This quiz works best with JavaScript enabled. Home > Accounting > Managerial Accounting > Managerial Accounting – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 24 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following management activities involves the process of deciding which option is the best? A) Controlling. B) Directing. C) Decision Making. D) Financial Management. Show Answer Correct Answer: C) Decision Making. 2. Decision-making is an integral part of the planning, directing, and controlling functions. A) True. B) False. Show Answer Correct Answer: A) True. 3. Which of the following formulas is used to calculate the contribution margin ratio? A) (Sales-Fixed expenses)/Sales. B) (Sales-Cost of goods sold)/Sales. C) (Sales-Variable expenses)/Sales. D) (Sales-Total expenses)/Sales. Show Answer Correct Answer: C) (Sales-Variable expenses)/Sales. 4. If conversion costs are $ 70, 000, manufacturing overhead costs are $ 22, 500, and direct materials costs are $ 39, 000, then the prime costs must be A) $ 47, 500. B) $ 86, 500. C) $ 31, 000. D) $ 8, 500. Show Answer Correct Answer: B) $ 86, 500. 5. Profit= A) Sales-Variable Expenses. B) Sales-Variable Expenses-Fixed Expenses. Show Answer Correct Answer: B) Sales-Variable Expenses-Fixed Expenses. 6. BOBS Corporation has a beginning inventory of $ 240, 000 for raw materials. They have purchased $ 370, 000 of raw materials during the year. The total raw materials available for use is: A) $ 520, 000. B) $ 130, 000. C) $ 610, 000. D) $ 210, 000. Show Answer Correct Answer: C) $ 610, 000. 7. Accounting is broadly divided into how many branches? A) 1. B) 2. C) 3. D) 4. Show Answer Correct Answer: C) 3. 8. The following is wrong about cost accounting and financial accounting..... A) Cost accounting produces information that focuses more on the needs of the company's external users. B) Cost accounting information is more oriented to internal company users. C) Financial accounting information is more oriented to external users of the company. D) Accounting information criteria are usually limited by the usefulness of the information, while financial accounting criteria are limited by generally accepted financial accounting standards. Show Answer Correct Answer: A) Cost accounting produces information that focuses more on the needs of the company's external users. 9. Alfred and kiera ran an auto detailing business. They made $ 50, 000 in revenues last month due to the number of Pensacola residents who came in to have them detail Corvettes. They paid $ 30, 000 in expenses to run their business that same month. Did they make a profit? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 10. Coordinating various business activities is possible with A) Financial accounting. B) Cost accounting. C) Managerial accounting. D) Inflation accounting. Show Answer Correct Answer: C) Managerial accounting. 11. The primary focus of lean accounting is A) Removing redundant record keeping. B) Assigning financial responsibility. C) Modeling accuracy. D) Reducing waste. Show Answer Correct Answer: D) Reducing waste. 12. Controlling is the process of determining whether planned goals are being met. A) True. B) False. Show Answer Correct Answer: A) True. 13. Transportation costs when purchasing materials are A) Direct Material (DM). B) Direct Labor (DL). C) Factory Overhead (FOH). D) Selling/ Administrative Expense. Show Answer Correct Answer: A) Direct Material (DM). 14. A company's sales after subtracting returns, damaged and missing goods, and any sales discounts. A) Net Sales. B) Gross Sales. C) Total Sales. D) None of above. Show Answer Correct Answer: A) Net Sales. 15. Product costs consist of A) Direct materials and direct labor only. B) Direct materials, direct labor and manufacturing overhead. C) Selling and administrative expenses. D) Period costs. Show Answer Correct Answer: B) Direct materials, direct labor and manufacturing overhead. 16. A diagram that represents the order decisions and actions that are made in a process. A) Flowchart. B) Trendline. C) Journal. D) None of above. Show Answer Correct Answer: A) Flowchart. 17. Which one of the following is not a direct material? A) A tire used for a lawn mower. B) Plastic used in the covered case for a home PC. C) Steel used in the manufacturing of steel-radialtires. D) Lubricant for a ball-bearing joint for a large crane. Show Answer Correct Answer: D) Lubricant for a ball-bearing joint for a large crane. 18. Which of the following is the cost of goods sold for Stan's Floral if they began the month with $ 500 inventory, purchased $ 1, 000 of inventory during the month, and ended the month with $ 200 of inventory? A) $ 1, 200. B) $ 1, 300. C) $ 1, 400. D) $ 1, 500. Show Answer Correct Answer: B) $ 1, 300. 19. ..... accounting is restricted only by the value-addedprinciple A) Financial. B) Management. Show Answer Correct Answer: B) Management. 20. In a standard cost system, overhead is applied on the basis of the actual level of activity rather than the standard level of activity allowed for the output of a period. A) True. B) False. Show Answer Correct Answer: B) False. ← PreviousNext →Related QuizzesAccounting QuizzesManagerial Accounting Quiz 1Managerial Accounting Quiz 2Managerial Accounting Quiz 3Managerial Accounting Quiz 4Managerial Accounting Quiz 5Managerial Accounting Quiz 6Managerial Accounting Quiz 7Managerial Accounting Quiz 8Managerial Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books