This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 18 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a part of the formal management control system? A) Mutual commitments among the members of the organization. B) The accounting information system provides metrics about costs, revenues, and contribution margins. C) Shared values and loyalties among the members of the organization. D) General understanding about acceptable behavior for managers. Show Answer Correct Answer: B) The accounting information system provides metrics about costs, revenues, and contribution margins. 2. Operating costs include the cost of goods sold and ..... A) Other operating expenses. B) Sales. C) Gross profit. D) Purchases. Show Answer Correct Answer: A) Other operating expenses. 3. A semi variable cost totals £1, 000 for 100 units. The variable cost per unit is £8 per unit. How much is the fixed element of this semi variable cost? A) £250. B) £1, 000. C) £800. D) £200. Show Answer Correct Answer: D) £200. 4. Which of the following funds are long term sources of funds? A) Creditors. B) Public Deposits. C) Bank Overdraft. D) Term Loans. Show Answer Correct Answer: D) Term Loans. 5. What role does financial data play in Environmental Management Accounting? A) It is integrated with environmental data. B) It is irrelevant to EMA. C) It is tracked separately from environmental data. D) It is used only for external reporting. Show Answer Correct Answer: A) It is integrated with environmental data. 6. What is the system introduced by Luca Pacioli? A) Bookkeeping. B) Accounting. C) Double Entry. D) Double Enter. Show Answer Correct Answer: C) Double Entry. 7. Which of the following are Non-current assets? A) Land, Building and Plant. B) Leasehold property. C) Computer software. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Summary budget may be regarded as A) Cash Budget. B) Flexible Budget. C) Flexible Budget. D) Master Budget. Show Answer Correct Answer: D) Master Budget. 9. Which of these cost is not considered as prime cost for manufacturing A) Direct expense. B) Administration expense. C) Direct labor. D) Direct material. Show Answer Correct Answer: B) Administration expense. 10. THE FOLLOWING ARE THE PURPOSES OF ENVIRONMENTAL MANAGEMENT ACCOUNTING, EXCEPT ..... A) REDUCE RISKS TO THE ENVIRONMENT. B) IMPROVING COMPANY MANAGEMENT RESULTS. C) REDUCE THE ENVIRONMENTAL IMPACTS OF COMPANY OPERATIONS, PRODUCTS AND SERVICES. D) COMPENSATE ENVIRONMENTAL LOSS CAUSED BY THE COMPANY. Show Answer Correct Answer: D) COMPENSATE ENVIRONMENTAL LOSS CAUSED BY THE COMPANY. 11. Why are budgets useful in the planning process? A) They provide management with information about the company's past performance. B) They help communicate goals and provide a basis for evaluation. C) They guarantee the company will be profitable if it meets its objectives. D) They enable the budget committee to earn their paycheck. Show Answer Correct Answer: B) They help communicate goals and provide a basis for evaluation. 12. Difficulties in recognize economic, environmental, and social impacts except A) Future ecological and social issues are not always known. B) Many costs and benefits are external to the organization. C) Many costs and benefits are difficult to measure in financial terms. D) Mostly costs are internal. Show Answer Correct Answer: D) Mostly costs are internal. 13. When capital in the beginning is ₹ .10, 000 drawings during the year is ₹ .6, 000 profit made during the year is ₹ .2, 000 and the additional capital introduced is ₹ .3, 000 find out the amount of capital at the end ..... A) ₹ .64, 000. B) ₹ .21, 000. C) ₹ .11, 000. D) ₹ .9, 000. Show Answer Correct Answer: D) ₹ .9, 000. 14. Decision to make should be taken when- A) Marginal cost is more than purchase cost. B) Marginal cost is less than purchase cost. C) Total cost is less than purchase cost. D) Total cost is more than purchase cost. Show Answer Correct Answer: B) Marginal cost is less than purchase cost. 15. Fixed cost is also referred to as ..... in the marginal costing technique. A) Total cost. B) Product cost. C) Period cost. D) None of the above. Show Answer Correct Answer: C) Period cost. 16. Every department of the organization prepares ..... for management within specified period- A) Reports. B) Guest House. C) New Office. D) House. Show Answer Correct Answer: A) Reports. 