This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Financial Accounting is used by Externals or Shareholders, meanwhile Management Accounting is used by Internal or Management. Is the difference between Financial Accounting and Management Accounting in terms of? A) Frequency. B) Type of Information. C) Primary Users. D) Time Focus. Show Answer Correct Answer: C) Primary Users. 2. I have 40 units of inventory that cost £3.00 (total £120) and I have just received 20 more at £3.60 per unit. What is the total number of units I have, and the total cost if I use the AVCO method of valuing inventory? A) 60 units @ £3.60 = £216. B) 60 units @ £3.30 = £198. C) 60 units @ £3.20 = £192. D) 40 units @ £3.00 = £120. Show Answer Correct Answer: C) 60 units @ £3.20 = £192. 3. Choose the various ways to start a business.i. Buying an existing businessii. Running a franchiseiii. Inheriting a family businessiv. Establishing a new business A) I and ii. B) Ii and iii. C) I, ii and iii. D) I, ii and iv. Show Answer Correct Answer: D) I, ii and iv. 4. Which of the following ratio measures short term solvency of a business? A) Liquidity ratios. B) Solvency ratios. C) Activity ratios. D) Profitability ratios. Show Answer Correct Answer: A) Liquidity ratios. 5. Integrity is an ethical requirement for all management accountants. One aspect of integrity requires A) Performance of professional duties in accordance with applicable laws. B) Avoidance of conflict of interest. C) Refraining from improper use inside information. D) Maintenance of an appropriate level of professional competence. Show Answer Correct Answer: B) Avoidance of conflict of interest. 6. If Selling price is 250 and desired profit is 50, then how much is target costing? A) 220. B) 200. C) 300. D) None of these. Show Answer Correct Answer: B) 200. 7. What do we call the amount of money (or income) that a company gets from its customers? A) Profit. B) Revenue. C) Cashflow. D) Salary. Show Answer Correct Answer: B) Revenue. 8. Which term of accounting is mainly concerned with the preparation of specific purpose financial statements for the management to base financial decisions on? A) Auditing. B) Financial accounting. C) Cost accounting. D) Tax accounting. E) Management Accounting. Show Answer Correct Answer: E) Management Accounting. 9. Companies may determine standards by evaluating their capacity to enable goal achievement, by listening to customers, by observing competitors or by benchmarking other companies. A) True. B) False. Show Answer Correct Answer: A) True. 10. The increase or decrease in the total cost of a production run for making one additional unit of an item is called ..... A) Adsorption Costing. B) Marginal Costing. C) Sunk cost. D) ABC costing. Show Answer Correct Answer: B) Marginal Costing. 11. The company repays the suppliers A) Assets (D). B) Liabilities (I). C) Equity (D). D) None of above. Show Answer Correct Answer: A) Assets (D). 12. Management accounting is needed most by which type of user? A) Internal users. B) External users. Show Answer Correct Answer: A) Internal users. 13. Net Profit ratio is calculated by A) (Gross profit / Gross Sales) * 100. B) (Gross profit / Net Sales) * 100. C) (Net profit / Net Sales) * 100. D) None of the above. Show Answer Correct Answer: C) (Net profit / Net Sales) * 100. 14. Marginal costs is taken as equal to A) Prime Cost plus all variable overheads. B) Prime Cost minus all variable overheads. C) Variable overheads. D) None of the above. Show Answer Correct Answer: A) Prime Cost plus all variable overheads. 15. Worker Co employs four supervisors to oversee the factory production of all its products. How would the salaries paid to these supervisors be classified A) As a direct labour cost. B) As a direct production expense. C) As a production overhead. D) As an administration overhead. Show Answer Correct Answer: C) As a production overhead. 16. Given selling price Rs. 20 per unit variable cost is 16 per unit contribution is A) Rs. 2 per unit. B) Rs. 8 per unit. C) Rs. 4 per unit. D) None of the above. Show Answer Correct Answer: C) Rs. 4 per unit. 17. EXAMPLE OF PHYSICALLY-ORIENTED A) USE OF WATER AND ENERGY. B) ENVIRONMENTAL COSTS. C) MATERIAL COSTS. D) EARNINGS AND SAVINGS. Show Answer Correct Answer: A) USE OF WATER AND ENERGY. 18. Product costs would not include A) Materials used in making a hand-bag. B) Sales staff salaries. C) Wages of a worker installing solar water-heaters. D) Overheads assigned to the manufacture of computer components. Show Answer Correct Answer: B) Sales staff salaries. 19. The management of sudharma Ltd analysing the profitability of the company with the help of income statement is A) Horizontal analysis. B) Short term analysis. C) External analysis. D) Internal analysis. Show Answer Correct Answer: D) Internal analysis. 20. Financial risks associated with the possibility of default by a counter-party. A) Credit risk. B) Liquidity risk. C) Interest risk. D) Foreign exchange risk. Show Answer Correct Answer: A) Credit risk. ← PreviousNext →Related QuizzesAccounting QuizzesManagement Accounting Quiz 1Management Accounting Quiz 2Management Accounting Quiz 3Management Accounting Quiz 4Management Accounting Quiz 6Management Accounting Quiz 7Management Accounting Quiz 8Management Accounting Quiz 9Management Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books