This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 65 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 65 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Following falls under the ambit of scope of management accounting Except A) Cost accounting. B) None of these. C) Taxation. D) Revaluation account. Show Answer Correct Answer: B) None of these. 2. A ..... triggers a change in the cost of an activity. A) Cost driver. B) Resources. C) Activity. D) None of these. Show Answer Correct Answer: A) Cost driver. 3. Management is responsible towards which of the following? A) All shareholders. B) Employees. C) Government. D) Society. E) All stakeholders. Show Answer Correct Answer: E) All stakeholders. 4. What is a statement of financial position/ balance sheet? A) A statement of all assets and liabilities on a certain date. B) A statement of all the balances in the ledger accounts on a certain date. C) A statement showing all the receipts and payments for a financial year. D) A statement showing the income and expenditure for a financial year. Show Answer Correct Answer: A) A statement of all assets and liabilities on a certain date. 5. What is the primary benefit of EMA for organizations? A) Calculating greenhouse gas emissions. B) Preparing financial statements. C) Improving decision-making. D) Supporting tax compliance. Show Answer Correct Answer: C) Improving decision-making. 6. The company's performance evaluation system rewards managers for meeting profitability targets. Which of the following actions could be considered unethical? A) A manager makes a decision to replace old machines with an energy efficient machines but over the short-run profits will suffer. B) A senior manager design performance evaluation models that are inconsistent with the personal goals of the middle managers. C) Same facts as part B but the lower-level managers will be evaluated on the expectation that the first year would be poor and the next year would be much better. D) Lower level managers refuse to upgrade machinery because the first year will show lower than expected profits despite significant long-term savings. Show Answer Correct Answer: D) Lower level managers refuse to upgrade machinery because the first year will show lower than expected profits despite significant long-term savings. 7. If Capital is $ 17, 500 and Liabilities are $ 7, 500, how much are Assets? A) $ 7, 500. B) $ 10, 000. C) $ 25, 000. D) None of above. Show Answer Correct Answer: C) $ 25, 000. 8. A bond, in general, is..... A) A type of investment. B) A scheme by the government. C) Jimmy cracked corn and no one cares. D) A payment for a bridge. Show Answer Correct Answer: A) A type of investment. 9. The return on investment is usually considered the most popular approach to measure performance because: A) It blends all the ingredients of profitability into a single percentage. B) Once determined, there is no need to use it with other measures of performance. C) It throws light on the company's working capital. D) It measures the cash balance of the company in the most efficient manner. Show Answer Correct Answer: A) It blends all the ingredients of profitability into a single percentage. 10. Which ONE of the following is a characteristic of management accounting? A) It is based on future events. B) It provides information for people outside the business. C) It is based on past events. D) It complies with company law and accounting rules. Show Answer Correct Answer: A) It is based on future events. 11. Characteristics of total quality management include: A) Focusing on customer satisfaction. B) Striving on continuous improvement. C) Involvement of the entire work force. D) All of the above are characteristics of TQM. Show Answer Correct Answer: D) All of the above are characteristics of TQM. 12. Calculate the prime cost from the following information:Direct material purchased:Rs. 1, 00, 000 Direct material consumed:Rs. 90, 000 Direct labour:Rs. 60, 000 Direct expenses:Rs. 20, 000 Manufacturing overheads:Rs. 30, 000 A) Rs. 1, 80, 000. B) Rs. 2, 00, 000. C) Rs. 1, 70, 000. D) Rs. 2, 10, 000. Show Answer Correct Answer: C) Rs. 1, 70, 000. 13. Fixed or variable expense:Rent? A) Fixed. B) Variable. Show Answer Correct Answer: A) Fixed. 14. The shareholders fund consists of A) Preference shares. B) Equity shares. C) Reserves & Surplus. D) All. Show Answer Correct Answer: D) All. 15. What is the total of all direct cost known as A) Cost of production. B) Cost of sales. C) Prime cost. D) Works cost. Show Answer Correct Answer: C) Prime cost. 16. A total cost is described as staying the same over a certain activity range and then increasing but remaining stable over a revised activity range in the short term. What type of cost is this? A) A fixed cost. B) A variable cost. C) A semi-variable cost. D) A stepped fixed cost. Show Answer Correct Answer: D) A stepped fixed cost. 17. Global Giant, a multinational corporation, has a producing subsidiary in a low tax rate country and a marketing subsidiary in a high tax country. If Global Giant wants to minimize its worldwide tax liability, we would expect Global Giant to: A) Stop producing in the low tax rate country. B) Stop marketing in the high tax rate country. C) Establish a low transfer price when the producing unit sells to the marketing unit. D) Establish a high transfer price when the producing unit sells to the marketing unit. Show Answer Correct Answer: D) Establish a high transfer price when the producing unit sells to the marketing unit. 18. Management accounting is based on future events A) True. B) False. Show Answer Correct Answer: A) True. 19. Which of the following forms an item of current assets? A) Loans given. B) Loans taken. C) Bank overdraft. D) Machinery. Show Answer Correct Answer: A) Loans given. 20. What is the classification of Sales? A) Revenue. B) Expense. C) Asset. D) Liability. Show Answer Correct Answer: A) Revenue. ← 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