This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 57 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 57 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The high-low method uses the highest and lowest costs regardless of whether they are from the data points with the highest and lowest activity levels. A) True. B) False. Show Answer Correct Answer: B) False. 2. How to determine Return on Investment (RoI)? A) Margin:Turnover. B) Net Operating Income:Sales. C) Sales:Average Operating Assets. D) Net Operating Income:Average Operating Assets. Show Answer Correct Answer: D) Net Operating Income:Average Operating Assets. 3. Cost of diesel and lubricant is an example of: A) Operating cost. B) Fixed charges. C) Semi-variable cost. D) None of the above. Show Answer Correct Answer: A) Operating cost. 4. Determination of cost and cost control are the primary roles of ..... A) Management Accounting. B) Cost Accounting. Show Answer Correct Answer: B) Cost Accounting. 5. Which of the following is added directly to work in process? A) Indirect Labor. B) Factory depreciation. C) Direct Labor. D) Indirect materials. Show Answer Correct Answer: C) Direct Labor. 6. Cost classification is A) Identifying, measuring and recording cost information. B) Assigning costs to cost objects. C) Arrangement of costs items into logical groups. D) Any item or activity that separate measurement of costs can be traced. Show Answer Correct Answer: C) Arrangement of costs items into logical groups. 7. Cost are classified as Fixed, Variable & Semi Variable based on ..... A) Time. B) Behaviour. C) Function. D) Management decision. Show Answer Correct Answer: B) Behaviour. 8. User owned, not for profit, cooperative financial institution. A) Commercial bank. B) Credit union. C) Investment bank. D) Safety bank. Show Answer Correct Answer: B) Credit union. 9. For decision making, a listing of the relevant costs: A) Will help the decision maker concentrate on the pertinent data. B) Will only include future costs. C) Will only include costs that differ among alternatives. D) All of these answers are correct. Show Answer Correct Answer: D) All of these answers are correct. 10. Organizations may exist within organizations. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 11. Boersma Sales, Inc., a merchandising company, reported sales of 7, 100 units in September at a selling price of $ 682 per unit. Cost of goods sold, which is a variable cost, was $ 317 per unit. Variable selling expenses were $ 44 per unit and variable administrative expenses were $ 22 per unit. The total fixed selling expenses were $ 157, 200 and the total administrative expenses were $ 338, 000. The gross margin for September was: A) $ 2, 122, 900. B) $ 2, 591, 500. C) $ 1, 627, 700. D) $ 4, 347, 000. Show Answer Correct Answer: B) $ 2, 591, 500. 12. Which of the following statements are true according to management accounting? A) Management accounting is compulsory. B) Is objective in nature?. C) It is mainly focused on future. D) Management accounting and cost-accounting are similar. . Show Answer Correct Answer: C) It is mainly focused on future. 13. Report summarizing your current financial condition, acknowledges financial needs, and sets direction for your future financial activities is known as ..... A) Financial plan. B) Money management plan. C) Budget report. D) Personal asset report. Show Answer Correct Answer: A) Financial plan. 14. Management of Mcgibboney Corporation has asked your help as an intern in preparing some key reports for November. Direct materials cost was $ 42, 000, direct labor cost was $ 25, 000, and manufacturing overhead was $ 62, 000. Selling expense was $ 21, 000 and administrative expense was $ 38, 000. The conversion cost for November was: A) $ 116, 000. B) $ 79, 000. C) $ 87, 000. D) $ 129, 000. Show Answer Correct Answer: C) $ 87, 000. 15. Mark the right one. Who is Steve Jobs? A) Founder of Apple. B) Founder of Facebook. C) Founder of Nestle. D) Founder of Google. Show Answer Correct Answer: A) Founder of Apple. 16. Bud uses the high-low method of estimating costs. Bud had total costs of $ 50, 000 at its lowest level of activity, when 5, 000 units were sold. When, at its highest level of activity, sales equaled 12, 000 units, total costs were $ 78, 000. Bud would estimate variable cost per unit as A) $ 10.00. B) $ 6.50. C) $ 4.00. D) $ 7.53. Show Answer Correct Answer: C) $ 4.00. 17. Management accounting is mainly concerned with future A) True. B) False. Show Answer Correct Answer: A) True. 18. The risk refers to uncertainty regarding the ability of a firm to unwind a position at little or no cost, and also relates to the availability of sufficient funds to meet financial commitments when they fall due. A) Credit risk. B) Liquidity risk. C) Market risk. D) Financing risk. Show Answer Correct Answer: B) Liquidity risk. 19. Management accounting is used as ..... A) Compulsory. B) Optional. C) Mandatory. D) Any of the above . Show Answer Correct Answer: B) Optional. 20. The creditors turnover ratio is calculated as: A) Average Creditors / Total Credit Purchases. B) Total Credit Purchases / Average Creditors. C) Average Debtors / Total Credit Purchases. D) Total Credit Purchases / Average Debtors. Show Answer Correct Answer: B) Total Credit Purchases / Average Creditors. ← 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