This quiz works best with JavaScript enabled. Home > Accounting > Managerial Accounting > Managerial Accounting – Quiz 27 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 27 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 2 abroad functions will be performed by managers are A) Planning and controlling. B) Planning and leading. C) Controlling and organizing. D) Leading and organizing. Show Answer Correct Answer: A) Planning and controlling. 2. The two equity transactions include the issuance of common stock for cash and the declaration and payment of cash dividends. A) True. B) False. Show Answer Correct Answer: A) True. 3. Investors who will invest their funds in companies need information produced by..... A) Financial accounting system. B) Cost accounting system. C) Management accounting system. D) Standard cost system. Show Answer Correct Answer: A) Financial accounting system. 4. The written financial plan for a business, including estimated income and expenses for a given period of time, usually spanning a year. A) Budget. B) Income Statement. C) Forecast Statement. D) Mission Statement. Show Answer Correct Answer: A) Budget. 5. Production requirements formula is: A) Budgeted sales units-Desired ending finished goods units-Beginning finished goods units = Required production untis. B) Budgeted sales units-Desired ending finished goods units-Beginning finished goods units = Required production units. C) Budgeted sales units + Desired ending finished good units-Beginning finished goods units = Required production units. D) Budgeted sales units + Desired ending finished goods units + Beginning finished goods units = Required production units. Show Answer Correct Answer: C) Budgeted sales units + Desired ending finished good units-Beginning finished goods units = Required production units. 6. The number of days it takes for a company to receive payment. It is calculated by dividing the number of days in a year (365) by the accounts receivable turnover ratio A) Days Sales Outstanding. B) Accounts Recievable Days Outstanding. Show Answer Correct Answer: A) Days Sales Outstanding. 7. A manufacturing inventory account that records products that are fully completed. It includes the direct materials, direct labor, and factory overhead specific to that product. A) Finished good. B) Cost of merchandise. Show Answer Correct Answer: A) Finished good. 8. Managerial and Financial Accounting are the same A) True. B) False. Show Answer Correct Answer: B) False. 9. The labor costs associated with those employees who are a part of the company but are not necessarily working directly with the actual production of the product. Examples include a maintenance manager and janitorial staff. A) Indirect Labor. B) Direct Labor. C) Offsite Labor. D) Nonproduct Labor. Show Answer Correct Answer: A) Indirect Labor. 10. Both direct labor and manufacturing overhead are called ..... because they are expenditures incurred in the process of converting the raw materials into finished A) Conversion costs. B) Prime cost. C) Product cost. D) Cost of goods manufactured. Show Answer Correct Answer: A) Conversion costs. 11. The production budget shows that expected unit sales are 48, 000. The total required units are 54, 000. What are the required production units? A) 6, 000. B) 9, 000. C) 12, 000. D) Cannot be determined from the data provided. Show Answer Correct Answer: D) Cannot be determined from the data provided. 12. Lourain Dee is an owner-operated company that details (thoroughly cleans-inside and out) automobiles, Lourain Dee's is which of the following? A) Wholesaler. B) Manufacturing Firm. C) Service Firm. D) Retailer. Show Answer Correct Answer: C) Service Firm. 13. The function of setting goals and objectives A) Planning. B) Directing. C) Financial accounting. D) Controlling. Show Answer Correct Answer: A) Planning. 14. What is the type of users of managerial accounting? A) Internal users ( managers, employees, partners ). B) Internal and external user ( Owners of stockholders, lenders, customers ). Show Answer Correct Answer: A) Internal users ( managers, employees, partners ). 15. A percentage reduction from the list price of merchandise allowed to retailers by whole sellers is called: A) Commission. B) Cash discount. C) Trade Discount. D) Allowance. Show Answer Correct Answer: C) Trade Discount. 16. Which of the following is a sunk cost? A) Money spent on materials currently in production. B) Manufacturing overhead. C) Money spent on an unfinished storage building. D) Money spent paying employees. Show Answer Correct Answer: C) Money spent on an unfinished storage building. 17. If sales are $ 100, 000, fixed expenses are $ 34, 500, and the contribution margin is $ 40, 000, then the net operating income must be: A) $ 74, 500. B) $ 5, 500. C) $ 60, 000. D) $ 34, 500. Show Answer Correct Answer: B) $ 5, 500. 18. For next year, Galliart, Inc., has budgeted sales of 60, 000 units, target ending finished goods inventory of 3, 000 units, and beginning finished goods inventory of 1, 800 units. All other inventories are zero. How many units should be produced next year? A) 58, 800 units. B) 60, 000 units. C) 61, 200 units. D) 64, 800 units. Show Answer Correct Answer: C) 61, 200 units. 19. The form used in job-order costing to record and calculate direct materials costs, direct labor costs, and factory overhead costs in order to determine per unit cost. A) Cost Sheet. B) Expense Sheet. Show Answer Correct Answer: A) Cost Sheet. 20. What is prime cost? A) Direct material + Direct labour. B) Direct expense-Manufacturing overhead. C) Direct material + Manufacturing overhead. D) Direct labour-Direct Expense. Show Answer Correct Answer: A) Direct material + Direct labour. ← 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