This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 15 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following types of information are used in management accounting? A) Financial information. B) Non-financial information. C) Information focused on the long term. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. Direct costs are those which A) Are significant in the production process. B) Are incurred in a specific period. C) Include only purchase of materials. D) Can be accurately traced to a product. Show Answer Correct Answer: D) Can be accurately traced to a product. 3. Juanita Corporation uses a job-order costing system and applies overhead on the basis of direct labor cost. At the end of October, Juanita had one job still in process. The job cost sheet for this job contained the following information:Direct materials:$ 480Direct labor:$ 150Manufacturing overhead applied:$ 600An additional $ 100 of labor was needed in November to complete this job. For this job, how much should Juanita have transferred to finished goods inventory in November when it was completed? A) $ 1, 730. B) $ 1, 330. C) $ 1, 230. D) $ 500. Show Answer Correct Answer: A) $ 1, 730. 4. The three parameters are quality, cost and time are called A) Steel Triangle. B) Iron Triangle. C) Gold Triangle. D) None of the above. Show Answer Correct Answer: B) Iron Triangle. 5. Consumption of raw material is based on ..... budget A) Production budget. B) Cost budget. C) Sales budget. D) Flexible budget. Show Answer Correct Answer: A) Production budget. 6. Which of the following is a Revenue Expenditure A) Purchasing Start-up Machinery. B) Purchasing Raw Materials. C) Rent Received from Tenant. D) Interest Received on Savings. Show Answer Correct Answer: B) Purchasing Raw Materials. 7. Element/s of Cost of a product are A) Material only. B) Labour only. C) Expenses only. D) Material, Labour and expenses. Show Answer Correct Answer: D) Material, Labour and expenses. 8. Current ratio is also known as A) Acid test ratio. B) Working capital ratio. C) Quick ratio. D) Liquid account. Show Answer Correct Answer: B) Working capital ratio. 9. Accounts receivable turn over ratio measures A) Number of times inventory is sold during the year. B) The proportion of receivables in accounts. C) How quickly a firm collects its Debtors. D) Howmuch in total assets a firm must have to generate its sales. Show Answer Correct Answer: C) How quickly a firm collects its Debtors. 10. ..... is the study of managerial aspects of financial accounting A) Management accounting. B) Business accounting. C) Financial accounting. D) Cost accounting. Show Answer Correct Answer: A) Management accounting. 11. What do you mean by Cost Management? A) Managing Liabilities. B) Managing Fund. C) Managing Cost. D) Managing Asset. Show Answer Correct Answer: C) Managing Cost. 12. Planning and forecating, modification of data is a A) Objectives of management. B) Functions of management. C) Scope of management. D) None. Show Answer Correct Answer: B) Functions of management. 13. Opening receivables are £1, 000, sales invoices raised are £5, 000 and closing receivables are £600. What is the receipts from sales in our cash budget? A) £5, 400. B) £6, 600. C) £5, 000. D) £4, 600. Show Answer Correct Answer: A) £5, 400. 14. Which of the following is used to calculate the average collection period of a company? A) Debtors turnover ratio. B) Creditors turnover ratio. C) Inventory turnover ratio. D) None of the above. Show Answer Correct Answer: A) Debtors turnover ratio. 15. Lordship Ltd has annual budgeted overheads of £15, 000 and annual budgeted machine hours of 30, 000. What is the budgeted overheads absorption rate? A) £2. B) £0.50. C) £0.55. D) £0.65. Show Answer Correct Answer: B) £0.50. 16. ABC co is planning to undertake a project with initial outlay of $ 600, 000 and it will yield annual profits (after depreciation) of $ 40000 per year for next 5 years. The residuals value of projects asset will be $ 60000.calculateARR A) 2.42%. B) 1.48%. C) 7.41%. D) 12.12%. Show Answer Correct Answer: D) 12.12%. 17. Marketable securities are part of ..... A) Fixed Assets. B) Investments. C) Current Assets. D) None. Show Answer Correct Answer: C) Current Assets. 18. Stakeholders are: A) Customers. B) Suppliers. C) Shareholders. D) Creditors. E) All of the above. Show Answer Correct Answer: C) Shareholders. 19. What are the instruments/ tools related to management accounting? A) Marginal costing. B) Standard costing. C) Budget control. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Sales= Rs.500000, Variable Cost= Rs.200000, Fixed Cost= Rs.50000. What is the BEP Sales? A) 300000. B) 83333. C) 500000. D) 125000. Show Answer Correct Answer: B) 83333. 21. What is the classification of Accounts Payable ..... Staples? A) Liability. B) Expense. C) Asset. D) Owner's Equity. Show Answer Correct Answer: A) Liability. 22. The profit and loss account (or the income statement) is a financial statement of a firm's trading activities over a period of time, usually one month. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 23. Purchase of delivery van A) Capital Expenditure. B) Revenue Expenditure. Show Answer Correct Answer: A) Capital Expenditure. 24. A partnership must have more than one owner. A) True. B) False. Show Answer Correct Answer: A) True. 25. Depreciation of Plant and Machinery will come under A) Factory Overhead. B) Office and Administrative Overhead. C) Selling and Distribution Overhead. D) Prime cost. Show Answer Correct Answer: A) Factory Overhead. 26. The zero-based budget is the best method of budgeting because: A) This type of budget is less complicated than other types of budgets. B) Sticking to a zero-based budget requires less discipline. C) A zero-based budget allows less money for wants. D) The zero-based budget ensures that every dollar you make is assigned a specific purpose. Show Answer Correct Answer: D) The zero-based budget ensures that every dollar you make is assigned a specific purpose. 27. A managing director must be an individual (a real person) and can be appointed for a maximum period of five years. A) False. B) True. Show Answer Correct Answer: B) True. 28. An unfavorable sales-volume variance could result from: A) Competitors taking market share. B) A decrease in actual selling price compared to anticipated selling price. C) An inappropriate assignment of labor or machines to specific jobs. D) An inefficiency of a purchasing manager in bargaining with suppliers. Show Answer Correct Answer: A) Competitors taking market share. 29. Which type of bank account typically offers the least (if any) interest? A) Certificate of deposit. B) Money market account. C) Savings account. D) Checking account. Show Answer Correct Answer: D) Checking account. 30. A budgeted income statement can be used by the business to predict: A) Profit. B) Expenses. C) Revenue. D) All of the above. Show Answer Correct Answer: D) All of the above. ← 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