This quiz works best with JavaScript enabled. Home > Accounting > Managerial Accounting > Managerial Accounting – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 28 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An income statement that shows sales, costs, and expenses for two consecutive years A) Performance report. B) Comparative income statement. C) Trend income statement. D) None of above. Show Answer Correct Answer: B) Comparative income statement. 2. Economic events are the raw data for both financial and managerial accounting. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 3. Which of the following statements about management accounting are true?i. It is a part of an organisation's management information system.ii. It is relied upon by managers to plan and control an organisation's operations.iii. It is relied upon by external users to make investment decisions. A) I and ii. B) I, ii and iii. C) Ii and iii. D) Iii. Show Answer Correct Answer: A) I and ii. 4. The following are not users of cost accounting information..... A) Marketing Manager. B) Personnel manager. C) Production manager. D) Tax office. Show Answer Correct Answer: D) Tax office. 5. Managerial accounting information includes such items as budgets, performance evaluations, and cost reports. A) T. B) F. Show Answer Correct Answer: A) T. 6. For which scenario does the difference between the Beginning Inventory under Full Costing and the Beginning Inventory under Variable Costing account for the differences in Net Incomes under these methods? A) Quantity Sold is equal to Quantity Produced. B) Quantity Sold is greater than Quantity Produced. C) Quantity Sold is less than Quantity Produced. D) None of above. Show Answer Correct Answer: B) Quantity Sold is greater than Quantity Produced. 7. Manufacturing costs include A) Direct materials and direct labor only. B) Direct materials and manufacturing overhead only. C) Direct labor and manufacturing overhead only. D) Direct materials, direct labor and manufacturing overhead. Show Answer Correct Answer: D) Direct materials, direct labor and manufacturing overhead. 8. The following information pertains to Ellery Company:Budgeted sales-P1, 000, 000; Break-even Sales-P700, 000; Budgeted Contribution Margin-P600, 000. The margin of safety for Ellery Company is: A) P300, 000. B) P400, 000. C) P500, 000. D) P600, 000. Show Answer Correct Answer: A) P300, 000. 9. Ratios that measure a company's efficiency in managing its assets A) Asset Management Ratios. B) Asset Capitalization Ratios. C) Asset Effeciency Ratios. D) None of above. Show Answer Correct Answer: A) Asset Management Ratios. 10. Identify whether the following statement are true or false.Managerial accounting reports are prepared only quarterly and annually. A) True. B) False. Show Answer Correct Answer: B) False. 11. The kind of debts which are needed to be repaid in a short term is known as? A) Fixed Liabilities. B) Current Liabilities. C) Depreciating Assets. D) Intangible Assets. Show Answer Correct Answer: B) Current Liabilities. 12. What is the advantage of performing activity-based costing over other methods? A) Improved record keeping. B) It assigns costs to specific time periods. C) It appropriately allocates overhead costs. D) It reduces waste in the project process. Show Answer Correct Answer: C) It appropriately allocates overhead costs. 13. The materials that are used in the production of the product but are not as important as the direct materials. Glue, stain, and varnish are examples of indirect materials A) Indirect Materials. B) Direct Materials. C) Nonproduct materials. D) Unnecessary Materials. Show Answer Correct Answer: A) Indirect Materials. 14. Identify the correct characteristics of management accounting information that suitable to explain these statement:"Any accounting information given must give EFFECT to the decision made" A) Accuracy. B) Flexible. C) Relevant. D) Understandable. Show Answer Correct Answer: C) Relevant. 15. How does lifecycle costing differ from activity-based costing? A) Activity-based costing is more subjective than lifecycle costing. B) Lifecycle costing refers to an asset rather than an operation, which is the focus of activity-based costing. C) Activity-based costing is updated yearly, while lifecycle costing is updated regularly. D) Lifecycle costing projects ahead for a ten-year period, rather than the one-year period for activity-based costing. Show Answer Correct Answer: B) Lifecycle costing refers to an asset rather than an operation, which is the focus of activity-based costing. 16. The dollar amount of net income a company earns beyond the break-even point. A) Margin of safety. B) Gross margin. C) Net of safety. D) Point of safety. Show Answer Correct Answer: A) Margin of safety. 17. Street Company's fixed expenses total P150, 000, its variable expense ratio is 60% and its variable expenses are P4.50 per unit. Based on this information, the break-even point in units is: A) 50, 000. B) 37, 500. C) 33, 333. D) 100, 000. Show Answer Correct Answer: A) 50, 000. 18. A manager that is establishing objectives is performing which management function? A) Controlling. B) Directing. C) Planning. D) Constraining. Show Answer Correct Answer: C) Planning. 19. A debt ratio that measures a company's financial leverage. This ratio can be calculated by dividing total liabilities by total stockholders' equity. A) Debt to equity ratio. B) Accounting Ratio. C) Debt to asset ratio. D) Equity to debt ratio. Show Answer Correct Answer: A) Debt to equity ratio. 20. Cost accounting includes A) Classifying, recording and appropriate allocation of expenditure for products. B) Classifying, recording and appropriate allocation of expenditure for services. C) Classifying, recording and appropriate allocation of expenditure for products and services. D) None of these. Show Answer Correct Answer: C) Classifying, recording and appropriate allocation of expenditure for products and services. ← 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