This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 20 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Identify the right activities involved in Cash Flow Statement.i. Financing Activitiesii. Operating Activitiesiii. Cash Balance Activitiesiv. Investing Activities A) I, ii and iii. B) I, ii and iv. C) Ii, iii and iv. D) I, iii and iv. Show Answer Correct Answer: B) I, ii and iv. 2. The ideal level of liquid ratio is A) 3:3. B) 1:1. C) 2:2. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. Patient nights is the cost unit to ascertain cost of ..... A) Hotel. B) Hospital. C) Home-stay. D) Taxi. Show Answer Correct Answer: B) Hospital. 4. Dividend received is shown in ..... A) Investing activity. B) Financial activity. C) Operating activity. D) None of above. Show Answer Correct Answer: A) Investing activity. 5. Management Accounting helps in A) Planning. B) Organising. C) Decision making. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. In which year was the term management accounting first used? A) 1910. B) 1926. C) 1950. D) 1939. Show Answer Correct Answer: C) 1950. 7. The person who is supervising the labourers involved in production will be A) Direct Labour. B) Direct Expenses. C) Indirect Labour. D) None of the above. Show Answer Correct Answer: C) Indirect Labour. 8. The flexible-budget variance for direct cost inputs can be further subdivided into a: A) Static-budget variance and a sales-volume variance. B) Sales-volume variance and an efficiency variance. C) Price variance and an efficiency variance. D) Static-budget variance and a price variance. Show Answer Correct Answer: C) Price variance and an efficiency variance. 9. Step Variable Costs A) ESB Bill, Telephone. B) Rent. C) Raw materials. D) None of above. Show Answer Correct Answer: C) Raw materials. 10. If you have a bank account and receive a statement that tells you that you had NSF because you went to Walmart and bought something with debit card for $ 14.63 and had $ 8.50 in your account, what does this mean and what happens? A) No Such Fee; the transaction would go through and you would have to pay the difference. B) Non-Sufficient Funds; the transaction would go through and you would owe the bank the difference plus an overdraft fee. C) Non-Sufficient Funds; the transaction would not go through and the bank would alert you. D) National Service Fee; the transaction would go through and you would owe the bank a $ 25 fee for going over your limit. Show Answer Correct Answer: B) Non-Sufficient Funds; the transaction would go through and you would owe the bank the difference plus an overdraft fee. 11. A trader had the following transactions. Credit sales $ 50 000, cash receipt of $ 10 000 from the sale of the old motor vehicle at book value. How would these transactions be classified in the trader's books? A) Revenue Receipt $ 10000, Capital Receipt $ 50000. B) Revenue Receipt $ 60000. C) Revenue Receipt $ 50000, Capital Receipt $ 10000. D) Capital Receipt $ 60000. Show Answer Correct Answer: C) Revenue Receipt $ 50000, Capital Receipt $ 10000. 12. Monthly variance reports are an example of which one of the following types of management information? A) Strategic. B) Tactical. C) Operational. D) Non-financial. Show Answer Correct Answer: B) Tactical. 13. Property received as a result of the will of the deceased person is called A) Honorarium. B) Donation. C) Legacy. D) Subscription. Show Answer Correct Answer: C) Legacy. 14. Determining which products should be produced when the plant is operating at full capacity is referred to as a(n): A) Product-mix decision. B) Total alternative approach. C) Short-run focus decision. D) Outsourcing analysis. Show Answer Correct Answer: A) Product-mix decision. 15. Which of the following best describes interactive control systems? A) It articulates the mission, purpose, and core values of a company. B) It articulates standards of behavior and codes of conduct expected of all employees and help in achieving the maximum benefit. C) They are formal information systems managers use to focus the company's attention and learning on key strategic issues. D) It describes the geographic limits of a company and help organize its layout. Show Answer Correct Answer: C) They are formal information systems managers use to focus the company's attention and learning on key strategic issues. 16. Who is the user of ratio analysis? A) Management. B) Creditors & financial institutions. C) Investors. D) All. Show Answer Correct Answer: D) All. 17. What kind of financial statement is comprised of Revenues and Expenses? A) Balance Sheet. B) Income Statement. C) Asset Statement. D) Cash Flow Statement. Show Answer Correct Answer: B) Income Statement. 18. Planning is a function of A) Cost Accounting. B) Financial Accounting. C) Management Accounting. D) Auditing. Show Answer Correct Answer: C) Management Accounting. 19. The term Management accounting was first used in A) 1950. B) 1945. C) 1960. D) 1955. Show Answer Correct Answer: A) 1950. 20. Which of the following costs tire treated as product cost under variable costing: A) Only direct costs. B) Only variable production costs. C) Only material and labour costs. D) All variable and fixed manufacturing costs. Show Answer Correct Answer: B) Only variable production costs. 21. The break-even point is when A) The company is operating at a loss. B) Total revenue equals total cost. C) The company is earning a small profit. D) Total sales equals operating income. Show Answer Correct Answer: B) Total revenue equals total cost. 22. Manufacturing cost are the costs to produce a product. It is divided into direct cost and indirect cost. A) False. B) True. Show Answer Correct Answer: B) True. 23. Increase in direct materials prices is not likely to be a reason of unfavorable direct labor efficiency variance A) Yes. B) No. Show Answer Correct Answer: A) Yes. 24. Which is not included in budget accountability A) Share Center. B) Revenue Center. C) Investment Center. D) Cost Center. Show Answer Correct Answer: A) Share Center. 25. Gallon Corporation had $ 24, 000 of raw materials on hand on April 1. During the month, the Corporation purchased an additional $ 52, 000 of raw materials. During April, $ 62, 000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $ 2, 000. The debits to the Work in Process account as a consequence of the raw materials transactions in April total: A) $ 52, 000. B) $ 62, 000. C) $ 60, 000. D) $ 0. Show Answer Correct Answer: C) $ 60, 000. 26. Why would a company adopt a decentralized organization? A) To train and motivate divisions managers. B) To let top management focus on strategic planning. C) To allow division managers to make important operating decisions. D) All of the above. Show Answer Correct Answer: D) All of the above. 27. The ..... is a measure of liquidity that excludes generally the least liquid asset. A) Current ratio, Accounts receivable. B) Current ratio, inventory. C) Liquid ratio, Accounts receivable. D) Liquid ratio, inventory. Show Answer Correct Answer: D) Liquid ratio, inventory. 28. The company repays the bank that had lent money A) Assets (I). B) Liabilities (D). C) Equity (D). D) None of above. Show Answer Correct Answer: B) Liabilities (D). 29. THE COMPANY IS EXPECTED TO CONTRIBUTE DIRECTLY TO THE COMMUNITY BY IMPROVING THE QUALITY OF LIFE OF THE COMMUNITY AND THE ENVIRONMENT IS THE MEANING FROM ..... A) ECONOMY ASPECT. B) SOCIAL ASPECT. C) PUBLIC WALFARE ASPECT. D) POLITICAL ASPECT. Show Answer Correct Answer: B) SOCIAL ASPECT. 30. The Electricity expenses for 10, 000 units of output is Rs 22, 500 and that for producing 15, 000 units is Rs. 32, 500. What is the per unit variable cost A) Rs. 2.20. B) Rs. 2.25. C) Rs. 2.17. D) Rs. 2. Show Answer Correct Answer: D) Rs. 2. ← 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