorable. D) $ 2, 000 unfavorable. Show Answer Correct Answer: A) $ 20, 000 favorable. 8. The P&L account shows the historical performance of a business. There is no guarantee that future performance is linked to past performance or success. A) LIMITATION OF P & L ACCOUNTS. B) BENEFIT OF P&L ACCOUNTS. Show Answer Correct Answer: A) LIMITATION OF P & L ACCOUNTS. 9. Which of the following should not be recorded in the income and expenditure account? A) Sales of old news papers. B) Loss on sale of asset. C) Honorarium paid to the secretary. D) Sale proceeds of furniture. Show Answer Correct Answer: D) Sale proceeds of furniture. 10. Items of value owned by a business are called: A) Assets. B) Liabilities. C) Owner's equity. D) Bonds. Show Answer Correct Answer: A) Assets. 11. Fixed overhead costs include: A) The cost of sales commissions. B) Leasing of machinery used in a factory. C) Energy costs. D) Indirect materials. Show Answer Correct Answer: B) Leasing of machinery used in a factory. 12. The term management accounting was first coined in ..... A) 1940. B) 1950. C) 1960. D) 1970. Show Answer Correct Answer: B) 1950. 13. Issue of bonus shares out of reserves A) Increase working capital. B) Decrease working capital. C) Does not affect working capital. D) All of these. Show Answer Correct Answer: C) Does not affect working capital. 14. Throughput = A) Sales-VC. B) Selling Price-Material Cost. C) Sales-Direct material cost. D) All of these. Show Answer Correct Answer: C) Sales-Direct material cost. 15. The variable cost to make 1 unit of Product A is Rs.20 and purchase price for 2 units is Rs.30/-. Should the product be bought or made? A) Make. B) Buy. C) Indifferent. D) None of above. Show Answer Correct Answer: B) Buy. 16. Which of the following processes occurs at the business planning stage? A) Obtaining data about actual results. B) Taking corrective action. C) Comparing actual performance with budgets. D) Establishing objectives. Show Answer Correct Answer: D) Establishing objectives. 17. Personal Accounts are related to Individuals, Banks, Companies, etc. A) True. B) False. Show Answer Correct Answer: A) True. 18. The per unit Fixed Cost is ..... A) Constant. B) Directly related to the output. C) Inversely related to the output. D) No relation with output. Show Answer Correct Answer: C) Inversely related to the output. 19. What is the main financial statement that presents the financial health of an organization to its external stakeholders retrospectively? A) Statement of Change in Equity. B) Income Statement. C) Statement of Financial Position. D) Cash Flow Statement. Show Answer Correct Answer: B) Income Statement. 20. Fixed deposit A) Revenue. B) Liability. C) Asset. D) None of above. Show Answer Correct Answer: C) Asset. ← 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