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Management Accounting Quiz 2 (30 MCQs)

Quiz Instructions

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1. What is the main purpose of the Dual Aspect Convention in accounting?
2. The total profit at Break even point is
3. Dominik Corporation purchased a machine 5 years ago for $ 527, 000 when it launched product M08Y. Unfortunately, this machine has broken down and cannot be repaired. The machine could be replaced by a new model 310 machine costing $ 545, 000 or by a new model 240 machine costing $ 450, 000. Management has decided to buy the model 240 machine. It has less capacity than the model 310 machine, but its capacity is sufficient to continue making product M08Y. Management also considered, but rejected, the alternative of dropping product M08Y and not replacing the old machine. If that were done, the $ 450, 000 invested in the new machine could instead have been invested in a project that would have returned a total of $ 532, 000. In making the decision to buy the model 240 machine rather than the model 310 machine, the sunk cost was:
4. May include budgets and forecasts
5. The term 'Contribution' refers to the .....
6. Which of the following principles means not disclosing information to third parties without authority
7. BEP in rupees formula is
8. Which one in MRP is the order to delivery time?
9. Determine working capital turnover ratio if, current assets are Rs. 1, 50, 000 current liabilities are Rs. 1, 00, 000 and cost of goods sold is Rs. 3, 00, 000
10. Bowden Corporation used the following data to evaluate their current operating system. The company sells items for $ 20 each and used a budgeted selling price of $ 20 per unit. Actual Budgeted Units sold 46, 000 units 45, 000 units Variable costs $ 225, 400 $ 216, 000 Fixed costs $ 47, 500 $ 50, 000 What is the static-budget variance of operating income?
11. . A company is planning to purchase a machinery costing $ 500, 000 having useful life of 5 years. Its cash flows for the next 5 years will be as follows. Year Cash flows 1 (200, 000) 2 300, 000 3 300, 000 4 500, 000 5 100, 000Calculate the payback period.
12. In October, Raddatz Inc. incurred $ 73, 000 of direct labor costs and $ 6, 000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:
13. The term fund means
14. If break even point in Unit is 4, 800 units and with budgeted sales being 5, 000 units, calculate the margin of safety?
15. At the break-even point,
16. Single entry system is suitable for ..... concerns.
17. A factory produces a single product with the following budgeted costs:Direct materials £3.40 Direct labour £6.80 Variable overheads £1.20 Fixed overheads £340, 000 Overheads are absorbed on the machine hour basis and it is estimated that in the next accounting period machine hours will total 100, 000. Each unit requires two hours of machine time. What is the cost per unit using:(a) Marginal Costing, (b) using Absorption Costing
18. Choose the odd one out
19. Marketing manager
20. Target cost is $ 19, Estimated cost is $ 15. What is the difference $ 4 called as .....
21. If Assets are $ 7, 300 and Liabilities are $ 500, how much is Capital?
22. Purchased supplies on credit from XZE Supplies $ 4400 incl. GST. Calculate the value of GST.
23. What determines the degrees of freedom in pricing decision making?
24. Given production is 1, 00, 000 units, fixed cost is Rs. 2, 00, 000, Selling price is Rs. 10 per unit and variable cost is Rs. 6 per unit. Determine profit
25. A company should use cost-based transfer prices:
26. Cost of production-Administration overhead = .....
27. The balance sheet shows the assets and liabilities of a business at a particular point in time.
28. Overhead refers to:
29. If margin of safety-20%, profit volume ratio-60%, Fixed cost = Rs.75, 000. Find Actual sales.
30. The budget is prepared as a Blue Print of activities in the period?
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