This quiz works best with JavaScript enabled. Home > Accounting > Managerial Accounting > Managerial Accounting – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The statement of cash flows reports cash receipts and cash payments for a period of time. A) True. B) False. Show Answer Correct Answer: A) True. 2. A comparison of a budgeted income statement to actual results. Managers use this to create more accurate future budgets as well as to make operational corrections midyear, if necessary, to improve the results for the remainder of the year. A) Budget Variance Report. B) Budget Schedule. C) Budget Income Statement. D) Budget Performance Report. Show Answer Correct Answer: A) Budget Variance Report. 3. Operating profit increases by the unit contribution margin for each unit sold. A) True. B) False. Show Answer Correct Answer: A) True. 4. Which alternative will most likely see a increase in net income due to an increased contribution margin? A) Sales price reduction and sales volume increase. B) Decreasing variable costs. C) Decreasing fixed costs. D) None of above. Show Answer Correct Answer: B) Decreasing variable costs. 5. What is the formula to calculate net profit? A) Total revenue * Total expenses. B) Total revenue-Total expenses. C) Total revenue / Total expenses. D) Total revenue + Total expenses. Show Answer Correct Answer: B) Total revenue-Total expenses. 6. Career planning consists of all positions. A) True. B) False. Show Answer Correct Answer: A) True. 7. Used to help compute cash flows from operating activities. A) Current Income Statement. B) Additional Information. C) Comparative Balance Sheets. D) This is the wrong answer. Show Answer Correct Answer: A) Current Income Statement. 8. Looking back, determining what actually happened and comparing it with previously planned outcomes is the meaning of? A) Budget. B) Planning. C) Long-term plan. D) Control. E) Short-term plan. Show Answer Correct Answer: D) Control. 9. Which outside parties would be interested in reviewing financial reports? A) SEC/IRS. B) Managers. Show Answer Correct Answer: A) SEC/IRS. 10. The combination of direct labor and factory overhead costs used in process costing. A) Conversion Costs. B) Opportunity costs. C) Total Costs. D) None of above. Show Answer Correct Answer: A) Conversion Costs. 11. Rent expense incurred on a factory building would be treated as a/an A) Period cost. B) Both product cost and indirect cost. C) Product cost. D) Indirect cost. Show Answer Correct Answer: B) Both product cost and indirect cost. 12. Which of the following is incorrect? A) Good will intangible asset. B) Sundry debtors-current asset. C) Loose tools tangible fixed asset. D) Outstanding expenses-current asset. Show Answer Correct Answer: D) Outstanding expenses-current asset. 13. BOBS Corporation began operations on January 1st. During the year, it started and completed 2, 700 units of product. The company incurred the following costs:Raw materials purchased and used-$ 5, 600Wages of production workers-$ 6, 890.Salaries of administrative and sales personnel-$ 2, 450.Depreciation on manufacturing equipment-$ 4, 280.Depreciation on administrative equipment-$ 7, 010.BOBS corporation sold 2, 100 units of product.Determine the total product cost for the year. A) $ 19, 500. B) $ 23, 780. C) $ 16, 770. D) $ 13, 740. Show Answer Correct Answer: C) $ 16, 770. 14. Which of the following best describes the production budget? A) It is calculated from the desired ending inventory and the sales forecast. B) It includes required direct labor hours. C) It includes required material purchases. D) It aggregates the monetary details of the operating budget. Show Answer Correct Answer: A) It is calculated from the desired ending inventory and the sales forecast. 15. Which is considered a variable cost (hint does not stay the same) A) Utilities. B) Rent. C) Salaries. D) Insurance. Show Answer Correct Answer: A) Utilities. 16. Are the consumption of assets for the purpose of generating revenue. A) Period Cost. B) Cost. C) Expenses. D) Product Cost. Show Answer Correct Answer: C) Expenses. 17. The theory and system of setting up, maintaining, and auditing the financial books of a firm; art of analyzing the financial position and operating results of a business house from a study of its sales, purchases, overhead, and so forth. A) Accounting. B) Financial Accounting. C) Managerial Accounting. D) Economic Accounting. Show Answer Correct Answer: A) Accounting. 18. The Avengers Company is trying to do cost-volume-profit analysis with the following information for the month of August:Sales-P1, 100, 000; Total Fixed costs-P280, 000; Total Variable costs-P660, 000; Unit price-P40.00. The operating income of the Avengers Company is: A) P160, 000. B) P190, 000. C) P240, 000. D) P440, 000. Show Answer Correct Answer: A) P160, 000. 19. What activities and responsibilities are not associated with management's functions? A) Planning. B) Accountability. C) Controlling. D) Directing. Show Answer Correct Answer: B) Accountability. 20. Budgeting can help the company in the following areas? A) Contributing to profitability and eliminate wasteful spending. B) Keeping alignment with goals. C) Provides benchmarks for comparison. D) All of these can help the company. Show Answer Correct Answer: D) All of these can help the company. ← 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 9Managerial Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books