This quiz works best with JavaScript enabled. Home > Accounting > Managerial Accounting > Managerial Accounting – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 25 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity. A) True. B) False. Show Answer Correct Answer: B) False. 2. Identify whether the following statement are true or false.Management accounting provides economic and financial information primarily to investors and other external users. A) True. B) False. Show Answer Correct Answer: B) False. 3. Is the following direct labor, direct materials, manufacturing overhead, or period costs?Property taxes on the production factory. A) Direct material. B) Direct labor. C) Manufacturing overhead. D) Period costs. Show Answer Correct Answer: C) Manufacturing overhead. 4. Allocate common fixed costs based on revenues from clients. A) Family segment = $ 36, 000.Commercial segment = $ 24, 000. B) Family segment = $ 0.Commercial segment = $ 60, 000. C) Family segment = $ 14, 000.Commercial segment = $ 46, 000. D) Family segment = $ 24, 000.Commercial segment = $ 36, 000. Show Answer Correct Answer: D) Family segment = $ 24, 000.Commercial segment = $ 36, 000. 5. A company that wants to report both spending and efficiency variances for overhead must compute budget allowances for both the actual amount of activity that occurred and the standard level of activity allowed for the level of output achieved. A) True. B) False. Show Answer Correct Answer: A) True. 6. Direct material used = Beginning material inventory + net purchases ..... ? A) Ending work in process inventory. B) Prime cost. C) Ending material inventory. D) Beginning work in process inventory. Show Answer Correct Answer: C) Ending material inventory. 7. A company that buys finished goods to be resold for a profit. A) Manufacturing business. B) Merchandising business. C) Service business. D) None of above. Show Answer Correct Answer: B) Merchandising business. 8. The subtotal, "Cost of goods manufactured" appears on A) A merchandising company's income statement. B) A manufacturing company's income statement. C) Both a manufacturing and a merchandising company's income statement. D) Neither a merchandising nor a manufacturing company's income statement. Show Answer Correct Answer: B) A manufacturing company's income statement. 9. Which of the following costs is an example of a period rather than a product cost? A) Depreciation on production equipment. B) Salaries of salespersons. C) Wages of production machine operators. D) Insurance on production equipment. Show Answer Correct Answer: B) Salaries of salespersons. 10. True or False:The cost driver is the intermediate and final disposition of cost pools. A) True. B) False. Show Answer Correct Answer: B) False. 11. Which is considered as the "act" function of management? A) Creating goals and budgets. B) Carry out plans, hiring people, managing the daily business. C) Looking at results to see if goals were met and plans need adjusting. D) None of above. Show Answer Correct Answer: B) Carry out plans, hiring people, managing the daily business. 12. Direct materials and direct labor are classified as A) Product costs and expensed when the goods are sold. B) Period costs and expensed when the goods are sold. C) Product costs and expensed when incurred. D) Period costs and expensed when incurred. Show Answer Correct Answer: C) Product costs and expensed when incurred. 13. Managerial accounting reports must comply with generally accepted accounting principles (GAAP). A) True. B) False. Show Answer Correct Answer: B) False. 14. Are costs that vary in total directly and proportionately with changes in the activity level. A) Fixed Cost. B) Variable Cost. C) Mixed Cost. D) Irrelevant Cost. Show Answer Correct Answer: B) Variable Cost. 15. What are fixed expenses? A) Irregular expenses that change from week to week or month to month. B) The amount of money in your bank account. C) The amount of cash in your purse or wallet. D) Expenses that stay the same from week to week or month to month. Show Answer Correct Answer: D) Expenses that stay the same from week to week or month to month. 16. When carrying out their planning activities, managers select a course of action and specify how the action will be implemented. A) True. B) False. Show Answer Correct Answer: A) True. 17. Cash inflows are ..... A) Expenses. B) Income. Show Answer Correct Answer: B) Income. 18. Responsibility for the overhead efficiency variance should be assigned to whoever is responsible for control of the activity base underlying the flexible budget. A) True. B) False. Show Answer Correct Answer: A) True. 19. Contribution margin / sales =? A) Gross margin. B) Gross margin percentage. C) Unit contribution margin. D) Contribution margin ratio. Show Answer Correct Answer: D) Contribution margin ratio. 20. Merchandise bought can be considered a(n): A) Cash inflow. B) Cash outflow. Show Answer Correct Answer: B) Cash outflow. ← 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