This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 49 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 49 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Asset accounts increase with a A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 2. The cost which remain constant up to a certain level of activity is known as A) Semi variable cost. B) Variable cost. C) Marginal cost. D) Fixed cost. Show Answer Correct Answer: D) Fixed cost. 3. Money you receive for letting someone use your money; money you pay for using someone else's money A) Credit. B) Interest. C) Finance charge. D) Budget. Show Answer Correct Answer: B) Interest. 4. Manufacturing overhead includes: A) All direct material, direct labor and administrative costs. B) All manufacturing costs except direct labor. C) All manufacturing costs except direct labor and direct materials. D) All selling and administrative costs. Show Answer Correct Answer: C) All manufacturing costs except direct labor and direct materials. 5. Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $ 360, 000 or a new model 220 machine costing $ 340, 000 to replace a machine that was purchased 7 years ago for $ 348, 000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L. Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $ 340, 000 in the new machine, the money could be invested in a project that would return a total of $ 411, 000. In making the decision to invest in the model 220 machine, the opportunity cost was: A) $ 348, 000. B) $ 340, 000. C) $ 360, 000. D) $ 411, 000. Show Answer Correct Answer: D) $ 411, 000. 6. Sunk costs are: A) Relevant for decision making. B) Not relevant for decision making. C) Cost to be incurred in future. D) A. future costs. Show Answer Correct Answer: B) Not relevant for decision making. 7. With the same data as previous question, what is the margin of safety in percentage? A) 4%. B) 40%. C) 400%. D) 0.4%. Show Answer Correct Answer: A) 4%. 8. The cost of Insurance and Taxes are included in A) Cost of ordering. B) Set up cost. C) Inventory Carrying cost. D) Cost of shortage. Show Answer Correct Answer: C) Inventory Carrying cost. 9. Launch target Presentation of BPP per generating machine A) July 01, 2022. B) July 31, 2022. C) 30 Sept 2022. D) 15 Sept 2022. Show Answer Correct Answer: C) 30 Sept 2022. 10. The total contribution margin is the A) Difference between sales and total cost. B) Difference between sales and total variable cost. C) Amount by which sales exceed total fixed cost. D) Difference between sales and operating income. Show Answer Correct Answer: B) Difference between sales and total variable cost. 11. Determine P/V ratio if sales is Rs. 80, 000 and Variable cost is Rs. 60, 000 A) 40%. B) 25%. C) 50%. D) None of the above. Show Answer Correct Answer: B) 25%. 12. EVA in SMA refers to? A) Economic vulnerability added. B) Economic value added. C) Economic Value Addition. D) Economic Value Analysis. Show Answer Correct Answer: B) Economic value added. 13. Taking the time to set goals wastes your limited time. A) True. B) False. Show Answer Correct Answer: B) False. 14. Which of the following items are not included in a cash budget? A) Gain on sale of asset. B) Cash sales. C) Payment received from debtors. D) Interest received from the bank. Show Answer Correct Answer: A) Gain on sale of asset. 15. Management of a business enterprise is the major external user of information. A) True. B) False. Show Answer Correct Answer: B) False. 16. Cost driver can be established using the below except A) A cost driver rate is the rate of overheads expressed in terms of units of activities that will be charged to the products and services. B) A cost driver is any activity that causes a cost to be incurred. C) This method is used only if the company produces a single product. D) Cost driver or activity driver is the unit of an activity that causes the change of an activity cost. Show Answer Correct Answer: C) This method is used only if the company produces a single product. 17. Profit on sales is measured as A) Sales * P/V ratio-Fixed cost. B) Sales * P/V ratio + Fixed cost. C) Sales + P/V ratio + Fixed cost. D) None of the above. Show Answer Correct Answer: A) Sales * P/V ratio-Fixed cost. 18. The Institute of Management Accountants' Code of Ethics A) Is a legally enforceable contract with all management accountants. B) Should be viewed as a goal for professional behavior. C) Is a legally enforceable contract with all CPAs. D) Provides ways to measure departures from ethical behavior. Show Answer Correct Answer: B) Should be viewed as a goal for professional behavior. 19. Overapplied manufacturing overhead would result if: A) The plant was operated at less than normal capacity. B) Manufacturing overhead costs incurred were less than estimated manufacturing overhead costs. C) Manufacturing overhead costs incurred were less than manufacturing overhead costs charged to production. D) Manufacturing overhead costs incurred were greater than manufacturing overhead costs charged to production. Show Answer Correct Answer: C) Manufacturing overhead costs incurred were less than manufacturing overhead costs charged to production. 20. How to determine the flexible budget? A) Budgeted Quantity x Budgeted Price. B) Actual Quantity x Budgeted Price. C) Actual Quantity x Actual Price. D) Budgeted Quantity x Actual Price. Show Answer Correct Answer: B) Actual Quantity x Budgeted Price. ← 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