This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 25 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is used as an indicator of how well managed and healthy a company is, especially when it comes to reducing expenses and growing revenue? A) Taxable Income. B) Profit Margin. C) Cashflow. D) Revenue Statement. Show Answer Correct Answer: B) Profit Margin. 2. During March, the cost of goods manufactured was $ 62, 000. The beginning finishedgoods inventory was $ 11, 000 and the ending finished goods inventory was $ 19, 000.What was the cost of goods sold for the month? A) $ 70, 000. B) $ 62, 000. C) $ 92, 000. D) $ 54, 000. Show Answer Correct Answer: D) $ 54, 000. 3. What is not correct about ABC: A) Difficult to implement. B) Less accurate. C) Time consuming. D) Massive amount of data. Show Answer Correct Answer: B) Less accurate. 4. Fixed cost is also known as ..... A) Flexible cost. B) Marginal cost. C) Period cost. D) All of the above. Show Answer Correct Answer: C) Period cost. 5. Book value is defined as the: A) Sum of the original cost of an asset and the accumulated depreciation. B) Difference between the market value of an asset and the accumulated depreciation. C) Difference between the original cost of an asset and the accumulated depreciation. D) Sum of the market value of an asset and the accumulated depreciation. Show Answer Correct Answer: C) Difference between the original cost of an asset and the accumulated depreciation. 6. The company purchases land by paying half in cash and signing a note A) Assets (NE). B) Liabilities (I). C) Equity (I). D) None of above. Show Answer Correct Answer: B) Liabilities (I). 7. Given Production at 60% activity, 600 units, Material Rs 50 per unit, Labour Rs 20 per unit, Direct expenses Rs 5 per unit, Factory overheads Rs 20, 000 ( 60% variable) and Administration expenses Rs 15, 000 ( 60% fixed). What will be the total cost per unit for production at 80% capacity? A) Rs 122. B) Rs 1, 01, 000. C) Rs 1, 22, 000. D) Rs 126.25. Show Answer Correct Answer: D) Rs 126.25. 8. Fixed cost includes ..... A) Property taxes. B) Rent. C) Insurance premium. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. Dividend received by the financing company is classified under ..... activity. A) Operating. B) Financing. C) Investing. D) None. Show Answer Correct Answer: A) Operating. 10. Cost accounting concepts include all the following except A) Controlling. B) Profit sharing. C) Planning. D) Product costing. Show Answer Correct Answer: B) Profit sharing. 11. A trader wishes to know the cost of goods sold during the year.Which financial statement will provide the answer? A) Statement of Financial Position (Balance Sheet). B) Profit and Loss Account. C) Trading Account. D) Trial Balance. Show Answer Correct Answer: C) Trading Account. 12. It is an offer of service. When accepted or approved, it becomes a contractual agreement. A) Engagement letter. B) Proposal letter. C) Confirmation letter. D) Contract. Show Answer Correct Answer: B) Proposal letter. 13. In evaluating an investment center, top management should concentrate on A) Profit percentages. B) Net income. C) Return on investment. D) Salt weight. Show Answer Correct Answer: C) Return on investment. 14. The following is the formula to calculate Gross Profit A) Revenue-Cost of Sales. B) Revenue-All Expenses. C) Revenue + Cost of Sales. D) Expenses + Cost of Sales. Show Answer Correct Answer: A) Revenue-Cost of Sales. 15. If total cost of 100 units is Rs. 5000 and those of 101 units is Rs. 5030 then increase of Rs. 30 in total cost is A) Marginal cost. B) All variable cost. C) Prime cost. D) None of the above. Show Answer Correct Answer: A) Marginal cost. 16. Operating Budget produces A) Budget report for production activities. B) Direct Material Budget. C) Cash Budget. D) Project Income Statement. Show Answer Correct Answer: D) Project Income Statement. 17. Transport inwards is an example of Ordering costs A) False. B) True. Show Answer Correct Answer: B) True. 18. The part of total cost which changes due to change in output by 1 unit is ..... A) Opportunity Cost. B) Imputed Cost. C) Marginal Cost. D) Relevant Cost. Show Answer Correct Answer: C) Marginal Cost. 19. Why management of a company need to know the cost of a product? A) To determine the selling price. B) To make the products famous. C) To determine the GST. D) To get profit. Show Answer Correct Answer: A) To determine the selling price. 20. Operating Profit is ..... A) Gross profit less Operating expenses. B) Cost of goods only. C) Operating expenses only. D) Non operating expenses. Show Answer Correct Answer: A) Gross profit less Operating expenses. 21. Jenny's Corporation manufactured 25, 000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $ 20.00 per machine-hour. The following fixed overhead data pertain to March:Actual Static Budget Production 25, 000 units 24, 000 units Machine-hours 6, 100 hours 6, 000 hours Fixed overhead costs for March $ 123, 000 $ 120, 000 What is the fixed overhead spending variance? A) $ 3, 000 unfavorable. B) $ 5, 000 favorable. C) 2, 000 favorable. D) $ 1, 000 unfavorable. Show Answer Correct Answer: A) $ 3, 000 unfavorable. 22. 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 differential cost was: A) $ 5, 000. B) $ 18, 000. C) $ 77, 000. D) $ 95, 000. Show Answer Correct Answer: D) $ 95, 000. 23. Under absorption costing, managerial decision is based on A) Profit. B) P/V ratio. C) Contribution. D) None of the above. Show Answer Correct Answer: A) Profit. 24. Receipt and Payments Account usually indicates ..... A) Credit Balance. B) Surplus. C) Capital Fund. D) Debit Balance. Show Answer Correct Answer: D) Debit Balance. 25. Which of the following formula cannot be used for calculating the P/V ratio? A) (Fixed cost plus profit)/Sales value. B) Profit/Sales value. C) (Sales value minus variable cost) / Sales value. D) Change in profits/Change in sales. Show Answer Correct Answer: B) Profit/Sales value. 26. For taking Decisions, ..... is important A) Data. B) Facts. C) Information. D) All the Above. Show Answer Correct Answer: C) Information. 27. The term financial statement covers A) P & L A/c. B) Balance sheet. C) P & L A/c and Balance sheet. D) None of the above. Show Answer Correct Answer: C) P & L A/c and Balance sheet. 28. Interest on loan paid by business is an example of A) Revenue expense. B) Income. C) Return outward. D) Asset. Show Answer Correct Answer: A) Revenue expense. 29. The flexibility of information provided by management accounting is manifested in: A) Information characteristics. B) Scope of explanatory report. C) Explanation report template. D) All of the above cases are correct. Show Answer Correct Answer: D) All of the above cases are correct. 30. During June, Buttrey Corporation incurred $ 67, 000 of direct labor costs and $ 7, 000 of indirect labor costs. The journal entry to record the accrual of these wages would include a: A) Credit to Work in Process of $ 67, 000. B) Debit to Work in Process of $ 67, 000. C) Debit to Work in Process of $ 74, 000. D) Credit to Work in Process of $ 74, 000. Show Answer Correct Answer: B) Debit to Work in Process of $ 67, 000. ← 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