This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 19 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Juan Dela Cruz is the marketing manager for a local recreational sports complex. Juan's role in the marketing department is to advertise events, meet potential clients, and plan future events. Juan is responsible for revenues and costs for each event and reports to the sport's complex manager. Juan's marketing department is an example of which type of responsibility center? A) Revenue center. B) Investment center. C) Cost center. D) Profit center. Show Answer Correct Answer: D) Profit center. 2. What is the thing that makes the Corporate Investors one of the scope of Management Accounting? A) Details of Costs. B) Company Financial Information. C) Recording Financial Transactions & Company Activities that Require Funding. D) Data containing all Cost Components. Show Answer Correct Answer: B) Company Financial Information. 3. Ideally, the net cash flow should be A) Positive. B) Negative. Show Answer Correct Answer: A) Positive. 4. The creditors turnover ratio is used to measure: A) The profitability of a company. B) The average time taken by debtors to pay their debts. C) The liquidity of a company. D) The average time taken by creditors to pay their debts. Show Answer Correct Answer: D) The average time taken by creditors to pay their debts. 5. The process of decreasing the time and resources required by an activity is known as A) Activity analysis. B) Activity attributes. C) Activity reduction. D) Activity output measure. Show Answer Correct Answer: C) Activity reduction. 6. The financial risks that arise because of possible losses due to changes in future market prices or rates. A) Financing risk. B) Credit risk. C) Market risk. D) Liquidity risk. Show Answer Correct Answer: C) Market risk. 7. Current ratio indicates A) Ability to meet short term obligations. B) Efficiency of Management. C) Profitability. D) None of these. Show Answer Correct Answer: A) Ability to meet short term obligations. 8. What would a savings & loan institution likely focus on? A) Investments and business loans. B) Ways to save money and ways to charge fees. C) Offering ways to save money and loaning money. D) Biscuits & gravy. Show Answer Correct Answer: C) Offering ways to save money and loaning money. 9. Which of the following is an advantage of decentralization? A) Leads to gains from rapid decision making by subunit managers. B) Reduces the cost of gathering information. C) Does not result in a duplication of activities. D) Focuses manager's attention on the organization as a whole. Show Answer Correct Answer: A) Leads to gains from rapid decision making by subunit managers. 10. The use of fixed costs to extract higher percentage changes in profits as sales activity changes involves A) Operating leverage. B) Degree of operating leverage. C) Margin of safety. D) Variable cost reduction. Show Answer Correct Answer: A) Operating leverage. 11. Sale of fixed assets are included in cash flow from A) Operating. B) Financing. C) Investing. D) None of the above. Show Answer Correct Answer: C) Investing. 12. Which of the following statements are not true about budget, budgeting & budgetary control? A) Budgetary control works on the basis of best option. B) Budget is one of the important mediums of communication. C) Budgeting develops the quality of objectivity in planning. D) None of the above. Show Answer Correct Answer: D) None of the above. 13. ..... is the first step of budgetary system and all other budgets depends on it. A) Cost budget. B) Sales budget. C) Production budget. D) None of the above. Show Answer Correct Answer: B) Sales budget. 14. The Accounting Equation must always be in balance? A) False. B) True. Show Answer Correct Answer: B) True. 15. When are loans a good option to use? A) For a dream wedding. B) When paying for higher education. C) To buy that new television. D) To pay for airline tickets to your dream vacation. Show Answer Correct Answer: B) When paying for higher education. 16. Consider the following data produced by a company over the last two years. Activity level (000 units) Total production cost ($ 000)20X1Q1 15 30020X1 Q2 45 61520X1 Q3 25 47020X1 Q4 55 68020X2 Q1 30 52020X2 Q2 20 35020X2 Q3 35 59020X2 Q4 60 740Using regression analysis calculate r2 A) .93. B) .98. C) .92. D) .96. Show Answer Correct Answer: A) .93. 