This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 66 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 66 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... helps the management performing this function by assigning specific responsibilities to different people A) Planning. B) Organising. C) Controlling. D) Time saving. Show Answer Correct Answer: B) Organising. 2. During the year, a business was bought by issue of Rs 25, 000 debentures and Rs 25, 000 shares. The business bought had machine worth Rs 20, 000, Debtors Rs 15, 000, Stock Rs 5, 000 and Creditors Rs 5, 000. Determine the effect of this transaction on flow of funds. A) Net outflow of Rs 15, 000. B) Net inflow of Rs 15, 000. C) Neither inflow nor outflow. D) None of the above. Show Answer Correct Answer: B) Net inflow of Rs 15, 000. 3. If sales are Rs. 5, 00, 000 and Net profit is Rs. 1, 20, 000. Net profit ratio is A) 24%. B) 60%. C) 50%. D) None of the above. Show Answer Correct Answer: A) 24%. 4. Generally, the emergence and growth of management consultancy may be attributed to the following factors, except A) Growth in size and complexity of business firms. B) Complexity in managing and conducting a business. C) The development of techniques for the solution of management problems and businessmen's awareness of how to solve such problems. D) Need for adequate and timely information in management decision-making. Show Answer Correct Answer: C) The development of techniques for the solution of management problems and businessmen's awareness of how to solve such problems. 5. If P/V ratio is 40% of sales then what about the remaining 60% of sales: A) Profit. B) Fixed Cost. C) Variable Cost. D) Margin Of safety. Show Answer Correct Answer: C) Variable Cost. 6. The following would appear in which section of the cash flow statement? Cash received from the sale of property A) Operating. B) Investing. C) Financing. D) None of above. Show Answer Correct Answer: B) Investing. 7. Which of the following costs is not a period cost? A) Indirect materials. B) Shipping costs of finished goods. C) Advertising. D) Sales commissions. Show Answer Correct Answer: A) Indirect materials. 8. If the cost of materials for producing 1000 units is Rs 15, 000, what shall be the cost of materials for 1, 500 units A) Rs 15, 000. B) Rs 22, 500. C) Rs. 30, 000. D) Rs. 25, 200. Show Answer Correct Answer: B) Rs 22, 500. 9. Which of the following items relating to bill payable is transferred to total creditor account? A) Opening balance of bills payable. B) Closing balance of bills payable. C) Cash paid for bills payable. D) Bills payable accepted during the year. Show Answer Correct Answer: D) Bills payable accepted during the year. 10. Warehouse rent is a part of A) Prime cost. B) Factory cost. C) Distribution cost. D) Production cost. Show Answer Correct Answer: C) Distribution cost. 11. Break-even quantity for the multiple-product firm can be calculated by A) Dividing segment fixed cost by the weighted average contribution per unit. B) Dividing total fixed cost by the weighted average contribution per unit. C) Dividing total fixed cost by the overall variable. D) Multiplying total fixed cost by sales mix. Show Answer Correct Answer: B) Dividing total fixed cost by the weighted average contribution per unit. 12. Kgs of Raw Material is required for a new project. 150 kgs are already in stock with no other use. If not used in this project, it will be sold as scrap for Rs.10 per kg. Current Market Price is Rs.11. What is the relevant material cost? A) 1500. B) 2600. C) 1100. D) 2750. Show Answer Correct Answer: B) 2600. 13. A repetitive action fulfilling a business function and increasing the worth of the product and the price that the customer is willing to pay for the product is referred to as a: A) Non-value added activity. B) Value-added activity. C) Business value-added activity. D) Activity analysis. Show Answer Correct Answer: B) Value-added activity. 14. Ratio analysis involves the process of ..... A) Recording. B) Computation. C) Relationship between two items. D) None of these. Show Answer Correct Answer: B) Computation. 15. A business sells its single product for £40. The variable costs of this product total £32. The fixed costs of the business are £100, 000.What is the sales revenue required in order to make a profit of £200, 000? A) £37, 500. B) 250, 000. C) £12, 500, 000. D) £1, 500, 000. Show Answer Correct Answer: D) £1, 500, 000. 16. Gullett Corporation had $ 26, 000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $ 75, 000 of raw materials. The journal entry to record the purchase of raw materials would include a: A) Debit to Raw Materials of $ 101, 000. B) Credit to Raw Materials of $ 75, 000. C) Debit to Raw Materials of $ 75, 000. D) Credit to Raw Materials of $ 101, 000. Show Answer Correct Answer: C) Debit to Raw Materials of $ 75, 000. 17. Salaries A) Expenses. B) Liability. C) Asset. D) None of above. Show Answer Correct Answer: A) Expenses. 18. Which of the following transfer-pricing methods always achieves goal congruence? A) A market-based transfer price. B) A cost-based transfer price. C) A negotiated transfer price. D) Full-cost plus a standard profit margin. Show Answer Correct Answer: C) A negotiated transfer price. 19. Future decisions are based on A) Profit. B) Risk. C) Historical data. D) None. Show Answer Correct Answer: C) Historical data. 20. Joint Products and By Products are one and the same thing. A) True. B) False. Show Answer Correct Answer: B) False. ← 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