This quiz works best with JavaScript enabled. Home > Accounting > Managerial Accounting > Managerial Accounting – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What are the variable expenses for the Commercial segment? A) $ 100, 000. B) $ 120, 000. C) $ 220, 000. D) $ 300, 000. Show Answer Correct Answer: B) $ 120, 000. 2. Process costing is more appropriate in what kind of business? A) Cornflakes factory. B) Cruise shipbuilder. C) Law firm. D) Dentist office. Show Answer Correct Answer: A) Cornflakes factory. 3. Which account types normally have a credit balance? A) Revenues. B) Liabilities. C) Expenses. D) Both a and b. Show Answer Correct Answer: D) Both a and b. 4. Managerial accounting places greater emphasis on the future than financial accounting, which is primarily concerned with the past. A) True. B) False. Show Answer Correct Answer: A) True. 5. Which of the following statements related to cost is incorrect? Select them all. A) Opportunity cost refers to the amount of money that can be gained if resources are used for alternative purposes other than their current use. B) Sunk costs that have already occurred due to past decisions can be recovered through future decisions, so they must be considered when making decisions. C) Avoidable costs are costs that are saved or not incurred by choosing a specific alternative. D) Manufacturing overhead increases as operating rate increases. Show Answer Correct Answer: B) Sunk costs that have already occurred due to past decisions can be recovered through future decisions, so they must be considered when making decisions. 6. Depreciation for administrative office buildings is A) Direct Material (DM). B) Direct Labor (DL). C) Factory Overhead (FOH). D) Selling/ Administrative Expense. Show Answer Correct Answer: D) Selling/ Administrative Expense. 7. ..... can be related to the production of a particular product and vary directly with the level of output A) Indirect costs. B) Cost centre. C) Marginal cost. D) Direct costs. Show Answer Correct Answer: D) Direct costs. 8. Rouse Manufacturing's operating activities for the year are listed below. Beginning inventory $ 1, 000, 400Ending inventory $ 350, 800Purchases $ 750, 700Sales revenue $ 1, 500, 900Operating expenses $ 700, 600 What is the cost of goods sold for the year? A) $ 1, 400, 300. B) $ 750, 200. C) $ 50, 100. D) $ 1, 751, 100. Show Answer Correct Answer: A) $ 1, 400, 300. 9. The wages of an hourly timekeeper in the factory would be classified as A) A period cost. B) Direct labor. C) Indirect labor. D) Compliance costs. Show Answer Correct Answer: C) Indirect labor. 10. Financial accounting is concerned with A) Determining profit and loss of the business. B) Financial position of the business. C) Communicating to the interested parties. D) All of them. Show Answer Correct Answer: D) All of them. 11. As current technology changes manufacturing processes, it is likely that direct A) Labor will increase. B) Labor will decrease. C) Materials will increase. D) Materials will decrease. Show Answer Correct Answer: B) Labor will decrease. 12. The sum of direct labour and manufacturing overhead is ..... A) Product costs. B) Period costs. C) Conversion costs. D) Direct costs. Show Answer Correct Answer: C) Conversion costs. 13. What is the main purpose of preparing Manufacturing Statement? A) To determine Cost of goods manufactured. B) To determine prime cost. C) To determine cost of inventory. D) To determine manufacturing overhead. Show Answer Correct Answer: A) To determine Cost of goods manufactured. 14. Cash outflows are ..... A) Expenses. B) Income. Show Answer Correct Answer: A) Expenses. 15. The rent expense for the shop building is A) Direct Material (DM). B) Direct Labor (DL). C) Factory Overhead (FOH). D) Selling/ Administrative Expense. Show Answer Correct Answer: D) Selling/ Administrative Expense. 16. MASB is a body / organisation in Malaysia who are responsible to develop local accounting standards. What is MASB stand for? A) Malaysia Accounting Sdn Bhd. B) Malaysia Accounting Setting Board. C) Malaysia Accounting Standard Berhad. D) Malaysia Accounting Standard Board. Show Answer Correct Answer: D) Malaysia Accounting Standard Board. 17. The process of reviewing the break-even point and the relationship between costs, volume, and profit to determine how many units must be sold to make a net income. A) Break-Even Analysis. B) Break-Even Point. C) Cost Benefit Analysis. D) None of above. Show Answer Correct Answer: A) Break-Even Analysis. 18. What is Management Accounting? A) Planning. B) Controlling. C) Directing. D) All the above. Show Answer Correct Answer: D) All the above. 19. The cost of products that have been completed and are waiting to be sold to customers is called A) Finished goods. B) Work in process. C) Cost of goods sold. D) Raw materials. Show Answer Correct Answer: A) Finished goods. 20. What are variable costs? A) Is an expense that rises and falls with the volume of productio. B) Is a bribe. C) Direct materials are the materials that are used to make products. D) A direct cost is an expense that rises and falls with the volume of production. Show Answer Correct Answer: A) Is an expense that rises and falls with the volume of productio. ← PreviousNext →Related QuizzesAccounting QuizzesManagerial Accounting Quiz 1Managerial Accounting Quiz 2Managerial Accounting Quiz 3Managerial Accounting Quiz 4Managerial Accounting Quiz 6Managerial Accounting Quiz 7Managerial Accounting Quiz 8Managerial Accounting Quiz 9Managerial Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books