This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 26 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the increase side of the owner's capital account? A) Credit. B) Debit. Show Answer Correct Answer: A) Credit. 2. What is NOT one of the factors that is considered in sales forecasting? A) CEO's input. B) Price changes. C) Technological developments. D) Industry trends. Show Answer Correct Answer: A) CEO's input. 3. Financial accounting provides information for owners and investors A) True. B) False. Show Answer Correct Answer: A) True. 4. Face value of share is ..... A) Market value of share. B) Issue price of share. C) Book value of share. D) Fixed denomination of a share mentioned in M/A. Show Answer Correct Answer: D) Fixed denomination of a share mentioned in M/A. 5. What is the formula of p/v Ratio A) Contribution/sales. B) Fixed cost-contribution. C) Sales-variables. D) None. Show Answer Correct Answer: A) Contribution/sales. 6. Determine contribution if sales are Rs. 1, 50, 000 and P/V ratio is 40% A) Rs. 60, 000. B) Rs. 70, 000. C) Rs. 80, 000. D) None of the above. Show Answer Correct Answer: B) Rs. 70, 000. 7. Determine contribution if fixed cost is Rs. 50, 000 and loss is Rs. 20, 000 A) Rs. 60, 000. B) Rs. 30, 000. C) Rs. 70, 000. D) None of the above. Show Answer Correct Answer: B) Rs. 30, 000. 8. If Sales for the year were ₹ .14, 00, 000 and the Gross profit ratio is 20%, calculate Gross profit? A) 2, 80, 000. B) 11, 20, 000. C) 2, 40, 000. D) 2, 60, 000. Show Answer Correct Answer: A) 2, 80, 000. 9. A firm has to pay a 20c per unit royalty to the inventor of a device which it manufactures and sells. How would the royalty charge be classified in the firm's accounts? A) Direct expense. B) Selling expense. C) Production overhead. D) Administrative overhead. Show Answer Correct Answer: A) Direct expense. 10. Whereas financial accounting reports tend to cover the financial activities of a company as a whole, managerial accounting reports tend to be specific to product lines, divisions, sales territories, or customers grouped by peso volume of sales orders. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 11. Abc co. using investment appraisal techniques calculated IRR of its project to be 19.33% where as its WACC is 15%. Depending on the information provided suggest whether to undertake project or not? A) It must undertake as there is WACC is too high. B) It must undertake project as its IRR is greater than WACC. C) It must not undertake as its IRR is greater than WACC. D) It must not undertake as IRR is too high. Show Answer Correct Answer: B) It must undertake project as its IRR is greater than WACC. 12. What is the cost unit for electricity cost used for machinery? A) Tons. B) Square feet. C) Liters. D) Kilowatt hours. Show Answer Correct Answer: D) Kilowatt hours. 13. Non-manufacturing cost are cost incurred to produce the goods. It is sometimes known as non-manufacturing overhead or period cost. A) True. B) False. Show Answer Correct Answer: B) False. 14. What is the neoclassical theory of the firm's postulate for optimal pricing? A) Equating marginal product cost and marginal revenue. B) Considering fixed costs irrelevant for pricing decisions. C) Maximizing sales volume and profit. D) Aligning cost and demand conditions. Show Answer Correct Answer: A) Equating marginal product cost and marginal revenue. 15. Which of the following is not a part of Profit and loss Adjustment Account? A) Amortization of goodwill. B) Depreciation on Machinery. C) Loss on sale of an asset. D) Salaries paid. Show Answer Correct Answer: D) Salaries paid. 16. Management accounting deals with what kind of information? A) Qualitative Information. B) Quantitative Information. C) Both. D) None of the above. Show Answer Correct Answer: C) Both. 17. The significance of capital budgeting arises mainly due to the A) Complicacies of Investment decisions. B) Irreversible in nature. C) Large Investment. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. Indirect expenses are called A) Prime cost. B) Unabsorbed costs. C) Factory expenses. D) Overheads. Show Answer Correct Answer: D) Overheads. 19. Which of the following is false regarding transfer pricing? A) If no market price exists, the transfer price may be based on cost. B) It measures exchanges between a company and its external customers. C) If a market price exists, this price may be used as transfer price between segments. D) It measures the value of goods or services furnished by one responsibility center to another. Show Answer Correct Answer: B) It measures exchanges between a company and its external customers. 20. These budgets are extended into the future as time passes. A) Rolling Budgets. B) Activity Based Budgeting. C) Zero Based Budgeting. D) Incremental Budgeting. Show Answer Correct Answer: A) Rolling Budgets. 21. Costs are classified according elements, nature, behaviour and function A) False. B) True. Show Answer Correct Answer: B) True. 22. Which cost is exclusive to this product? A) Overheads. B) Direct material and direct labour. Show Answer Correct Answer: B) Direct material and direct labour. 23. The future plan of all money transactions for a specific time frame A) Cash flow statement. B) Cash flow projection. Show Answer Correct Answer: B) Cash flow projection. 24. Cost of goods manufactured will include opening and closing stock for ..... A) Raw material and work in progress only. B) Work in progress only. C) Raw material only. D) Raw material, work in progress and finished goods. Show Answer Correct Answer: A) Raw material and work in progress only. 25. Dividend paid, under AS-3, is A) Cash flow from financing activity. B) Cash flow from operating activity. C) Cash flow from investing activity. D) None of above. Show Answer Correct Answer: A) Cash flow from financing activity. 26. Which of the following is added while calculating cash from operations? A) Decrease in current assets. B) Refund of taxes. C) Increase in Current Liabilities. D) All of the above. Show Answer Correct Answer: D) All of the above. 27. The gross margin is added to the cost of sold goods to calculate A) Revenues. B) Unit price. C) Bundle price. D) Selling price. Show Answer Correct Answer: A) Revenues. 28. Manufacturing costs are usually combined o form prime cost and conversion cost. Which of these combination is for conversion cost. A) Direct labor + Manufacturing overhead. B) Direct material + Manufacturing overhead. C) Direct labor + Administrative Expense. D) Direct material + Direct labor. Show Answer Correct Answer: A) Direct labor + Manufacturing overhead. 29. The analysis of working capital to analyse the ability of firm to meet the short term needs of a company A) Internal. B) Long term. C) External. D) Short term. Show Answer Correct Answer: D) Short term. 30. The main objective of management accounting is A) To maintain the accounting records. B) To know the amount due from customers and suppliers. C) To ascertain analyze and interpret the results of business operations. D) To record all the business transactions. Show Answer Correct Answer: C) To ascertain analyze and interpret the results of business operations. ← 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