This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 48 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 48 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... data are presented in budget A) Actual. B) Estimated. C) Both. D) None. Show Answer Correct Answer: B) Estimated. 2. ..... is prepared for single level of activity and single set of business conditions. A) Fixed budget. B) Flexible budget. C) Both a and b. D) None of the above. Show Answer Correct Answer: A) Fixed budget. 3. Which of the following best describes annuity factor?1. It is series of cash flows of equal amount after equal intervals for infinite period of time2. It is series of cash flows of equal; amounts after equal intervals for a limited period of time A) 1 only. B) 2 only. C) Both. D) None. Show Answer Correct Answer: B) 2 only. 4. Which savings account will earn you the most money? A) One that compounds interest daily. B) One that compounds interest monthly. C) One that earns simple interest daily. D) One that earns simple interest monthly. Show Answer Correct Answer: A) One that compounds interest daily. 5. In the context of Funds Flow Analysis, the word "funds" is used to define A) Net Working capital. B) Total current assets-Total current liabilities. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 6. What is the main purpose of accounting? A) To conduct legal research. B) To market products and services. C) To manage human resources. D) To identify, measure, record, and communicate financial information. Show Answer Correct Answer: D) To identify, measure, record, and communicate financial information. 7. BOT approach means: A) Build, Operate and Transfer. B) Buy, Operate and Transfer. C) Build, Operate and Trash. D) Build, Own and Trash. Show Answer Correct Answer: A) Build, Operate and Transfer. 8. ..... is an asset that is not physical in nature. A) Tangible Assets. B) Intangible Assets. Show Answer Correct Answer: B) Intangible Assets. 9. What type of cost is supervisor salary costs, where one supervisor is needed for every ten employees added to the staff? A) A fixed cost. B) A variable cost. C) A mixed cost. D) A step cost. Show Answer Correct Answer: D) A step cost. 10. If a business increases the selling price of a product by £1 what will be the impact on the breakeven point and the margin of safety, assuming no change in the number of units produced? A) The breakeven point will decrease and the margin of safety will increase. B) The breakeven point will decrease and the margin of safety will stay the same. C) The margin of safety will stay the same but the breakeven point will increase. D) The margin of safety will decrease and the breakeven point will decrease. Show Answer Correct Answer: A) The breakeven point will decrease and the margin of safety will increase. 11. Budgeting includes only the financial aspects of the plan and not any non financial aspects such as the number of physical units manufactured A) True. B) False. Show Answer Correct Answer: B) False. 12. Which of the following is a variable cost? A) A cost that is $ 20, 000 when production is 50, 000, and $ 20, 000 when production is 70, 000. B) A cost that is $ 20, 000 when production is 50, 000, and $ 28, 000 when production is 70, 000. C) A cost that is $ 20, 000 when production is 50, 000, and $ 40, 000 when production is 70, 000. D) A cost that is $ 40, 000 when production is 50, 000, and $ 40, 000 when production is 70, 000. Show Answer Correct Answer: B) A cost that is $ 20, 000 when production is 50, 000, and $ 28, 000 when production is 70, 000. 13. Managers utilizes marginal costing for A) Make or buy decision. B) Utilization of additional capacity. C) Acceptance of special orders. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. Master budget in nature A) General. B) Comprehension. C) Specific. D) Complex. Show Answer Correct Answer: B) Comprehension. 15. A product may be passed from one subunit to another subunit in the same organization. The product is known as a(n): A) Interdepartmental product. B) Intermediate product. C) Subunit product. D) Transfer product. Show Answer Correct Answer: B) Intermediate product. 16. A factory produces two types of articles Y and Z. Article Y takes 8 hours to make and Z takes 16 hours. In a month ( 25 days * 8 hours) 600 units of X and 400 units of Z are produced. Given budgeted hours 8000 per month and men employed are 50. Determine Activity ratio, Capacity ratio and efficiency ratio. A) 112%, 140%, 140%. B) 140%, 112%, 140%. C) 140%, 140%, 112%. D) None of the above. Show Answer Correct Answer: C) 140%, 140%, 112%. 17. An activity-based overhead rate is computed as ..... A) Actual overhead divided by actual use of cost drivers. B) Actual overhead divided by estimate use of cost drivers. C) Estimated overhead divided by actual use of cost drivers. D) Estimate overhead divided by estimate use of cost drivers. Show Answer Correct Answer: D) Estimate overhead divided by estimate use of cost drivers. 18. Doakes Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:Total direct labor-hours:60, 000Total fixed manufacturing overhead cost:$ 378, 000Variable manufacturing overhead per direct labor-hour:$ 2.20 Recently, Job M843 was completed with the following characteristics:Number of units in the job:60Total direct labor-hours:120Direct materials:$ 630Direct labor cost:$ 2, 400The unit product cost for Job M843 is closest to:(Round your intermediate calculations to 2 decimal places.) A) $ 33.75. B) $ 67.50. C) $ 27.50. D) $ 50.50. Show Answer Correct Answer: B) $ 67.50. 19. Which is not a scope of management accounting A) Cost Accounting. B) Recording Financial Transection. C) Budgetary Control. D) None of above. Show Answer Correct Answer: B) Recording Financial Transection. 20. The analytical approach and process may be summarized into three broad stages-analysis, design, and implementation. The design stage consists of A) Planning and scheduling actions to achieve the desired results, as well as advising and providing technical assistance in implementation. B) Ascertaining the pertinent facts and circumstances, seeking and identifying objectives, and defining the problem or opportunity for improvement. C) Evaluating and determining possible solutions and presenting findings and recommendations. D) All of the above. Show Answer Correct Answer: C) Evaluating and determining possible solutions and presenting findings and recommendations. ← 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