This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is calculated in a Trading Account? A) Closing Inventory (stock). B) Gross profit. C) Profit for the year /net profit. D) Sales. Show Answer Correct Answer: B) Gross profit. 2. Sale of Raw Material Scrap should be subtracted after calculating Works Cost. A) True. B) False. Show Answer Correct Answer: B) False. 3. What is the quick win in determining PT IP pricing? A) Subholdingisasi dan Cost Efficiency. B) Provision of comprehensive LK and subholding. C) Cost efficiency and automation of presenting fuel information. D) Automation of presenting fuel information and presenting BPP per engine. Show Answer Correct Answer: D) Automation of presenting fuel information and presenting BPP per engine. 4. Which of these describes collateral? A) A type of loan from a bank. B) Something of value used to secure a loan. C) Something most people pay to the government. D) Damage done to someone. Show Answer Correct Answer: B) Something of value used to secure a loan. 5. Which one of the following is normally classed as a variable cost for a 'high street' photo print shop? A) Electricity used. B) Cost of the photo paper. C) Rent. D) Supervisor salary. Show Answer Correct Answer: B) Cost of the photo paper. 6. All of the following are needed to prepare a flexible budget EXCEPT determining the: A) Budgeted variable cost per output unit. B) Budgeted fixed costs. C) Actual quantity of output units. D) Actual selling price per unit. Show Answer Correct Answer: D) Actual selling price per unit. 7. Which product should we emphasise? A) Customers. B) Marketing. C) Management. D) Finance. Show Answer Correct Answer: B) Marketing. 8. Which item is important to consider when selecting a credit card? A) Annual Percentage Rate (APR). B) Fees. C) Both APR and fees. D) The look of the credit card. Show Answer Correct Answer: C) Both APR and fees. 9. A profit centre is a centre A) Where the manager has the responsibility of generating and maximising profits. B) Which is concerned with earning an adequate Return on Investment. C) Both of the above. D) Which manages cost. Show Answer Correct Answer: C) Both of the above. 10. Indirect material used in production is classified as A) Distribution overhead. B) Factory overhead. C) Office overhead. D) Selling overhead. Show Answer Correct Answer: B) Factory overhead. 11. What is a semi variable or semi fixed cost? A) Cost which is fixed in nature. B) Cost which is variable in nature. C) Cost which is partly fixed and partly variablein nature. D) None of above. Show Answer Correct Answer: C) Cost which is partly fixed and partly variablein nature. 12. In flexible budgets, costs that remain the same regardless of the output levels within the relevant range are: A) Allocated costs. B) Budgeted costs. C) Fixed costs. D) Variable costs. Show Answer Correct Answer: C) Fixed costs. 13. Internal Revenue Service (IRS) A) External User. B) Internal User. Show Answer Correct Answer: A) External User. 14. Indirect expenses are also termed as ..... A) Direct Expenses. B) Administrative Expenses. C) Overheads. D) None of above. Show Answer Correct Answer: C) Overheads. 15. Credit sales of Jump Ltd. for the year is ₹ 12, 00, 000 and debtors at the end of year ₹ 2, 40, 000. Assuming 360 days in a year, the average collection period will be- A) 72 days. B) 70 days. C) 60 Days. D) 62 days. Show Answer Correct Answer: A) 72 days. 16. Using Absorption method, the overhead cost can be allotted to cost units. Below are the common cost unit used for absorption except A) Unit produced. B) Breakeven. C) Blanket overhead. D) Time basis. Show Answer Correct Answer: B) Breakeven. 17. A Profit is earned if? A) Cash Inflow exceeds Cash Outflow. B) Assets exceed Expenditure. C) Income exceeds Liabilities. D) Income exceeds Expenditure. Show Answer Correct Answer: D) Income exceeds Expenditure. 18. Which of the following is a basic feature of a Management accounting system? A) Objective information. B) Highly aggregated data. C) Future oriented reports. D) Both a and b. Show Answer Correct Answer: C) Future oriented reports. 19. The company receives cash from a bank loan A) Assets (I). B) Liabilities (D). C) Equity (D). D) None of above. Show Answer Correct Answer: A) Assets (I). 20. Marginal costing theory assumes that every cost can be placed in one of the two categories ..... costs or ..... costs. A) Direct, Variable. B) Fixed, Variable. C) Direct, Indirect. D) Fixed, Indirect. Show Answer Correct Answer: B) Fixed, Variable. 21. Information distribution management accounting: A) Useful for economic and financial management work. B) Can only be expressed with money. C) Entire business. D) Each business department. Show Answer Correct Answer: D) Each business department. 22. An unfavorable production-volume variance: A) Indicates that the company had reduced its per unit fixed overhead cost to improve sales. B) Measures the amount of extra fixed costs planned for but not used. C) Takes into account the effect of additional revenues due to maintaining higher prices. D) Is not a good measure of a lost production opportunity. Show Answer Correct Answer: B) Measures the amount of extra fixed costs planned for but not used. 23. Cost sheet does not include abnormal cost A) False. B) True. Show Answer Correct Answer: B) True. 24. The labour rate variance can be calculated by the following equation: A) (Standard wage rate-actual wage rate) x standard hours worked. B) (Standard wage rate-actual wage rate) x actual hours worked. C) (Standard hours-actual hours) x actual wage rate. D) Budgeted labour costs-actual labour costs. Show Answer Correct Answer: C) (Standard hours-actual hours) x actual wage rate. 25. In an organization, working capital is ₹ 1, 00, 000 and current ratio 3:1. The value of current assets is- A) 75, 000. B) 1, 00, 000. C) 1, 50, 000. D) 50, 000. Show Answer Correct Answer: C) 1, 50, 000. 26. Diana Industries, Inc. (DII), developed standard costs for direct material and direct labor. In 2010, DII estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity Budgeted price Direct materials 0.10 pounds $ 30 per pound Direct labor 0.05 hours $ 15 per hour During June, DII produced and sold 10, 000 containers using 980 pounds of direct materials at an average cost per pound of $ 32 and 500 direct manufacturing labor-hours at an average wage of $ 15.25 per hour. June's direct material efficiency variance is: A) $ 1, 860 unfavorable. B) $ 600 unfavorable. C) $ 600 favorable. D) $ 1, 360 favorable. Show Answer Correct Answer: C) $ 600 favorable. 27. The difference between net profit and gross profit is that net profit takes what into account? A) Assets. B) Taxes. C) Revenue. D) Expenses. Show Answer Correct Answer: B) Taxes. 28. Characteristics of responsibility accounting system include all of the following except that, A) Cost centers are responsible for revenues as well as common costs. B) The system should encourage employee involvement and participation. C) Each level of management is responsible for its department's operations and employees. D) Responsibility for performance according to budget must be linked to the appropriate authority. Show Answer Correct Answer: A) Cost centers are responsible for revenues as well as common costs. 29. In marginal costing profitability of each product is measured based on its A) Cost. B) Contribution. C) Profit. D) None of the above. Show Answer Correct Answer: B) Contribution. 30. Assets = Liabilities + Owner's Equity (Capital) is known as which equation? A) Expenses Equation. B) Accounting Equation. C) Financial Equation. D) Cash Equation. Show Answer Correct Answer: B) Accounting Equation. Next →Related QuizzesAccounting QuizzesFinance QuizzesManagement Accounting Quiz 2Management Accounting Quiz 3Management Accounting Quiz 4Management Accounting Quiz 5Management Accounting Quiz 6Management Accounting Quiz 7Management Accounting Quiz 8Management Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books