This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 63 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 63 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Wages and Salaries of office workers A) Capital Expenditure. B) Revenue Expenditure. Show Answer Correct Answer: B) Revenue Expenditure. 2. ..... is Period cost A) Fixed cost. B) Variable Cost. C) Total cost. D) Direct cost. Show Answer Correct Answer: A) Fixed cost. 3. Which of the following is irrelevant for decision making? A) Opportunity Cost. B) Sunk Cost. C) Further Processing Cost. D) Variable Cost. Show Answer Correct Answer: B) Sunk Cost. 4. Selling Price ..... = Target cost A) Overheads. B) Cost of Production. C) Desired Profit. D) Cost drivers. Show Answer Correct Answer: C) Desired Profit. 5. Securities and Exchange Commission (SEC) A) Internal User. B) External User. Show Answer Correct Answer: B) External User. 6. This is a cost that is incurred in the course of making a product, delivering a service or running a department, but which cannot be traced directly and in full to the product, service or department. A) Fixed. B) Direct. C) Variable. D) Indirect. Show Answer Correct Answer: D) Indirect. 7. The per unit Variable Cost ..... A) Is constant. B) Is directly related to the output. C) Is inversely related to the output. D) Has no relation with output. Show Answer Correct Answer: A) Is constant. 8. For product consting purposes, an indirect factory cost A) Is not directlty chargeable to the company. B) Is chargeable to prime cost. C) Is chargeable to conversion costs. D) Is never included in the computation of product costs. Show Answer Correct Answer: C) Is chargeable to conversion costs. 9. Which of the following describes a cost centre? A) A unit of output or service for which costs are ascertained. B) A function or location for which costs are ascertained. C) A segment of the organisation for which budgets are prepared. D) An amount of expenditure attributable to a particular activity. Show Answer Correct Answer: B) A function or location for which costs are ascertained. 10. Dividends This shows the amount of net profit after interest and tax that is distributed to the owners (shareholders) of the company. A) True. B) False. Show Answer Correct Answer: A) True. 11. The term fund refers to A) Reserves. B) Working capital. C) Profits. D) None of these. Show Answer Correct Answer: B) Working capital. 12. A company absorbs overheads on machine hours which were budgeted at 11, 250 with overheads of £258, 750. Actual results were 10, 980 hours with overheads of £254, 692. Overheads were? A) Over-absorbed by £2, 152. B) Over-absorbed by £4, 058. C) Under-absorbed by £4, 058. D) Under-absorbed by £2, 152. Show Answer Correct Answer: D) Under-absorbed by £2, 152. 13. Where is management accounting applied? A) Small trading organisations. B) NPOs. C) Cooperative societies. D) Large industrial and trading organisations. Show Answer Correct Answer: D) Large industrial and trading organisations. 14. Materials cost in the original budget was increased by 5% to £3.15. We are now revising the budget and need to increase the materials cost by 8% rather than by 5%. What is the revised amount? A) £3.15. B) £3.40. C) £3.24. D) £3.23. Show Answer Correct Answer: C) £3.24. 15. There are three sections to an income statement:the trading account, the profit and loss account, and the appropriationaccount. A) True. B) False. Show Answer Correct Answer: A) True. 16. Which of the following transactions will improve the Current Ratio? A) Purchase of Goods for Cash. B) Payment to Trade Payables. C) Credit purchase of Goods. D) Cash collected from Trade Receivables. Show Answer Correct Answer: B) Payment to Trade Payables. 17. Which convention in accounting states that profits are not recognized until realized, but expected losses are accounted for even if not yet certain? A) Business Entity Convention. B) Historic Cost Convention. C) Prudence Convention. D) Going Concern Convention. Show Answer Correct Answer: C) Prudence Convention. 18. Sales =500000, VC = 160000, Fc = 30000, Profit = 40000 find sales to earn a profit of 50000 and profit at a sales of 900000. A) 514706. B) 514706312000. C) 441176. D) 58824. Show Answer Correct Answer: B) 514706312000. 19. What is the main purpose of the Statement of Change in Equity? A) To show the relationship between assets, liabilities, and equity. B) To assess the value of the business. C) To provide a basis for decision making. D) To show shareholder contribution and movement in equity. Show Answer Correct Answer: D) To show shareholder contribution and movement in equity. 20. Liquid Ratio is equal to liquid assets divided by ..... A) Current Liabilities. B) Total Liabilities. C) Contingent Liabilities. D) Non-Current Liabilities. Show Answer Correct Answer: A) Current Liabilities. ← 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