This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 59 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 59 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... the sub-field of accounting. A) Management accounting. B) Cost accounting. C) Financial accounting. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. A production worker is paid a salary of $ 650 per month, plus an extra 5 cents for each unit produced during the month. How is this type of labour cost best described? A) A variable cost. B) A fixed cost. C) A step cost. D) A semi-variable cost. Show Answer Correct Answer: D) A semi-variable cost. 3. As per Accounting Standard-3, Cash Flow is classified into A) Operating activities and investing activities. B) Investing activities and financing activities. C) Operating activities and financing activities. D) Operating activities, financing activities and investing activities. Show Answer Correct Answer: D) Operating activities, financing activities and investing activities. 4. Which of the following is not an objective of cost accounting? A) Ascertainment of cost. B) Determination of selling price. C) Cost control and cost reduction. D) Assisting shareholders in decision making. Show Answer Correct Answer: D) Assisting shareholders in decision making. 5. Did the company earn a satisfactory income? A) Creditors. B) Finance. C) Management. D) Investors. Show Answer Correct Answer: D) Investors. 6. According to George R. Terry, ..... may be described as a process of finding out what is being done and comparing actual results with the corresponding budget data in order to approve accomplishment. A) Budgetary control. B) Budget. C) Budgeting. D) None of the above. Show Answer Correct Answer: A) Budgetary control. 7. Which of the following will not affect the Gross profit A) Cost of transporting goods to customers. B) Purchase Returns. C) Sales Returns. D) Import duty. Show Answer Correct Answer: A) Cost of transporting goods to customers. 8. An advantage of a negotiated transfer price of a product to be transferred between divisions is the: A) Close relationship between the negotiated price and the market price. B) Negotiated transfer price preserves divisional autonomy. C) Negotiations usually do not require much time and energy. D) Simplicity of its computations and close approximation to market price. Show Answer Correct Answer: B) Negotiated transfer price preserves divisional autonomy. 9. Miss Taylor owns a pizza business. Which transaction would be considered to be revenue receipts? A) Cash received from the sale of an old pizza oven. B) Cash received from the bank as a loan for expansion of the business. C) Cash discount received from a supplier of tomato sauce. D) Cash received from an insurance claim. Show Answer Correct Answer: C) Cash discount received from a supplier of tomato sauce. 10. Below is the factors that increase the need of management accounting, EXCEPT ..... A) Regulatory environment. B) Increase emphasis on profitability. C) World wide competition. D) Rapid development and implementation of technology. Show Answer Correct Answer: B) Increase emphasis on profitability. 11. Liquid assets is determined by A) Current assets-stock-Prepaid expenses. B) Current assets + stock + prepaid expenses. C) Current assets + Prepaid expenses. D) None of the above. Show Answer Correct Answer: A) Current assets-stock-Prepaid expenses. 12. Management accounting is accounting in relation to statutory audit function. A) True. B) False. C) May be. D) None. Show Answer Correct Answer: B) False. 13. It deals with determining the total costs involved in the production of a good or service. A) ProductCosting and Valuation. B) Cash FlowAnalysis. C) InventoryTurnover Analysis. D) ConstraintAnalysis. Show Answer Correct Answer: A) ProductCosting and Valuation. 14. Variable overhead costs include: A) Plant-leasing costs. B) The plant manager's salary. C) Depreciation on plant equipment. D) Machine maintenance. Show Answer Correct Answer: D) Machine maintenance. 15. A company has completed and transferred out 10, 000 units during a period and had 5, 000 units in the ending work in process that were 50% complete. What is the total equivalent units for conversion costs? A) 12, 500. B) 15, 000. C) 17, 500. D) 7, 500. Show Answer Correct Answer: A) 12, 500. 16. Hong Kong Telecom has been a ....., thanks to a huge number of international calls. A) Petty cash. B) Cash cow. C) Cash on delivery. D) Hard cash. Show Answer Correct Answer: B) Cash cow. 17. The owner withdraws cash for personal use A) Assets (D). B) Liabilities (D). C) Equity (NE). D) None of above. Show Answer Correct Answer: A) Assets (D). 18. The management accounting can be stated an extension of A) Cost Accounting. B) Financial Accounting. C) Responsibility Accounting. D) Both A and B. E) A, B, C. Show Answer Correct Answer: E) A, B, C. 19. Budget prepared for one level of activity is A) Fixed budget. B) Flexible budget. C) Activity budget. D) Master budget. Show Answer Correct Answer: A) Fixed budget. 20. What happens if the price of a product is too low? A) High quantity of sales but low profitability. B) Low quantity of sales but high profitability. C) High quantity of sales and high profitability. D) Low quantity of sales and low profitability. Show Answer Correct Answer: A) High quantity of sales but low profitability. ← 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