17. Which one of the following is not a real account? A) Goodwill account. B) Sales account. C) Machinery account. D) Equipment account. Show Answer Correct Answer: B) Sales account. 18. An important assumption of cost-volume-profit analysis is that A) Both costs and revenues are linear functions. B) The sales mix remains constant. C) All of the above are assumptions of cost-volume-profit analysis. D) There is no change in inventories. Show Answer Correct Answer: C) All of the above are assumptions of cost-volume-profit analysis. 19. John's 8-year-old Toyota Inova requires repairs estimated at $ 6, 000 to make it roadworthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Honda CRV instead for $ 6, 000 cash. Sherry estimated the following costs for the two cars:Toyota Inova Honda CRV Acquisition cost $ 25, 000 $ 6, 000 Repairs $ 6, 000 Annual operating cost $ 2, 280 $ 2, 100 The cost NOT relevant for this decision is the: A) Repairs to the Toyota Inova. B) Annual operating costs of the Honda CRV. C) Acquisition cost of the Toyota Inova. D) Acquisition cost of the Honda CRV. Show Answer Correct Answer: C) Acquisition cost of the Toyota Inova. 20. The..... is an operational concept linked to the generation of new wealth. The.....refers to the amount and participation of the income that reaches those who provide their own capital to the private company A) Profit, Administration. B) Profitability, Utility. C) Utility, Profitability. D) Maximization, Wealth. Show Answer Correct Answer: B) Profitability, Utility. 21. At a volume of 5, 000 units, Pwerson Company incurred $ 32, 000 in factory overhead costs, including $ 14, 000 in fixed costs. If volume increases to 6, 000 units and both 5, 000 units and 6, 000 units are within the relevant range, then the company would expect to incur total factory overhead costs of:(Round intermediate calculations to 2 decimal places.) A) $ 32, 000. B) $ 21, 600. C) $ 18, 000. D) $ 35, 600. Show Answer Correct Answer: D) $ 35, 600. 22. Royalty on production will be recorded in A) Trading account debit side. B) Trading account credit side. C) Profit and loss account debit side. D) Profit and loss account credit side. Show Answer Correct Answer: A) Trading account debit side. 23. What is the main function of management accounting? A) Provision of information to management . B) Decision making. C) Direction. D) Planning. Show Answer Correct Answer: A) Provision of information to management . 24. For accounting purpose, the proprietor is a separate and distinct entity from the business. A) True. B) False. Show Answer Correct Answer: A) True. 25. Quick ratio is also known as ..... A) Monetary ratio. B) Acid test ratio. C) Chemical test ratio. D) All of the above. Show Answer Correct Answer: D) All of the above. 26. The reason we create Bad debt Reserve in the books of accounts is due to the A) Realisation Concept. B) Materiality Concept. C) Convention Conservatism. D) Convention of Consistency. Show Answer Correct Answer: C) Convention Conservatism. 27. Production cost is the sum of all manufacturing costs A) True. B) False. Show Answer Correct Answer: A) True. 28. Shows the total change in cash from operating, investing, and financing activities A) Beginning Cash Balance. B) Net Cash Flows. C) Ending Cash Balance. D) None of above. Show Answer Correct Answer: B) Net Cash Flows. 29. Planning and control are A) Different names for the same thing. B) The basic functions of management. C) Described equally well by the terms "decision making" and "performance evaluation.". D) Exemplified by, respectively, financial statements and budgeting. Show Answer Correct Answer: B) The basic functions of management. 30. The owner invests personal cash in business. A) Asset (I). B) Liabilities (I). C) Equity (NE). D) None of above. Show Answer Correct Answer: A) Asset (I). ← 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