This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 51 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 51 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Sales for desired profit is measured as A) (Fixed cost + Desired Profit) / P/V Ratio. B) (Fixed cost + Desired Profit) * P/V Ratio. C) (Fixed cost-Profit) / P/V Ratio. D) None of the above. Show Answer Correct Answer: A) (Fixed cost + Desired Profit) / P/V Ratio. 2. Which of the following is a method used in analyzing financial statements- A) Variance analysis. B) Trend analysis. C) Break-even analysis. D) Budget analysis. Show Answer Correct Answer: B) Trend analysis. 3. Which of the following is NOT one of the questions management accountants might attempt to help answer in the formulation of strategy? A) Who are our most important customers?. B) Will adequate cash be available to implement the strategy?. C) What substitute products exist in the marketplace?. D) Does the strategy comply with GAAP (Generally Accepted Accounting Principles)?. Show Answer Correct Answer: D) Does the strategy comply with GAAP (Generally Accepted Accounting Principles)?. 4. Objectives will vary depending on whether the organization is profit-seeking, like general motors, or non-profit and service-oriented, like the city government. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 5. If you have $ 30.00 in your checking account, and you spend money from your account to buy some food (it cost $ 6.32), would you credit or debit the amount in your transaction log? For how much? A) Credit for $ 23.68. B) Debit for $ 23.68. C) Credit for $ 6.32. D) Debit for $ 6.32. Show Answer Correct Answer: D) Debit for $ 6.32. 6. If Direct Material Consumed is Rs20000, Chargeable Expenses is Rs3000, Direct Labour is Rs 2000 and Indirect Labour is Rs 6000, Then Prime cost will be ..... A) 23000. B) 25000. C) 31000. D) 26000. Show Answer Correct Answer: B) 25000. 7. Cash flow statement is based on accrual basis of accounting A) True. B) False. Show Answer Correct Answer: B) False. 8. Formula for Fixed assets turnover ratio? A) Cost of sales/Fixed assets. B) Sales/Fixed assets. C) Credit sales/Average receivable. D) Both a and b. Show Answer Correct Answer: D) Both a and b. 9. If sales is Rs 10, 00, 000, sales returns is Rs 50, 000, Profit Before Tax is Rs 2, 00, 000, Income tax is 40%, Net profit ratio is A) 12.63%. B) 20%. C) 10%. D) 50%. Show Answer Correct Answer: A) 12.63%. 10. Below is the characteristics of management accounting, EXCEPT ..... A) Emphasis on precision. B) Future emphasis. C) Focuses on segments of an organization. D) Emphasis on relevance for planning and control. Show Answer Correct Answer: A) Emphasis on precision. 11. Accounts Payable is also known as ..... A) Debtors. B) Creditors. C) People you are going to get money from. D) Accounts Paid. Show Answer Correct Answer: B) Creditors. 12. One of the reasons why we need to be careful in determining the selling price, except: A) Future generating competition. B) Prices have been determined in the RKAP. C) Subholding action. D) The need for real time financial information. Show Answer Correct Answer: B) Prices have been determined in the RKAP. 13. Managerial accounting is the branch of accounting concerned with reporting to internal parties for decision making purposes. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 14. A manager that deals with the part of the business where profit is compared with the amount of money invested in the department ..... A) Cost centre. B) Profit centre. C) Revenue center. D) Investment centre. Show Answer Correct Answer: D) Investment centre. 15. Costing includes management accounting; bookkeeping includes financial accounting A) True. B) False. Show Answer Correct Answer: B) False. 16. A segment could be which of the following? A) Product. B) Customer type. C) Geographic region. D) All of these. Show Answer Correct Answer: D) All of these. 17. What will be the Gross Profit if, total sales is Rs 2, 60, 000, cost of net goods sold is Rs 2, 00, 000 and sales return is Rs 10, 000? A) 13%. B) 28%. C) 26%. D) 20%. Show Answer Correct Answer: D) 20%. 18. A mixed cost A) Is fixed over a wider range of activity than a step cost. B) Is a fixed cost over the relevant range and a variable cost everywhere else. C) Contains both fixed and variable components. D) Always increases on a per unit basis. Show Answer Correct Answer: C) Contains both fixed and variable components. 19. Which of the following cannot be a reason of unfavorable direct materials price variance? A) Excellent employee training program. B) Inefficient standard setting. C) Ineffective purchasing agent. D) Sudden rise price of materials. Show Answer Correct Answer: A) Excellent employee training program. 20. Contingent Liability is shown on the liability side of the Balancesheet A) True. B) False. Show Answer Correct Answer: B) False. ← 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