This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 29 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A form used to accumulate the cost of producing products is called a(n) A) Time sheet. B) Purchase order. C) Material requisition. D) Job cost sheet. Show Answer Correct Answer: D) Job cost sheet. 2. In computer based system, who evaluates the existing application system and designs new data processing procedures? A) EDP Manager. B) Programmer. C) Computer operator. D) System Analyst. Show Answer Correct Answer: D) System Analyst. 3. Which of the following is NOT true with regards to relevant costs and relevant revenues? A) They are sunk costs and historical revenues. B) They are expected costs and expected revenues. C) They occur in the future. D) The differ among alternative courses of action. Show Answer Correct Answer: A) They are sunk costs and historical revenues. 4. Cash Flow Statement is also known as A) Statement of Changes in Financial Position on Cash basis. B) Statement accounting for variation in cash. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 5. What does the Amoroso-Robinson rule suggest? A) Fixed costs are irrelevant for pricing decisions. B) Variable costs are irrelevant for pricing decisions. C) Demand quantity is irrelevant for pricing decisions. D) Profitability is irrelevant for pricing decisions. Show Answer Correct Answer: A) Fixed costs are irrelevant for pricing decisions. 6. The following would appear in which section of the cash flow statement? cash payments for equipment A) Operating. B) Investing. C) Financing. D) None of above. Show Answer Correct Answer: B) Investing. 7. Management accounting information must: A) Compliance with accounting standards. B) Consistent with general accounting principles. C) Consistent with general accounting policies. D) Flexible, timely and helpful. Show Answer Correct Answer: D) Flexible, timely and helpful. 8. The owner withdraws business assets for personal use. A) Assets (I). B) Liabilities (D). C) Equity (D). D) None of above. Show Answer Correct Answer: C) Equity (D). 9. If manufacturing overhead is underapplied, then: A) Actual manufacturing overhead cost is less than estimated manufacturing overhead cost. B) The amount of manufacturing overhead cost applied to Work in Process is less than the actual manufacturing overhead cost incurred. C) The predetermined overhead rate is too high. D) The Manufacturing Overhead account will have a credit balance at the end of the year. Show Answer Correct Answer: B) The amount of manufacturing overhead cost applied to Work in Process is less than the actual manufacturing overhead cost incurred. 10. Which of the following is NOT a source of funding for a business? A) Decreasing owner contributions. B) Investors. C) Borrowing funds. D) Selling stocks. Show Answer Correct Answer: A) Decreasing owner contributions. 11. Cash and Bank is an element of ..... A) Quick Liabilities. B) Non-Quick Liabilities. C) Non-Quick Assets. D) Quick Assets. Show Answer Correct Answer: D) Quick Assets. 12. The margin of safety can be calculated using the formula A) Fixed cost-Contribution. B) P/V ratio-Profit. C) Fixed cost-P/V ratio. D) Total sales-Break-even sales. Show Answer Correct Answer: D) Total sales-Break-even sales. 13. The goods will be shipped to you COD.What does COD stand for? A) A large sea fish. B) Cash on delivery. C) Codfish. D) None of above. Show Answer Correct Answer: B) Cash on delivery. 14. Which of the following is not a management accounting tool? A) Process costing. B) Fund flow statement. C) Ratio analysis. D) Cash flow statement. Show Answer Correct Answer: A) Process costing. 15. Subscription due but not received for the current year is ..... A) An expense. B) A liability. C) An asset. D) An item to be ignored. Show Answer Correct Answer: C) An asset. 16. What are variable expenses? A) Expenses that are the same month to month. B) Legal process of reducing debt. C) Cost that differ month to month (harder to estimate). D) Small book for recording account activity. Show Answer Correct Answer: C) Cost that differ month to month (harder to estimate). 17. What is the method called to work out a Semi-variable cost? A) Hi Lo method. B) No go method. C) Mid method. D) Lo method. Show Answer Correct Answer: A) Hi Lo method. 18. In a common size Income statement, what is the base for calculating the change percentage of the items? A) Net Sales. B) Total Income. C) Total Expenses. D) Non Of the above. Show Answer Correct Answer: A) Net Sales. 19. ..... ensure that the assets and liabilities of a business are properly accounted for provide information to stakeholders. A) Financial Accounting Systems. B) Management Accounting Systems. C) Cost Accounting Systems. D) None of above. Show Answer Correct Answer: A) Financial Accounting Systems. 20. Fixed cost is a cost: A) Which changes in total in proportion to changes in output. B) Which is partly fixed and partly variable in relation to output. C) Which do not change in total during a given period despise changes in output. D) Which remains same for each unit of output. Show Answer Correct Answer: C) Which do not change in total during a given period despise changes in output. 21. Which of these is NOT one of the 3 main types of financial statements most businesses have? A) Balance Sheet. B) Inflow Statement. C) Income Statement. D) Cash Flow Statement. Show Answer Correct Answer: B) Inflow Statement. 22. What is the scope of management accounting A) Cost accounting. B) Budgeting. C) Forecasting. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. Example of Fixed Asset A) Land. B) Cash in Hand. C) Credit Card. D) Creditor. Show Answer Correct Answer: A) Land. 24. A Debenture is a kind of ..... instrument A) Debit. B) Debt. C) Ownership. D) Asset. Show Answer Correct Answer: B) Debt. 25. A cash budget is used to determine: A) The value of the business. B) Profit. C) The debts of the business. D) Cash closing balance. Show Answer Correct Answer: D) Cash closing balance. 26. The per-unit amount of three different production costs for Jones, Inc., are as follows:ProductionPRODUCTION COST A COST B COST C 20 000 $ 12.00 $ 15.00 $ 20.00 80 000 $ 12.00 $ 11.25 $ 5.00What type of cost is each of these three costs? A) Cost A is fixed, Cost B is mixed, Cost C is variable. B) Cost A is mixed, Cost B is variable, Cost C is mixed. C) Cost A is variable, Cost B is mixed, Cost C is fixed. D) Cost A is fixed, Cost B is variable, Cost C is mixed. Show Answer Correct Answer: C) Cost A is variable, Cost B is mixed, Cost C is fixed. 27. Which ONE of the following is a characteristic of financial accounting? A) Its purpose is to provide information for managers. B) It is based on future events. C) Its purpose is to provide information for owners and investors. D) The timing and content of its reports is decided by managers. Show Answer Correct Answer: C) Its purpose is to provide information for owners and investors. 28. ..... analysis is known as a dynamic analysis A) External. B) Vertical. C) Horizontal. D) Long Term. Show Answer Correct Answer: C) Horizontal. 29. Which of the following is an example of an environmental cost? A) Energy consumption. B) Office supplies. C) Employee salaries. D) Marketing expenses. Show Answer Correct Answer: A) Energy consumption. 30. The Product X can be sold after further processing @ Rs.25 whereas it can be sold without further processing @ Rs.20 per unit. If the Further processing cost for 250 units is Rs. 1500, should Product X be further processed? A) Yes. B) No. C) Indifferent. D) None of above. Show Answer Correct Answer: B) No. ← 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