17. Financial Accounting is summarised balance sheet, profit and loss, and cash flow, meanwhile Management Accounting is a range very detailed and speacifically focused reports. Is the difference between Financial Accounting and Management Accounting in terms of? A) Format of Accounting Government by. B) Primary Users. C) Frequency. D) Type of Information. Show Answer Correct Answer: D) Type of Information. 18. Which is the correct formula to calculate the Cost of materials consumed? A) Closing raw materials + Raw materials purchase + Carriage outwards-Closing raw materials. B) Opening raw materials + Purchase of raw materials + Carriage outwards-Closing raw materials. C) Closing raw materials-Purchase of raw materials + Opening raw materials-Carriage outwards. D) Opening raw materials + Purchase of raw materials + Carriage inwards-Closing raw materials. Show Answer Correct Answer: D) Opening raw materials + Purchase of raw materials + Carriage inwards-Closing raw materials. 19. Which of the following is true: A) When a second hand asset is purchased than any expenditure incurred on it to put it into working condition is a capital expenditure. B) Carriage cost paid on purchase of goods is classified as revenue expenditure. C) Cost of demolishing an old building to replace it with a new one is a capital expenditure. D) All are true. Show Answer Correct Answer: D) All are true. 20. Which cost is more useful for decision making? A) Opportunity cost. B) Fixed cost. C) Marginal cost. D) Total cost. Show Answer Correct Answer: C) Marginal cost. 21. A combination of all the functional budgets of an organisation is A) Functional budget. B) Cash budget. C) Master budget. D) Sales budget. Show Answer Correct Answer: C) Master budget. 22. Patents and copyright is an ..... A) Intangible fixed asset. B) Tangible fixed asset. C) Investments. D) Current asset. Show Answer Correct Answer: A) Intangible fixed asset. 23. Year 2009 Sales =120000 profit = 8000year 2010 sales = 140000 Profit = 130000 Find BEP, MOS of 2010 A) 35%50000. B) 25%52000. C) 30%36000. D) None of above. Show Answer Correct Answer: B) 25%52000. 24. The wages lost when you give up your job to attend school full-time is an example of a(n): A) Fixed costs. B) Direct cost. C) Opportunity cost. D) Sunk cost. Show Answer Correct Answer: C) Opportunity cost. 25. Fresh Food Market had an increase in net sales of 18.9%. The advertising expense increased by 9.3%. Which statement is correct about the change in the advertising expense? A) This is a favorable change because the percentage increase in net sales was greater than the percentage increase in the advertising expense. B) This is a favorable change because the difference in the increase in net sales and the increase in the advertising expense was less than 10.0%. C) This is a normal change because net sales increased, and the advertising expense increased. D) This is a normal change because the advertising expense increased. Show Answer Correct Answer: A) This is a favorable change because the percentage increase in net sales was greater than the percentage increase in the advertising expense. 26. Which of the following formula cannot be used for calculating the contribution A) Fixed cost plus profit. B) Fixed cost plus loss. C) Fixed cost minus loss. D) Sales minus variable cost. Show Answer Correct Answer: B) Fixed cost plus loss. 27. Limited liability companies must, by law, prepare ..... A) Management Accounting. B) Financial Acounting. Show Answer Correct Answer: B) Financial Acounting. 28. Management accounting and financial accounting are similar in that: A) Let's use the starting information of accounting. B) Together distribute information about the economic and financial situation of the business. C) Expressing the obligations and responsibilities of all levels of corporate governance. D) These statements are correct. Show Answer Correct Answer: D) These statements are correct. 29. A budget is/does NOT A) A means to always a profitable company. B) Promotes efficiency. C) Control device. D) A primary method of communication. Show Answer Correct Answer: A) A means to always a profitable company. 30. Comparative Position statement analysis is a ..... A) Internal Analysis. B) Short term analysis. C) Vertical analysis. D) Horizontal analysis. Show Answer Correct Answer: D) Horizontal analysis. ← 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