This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 31 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Sales Rs. 1, 20, 000, gross profit Rs. 30, 000 what is the gross profit ratio? A) 20%. B) 40%. C) 30%. D) 25%. Show Answer Correct Answer: D) 25%. 2. Dividing costs of the department into activity cost pools is known as: A) Second-stage allocation. B) First-stage allocation. C) No allocation stage. D) Full allocation. Show Answer Correct Answer: B) First-stage allocation. 3. A cost at 27, 000 output is Rs 3, 00, 000 and at 30, 000 output is Rs ..... 3, 15, 000. What shall be overhead cost for 33, 000 units? A) Rs. 3, 46, 500. B) Rs. 3, 30, 000. C) Rs. 3, 66, 667. D) Rs. 3, 15, 000. Show Answer Correct Answer: B) Rs. 3, 30, 000. 4. Return Inwards appearing in the Trial Balance is deducted from A) Purchases. B) Sales. C) Direct expenses. D) None of these. Show Answer Correct Answer: B) Sales. 5. Which of the following would not be a period cost? A) Research and development. B) Direct materials. C) Advertising costs. D) Office supplies. Show Answer Correct Answer: B) Direct materials. 6. Which of the following can be a reason for a favorable price variance for direct materials? A) A decrease in the price of materials due to an oversupply of materials. B) Workers taking less time to produce the products than was expected. C) Less amount of material used during production than planned for actual output. D) An unexpected increase in the price of materials. Show Answer Correct Answer: A) A decrease in the price of materials due to an oversupply of materials. 7. Which one the Natures of Accounting? A) Identifying, Controlling, Measuring, Communicating, Recording. B) Classifying, Measuring, Communicating, Controlling, Recording. C) Identifying, Classifying, Measuring, Controlling, Recording. D) Identifying, Measuring, Classifying, Communicating, Recording. Show Answer Correct Answer: D) Identifying, Measuring, Classifying, Communicating, Recording. 8. ..... is a difference between standard cost and actual cost. A) Neutral. B) Cost Variance. C) Favourable. D) Adverse. Show Answer Correct Answer: B) Cost Variance. 9. 1 Which method of capital budgeting called benefit cost ratio? A) Payout period method. B) Profitability Index method. C) Pay back period method. D) Net present value method. Show Answer Correct Answer: B) Profitability Index method. 10. The sales manager has prepared a manpower plan to ensure that sales quotas for the forthcoming year are achieved. This is an example of what type of planning? A) Strategic planning. B) Corporate planning. C) Operational planning. D) Tactical planning. Show Answer Correct Answer: D) Tactical planning. 11. Marginal costing is also known as A) Direct costing. B) Variable costing. C) Both a & b. D) None of the above. Show Answer Correct Answer: C) Both a & b. 12. Which of the following transactions would be considered to be capital receipts? A) Interest on a bank savings account. B) Money received from a tenant for rent. C) Additional capital introduced by the owner. D) Sale of goods. Show Answer Correct Answer: C) Additional capital introduced by the owner. 13. To meet decision-making needs, the process of gathering and analyzing information about a company and its competitive environment is known as A) Business process reengineering. B) Process elimination. C) Planning. D) Business intelligence. Show Answer Correct Answer: D) Business intelligence. 14. Management Cosulting A) May be practiced only by anybody since it is not limited to CPAs. B) Is regulated by law, such that an individual must pass government licensure examination first before he could practice the same. C) Is not limited to CPAs. D) Is limited to CPAs. Show Answer Correct Answer: C) Is not limited to CPAs. 15. Paying the rent would be an example of A) Cash inflow. B) Cash outflow. Show Answer Correct Answer: B) Cash outflow. 16. Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as: A) Manufacturing overhead. B) A period cost. C) Direct materials. D) Administrative expense. Show Answer Correct Answer: A) Manufacturing overhead. 17. ..... data are presented in budget A) Actual. B) Estimated. C) Both. D) None. Show Answer Correct Answer: B) Estimated. 18. ..... is prepared for single level of activity and single set of business conditions. A) Fixed budget. B) Flexible budget. C) Both a and b. D) None of the above. Show Answer Correct Answer: A) Fixed budget. 19. Which of the following best describes annuity factor?1. It is series of cash flows of equal amount after equal intervals for infinite period of time2. It is series of cash flows of equal; amounts after equal intervals for a limited period of time A) 1 only. B) 2 only. C) Both. D) None. Show Answer Correct Answer: B) 2 only. 20. Which savings account will earn you the most money? A) One that earns simple interest monthly. B) One that compounds interest daily. C) One that compounds interest monthly. D) One that earns simple interest daily. Show Answer Correct Answer: B) One that compounds interest daily. 21. In the context of Funds Flow Analysis, the word "funds" is used to define A) Net Working capital. B) Total current assets-Total current liabilities. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 22. What is the main purpose of accounting? A) To conduct legal research. B) To market products and services. C) To manage human resources. D) To identify, measure, record, and communicate financial information. Show Answer Correct Answer: D) To identify, measure, record, and communicate financial information. 23. BOT approach means: A) Build, Operate and Transfer. B) Buy, Operate and Transfer. C) Build, Operate and Trash. D) Build, Own and Trash. Show Answer Correct Answer: A) Build, Operate and Transfer. 24. ..... is an asset that is not physical in nature. A) Intangible Assets. B) Tangible Assets. Show Answer Correct Answer: A) Intangible Assets. 25. What type of cost is supervisor salary costs, where one supervisor is needed for every ten employees added to the staff? A) A mixed cost. B) A step cost. C) A variable cost. D) A fixed cost. Show Answer Correct Answer: B) A step cost. 26. If a business increases the selling price of a product by £1 what will be the impact on the breakeven point and the margin of safety, assuming no change in the number of units produced? A) The breakeven point will decrease and the margin of safety will increase. B) The breakeven point will decrease and the margin of safety will stay the same. C) The margin of safety will stay the same but the breakeven point will increase. D) The margin of safety will decrease and the breakeven point will decrease. Show Answer Correct Answer: A) The breakeven point will decrease and the margin of safety will increase. 27. Budgeting includes only the financial aspects of the plan and not any non financial aspects such as the number of physical units manufactured A) False. B) True. Show Answer Correct Answer: A) False. 28. Which of the following is a variable cost? A) A cost that is $ 20, 000 when production is 50, 000, and $ 20, 000 when production is 70, 000. B) A cost that is $ 20, 000 when production is 50, 000, and $ 28, 000 when production is 70, 000. C) A cost that is $ 20, 000 when production is 50, 000, and $ 40, 000 when production is 70, 000. D) A cost that is $ 40, 000 when production is 50, 000, and $ 40, 000 when production is 70, 000. Show Answer Correct Answer: B) A cost that is $ 20, 000 when production is 50, 000, and $ 28, 000 when production is 70, 000. 29. Managers utilizes marginal costing for A) Make or buy decision. B) Utilization of additional capacity. C) Acceptance of special orders. D) All of the above. Show Answer Correct Answer: D) All of the above. 30. Master budget in nature A) Specific. B) Complex. C) General. D) Comprehension. Show Answer Correct Answer: D) Comprehension. ← 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