This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 16 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Statement prepared to show the relationship of different individual item with total A) Common size statement. B) Comparative statement. C) Fund flow statement. D) Ration analysis. Show Answer Correct Answer: A) Common size statement. 2. In Flexible budget Works overhead is (60% fixed) for Rupees 10.00 rs per unit what is the remaining value under semi variable over head. A) 4 Rs. B) 5Rs. C) Keen. D) Wedding. Show Answer Correct Answer: A) 4 Rs. 3. Standard material cost depends on specification, consumption and ..... A) Price. B) Quality. C) Nature. D) Quantity. Show Answer Correct Answer: A) Price. 4. In Toll Road costing, the repetitive costs includes: A) Maintenance cost. B) Annual operating costs. C) None of the above. D) Both (a) and (b). Show Answer Correct Answer: A) Maintenance cost. 5. The basic difference between a flexible budget and fixed budget is that a fixed budget is A) Is concerned with fixed expenses whereas flexible budget deals with variable expenses. B) Cannot be changed whereas flexible budget can be easily changed. C) Is a budget for single measure of activity whereas flexible budget is on different activity levels. D) None of above. Show Answer Correct Answer: C) Is a budget for single measure of activity whereas flexible budget is on different activity levels. 6. If sales are Rs. 10, 00, 000 sales returns are Rs. 50, 000 profit before tax is Rs. 2, 00, 000 Income tax is 40%, Net profit ratio is A) 50%. B) 12.63%. C) 20%. D) 10%. Show Answer Correct Answer: B) 12.63%. 7. Step Fixed Costs A) ESB Bill, Telephone. B) Rent. C) Raw materials. D) None of above. Show Answer Correct Answer: B) Rent. 8. Managerial accounting is an important aid to assist the management in A) Decision making. B) Control. C) Both dcision making and control. D) None. Show Answer Correct Answer: C) Both dcision making and control. 9. Contribution Margin Ratio is calculated A) Contribution margin/Fixed costs. B) Contribution margin/Variable costs. C) (Sales-Variable costs)/Fixed costs. D) (Sales-Variable costs)/Sales revenue. Show Answer Correct Answer: D) (Sales-Variable costs)/Sales revenue. 10. Gross profit ratio is calculated by A) (Gross profit / Gross Sales) * 100. B) (Gross profit / Net Sales) * 100. C) (Net profit / Gross Sales) * 100. D) None of the above. Show Answer Correct Answer: B) (Gross profit / Net Sales) * 100. 11. Which of the following is not a functional budget? A) Sales Budget. B) Production Budget. C) Purchasing Budget. D) Budgeted Balance Sheet. Show Answer Correct Answer: D) Budgeted Balance Sheet. 12. Objectives, tend to be narrow, specific statements. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 13. Management carelessness in making the budget is called A) Budget Slack. B) Padding the Budget. C) Pseudoparticipation. D) All Correct. Show Answer Correct Answer: B) Padding the Budget. 14. While sending the goods for distribution, packing the goods in Carton box will be considered A) Direct Material. B) Secondary Packing. C) Primary Packing. D) Direct Expenses. Show Answer Correct Answer: B) Secondary Packing. 15. Revenue and expenses are recorded under: A) Assets. B) Liabilities. C) Owner's equity. D) None of above. Show Answer Correct Answer: C) Owner's equity. 16. Which of the following is NOT in CIMA code of Ethics A) Objectivity. B) Integrity. C) Confidentiality. D) Loyalty. Show Answer Correct Answer: D) Loyalty. 17. A one-time-only special order decision A) Has no role in segregating special and regular customers. B) Must involve unused plant capacity to avoid lost profits on regularly priced items. C) Allows a company to sell products at prices that only cover fixed costs. D) Involves selling products at a percentage over retail price due to the short time period involved. Show Answer Correct Answer: B) Must involve unused plant capacity to avoid lost profits on regularly priced items. 18. Choose the following terms that is NOT fixed assets. A) Leasehold. B) Debtors. C) Vehicles. D) Office equipment. Show Answer Correct Answer: B) Debtors. 19. Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 79, 000 machine-hours. The estimated variable manufacturing overhead was $ 7.38 per machine-hour and the estimated total fixed manufacturing overhead was $ 2, 347, 090. The predetermined overhead rate for the recently completed year was closest to: A) $ 36.07 per machine-hour. B) $ 29.71 per machine-hour. C) $ 37.09 per machine-hour. D) $ 7.38 per machine-hour. Show Answer Correct Answer: C) $ 37.09 per machine-hour. 20. Poor adoptation with Management Accounting Information System (MAIS) is lead to ..... A) Profit minimization. B) Inaccurate forecasting. C) Poor inventory management. D) All of the above. Show Answer Correct Answer: D) All of the above. 21. Which of the following does NOT appear in the Trading Account. A) Purchase Returns. B) Wages. C) Manager's Salary. D) Closing Stock. Show Answer Correct Answer: C) Manager's Salary. 22. The sum of actual cost and the standard cost is known as variance analysis. A) False. B) True. Show Answer Correct Answer: A) False. 23. Financial Accounting is ..... for Management Accounting A) Output. B) Outcome. C) Input. D) None of the Above. Show Answer Correct Answer: C) Input. 24. Which of the following statements are false? A) Cash Flow Statement is helpful in the formation of policies. B) Cash Flow Statement is useful for external analysis C) Cash Flow Statement is helpful in estimating future cash flow A) Both A and B. B) Both A and C. C) Both B and C. D) None of the above. Show Answer Correct Answer: D) None of the above. 25. Management accounting helps the management in ..... the performance of the business A) Controlling. B) Decision making. C) Time saving. D) Planning. Show Answer Correct Answer: A) Controlling. 26. The treasurer's major duties include:providing operating capital for long-term financing; maintaining shareholder relations; short-term financing. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 27. ..... play a key role in management accounting A) Investors. B) Managers. C) Customers. D) Suppliers. Show Answer Correct Answer: B) Managers. 28. Absorption of overheads may be done on the following basis: A) Data from previous or historical. B) Anticipated volume or unit produced. C) Classification of major activities and pooling their costs. D) Normal volume of output or capacity. Show Answer Correct Answer: C) Classification of major activities and pooling their costs. 29. Which of the following statements concerning Big Data analytics is correct? A) Big Data analytics relies on verbal information. B) Big Data analytics relies on confidential information. C) Big Data analytics relies on written information. D) Big Data analytics relies on digital information. Show Answer Correct Answer: D) Big Data analytics relies on digital information. 30. Content can include anything useful A) Financial Accounting. B) Management Accounting. Show Answer Correct Answer: B) Management 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