This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 47 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 47 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Premium on redemption of debenture is A) A cash inflow. B) Cash outflow. C) An income. D) An asset. Show Answer Correct Answer: B) Cash outflow. 2. It is a method, which measures how quickly (or slowly) a project will repay the initial capital investment. A) Capital Investment Appraisal. B) Net Present Value. C) Payback Method. D) Average Rate of Return. Show Answer Correct Answer: C) Payback Method. 3. Which of these are the components of prime cost? A) Direct materials and indirect materials. B) Direct wages and indirect wages. C) Direct materials and direct wages. D) Indirect materials and indirect materials. Show Answer Correct Answer: C) Direct materials and direct wages. 4. ..... is the language of Business which used to communicate financial information. A) Accounting. B) Marketing. C) Profit. D) Pricing. Show Answer Correct Answer: A) Accounting. 5. Sales Rs. 1, 20, 000, gross profit Rs. 30, 000 what is the gross profit ratio? A) 30%. B) 25%. C) 40%. D) 20%. Show Answer Correct Answer: B) 25%. 6. Dividing costs of the department into activity cost pools is known as: A) Second-stage allocation. B) First-stage allocation. C) No allocation stage. D) Full allocation. Show Answer Correct Answer: B) First-stage allocation. 7. A cost at 27, 000 output is Rs 3, 00, 000 and at 30, 000 output is Rs ..... 3, 15, 000. What shall be overhead cost for 33, 000 units? A) Rs. 3, 66, 667. B) Rs. 3, 46, 500. C) Rs. 3, 30, 000. D) Rs. 3, 15, 000. Show Answer Correct Answer: C) Rs. 3, 30, 000. 8. Return Inwards appearing in the Trial Balance is deducted from A) Purchases. B) Sales. C) Direct expenses. D) None of these. Show Answer Correct Answer: B) Sales. 9. Which of the following would not be a period cost? A) Research and development. B) Direct materials. C) Advertising costs. D) Office supplies. Show Answer Correct Answer: B) Direct materials. 10. Which of the following can be a reason for a favorable price variance for direct materials? A) A decrease in the price of materials due to an oversupply of materials. B) An unexpected increase in the price of materials. C) Less amount of material used during production than planned for actual output. D) Workers taking less time to produce the products than was expected. Show Answer Correct Answer: A) A decrease in the price of materials due to an oversupply of materials. 11. Which one the Natures of Accounting? A) Classifying, Measuring, Communicating, Controlling, Recording. B) Identifying, Classifying, Measuring, Controlling, Recording. C) Identifying, Measuring, Classifying, Communicating, Recording. D) Identifying, Controlling, Measuring, Communicating, Recording. Show Answer Correct Answer: C) Identifying, Measuring, Classifying, Communicating, Recording. 12. ..... is a difference between standard cost and actual cost. A) Cost Variance. B) Favourable. C) Adverse. D) Neutral. Show Answer Correct Answer: A) Cost Variance. 13. 1 Which method of capital budgeting called benefit cost ratio? A) Pay back period method. B) Net present value method. C) Payout period method. D) Profitability Index method. Show Answer Correct Answer: D) Profitability Index method. 14. The sales manager has prepared a manpower plan to ensure that sales quotas for the forthcoming year are achieved. This is an example of what type of planning? A) Strategic planning. B) Tactical planning. C) Operational planning. D) Corporate planning. Show Answer Correct Answer: B) Tactical planning. 15. Marginal costing is also known as A) Direct costing. B) Variable costing. C) Both a & b. D) None of the above. Show Answer Correct Answer: C) Both a & b. 16. Which of the following transactions would be considered to be capital receipts? A) Additional capital introduced by the owner. B) Interest on a bank savings account. C) Sale of goods. D) Money received from a tenant for rent. Show Answer Correct Answer: A) Additional capital introduced by the owner. 17. To meet decision-making needs, the process of gathering and analyzing information about a company and its competitive environment is known as A) Business process reengineering. B) Process elimination. C) Business intelligence. D) Planning. Show Answer Correct Answer: C) Business intelligence. 18. Management Cosulting A) Is limited to CPAs. B) Is not limited to CPAs. C) May be practiced only by anybody since it is not limited to CPAs. D) Is regulated by law, such that an individual must pass government licensure examination first before he could practice the same. Show Answer Correct Answer: B) Is not limited to CPAs. 19. Paying the rent would be an example of A) Cash inflow. B) Cash outflow. Show Answer Correct Answer: B) Cash outflow. 20. Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as: A) Direct materials. B) A period cost. C) Administrative expense. D) Manufacturing overhead. Show Answer Correct Answer: D) Manufacturing overhead. ← 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