This quiz works best with JavaScript enabled. Home > Accounting > Managerial Accounting > Managerial Accounting – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 26 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Process whereby cost items are charged direct to a cost unit or cost center is known as A) Cost accounting. B) Cost allocation. C) Cost apportionment. D) Cost absorption. Show Answer Correct Answer: B) Cost allocation. 2. Managerial accounting information is generally prepared for A) Stockholders. B) Creditors. C) Managers. D) Regulatory agencies. Show Answer Correct Answer: C) Managers. 3. Identify whether the item being described by the statement is Competence, Confidentiality, Credibility or Integrity: "Inform all relevant parties regarding appropriate use of information. ." A) Competence. B) Confidentiality,. C) Credibility. D) Integrity. Show Answer Correct Answer: B) Confidentiality,. 4. Factory overhead costs combined with direct labor costs are called ..... costs. A) Factory overhead costs. B) Direct material costs. C) Prime costs. D) Conversion costs. Show Answer Correct Answer: D) Conversion costs. 5. What is the different item that need to be transferred to Manufacturer Statement of Profit and Loss? A) Net purchase. B) Direct labour. C) Prime cost. D) Cost of Goods Manufactured. Show Answer Correct Answer: D) Cost of Goods Manufactured. 6. What is the key difference between Full (Absorption) and Variable Costing? A) Full Costing treats Manufacturing Overhead as a period cost. B) Variable Costing treats Fixed Manufacturing Overhead as a period cost. C) Absorption Costing only considers variable costs to calculate net income. D) Variable Costing only considers variable costs to calculate net income. Show Answer Correct Answer: B) Variable Costing treats Fixed Manufacturing Overhead as a period cost. 7. The direct materials budget shows:Desired ending direct materials 48, 000 poundsTotal materials required 69, 000 poundsDirect materials purchases 63, 200 poundsThe total direct materials needed for production is A) 21, 000 pounds. B) 5, 800 pounds. C) 15, 200 pounds. D) 132, 200 pounds. Show Answer Correct Answer: A) 21, 000 pounds. 8. An opportunity cost is: A) The benefit given up or sacrificed when one alternative is chosen over another. B) The cost to market, distribute, and service a product or service. C) The total product cost of goods completed during the current period and transferred to finished goods inventory. D) The difference between sales revenue and cost of goods sold. Show Answer Correct Answer: A) The benefit given up or sacrificed when one alternative is chosen over another. 9. Is the use of accounting information for the reporting to parties outside the organization. A) Accounting System. B) Managerial Accounting. C) Financial Accounting. D) Cost Accounting System. Show Answer Correct Answer: C) Financial Accounting. 10. Management accounting is used by A) Human resource employees who need to plan hiring. B) Marketing employees who make decisions on profit achievable through an advertising campaign. C) Accounting employees who make budget recommendations. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. What is the total revenue from clients for the Family segment? A) $ 400, 000. B) $ 600, 000. C) $ 1, 000, 000. D) $ 220, 000. Show Answer Correct Answer: A) $ 400, 000. 12. A good budgeting system forces managers to examine the business as they plan, so they can: A) Detect inaccurate historical records. B) Set specific expectations against which actual results can be compared. C) Complete the budgeting task on time. D) Get promoted for doing a good job. Show Answer Correct Answer: B) Set specific expectations against which actual results can be compared. 13. Conversion Cost (Conversion Cost) is obtained from: A) DM + DL. B) DL + FOH. C) DM + FOH. D) DM + DL + FOH. Show Answer Correct Answer: B) DL + FOH. 14. Classification of these cost for an automobile manufacturer:Wages of assembly line workers A) Factory Overhead Costs. B) Direct Materials Costs. C) Direct Labor Costs. D) Indirect Labor Costs. Show Answer Correct Answer: C) Direct Labor Costs. 15. Both financial and management accounting: A) Must be performed by all accountants. B) Achieve the same objective. C) Must conform to rules issued by government departments. D) Use the same information system. Show Answer Correct Answer: D) Use the same information system. 16. In a vertical analysis, which number is ALWAYS the denominator, or divided by? Hint, every other numbers value for the column will be divided by this number. A) Total Selling expenses. B) Total Administrative Expenses. C) Net Income. D) Net Sales. Show Answer Correct Answer: D) Net Sales. 17. Financial accounting is primarily concerned with providing financial reports to all of the following EXCEPT A) Creditors such as banks and other financial institutions. B) Creditors such as suppliers. C) Shareholders of the. D) Management of the firm. Show Answer Correct Answer: D) Management of the firm. 18. Which industry buys finished goods to be resold for a profit? A) Merchandising industry. B) Manufacturing industry. Show Answer Correct Answer: A) Merchandising industry. 19. Calculate the purchase price variance for the following scenario. Otto's Auto Repair purchased a car for $ 10 a part if they purchased 1, 000 parts during the year. Otto's only purchased 900 parts and they were charged $ 12 per part. A) $ 1, 200. B) $ 1, 400. C) $ 1, 600. D) $ 1, 800. Show Answer Correct Answer: D) $ 1, 800. 20. The total contribution margin divided by the number of units sold. It shows how much money per unit is left to pay a business's fixed costs and provide net income A) Contribution Margin Per Unit. B) Gross Margin Per Unit. C) Net Margin Per Unit. D) None of above. Show Answer Correct Answer: A) Contribution Margin Per Unit. ← 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