This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 13 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. From the following information find the value of closing stock Stock velocity:6 months Gross profit ratio:25% Gross profit for the year ended 31st March 2014: ₹ 1, 00, 000 Closing stock for the period- ₹ 20, 000 more than it was at the beginning of the year. A) 1, 60, 000. B) 1, 20, 000. C) 1, 40, 000. D) 1, 30, 000. Show Answer Correct Answer: A) 1, 60, 000. 2. Which of the following is an indirect cost? A) The cost of restriping the parking lot at a perfume factory. B) The cost of bottles in a shampoo factory. C) The cost of denim in a jeans factory. D) All of the above. Show Answer Correct Answer: A) The cost of restriping the parking lot at a perfume factory. 3. A favorable direct materials price variance occurs when: A) Actual rate of direct materials is equal to standard rate of direct materials. B) Actual rate of direct materials is less than standard rate of direct materials. C) Actual rate of direct materials is higher than standard rate of direct materials. D) Actual rate of direct materials is less than previous year's rate of direct materials. Show Answer Correct Answer: B) Actual rate of direct materials is less than standard rate of direct materials. 4. Which one of the following is not a limitation of Financial Accounting A) It ignores quantitative aspects. B) It ignores qualitative aspects. C) Window Dressing. D) It ignores Price level changes. Show Answer Correct Answer: A) It ignores quantitative aspects. 5. To prepare a flexible budget can be adjusted to recognize multiple cost drivers, which cost driver may not be needed to adequately of the cost in organization? A) Wages and salaries. B) Gasoline and supplies. C) Office and shop rent. D) Equipment maintenance. Show Answer Correct Answer: C) Office and shop rent. 6. Income from long term investments is A) Source of cash. B) Application of cash. C) Cash inflow from operations. D) None of these. Show Answer Correct Answer: A) Source of cash. 7. Audit committee is an effective means for corporate governance that reduces the potential for fraudulent financial reporting A) False. B) True. Show Answer Correct Answer: B) True. 8. The balance of fixed assets of Y Ltd. at cost at the end of 2013 and 2014 were Rs 5, 70, 800 and Rs 6, 15, 300. During the year 2014 a machinery costing Rs 60, 000 was sold. Determine the purchase of fixed assets. A) Rs 1, 04, 500. B) Rs 1, 40, 500. C) Rs 1, 64, 500. D) None of the above. Show Answer Correct Answer: A) Rs 1, 04, 500. 9. Jentayu Sdn Bhd has identified an activity cost pool to which it has allocated estimated overhead of RM960, 000. It has determined the expected use of cost drivers for that activity to be 80, 000 inspections. Cameras require 20, 000 inspections, and printers require 60, 000 inspections. The overhead assigned to each product is ..... A) Cameras RM3, 840, 000; printers RM1, 280, 000. B) Cameras RM240, 000; printers RM720, 000. C) Cameras RM1, 280, 000; printers RM3, 840, 000. D) Cameras RM720, 000; printers RM240, 000. Show Answer Correct Answer: B) Cameras RM240, 000; printers RM720, 000. 10. Cash Budget is Prepared from ..... A) Fixed budget. B) Flexible budget. C) Master budget. D) Cash Forcast. Show Answer Correct Answer: D) Cash Forcast. 11. How do you account for wages in terms of work done on DIRECT tasks? A) Dr WIP control, Cr Wages Control. B) Dr Production Overheads, Cr Wages Control. C) Dr Wages Control, Cr Bank. D) Dr WIP, Cr Bank. Show Answer Correct Answer: A) Dr WIP control, Cr Wages Control. 12. Gaven owns a car dealership, which of the following items would be revenue receipt? A) Money received from commissions on sale of vehicles. B) The purchase of car parts for the dealership. C) Money received from selling an old office equipment. D) Rent paid for the premises that is used for the dealership. Show Answer Correct Answer: A) Money received from commissions on sale of vehicles. 13. Contribution margin is also known as A) Marginal income. B) Gross Profit. C) Net Profit. D) All of the above. Show Answer Correct Answer: A) Marginal income. 14. Financial Accounting is ..... where as Management Accounting is ..... A) Voluntary, compulsory. B) Voluntary, voluntary. C) Compulsory, voluntary. D) Compulsory, compulsory. Show Answer Correct Answer: C) Compulsory, voluntary. 15. Who stated the definition of management accounting as "Management Accounting is concerned with accounting information which is useful to management" ? A) J. Batty. B) James H Bliss . C) Robert Anthony. D) Michael Porter. Show Answer Correct Answer: C) Robert Anthony. 16. While computation of profit in marginal costing A) Total marginal cost is deducted from total sales revenues. B) Total marginal cost is added to total sales revenues. C) Fixed cost is added to contribution. D) None of the above. Show Answer Correct Answer: A) Total marginal cost is deducted from total sales revenues. 17. Liability accounts decrease with a A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 18. The chief objective of management accounting is to server A) Employees. B) Public at large. C) Management. D) Government. Show Answer Correct Answer: C) Management. 19. Which of the following would be capital receipts? A) Purchase of goods for sale in a business. B) Sale of stock in a business. C) Purchase of equipment for use in a business. D) Sale of fixed asset by a business. Show Answer Correct Answer: D) Sale of fixed asset by a business. 20. Is the process of preparing reports about business operations that help managers make short-term and long-term decisions. A) Management Accounting. B) Forecasting Cash Flows. C) Cash Flow Analysis. D) Financial Planning. Show Answer Correct Answer: A) Management Accounting. 21. Management accounting renders useful information to management in performing A) Business functions. B) Co-ordination functions. C) All management functions. D) Control functions. Show Answer Correct Answer: C) All management functions. 22. The statements are produced annually. A) Management accounting. B) Financial accounting. Show Answer Correct Answer: B) Financial accounting. 23. Relation of Management Accounting is- A) Recording of Actual Data. B) Recording of cost data. C) Presentation of Accounting data. D) None of these. Show Answer Correct Answer: C) Presentation of Accounting data. 24. Determine Debtors turnover ratio if, closing debtors is Rs 40, 000, Cash sales is 25% of credit sales and excess of closing debtors over opening debtors is Rs 20, 000. A) 8 times. B) 2 times. C) 6 times. D) 4 times. Show Answer Correct Answer: D) 4 times. 25. What is the primary goal of environmental cost analysis in EMA? A) To demonstrate regulatory compliance. B) To track and reduce environmental costs. C) To obtain certification. D) To prepare sustainability reports. Show Answer Correct Answer: B) To track and reduce environmental costs. 26. The high-low method uses cost and activity data from just two data points to establish the formula for a mixed cost. A) True. B) False. Show Answer Correct Answer: A) True. 27. Determine contribution if fixed cost is Rs. 40, 000 and Profit is Rs. 30, 000 A) Rs. 60, 000. B) Rs. 70, 000. C) Rs. 30, 000. D) None of the above. Show Answer Correct Answer: B) Rs. 70, 000. 28. The amount of cash moving into and out of a business A) Cash Flow. B) Net Worth. Show Answer Correct Answer: A) Cash Flow. 29. Select the financial statement that displays the revenues and expenses of a company for a period of time. A) Cash flow statement. B) Balance sheet. C) Income statement. D) Statement of stockholder's equity. Show Answer Correct Answer: C) Income statement. 30. Which personnel of a financial firm play a key role in management accounting? A) Investors. B) Suppliers. C) Customers. D) Managers. Show Answer Correct Answer: D) Managers. ← 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