This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A profit center is a center: A) Which manages cost. B) Which is concerned with earning an adequate Return on Investment. C) Where the manager has the responsibility of generating and maximizing profits. D) None of the answers are true. Show Answer Correct Answer: C) Where the manager has the responsibility of generating and maximizing profits. 2. It is essential to know before embarking on a project that requires a lot of investments. A) Analyzing the Rate of Return. B) Helping Understand Performance Variances. C) Forecasting Cash Flows. D) Helping in Make-or-buy Decisions. Show Answer Correct Answer: A) Analyzing the Rate of Return. 3. Current ratio is a A) Solvency ratio. B) Activity ratio. C) Profitability ratio. D) Liquidity ratio. Show Answer Correct Answer: D) Liquidity ratio. 4. Sale of stock of goods A) Capital Receipt. B) Revenue Receipt. Show Answer Correct Answer: B) Revenue Receipt. 5. A company has a cost structure with relative high fixed costs and relative low variable cost per unit, for this company it is most important to focus on: A) Increasing volume. B) Increasing margin. Show Answer Correct Answer: A) Increasing volume. 6. To calculate an activity rate, the ..... of each activity must be determined. A) Practical capacity. B) Expenditure level. C) Processing ratio. D) Value. Show Answer Correct Answer: A) Practical capacity. 7. A cost that changes directly with changes in output A) Fixed cost. B) Variable cost. C) Semi Variable cost. D) Stepped cost. Show Answer Correct Answer: B) Variable cost. 8. Bernson Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $ 492, 000 and 30, 000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $ 517, 000 and 28, 300 total machine-hours during the period. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:(Round your intermediate calculations to 2 decimal places.) A) $ 464, 120. B) $ 492, 000. C) $ 487, 703. D) $ 25, 000. Show Answer Correct Answer: A) $ 464, 120. 9. What is the expected standard for current ratio? A) 1:2. B) 2:1. C) 2:3. D) 1:3. Show Answer Correct Answer: B) 2:1. 10. A business may prepare for a cash deficit by: A) Reducing planned profits. B) Reducing planned cash payments. C) Reducing capital contributions. D) Increasing loan payments. Show Answer Correct Answer: B) Reducing planned cash payments. 11. Find the odd one out A) Preliminary expenses written off. B) Advertisement expenditure. C) Discount on issue of shares. D) Patents. Show Answer Correct Answer: D) Patents. 12. Land, building and Machinery are ..... A) Assets. B) Liabilities. Show Answer Correct Answer: A) Assets. 13. The legal process of reducing or eliminating an amount owed is ..... A) Allowance. B) Budget. C) Finance charge. D) Bankruptcy. Show Answer Correct Answer: D) Bankruptcy. 14. Which of the following is not an objective of management accounting? A) To provide information for decision making. B) To provide information for planning, controlling, evaluation & continuous improvement. C) To provide information for costing of services, products & other objects of interest to management. D) To assists shareholders in making decision. Show Answer Correct Answer: D) To assists shareholders in making decision. 15. A document that records the standard cost of a single unit of product is known as A) Materials cost card. B) Standard cost card. C) Product expense card. D) None of above. Show Answer Correct Answer: B) Standard cost card. 16. If Assets are $ 40, 000 and Liabilities are $ 23, 000, how much is Capital? A) $ 63, 000. B) $ 17, 000. C) $ 23, 000. D) None of above. Show Answer Correct Answer: B) $ 17, 000. 17. Fixed costs are costs that remain fixed or constant regardless of the changes in production units but within a relevant range. This cost will continue to be incurred even when there is no production. A) True. B) False. Show Answer Correct Answer: A) True. 18. ..... contains the picture of total plans during the budget period and it comprises information relating to sales, profit, cost, production etc.a. b. c. d. A) Master budget. B) Functional budget. C) Cost budget. D) None of the above. Show Answer Correct Answer: A) Master budget. 19. Indirect costs are costs that can be easily or accurately traced to a business activity. A) True. B) False. Show Answer Correct Answer: B) False. 20. Find out throughput. when Sales $ 450, Fixed cost-$ 200, Direct material cost-$ 150. A) $ 300. B) $ 250. C) $ 600. D) $ 800. Show Answer Correct Answer: A) $ 300. ← PreviousNext →Related QuizzesAccounting QuizzesManagement Accounting Quiz 1Management Accounting Quiz 2Management Accounting Quiz 3Management Accounting Quiz 4Management Accounting Quiz 5Management Accounting Quiz 7Management Accounting Quiz 8Management Accounting Quiz 9Management Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books