This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. To prepare a flexible budget statement, the actual costs must be flexed to the activity level of the budget A) False. B) True. Show Answer Correct Answer: A) False. 2. Which of the following best defines Capital expenditure? A) Amount spent on purchase of fixed assets. B) Amount spent on maintenance of machinery. C) Amount spent on running the day to day working of the business. D) Amount invested by the owner. Show Answer Correct Answer: A) Amount spent on purchase of fixed assets. 3. Opening payables are £10, 000, invoices received are £25, 000 and closing payables are £7, 000. What is the payments to suppliers in our cash budget? A) £42, 000. B) £22, 000. C) £25, 000. D) £28, 000. Show Answer Correct Answer: D) £28, 000. 4. Information users of management accounting are mostly: A) Managers at all levels of the Enterprise. B) State administrative agencies. C) Tax authorities. D) All of the above implementing organizations. Show Answer Correct Answer: A) Managers at all levels of the Enterprise. 5. Break-even revenue for the multiple-product firm can be calculated by A) Dividing segment fixed cost by the overall contribution margin ratio. B) Dividing total fixed cost by the overall contribution margin ratio. C) Dividing total fixed cost by the overall variable cost ratio. D) Multiplying total fixed cost by the contribution margin ratio. Show Answer Correct Answer: B) Dividing total fixed cost by the overall contribution margin ratio. 6. The role of financial management does not usually include responsibility for A) Risk management. B) Corporate finance. C) Compliance with accounting standards. D) None of above. Show Answer Correct Answer: C) Compliance with accounting standards. 7. Management account is highly sensitive to A) Governments need. B) Investor needs. C) Management Needs. D) Towards all needs. Show Answer Correct Answer: C) Management Needs. 8. In production of Pen which of the following will be direct material A) Plastic. B) Ink. C) Nib. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. ..... provides comparative data for analysis and interpretation for effective decision making and policy formulation A) Financial accounting. B) Corporate accounting. C) Management accounting. D) Cost accounting. Show Answer Correct Answer: C) Management accounting. 10. Budgets can be created in periods A) Yearly. B) Monthly. C) Fiscal. D) All True. Show Answer Correct Answer: D) All True. 11. Fixed cost Rs.9600, Sales Rs.25200, ProfitRs.3000 calculate p/v ratio? A) 20%. B) 50%. C) 10%. D) 25%. Show Answer Correct Answer: B) 50%. 12. This refers to an accounting method used to allocate the cost of a tangible or physical asset over its useful life. A) Amortisation. B) Depreciation. Show Answer Correct Answer: B) Depreciation. 13. Current assets are equal to..... A) Current liabilities. B) Quick assets + Stock. C) Stock. D) None of these. Show Answer Correct Answer: B) Quick assets + Stock. 14. A factor that causes or leads to a change in a cost or activity is a(n) A) Slope. B) Driver. C) Cost object. D) Intercept. Show Answer Correct Answer: B) Driver. 15. Which of the following are sources of funds? A) Issue of bonus shares. B) Issue of shares against the purchase of fixed assets. C) Conversion of debentures into shares. D) None of the above. Show Answer Correct Answer: D) None of the above. 16. Management Accounting can be viewed as ..... A) Management oriented accounting. B) Marketing oriented accounting. C) Accounting oriented management. D) Manager oriented accounting. Show Answer Correct Answer: A) Management oriented accounting. 17. Alen is recently employed by a multinational company and he is asked to appraise a project. He has the following two opinions about discounting, Which are correct; 1. Discounting is to use future value and convert it into present value 2. Discounting is to use present value and convert it to future value 3. Discounting tells us how much worth the given project has in today's term 4. Discounting tells us how much worth the given project has in future. A) 1 and 2 above. B) 1 and 3 above. C) 2 and 4 above. D) 1 and 4 above. Show Answer Correct Answer: B) 1 and 3 above. 18. In evaluating different alternatives, it is useful to concentrate on: A) Fixed costs. B) Variable costs. C) Total costs. D) Relevant costs. Show Answer Correct Answer: D) Relevant costs. 19. Which of the following is the correct sequence of the value chain? A) Design, research and development, production, supply, marketing, customer service, distribution. B) Research and development, design, supply, production, marketing, distribution, customer service. C) Research and development, design, supply, production, marketing, customer service, distribution. D) Supply, research and development, design, production, marketing, distribution, customer service. Show Answer Correct Answer: B) Research and development, design, supply, production, marketing, distribution, customer service. 20. Cash equivalents are the short-term investments that can be readily converted into cash.What is the maturity period of these Investments? A) More than 3 months to 6 Months. B) 3 months or less. C) More than 1 year. D) Less than 1 year but more than 6 months. Show Answer Correct Answer: B) 3 months or less. 21. Which of the following words complete the statement below? ..... accounts are prepared for external users. Managerial accounts are prepared for ..... users. A) Financial, external. B) Shadow, internal. C) Financial, internal. D) Internal, budget. Show Answer Correct Answer: C) Financial, internal. 22. Financial statements are legally required in A) Financial accounting. B) Management accounting. Show Answer Correct Answer: A) Financial accounting. 23. A budget is prepared for.....period A) Present. B) Past. C) Future. D) All the above. Show Answer Correct Answer: C) Future. 24. The first step in implementing target pricing and target costing is A) Choosing a target price. B) Performing value engineering. C) Developing a product that satisfies needs of potential customers. D) Determining a target cost. Show Answer Correct Answer: C) Developing a product that satisfies needs of potential customers. 25. The accounting rate of return is better measured; A) Total annual accounting profit expressed as a percentage of estimated average investment. B) Average annual accounting profits expressed as a percentage of Estimated average investment. C) Average accounting annual profits expressed as a percentage of total funds invested. D) None. Show Answer Correct Answer: B) Average annual accounting profits expressed as a percentage of Estimated average investment. 26. The Meaning of Social Impacts A) Impact of an organization's activities on society including community, employees, customers and suppliers. B) Financial measures, such as profit based measure and cost performance government. C) Impact of an organization's activities on the environment. D) Economic impact such organization impact on the economy and the organization relationship with the. Show Answer Correct Answer: A) Impact of an organization's activities on society including community, employees, customers and suppliers. 27. What is the main objective of management accounting? A) To identify and analyse the result of business operations. B) To study business transactions. C) To check and maintain accounting records. D) To remind the amount due to customers. Show Answer Correct Answer: A) To identify and analyse the result of business operations. 28. An unfavorable variable overhead efficiency variance indicates that: A) Variable overhead items were not used efficiently. B) The price of variable overhead items was less than budgeted. C) The variable overhead cost-allocation base was not used efficiently. D) The denominator level was not accurately determined. Show Answer Correct Answer: C) The variable overhead cost-allocation base was not used efficiently. 29. A company's actual performance should be compared against budgeted amounts for the same accounting period so that: A) No feedback is possible. B) Adjustments for future conditions can be included. C) No feedback is possible. D) Rolling budget can be implemented. Show Answer Correct Answer: B) Adjustments for future conditions can be included. 30. Validity of current ratio A) 1:2. B) 4:1. C) 1:1. D) 2:1. Show Answer Correct Answer: D) 2:1. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesManagement Accounting Quiz 1Management Accounting Quiz 2Management Accounting Quiz 3Management Accounting Quiz 4Management Accounting Quiz 5Management Accounting Quiz 6Management Accounting Quiz 7Management Accounting Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books