This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 56 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 56 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Comaprison of two or more departments or divisions belonging to the same firm with the objectives of making meaningful analysis for the purpose of increasing the efficiency of the departments ..... A) Inter firm comparison. B) Intra firm comparison. C) Ratio analysis. D) Department analysis. Show Answer Correct Answer: B) Intra firm comparison. 2. Fraud means an international misstatement of financial statements A) True. B) False. Show Answer Correct Answer: A) True. 3. Place the following steps from the five-step decision process in order:A = Obtain information including historical costsB = Evaluate performance to provide feedbackC = Make decisions choosing among alternativesD = Make predictions about the futureE = Identify the problem and uncertainties A) A, E, D, B, C. B) E, A, D, B, C. C) E, A, D, C, B. D) D, C, B, A, E. Show Answer Correct Answer: C) E, A, D, C, B. 4. Which is the tools of Management accounting? A) Budgetary Control. B) Standard Costing. C) Both the above. D) None of these. Show Answer Correct Answer: C) Both the above. 5. Benchmarking is a process: A) In which overhead costs are absorbed into units of output, or 'jobs'. B) In which a firm's performance levels are compared against the best levels of performance in competing companies or in companies having similar processes. C) Which is based on calculating the breakeven point and analyzing the consequences of changes in various factors calculating the breakeven point. D) In which the underlying processes of an organization is optimized using a systematic approach to achieve more efficient goals. Show Answer Correct Answer: B) In which a firm's performance levels are compared against the best levels of performance in competing companies or in companies having similar processes. 6. Which of the following explains the difficulty of setting-up EMA? A) Lack of environmental accounting standards. B) Many environmental costs and materials occur outside the organisation. C) Ecological issues are not yet known. D) None of the given answers. Show Answer Correct Answer: A) Lack of environmental accounting standards. 7. Conversion cost includes cost of converting ..... into ..... A) Raw material, WIP. B) Raw material, Finished goods. C) WIP, Finished goods. D) Finished goods, Saleable goods. Show Answer Correct Answer: B) Raw material, Finished goods. 8. The concept of "management by exception" requires management's A) Consideration of only those items which vary materially from plans. B) Consideration of rare events. C) Consideration of items selected random. D) None of the above. Show Answer Correct Answer: A) Consideration of only those items which vary materially from plans. 9. Material Issues are maintained by the ..... A) General accountant. B) Warehouse keeper. C) Store keeper. D) Cashier. Show Answer Correct Answer: C) Store keeper. 10. Bond, debentures and term loans fall under: A) Current assets. B) Non-current assets. C) Non-current liabilities. D) Current liabilities. Show Answer Correct Answer: C) Non-current liabilities. 11. Mixed Costs A) ESB Bill, Telephone. B) Rent. C) Raw materials. D) None of above. Show Answer Correct Answer: A) ESB Bill, Telephone. 12. Mr. Rolle owns a supermarket, which of the following would be capital receipts A) Purchase of dairy items for the store. B) Income received from the sale of a freezer. C) Cash received from the sale of fruits and vegetables. D) Discounts received on meat and fish from his supplier. Show Answer Correct Answer: B) Income received from the sale of a freezer. 13. Is there a universal method topresent the final accounts? A) YES. B) NO. Show Answer Correct Answer: B) NO. 14. Which of the following would most likely NOT be included as manufacturing overhead in a furniture factory? A) The cost of the glue in a chair. B) The amount paid to the individual who stains a chair. C) The workman's compensation insurance of the supervisor who oversees production. D) The factory utilities of the department in which production takes place. Show Answer Correct Answer: B) The amount paid to the individual who stains a chair. 15. The review and appraisal of tendency in accounting variable is A) Ratio analysis. B) Fund flow analysis. C) Trend analysis. D) Average analysis. Show Answer Correct Answer: C) Trend analysis. 16. Donations received for a specific purpose is A) Revenue receipt. B) Capital receipt expenditure. C) Revenue expenditure. D) Capital receipt. Show Answer Correct Answer: D) Capital receipt. 17. Overall profitability ratio is A) Net profit ratio. B) Gross profit ratio. C) ROI. D) Operating profit ratio. Show Answer Correct Answer: C) ROI. 18. Expand JIT A) Just inventory time. B) Just in Time. C) Justify inventory time. D) None of these. Show Answer Correct Answer: B) Just in Time. 19. Inventory values calculated using variable costing as opposed to absorption costing will generally be A) Equal. B) Less. C) Greater. D) Twice as much. Show Answer Correct Answer: B) Less. 20. Companies are incurring extra costs for providing work from home facilities to employees during the current pandemic. Identify whether these are controllable or non controllable costs. A) Controllable. B) Non controllable. C) We need further information to arrive at a decision as whether a cost is controllable or non controllable depends on the level of management authority. D) None of above. Show Answer Correct Answer: C) We need further information to arrive at a decision as whether a cost is controllable or non controllable depends on the level of management authority. ← 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