This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 50 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 50 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is considered the language of business used to communicate financial information? A) Marketing. B) Profit. C) Pricing. D) Accounting. Show Answer Correct Answer: D) Accounting. 2. Which one is ideal for cost control purpose A) Normal cost. B) Standard cost. C) Average cost. D) Continuous costing. Show Answer Correct Answer: B) Standard cost. 3. On the basis of period, budgets may be classified into ..... groups. A) Five. B) Four. C) Three. D) Two. Show Answer Correct Answer: C) Three. 4. Which of the following types of costs is a product cost for absorption costing but a period cost for variable costing? A) Direct materials. B) Direct labor. C) Fixed factory overhead per unit sold. D) Variable selling expense. Show Answer Correct Answer: C) Fixed factory overhead per unit sold. 5. P & L statement is also known as A) Statement of operations. B) Statement of earnings. C) Statement of income. D) None of the above. Show Answer Correct Answer: C) Statement of income. 6. Solvency ratio indicate ..... A) Profitability. B) Activity. C) Credit worthyness. D) None of these. Show Answer Correct Answer: C) Credit worthyness. 7. Management accountancy is a structure for A) Costing. B) Accounting. C) Decision making. D) Management. Show Answer Correct Answer: C) Decision making. 8. What is the main focus of Financial Accounting? A) Analyzing and evaluating financial statements. B) Recording and reporting financial transactions. C) Managing everyday transactions. D) Forecasting future trends. Show Answer Correct Answer: A) Analyzing and evaluating financial statements. 9. Bank overdraft A) Revenue. B) Asset. C) Liability. D) None of above. Show Answer Correct Answer: C) Liability. 10. Contribution margin ratio can be calculated in all of the following ways except A) Fixed costs / Contribution margin per unit. B) 1-Variable cost ratio. C) Contribution margin per unit / price. D) Total contribution margin / Total sales. Show Answer Correct Answer: A) Fixed costs / Contribution margin per unit. 11. Cost of goods sold can be derived from manufacturing cost as follow:Cost of goods sold = Opening inventory of finished goods + Manufacturing cost-Closing inventory of finished goods A) True. B) False. Show Answer Correct Answer: A) True. 12. Under-absorption is:Debited to Profit and Loss AccountsCredited to Overhead Control Accounts A) True. B) False. Show Answer Correct Answer: A) True. 13. The balance sheet is at the heart of which type of bookkeeping? A) Double-entry. B) Cash. C) Taxation. D) Profitability. Show Answer Correct Answer: A) Double-entry. 14. Working capital increases if current liabilities increase. A) True. B) False. Show Answer Correct Answer: B) False. 15. Carradine Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $ 105, 000, variable manufacturing overhead of $ 3.00 per machine-hour, and 70, 000 machine-hours. The company recently completed Job P233 which required 60 machine-hours. The amount of overhead applied to Job P233 is closest to:(Round your intermediate calculations to 2 decimal places.) A) $ 90. B) $ 270. C) $ 450. D) $ 180. Show Answer Correct Answer: B) $ 270. 16. The company purchases supplies on credit A) Assets (I). B) Liabilities (NE). C) Equity (I). D) None of above. Show Answer Correct Answer: A) Assets (I). 17. Financial accounting only provides information about what may happen in the future A) True. B) False. Show Answer Correct Answer: B) False. 18. Management accounting is an activity or process that produces information in financial form for management to make economic decisions in carrying out management functions, is the Definition of Management Accounting according to? A) Mulyana. B) Halim and Supomo. C) Mulyadi. D) Charles T Homgren. Show Answer Correct Answer: B) Halim and Supomo. 19. Describe the cost unit applicable to the Bicycle industry A) Per part of bicycle. B) Per bicycle. C) Per ton. D) Per day. Show Answer Correct Answer: B) Per bicycle. 20. If Current Assets are Rs. 5, 00, 000 and Current Liabilities are Rs. 2, 00, 000 ; Working capital is ..... A) Rs. 7, 00, 000. B) Rs. 5, 00, 000. C) Rs. 2, 00, 000. D) Rs. 3, 00, 000. Show Answer Correct Answer: D) Rs. 3, 00, 000. ← 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