This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 54 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 54 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Calculate cost of sales from the following:Net Works cost:Rs. 2, 00, 000 Office & Administration Overheads:Rs. 1, 00, 000 Opening stock of WIP:Rs. 10, 000 Closing Stock of WIP:Rs. 20, 000 Closing stock of finished goods:Rs. 30, 000 There was no opening stock of finished goods. Selling overheads:Rs. 10, 000 A) Rs. 2, 70, 000. B) Rs. 2, 80, 000. C) Rs. 3, 00, 000. D) Rs. 3, 20, 000. Show Answer Correct Answer: B) Rs. 2, 80, 000. 2. Financial Accounting is based on Company's Acts and standards issued by the accounting profession, meanwhile Management Accounting is not based on governed by legislation or standards. Is the difference between Financial Accounting and Management Accounting in terms of? A) Time Focus. B) Format of Accounting Government by. C) Frequency. D) Primary Users. Show Answer Correct Answer: B) Format of Accounting Government by. 3. What is the classification of the owner's drawing account? A) Revenue. B) Expense. C) Owner's Equity. D) Liability. Show Answer Correct Answer: C) Owner's Equity. 4. Which one of the following tangible fixed assets would not normally be depreciated? A) Buildings. B) Machinery. C) Land. D) Equipment. Show Answer Correct Answer: C) Land. 5. A company has sales of $ 73, 000 and Average accounts receivables of $ 11, 000. What is its debtors turnover ratio? A) 0.2 times. B) 2 times. C) 6.636 times. D) 10 time. Show Answer Correct Answer: C) 6.636 times. 6. JIT manufacturing emphasizes A) Large amounts of inventory on hand so that the company does not run out of it. B) Small amounts of inventory on hand resulting in lower quality goods because production is rushed. C) Reducing investment in inventory and increasing the emphasis on quality. D) Both b and c. Show Answer Correct Answer: C) Reducing investment in inventory and increasing the emphasis on quality. 7. There is a prescribed format for preparation of Management Accounting which is known as GAAP A) True. B) False. Show Answer Correct Answer: B) False. 8. Short term investment is A) A current asset. B) A current liability. C) An application of funds. D) All of these. Show Answer Correct Answer: A) A current asset. 9. Planning is a function that involves A) Hiring the right people for a particular job. B) Coordinating the accounting information system. C) Setting goals and objectives for an entity. D) Analyzing financial statements. Show Answer Correct Answer: C) Setting goals and objectives for an entity. 10. If cost of sales ₹ .15, 440 and Average Stock ₹ .4, 500, calculate Stock Turnover ratio? A) 3.02 times. B) 3.43 times. C) 1.48 times. D) 1.6 times. Show Answer Correct Answer: B) 3.43 times. 11. Which is NOT an example of an expense: A) Advertising. B) Dividends. C) Depreciation. D) Insurance. Show Answer Correct Answer: B) Dividends. 12. Process costing is normally used for the products that are ..... A) Custom-made. B) Purchased from wholesalers. C) Identical and produced continuously. D) Different and produced continuously. Show Answer Correct Answer: C) Identical and produced continuously. 13. On the last date of his food truck business, A food truck owner sold snacks worth $ 2 500 and sold his truck for $ 20, 000. How should these receipts be treated in his business books? A) Revenue receipt $ 22500. B) Capital receipt $ 2500, Revenue receipt $ 20000. C) Capital receipt $ 20000, Revenue receipt $ 2500. D) Capital receipt $ 22500. Show Answer Correct Answer: C) Capital receipt $ 20000, Revenue receipt $ 2500. 14. Manufacturing overhead is the cost of manufacturing activities other than direct materials and direct labor (all indirect costs). A) True. B) False. C) None. D) None of above. Show Answer Correct Answer: A) True. 15. Organizing is the delegating of responsibility for the use of the organization's resources, whether human, financial, or physical. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 16. Contribution is also known as A) Contribution margin. B) Not margin. C) Both a & b. D) None of the above. Show Answer Correct Answer: A) Contribution margin. 17. Thach 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 $ 665, 000, variable manufacturing overhead of $ 3.00 per machine-hour, and 70, 000 machine-hours. Recently, Job T321 was completed with the following characteristics:Number of units in the job:30Total machine-hours:90Direct material:$ 630Direct labor cost:$ 2, 880The unit product cost for Job T321 is closest to: A) $ 117.00. B) $ 58.50. C) $ 154.50. D) $ 51.50. Show Answer Correct Answer: C) $ 154.50. 18. The debtor turnover ratio and creditors turnover ratio are measures of: A) Liquidity. B) Solvency. C) Profitability. D) Efficiency. Show Answer Correct Answer: D) Efficiency. 19. Financial statements are the major means of communicating accounting information to interested parties. A) True. B) False. Show Answer Correct Answer: A) True. 20. 1) The flexible budget contains: A) Budgeted amounts for actual output. B) Static budget amounts for planned output. C) Actual costs for actual output. D) Actual costs for planned output. Show Answer Correct Answer: A) Budgeted amounts for actual output. ← 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