This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Continuous improvement is synonymous with: A) Total quality management. B) Management by exception. C) Management by objectives. D) Process benchmarking. Show Answer Correct Answer: A) Total quality management. 2. The primary benefit of activity-based costing is to provide ..... A) More accurate product costing. B) Enhanced control over overhead costs. C) More cost pools. D) Better management decisions. Show Answer Correct Answer: A) More accurate product costing. 3. The total Profit @ sale of INR 25, 000 is INR 5000 and profit for INR 40000 is INR 8000. What is the PV Ratio? A) 80%. B) 60%. C) 20%. D) 40%. Show Answer Correct Answer: C) 20%. 4. Marginal cost is computed as A) Prime cost + all variable overheads. B) Direct materials + Direct labor + Direct expenses. C) Total costs. D) All fixed overheads. Show Answer Correct Answer: A) Prime cost + all variable overheads. 5. Absolute Tonne-km. is an example of: A) Composite units in power sector. B) Composite unit of transport sector. C) Composite unit for bus operation. D) Composite unit for oil and natural gas. Show Answer Correct Answer: B) Composite unit of transport sector. 6. Cost accounting systems provide information to support decision making. Which of the following is not true? A) Planning and control functions. B) Determining unit manufacturing costs. C) Assessing the efficiency and effectiveness of operations. D) All answers are true. Show Answer Correct Answer: D) All answers are true. 7. Companies may choose to use variable costing because it A) Is useful for external reporting. B) Provides the gross margin. C) Is most useful for management decision making. D) Accords with GAAP. Show Answer Correct Answer: C) Is most useful for management decision making. 8. The role of management accounting does not normally include the function of A) Cash management. B) Planning and control. C) Decision-making. D) None of above. Show Answer Correct Answer: A) Cash management. 9. The following terms relate to ABC concept except A) Cost Pool. B) Cost Driver Rates. C) Marginal Cost. D) Cost Driver. Show Answer Correct Answer: C) Marginal Cost. 10. Which of the following are tools of management accounting? A) Decision accounting. B) Standard costing. C) Budgetary control. D) Human Resources Accounting. E) A, B, C. Show Answer Correct Answer: E) A, B, C. 11. Minimum price is calculated as A) Variable cost + Fixed cost. B) Marginal cost + Contribution. C) Marginal cost-Contribution. D) None of the above. Show Answer Correct Answer: A) Variable cost + Fixed cost. 12. Budgets can be used as A) All true. B) Predict financial plans. C) Management planning and control. D) Unit and individual performance assessment. Show Answer Correct Answer: A) All true. 13. Fixed cost + profit = A) Semi-variable cost. B) Margin of safety. C) Contribution. D) Standard profit. Show Answer Correct Answer: C) Contribution. 14. Management Accounting provide data to A) Only management. B) Both management and itself. C) Lower level of employees. D) Outside stakeholders. Show Answer Correct Answer: B) Both management and itself. 15. Current ratio is 2.7:1, quick ratio is 1.8:1 and current liabilities are Rs. 60, 000 or so confirm the value of the consignment A) Rs. 54, 000. B) Rs. 1, 62, 000. C) Rs. 1, 08, 000. D) Rs. 60, 000. Show Answer Correct Answer: A) Rs. 54, 000. 16. The rule "Debit all expenses and losses and credit all gains and incomes" is applicable to Personal Account A) True. B) False. Show Answer Correct Answer: B) False. 17. Which one of these is a period cost? A) Selling & distribution. B) Admin costs. C) Production overheads. D) Finance costs. Show Answer Correct Answer: B) Admin costs. 18. Absorption costing is also known as A) Historical costing. B) Total costing. C) Both a & b. D) None of the above. Show Answer Correct Answer: C) Both a & b. 19. Which of the following normally have a debit balance? A) Income or revenue accounts. B) Asset accounts. C) Equity or capital accounts. D) Liability accounts. Show Answer Correct Answer: B) Asset accounts. 20. If Capital is $ 27, 500 and Liabilities are $ 5, 400, how much are Assets? A) $ 32, 900. B) $ 27, 500. C) $ 22, 100. D) None of above. Show Answer Correct Answer: A) $ 32, 900. 21. The ..... of a business firm is measured by its ability to satisfy its short-term obligations as they become due. A) Profitability. B) Activity. C) Liquidity. D) Debt. Show Answer Correct Answer: C) Liquidity. 22. What is the term used to describe what the company needed to spend in order to generate its Net Sales? A) Cost of Sales. B) Sales Profit. C) Sales Statement. D) Sales Optimization. Show Answer Correct Answer: A) Cost of Sales. 23. What is the decrease side of Accounts Payable ..... Clark Company? A) Credit. B) Debit. Show Answer Correct Answer: B) Debit. 24. Owner's capital and sales increase with a A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 25. Find the current liability from the following:Current ratio-2:5 Liquid ratio-1:5 Prepaid expenses-Nil Stock-7 4, 000 A) 4, 000. B) 20, 000. C) 40, 000. D) 80, 000. Show Answer Correct Answer: B) 20, 000. 26. A manufacturing firm is very busy and overtime is being worked. How would the amount of overtime premium contained in direct wages normally be classed? A) Direct labour costs. B) Administrative overheads. C) Factory overheads. D) Part of prime cost. Show Answer Correct Answer: C) Factory overheads. 27. Decision to buy an article should be taken when: A) Purchase price is more than marginal cost. B) Purchase price is more than total cost. C) Purchase price is less than total cost. D) Purchase price is less than marginal cost. Show Answer Correct Answer: D) Purchase price is less than marginal cost. 28. Which of the following is true about Standard Costing? A) It is a technique of implementing cost control within the organisation. B) It helps in planning out business activities within the organisation. C) Both are incorrect. D) Both are correct. Show Answer Correct Answer: A) It is a technique of implementing cost control within the organisation. 29. The total of all direct costs A) Indirect cost. B) Total cost. C) Prime cost. D) Cost unit. Show Answer Correct Answer: C) Prime cost. 30. ..... helps to classify, analyze, summarize, and record financial transactions of the company. A) Financial accounting. B) Cost accounting. C) Management accounting. D) None of above. Show Answer Correct Answer: A) Financial accounting. ← 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