This quiz works best with JavaScript enabled. Home > Accounting > Managerial Accounting > Managerial Accounting – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The following are the characteristics of managerial accounting EXCEPT ONE. A) Does not follow GAAP. B) Audited. C) Decision Making is applied. D) For internal users. Show Answer Correct Answer: B) Audited. 2. Which of the following is not a characteristic of management accounting? A) Management accounting provides information for management decisions. B) More useful for internal reporting purposes than external reporting purposes. C) Not only historical information but also future information is used. D) It must be prepared in accordance with generally accepted accounting principles. Show Answer Correct Answer: D) It must be prepared in accordance with generally accepted accounting principles. 3. What section makes SOFP for a manufacturing business difference with merchandiser? A) Non-Current Assets. B) Current Assets. C) Current Liabilities. D) Financed by:. Show Answer Correct Answer: B) Current Assets. 4. The acronym for the primary benefits of budgeting is: A) PDECMM. B) PDCEMM. C) PCDEMM. D) SVCFN. Show Answer Correct Answer: A) PDECMM. 5. There are no specific rules and procedures to be followed in this type of accounting? A) Financial accounting. B) Cost accounting. C) Managerial accounting. D) Inflation accounting. Show Answer Correct Answer: C) Managerial accounting. 6. An asset management ratio that shows the number of times a company's accounts receivable is collected annually. This ratio can be calculated by dividing net sales on account by the accounts receivable amount A) Accounts Receivable Turnover Ratio. B) Asset Management Ratio. C) Accounts Receivable Efficency Ratio. D) Accounts Receivable Management Ratio. Show Answer Correct Answer: A) Accounts Receivable Turnover Ratio. 7. What type of accounts are raw materials, work in process and finished goods? A) Expense. B) Retained Earnings. C) Inventory. D) Account payable. Show Answer Correct Answer: C) Inventory. 8. Costs of raw materials purchase will be recorded in the A) Statement of cost of good manufactured. B) Statement of comprehensive income. C) Statement of financial position. D) None of above. Show Answer Correct Answer: A) Statement of cost of good manufactured. 9. If the contribution margin per unit is the total contribution margin divided by the number of units sold and shows how much money per unit is left to pay a business's fixed costs and provide net income. Calculate the contribution margin per unit if Contribution margin is 14, 380 and the unit sold were 1240 A) 11.59. B) 14.38. C) 11.60. D) 14.37. Show Answer Correct Answer: C) 11.60. 10. A financial document that shows a company's revenues, expenses, and net income over a specific period of time. Also referred to as a profit and loss statement, P&L, or statement of earnings. It represents whether a business is earning money (net income) or losing money (net loss) from its operations. A) Income Statement. B) Net Income Statement. C) Balance Sheet. D) Journal. Show Answer Correct Answer: A) Income Statement. 11. Which reports to people within the business. Typically managers A) Managerial Accounting. B) Financial Accounting. Show Answer Correct Answer: A) Managerial Accounting. 12. Is the following direct labor, direct materials, manufacturing overhead, or period costs?Direct materials used to manufacture a product A) Direct materials. B) Direct labor. C) Manufacturing overhead. D) Period costs. Show Answer Correct Answer: A) Direct materials. 13. What are direct costs? A) It is taking place over a small period of time. B) Is assets minus liabilities. C) Is an expense that rises and falls with the volume of production. D) Is the pattern of purchasing materials and using them to earn a profit. Show Answer Correct Answer: C) Is an expense that rises and falls with the volume of production. 14. Differentiation of cost centers occur only spatially A) True. B) False. Show Answer Correct Answer: B) False. 15. What is GAAP? A) Generally Applied Accounting Principles. B) Generally Accepted Accounting Principles. Show Answer Correct Answer: B) Generally Accepted Accounting Principles. 16. Lacey Fontaine Company reports the following data for its first year of operation. Work in process inventory, beginning0Work in process inventory, ending140, 000Direct materials used 110, 400Direct Labor134, 000Manufacturing overhead 185, 800Finished goods inventory, beginning0Finished goods inventory, ending90, 500 What are the total manufacturing costs to account for? A) $ 199, 700. B) $ 244, 400. C) $ 430, 200. D) $ 134, 000. Show Answer Correct Answer: C) $ 430, 200. 17. A shop that tailors batik shirts to sell as souvenirs to tourists. Determine the standard cost of producing 1 shirt as follows:the cost of 2 yards of batik fabric, 150 baht each, the labor cost of the tailor. It is set to take 1.5 hours/each, paying labor costs of 300 baht per hour. Other production expenses are set at 100 baht/direct labor hour from the above information. What is the standard direct labor cost? A) 100 baht. B) 150 baht. C) 300 baht. D) 400 baht. E) 450 baht. Show Answer Correct Answer: E) 450 baht. 18. Used to compute changes in noncash accounts from the beginning to the end of the period. A) Current Income Statement. B) This is the wrong answer. C) Comparative Balance Sheets. D) Additional Information. Show Answer Correct Answer: C) Comparative Balance Sheets. 19. Which is NOT a step in the budgeting process? A) Analyze current years' financial records for trends. B) Collecting budget information. C) Developing an operational plan. D) Monitor, evaluate, and update the budget during the fiscal year. Show Answer Correct Answer: A) Analyze current years' financial records for trends. 20. Which of the following is a disadvantage of participative budgeting? A) It decreases motivation. B) It decreases acceptance. C) It is more time consuming. D) It is less accurate. Show Answer Correct Answer: C) It is more time consuming. ← PreviousNext →Related QuizzesAccounting QuizzesManagerial Accounting Quiz 1Managerial Accounting Quiz 2Managerial Accounting Quiz 4Managerial Accounting Quiz 5Managerial Accounting Quiz 6Managerial Accounting Quiz 7Managerial Accounting Quiz 8Managerial Accounting Quiz 9Managerial Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books