This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 30 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a branch of accounting that focuses on current and future trends for internal use? A) Cost Accounting. B) Financial Accounting. C) Forensic Accounting. D) Management Accounting. Show Answer Correct Answer: D) Management Accounting. 2. Higher budgetary ..... (allocate) for education mean more teachers can be hired and classes can be smaller A) Allocating. B) Allocations. C) Allocation. D) Allocated. Show Answer Correct Answer: B) Allocations. 3. An increase in the variable cost ..... A) Decreases the break-even point. B) Increase margin of safety. C) Improves the profit/volume ratio. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. ..... are both an historical record and a future planning tool. A) Management Accounts. B) Financial Accounts. Show Answer Correct Answer: A) Management Accounts. 5. Which method of inventory valuation is prohibited under IAS2? A) LIFO. B) FIFO. C) AVCO. D) None of above. Show Answer Correct Answer: A) LIFO. 6. Liquidity ratios are expressed in A) Pure ratio form. B) Percentage. C) Rate or time. D) None of the above. Show Answer Correct Answer: A) Pure ratio form. 7. Which of the following is true of depreciation cost? A) Depreciation cost on equipment is irrelevant in decision making because there is no cash transaction. B) Depreciation cost on equipment is irrelevant in decision making because depreciation on equipment that has already been purchased is a past cost. C) Depreciation cost on equipment is relevant in decision making because depreciation on equipment that has already been purchased is an opportunity cost. D) Depreciation cost on equipment is irrelevant in decision making because depreciation on equipment that has already been purchased is an opportunity cost. Show Answer Correct Answer: B) Depreciation cost on equipment is irrelevant in decision making because depreciation on equipment that has already been purchased is a past cost. 8. Which of the following statements is/are correct?(i) Information for decision-making should incorporate uncertainty in some way.(ii) The data used to prepare financial accounts and management accounts are the same. A) (i) is true and (ii) is false. B) (ii) is true and (i) is false. C) Both are true. D) Both are false. Show Answer Correct Answer: C) Both are true. 9. Jeramin Bhd uses activity-based costing to determine costs of its Product Y and Product Z. The estimated total cost is RM14, 400 and expected activity for Product Y and Product Z are 200 and 300 respectively. The activity rate under the activity-based costing system for this activity is ..... A) RM72.00. B) RM16.80. C) RM28.80. D) RM52.80. Show Answer Correct Answer: C) RM28.80. 10. The cost of sales ₹ .15440 and Fixed assets ₹ .5000, calculate Fixed assets turnover ratio? A) 3.88 times. B) 3.57 times. C) 3.01 times. D) 3.08 times. Show Answer Correct Answer: D) 3.08 times. 11. The following would appear in which section of the cash flow statement? Cash payments for purchasing inventory A) Operating. B) Investing. C) Financing. D) None of above. Show Answer Correct Answer: A) Operating. 12. "Accurate data on the amount and purpose of all energy, water and materials used to support activities" IS THE MEANING OF ..... A) NON FINANCIAL INFORMATION. B) NON PHYSICAL INFORMATION. C) FINANCIAL INFORMATION. D) PHYSICAL INFORMATION. Show Answer Correct Answer: D) PHYSICAL INFORMATION. 13. IT and management accounting is connected to each otherThis sentence true or false A) False. B) True. Show Answer Correct Answer: B) True. 14. Management accounting in contrast to financial accounting is internal accounting that helps managers to measure the results of their decisions A) True. B) False. Show Answer Correct Answer: A) True. 15. A business has budgeted sales of its single product of 38, 000 units. The selling price per unit is £57 and the variable costs of production are £45. The fixed costs of the business are £360, 000. Calculate the margin of safety in Percentage A) 12%. B) 20.52 %. C) 26.67%. D) 21.05%. Show Answer Correct Answer: D) 21.05%. 16. Balance of Income and Expenditure A/c shows ..... A) Cash in hand. B) Capital Fund. C) Excess of Income over Expenditure or vice-versa. D) Net Profit. Show Answer Correct Answer: C) Excess of Income over Expenditure or vice-versa. 17. Salary paid to factory store staff is part of: A) Direct Employee cost. B) Direct Material Cost. C) Factory overheads. D) Production Cost. Show Answer Correct Answer: C) Factory overheads. 18. Standard Costing is best suited for which of the following industries? A) It is appropriate for industries that manufacture standard goods. B) It is appropriate for service-oriented businesses. C) It's ideal for industries that make non-standard goods. D) None of the above. Show Answer Correct Answer: A) It is appropriate for industries that manufacture standard goods. 19. Which of the following is true about the behavior of fixed and variable costs? A) Total VC does not change with output. B) Total FC changes with output. C) Per unit VC reduces when output increases. D) Per unit FC reduces when output increases. Show Answer Correct Answer: D) Per unit FC reduces when output increases. 20. . Bravado ltd has two possible projects but can only raise funds to finance one of them. Investment appraisal techniques produced the following results:Project A Project BPay back period 3.5 years 3 years NPV $ 4, 50, 000 $ 2, 50, 000ARR 15% 16% Which project to choose? A) Project A because it has lesser payback period and higher NPV. B) Project B because it has lower NPV accompanied by lower pay back period. C) Project B because it sounds more feasible. D) None. Show Answer Correct Answer: A) Project A because it has lesser payback period and higher NPV. 21. What is the amount of capital of the proprietor if his assets are ₹ 85, 000 and liabilities are ₹ 21, 000 A) ₹ 85, 000. B) ₹ .21, 000. C) ₹ .64, 000. D) ₹ .1, 06, 000. Show Answer Correct Answer: C) ₹ .64, 000. 22. Funds Flow Statement is also known as A) Statement of Funds Flow. B) Statement of Sources and Application of Funds. C) Statement of Sources and Uses of Funds. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. A cost which remains unchanged over a range of output levels A) Fixed cost. B) Variable cost. C) Stepped cost. D) Semi-variable cost. Show Answer Correct Answer: A) Fixed cost. 24. The following would appear in which section of the cash flow statement? Cash received from a business investor A) Operating. B) Investing. C) Financing. D) None of above. Show Answer Correct Answer: C) Financing. 25. What is Favorable (F)? A) Revenue Increased, Spending Decreased. B) Revenue Increased, Spending Increased. C) Revenue Decreased, Spending Increased. D) Revenue Decreased, Spending Decreased. Show Answer Correct Answer: A) Revenue Increased, Spending Decreased. 26. What is the decrease side of Accounts Receivable ..... Ocean State Communications. A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 27. Premium on redemption of debenture is A) A cash inflow. B) An asset. C) An income. D) Cash outflow. Show Answer Correct Answer: D) Cash outflow. 28. It is a method, which measures how quickly (or slowly) a project will repay the initial capital investment. A) Capital Investment Appraisal. B) Net Present Value. C) Average Rate of Return. D) Payback Method. Show Answer Correct Answer: D) Payback Method. 29. Which of these are the components of prime cost? A) Direct materials and indirect materials. B) Direct wages and indirect wages. C) Direct materials and direct wages. D) Indirect materials and indirect materials. Show Answer Correct Answer: C) Direct materials and direct wages. 30. ..... is the language of Business which used to communicate financial information. A) Pricing. B) Profit. C) Marketing. D) Accounting. Show Answer Correct Answer: D) Accounting. ← 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