This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 45 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 45 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a common size Income statement, what is the base for calculating the change percentage of the items? A) Net Sales. B) Total Income. C) Total Expenses. D) Non Of the above. Show Answer Correct Answer: A) Net Sales. 2. ..... ensure that the assets and liabilities of a business are properly accounted for provide information to stakeholders. A) Financial Accounting Systems. B) Management Accounting Systems. C) Cost Accounting Systems. D) None of above. Show Answer Correct Answer: A) Financial Accounting Systems. 3. Fixed cost is a cost: A) Which changes in total in proportion to changes in output. B) Which is partly fixed and partly variable in relation to output. C) Which do not change in total during a given period despise changes in output. D) Which remains same for each unit of output. Show Answer Correct Answer: C) Which do not change in total during a given period despise changes in output. 4. Which of these is NOT one of the 3 main types of financial statements most businesses have? A) Inflow Statement. B) Balance Sheet. C) Income Statement. D) Cash Flow Statement. Show Answer Correct Answer: A) Inflow Statement. 5. What is the scope of management accounting A) Cost accounting. B) Budgeting. C) Forecasting. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. Example of Fixed Asset A) Land. B) Cash in Hand. C) Credit Card. D) Creditor. Show Answer Correct Answer: A) Land. 7. A Debenture is a kind of ..... instrument A) Debit. B) Debt. C) Ownership. D) Asset. Show Answer Correct Answer: B) Debt. 8. A cash budget is used to determine: A) Profit. B) Cash closing balance. C) The value of the business. D) The debts of the business. Show Answer Correct Answer: B) Cash closing balance. 9. The per-unit amount of three different production costs for Jones, Inc., are as follows:ProductionPRODUCTION COST A COST B COST C 20 000 $ 12.00 $ 15.00 $ 20.00 80 000 $ 12.00 $ 11.25 $ 5.00What type of cost is each of these three costs? A) Cost A is mixed, Cost B is variable, Cost C is mixed. B) Cost A is fixed, Cost B is mixed, Cost C is variable. C) Cost A is fixed, Cost B is variable, Cost C is mixed. D) Cost A is variable, Cost B is mixed, Cost C is fixed. Show Answer Correct Answer: D) Cost A is variable, Cost B is mixed, Cost C is fixed. 10. Which ONE of the following is a characteristic of financial accounting? A) Its purpose is to provide information for managers. B) It is based on future events. C) Its purpose is to provide information for owners and investors. D) The timing and content of its reports is decided by managers. Show Answer Correct Answer: C) Its purpose is to provide information for owners and investors. 11. ..... analysis is known as a dynamic analysis A) Horizontal. B) Vertical. C) Long Term. D) External. Show Answer Correct Answer: A) Horizontal. 12. Which of the following is an example of an environmental cost? A) Employee salaries. B) Office supplies. C) Marketing expenses. D) Energy consumption. Show Answer Correct Answer: D) Energy consumption. 13. The Product X can be sold after further processing @ Rs.25 whereas it can be sold without further processing @ Rs.20 per unit. If the Further processing cost for 250 units is Rs. 1500, should Product X be further processed? A) Yes. B) No. C) Indifferent. D) None of above. Show Answer Correct Answer: B) No. 14. Which of the following is a branch of accounting that focuses on current and future trends for internal use? A) Forensic Accounting. B) Cost Accounting. C) Management Accounting. D) Financial Accounting. Show Answer Correct Answer: C) Management Accounting. 15. Higher budgetary ..... (allocate) for education mean more teachers can be hired and classes can be smaller A) Allocating. B) Allocations. C) Allocation. D) Allocated. Show Answer Correct Answer: B) Allocations. 16. An increase in the variable cost ..... A) Decreases the break-even point. B) Increase margin of safety. C) Improves the profit/volume ratio. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. ..... are both an historical record and a future planning tool. A) Financial Accounts. B) Management Accounts. Show Answer Correct Answer: B) Management Accounts. 18. Which method of inventory valuation is prohibited under IAS2? A) LIFO. B) FIFO. C) AVCO. D) None of above. Show Answer Correct Answer: A) LIFO. 19. Liquidity ratios are expressed in A) Pure ratio form. B) Percentage. C) Rate or time. D) None of the above. Show Answer Correct Answer: A) Pure ratio form. 20. Which of the following is true of depreciation cost? A) Depreciation cost on equipment is irrelevant in decision making because depreciation on equipment that has already been purchased is a past cost. B) Depreciation cost on equipment is relevant in decision making because depreciation on equipment that has already been purchased is an opportunity cost. C) Depreciation cost on equipment is irrelevant in decision making because there is no cash transaction. D) Depreciation cost on equipment is irrelevant in decision making because depreciation on equipment that has already been purchased is an opportunity cost. Show Answer Correct Answer: A) Depreciation cost on equipment is irrelevant in decision making because depreciation on equipment that has already been purchased is a past cost. ← 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