This quiz works best with JavaScript enabled. Home > Accounting > Managerial Accounting > Managerial Accounting – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Manufacturing overhead is all of the direct cost that are incurred inside the manufacturing facility or factory that cannot be traced to each unit of product A) True. B) False. Show Answer Correct Answer: B) False. 2. The following are characteristics that differentiate cost accounting from financial accounting, except..... A) Standard rules regarding disclosure of accounting information. B) Expense recognition is carried out when an economic transaction occurs. C) Information orientation to the future. D) Creating repetitive reports in shorter periods (monthly). Show Answer Correct Answer: B) Expense recognition is carried out when an economic transaction occurs. 3. Which is NOT part of the budget process? A) Analyzing next year's data. B) Locate budget information. C) Setting goals for next year. D) Forecasting the effect of budget decisions. Show Answer Correct Answer: A) Analyzing next year's data. 4. Factory building rental expenses are A) Direct Material (DM). B) Direct Labor (DL). C) Factory Overhead (FOH). D) Selling/ Administrative Expense. Show Answer Correct Answer: C) Factory Overhead (FOH). 5. Guannito Shop has a production capacity of 2, 000 crepe rolls per month. Currently, the shop is producing and selling 1, 800 units per month with a selling price of 20 baht per unit, a variable cost of 10 baht per unit, and a cost of Fixed at 90, 000 baht per month. The restaurant received a special order from Trang TAT for 200 pieces at a price of 12 baht each to be used as snacks for the Trang Food Festival press conference that will be held this year. Do you think Guannito should accept this special order? Why? A) The order should be accepted. Because it will result in an additional profit of 400 baht. B) The order should be accepted. Because it will result in an additional profit of 1, 100 baht. C) Orders should be accepted even if there is a loss. Because you have to maintain a relationship with TAT Trang. D) The order should not be accepted. Because it will reduce profits by 1, 600 baht. E) The order should not be accepted. Because it will reduce profits by 500 baht. Show Answer Correct Answer: A) The order should be accepted. Because it will result in an additional profit of 400 baht. 6. Supervisor salary is classified as ..... A) Variable cost. B) Fixed cost. C) Mixed cost. D) Relevant range. Show Answer Correct Answer: B) Fixed cost. 7. Although financial and managerial accounting differ in many ways, they are similar in that both rely on the same underlying financial data. A) True. B) False. Show Answer Correct Answer: A) True. 8. Happy Face Company has fixed cost of P500, 000 per year, variable cost of P30 per unit, and a selling price of P50 per unit. At a production level of 30, 000 units, how much is the operating income? A) P50, 000. B) P100, 000. C) P150, 000. D) P200, 000. Show Answer Correct Answer: B) P100, 000. 9. What is the difference between fixed assets and current assets? A) Fixed assets are assets that are easily convertible into cash, while current assets are assets that are not easily convertible into cash. B) Fixed assets are assets that are not expected to generate any revenue, while current assets are assets that are expected to generate revenue within one year. C) Fixed assets are long-term assets that are not expected to be converted into cash within one year, while current assets are short-term assets that are expected to be converted into cash within one year. D) Fixed assets are assets that are used in the day-to-day operations of a business, while current assets are assets that are not used in the day-to-day operations of a business. Show Answer Correct Answer: C) Fixed assets are long-term assets that are not expected to be converted into cash within one year, while current assets are short-term assets that are expected to be converted into cash within one year. 10. Which of the following are period costs? A) Raw materials. B) Direct materials and direct labor. C) Direct labor and manufacturing overhead. D) Selling expenses. Show Answer Correct Answer: D) Selling expenses. 11. Costs that remain constant regardless of a business's activity. A company's rent or mortgage payment is an example of it. A) Fixed costs. B) Variable costs. C) Premium costs. D) Monthly costs. Show Answer Correct Answer: A) Fixed costs. 12. Fixed or Variable?Office rent A) Fixed. B) Variable. Show Answer Correct Answer: A) Fixed. 13. What is considered a liability A) Notes payable. B) Light bill being brought to current. C) Accounts Receivable. D) None of above. Show Answer Correct Answer: A) Notes payable. 14. Which of the following describes absorption costing? A) Prepared for internal decision making purposes. B) Prepared generally for external reporting purposes. C) Contributional format and classified according to behaviour. D) Only Direct materials, Direct labour and variable manufacturing overhead treated as product cost. Show Answer Correct Answer: B) Prepared generally for external reporting purposes. 15. Cost-volume-profit (CVP) analysis is the study of the relations among revenues, costs, and volume and their effect on profit. A) True. B) False. Show Answer Correct Answer: A) True. 16. A product sold that earns little or no net income;is intended to attract customers to other more profitable products. A) Loss Leader. B) Freebies. C) Discounted products. D) None of above. Show Answer Correct Answer: A) Loss Leader. 17. Financial data cannot be analysed and interpreted by which of the following accounting A) Financial accounting. B) Cost accounting. C) Managerial accounting. D) Human resources accounting. Show Answer Correct Answer: A) Financial accounting. 18. Fixed or variable expense:Groceries A) Fixed. B) Variable. Show Answer Correct Answer: B) Variable. 19. Managerial accounting is not needed in a non-profit or governmental organization. A) True. B) False. Show Answer Correct Answer: B) False. 20. A costs of goods manufactured schedule shows beginning and ending inventories for: A) Raw materials and work in process. B) Work in process only. C) Raw materials only. D) Raw materials, work in process and finished product. Show Answer Correct Answer: D) Raw materials, work in process and finished product. 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