This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is an example of a tangible product? A) Law n care. B) Accounting services. C) Customer service. D) Computer. Show Answer Correct Answer: D) Computer. 2. What happens if the price of a product is too high? A) High markup on variable cost but low demand quantity. B) Low markup on variable cost but high demand quantity. C) High markup on fixed cost but low demand quantity. D) Low markup on fixed cost but high demand quantity. Show Answer Correct Answer: A) High markup on variable cost but low demand quantity. 3. If a company's total fixed cost decreases by $ 10, 000, which of the following will be true? A) The break-even point will increase. B) The break-even point will be unchanged. C) The variable cost ratio will be unchanged. D) Only Bu Yani and God know. Show Answer Correct Answer: C) The variable cost ratio will be unchanged. 4. The share capital of A Ltd. stood at Rs 20, 00, 000 in 2013 and at Rs 26 lac in 2014. As per records, the company bought asset of another company for Rs 6 lac payable in fully paid shares. These assets included Goodwill Rs 2, 00, 000 Machinery Rs 1, 83, 600 and Stock Rs 2, 16, 400. What is the fund from issue of shares? A) Rs 2, 15, 600. B) Rs 2, 16, 400. C) Rs 2, 00, 000. D) None of the above. Show Answer Correct Answer: B) Rs 2, 16, 400. 5. Mark up is A) Price = cost + a fair share of profit. B) The price a competitor sets. Show Answer Correct Answer: A) Price = cost + a fair share of profit. 6. In non-trading concerns, excess of income over expenditure is called ..... A) Profit. B) Loss. C) Surplus. D) Deficit. Show Answer Correct Answer: C) Surplus. 7. What is responsibility accounting various types, except? A) Cost Center. B) Asset Center. C) Profit Center. D) Investment Center. Show Answer Correct Answer: B) Asset Center. 8. Inventory ratio is a relationship between ..... A) Cost of goods purchased and cost of average inventory. B) Cost of goods sold and cost of average inventory, and cost of goods purchased and cost of average inventory. C) Cost of goods sold and cost of average inventory. D) None of the options is correct. Show Answer Correct Answer: C) Cost of goods sold and cost of average inventory. 9. Who discovered the term Management Accounting? A) R. N Carter. B) James H Bliss. C) Philip Cotler. D) F.W. Taylor . Show Answer Correct Answer: B) James H Bliss. 10. Which of the following would be considered Capital income? A) Monthly rent receieved. B) Sales of fixed assets. C) Discounts received. D) Receipts from cash sales. Show Answer Correct Answer: B) Sales of fixed assets. 11. Shut down point= fixed cost ..... /P/v ratio A) Minimum fixed cost. B) Variable cost. C) Contribution. D) Semi-variable cost. Show Answer Correct Answer: A) Minimum fixed cost. 12. How does the company's profitability compare to other companies? A) Creditors. B) Finance. C) Management. D) Investors. Show Answer Correct Answer: D) Investors. 13. A business problem can be solved by choosing any one of the best and most profitable alternative. A) Revaluation Accounting. B) Decision-making Accounting. C) Budgetary Control. D) Management Information System. Show Answer Correct Answer: B) Decision-making Accounting. 14. Variable Costs A) Are not directly linked to a particular product or service. B) Are directly linked to a particular product or service. C) Remain the same regardless of output levels. D) Are costs that vary with the level of production. Show Answer Correct Answer: D) Are costs that vary with the level of production. 15. Which of the following items is not included in factory overhead? A) Factory depreciation and supplies. B) Costs of Marketing departments. C) Costs of Maintenance departments. D) Costs of service departments. Show Answer Correct Answer: B) Costs of Marketing departments. 16. All of the following are advantages of implementing activity based costing EXCEPT A) Greater costing accuracy. B) Greater understanding of overhead cost. C) Allocate service center costs to production center. D) Easy interpretation of cost for internal management. Show Answer Correct Answer: C) Allocate service center costs to production center. 17. Which of the following is NOT a function of management? A) Analyzing. B) Directing. C) Organizing. D) Planning. Show Answer Correct Answer: A) Analyzing. 18. Debt to equity ratio establishes the relationship between ..... A) Long-term debt (external equities) and current assets (internal equities). B) Long-term debt (external equities) and equity (internal equities), and long-term debt (external equities) and current assets (internal equities). C) Long-term debt (external equities) and equity (internal equities). D) None of the options are correct. Show Answer Correct Answer: C) Long-term debt (external equities) and equity (internal equities). 19. What is a W-2? A) A cleaning solution. B) Form showing how much money you've made so far this year. C) Form from your employer that tells you how much you've made and how much you've paid in taxes in the last year. D) Form from the government for your accountant. Show Answer Correct Answer: C) Form from your employer that tells you how much you've made and how much you've paid in taxes in the last year. 20. There are the relation between Financial Accounting and Management Accounting, except ..... A) Controlling Financial Report. B) Classifying and Recording Transactions. C) Information For Management Decision Making. D) Preparing and Publishing Financial Statements. Show Answer Correct Answer: A) Controlling Financial Report. ← PreviousNext →Related QuizzesAccounting QuizzesManagement Accounting Quiz 1Management Accounting Quiz 2Management Accounting Quiz 3Management Accounting Quiz 4Management Accounting Quiz 5Management Accounting Quiz 6Management Accounting Quiz 8Management Accounting Quiz 9Management Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books