This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 32 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 32 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A product may be passed from one subunit to another subunit in the same organization. The product is known as a(n): A) Transfer product. B) Interdepartmental product. C) Subunit product. D) Intermediate product. Show Answer Correct Answer: D) Intermediate product. 2. A factory produces two types of articles Y and Z. Article Y takes 8 hours to make and Z takes 16 hours. In a month ( 25 days * 8 hours) 600 units of X and 400 units of Z are produced. Given budgeted hours 8000 per month and men employed are 50. Determine Activity ratio, Capacity ratio and efficiency ratio. A) 112%, 140%, 140%. B) 140%, 112%, 140%. C) 140%, 140%, 112%. D) None of the above. Show Answer Correct Answer: C) 140%, 140%, 112%. 3. An activity-based overhead rate is computed as ..... A) Estimated overhead divided by actual use of cost drivers. B) Estimate overhead divided by estimate use of cost drivers. C) Actual overhead divided by actual use of cost drivers. D) Actual overhead divided by estimate use of cost drivers. Show Answer Correct Answer: B) Estimate overhead divided by estimate use of cost drivers. 4. Doakes Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:Total direct labor-hours:60, 000Total fixed manufacturing overhead cost:$ 378, 000Variable manufacturing overhead per direct labor-hour:$ 2.20 Recently, Job M843 was completed with the following characteristics:Number of units in the job:60Total direct labor-hours:120Direct materials:$ 630Direct labor cost:$ 2, 400The unit product cost for Job M843 is closest to:(Round your intermediate calculations to 2 decimal places.) A) $ 33.75. B) $ 27.50. C) $ 50.50. D) $ 67.50. Show Answer Correct Answer: D) $ 67.50. 5. Which is not a scope of management accounting A) Cost Accounting. B) Recording Financial Transection. C) Budgetary Control. D) None of above. Show Answer Correct Answer: B) Recording Financial Transection. 6. The analytical approach and process may be summarized into three broad stages-analysis, design, and implementation. The design stage consists of A) Planning and scheduling actions to achieve the desired results, as well as advising and providing technical assistance in implementation. B) Ascertaining the pertinent facts and circumstances, seeking and identifying objectives, and defining the problem or opportunity for improvement. C) Evaluating and determining possible solutions and presenting findings and recommendations. D) All of the above. Show Answer Correct Answer: C) Evaluating and determining possible solutions and presenting findings and recommendations. 7. Asset accounts increase with a A) Credit. B) Debit. Show Answer Correct Answer: B) Debit. 8. The cost which remain constant up to a certain level of activity is known as A) Fixed cost. B) Semi variable cost. C) Variable cost. D) Marginal cost. Show Answer Correct Answer: A) Fixed cost. 9. Money you receive for letting someone use your money; money you pay for using someone else's money A) Budget. B) Interest. C) Credit. D) Finance charge. Show Answer Correct Answer: B) Interest. 10. Manufacturing overhead includes: A) All direct material, direct labor and administrative costs. B) All manufacturing costs except direct labor. C) All manufacturing costs except direct labor and direct materials. D) All selling and administrative costs. Show Answer Correct Answer: C) All manufacturing costs except direct labor and direct materials. 11. Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $ 360, 000 or a new model 220 machine costing $ 340, 000 to replace a machine that was purchased 7 years ago for $ 348, 000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L. Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $ 340, 000 in the new machine, the money could be invested in a project that would return a total of $ 411, 000. In making the decision to invest in the model 220 machine, the opportunity cost was: A) $ 360, 000. B) $ 411, 000. C) $ 348, 000. D) $ 340, 000. Show Answer Correct Answer: B) $ 411, 000. 12. With the same data as previous question, what is the margin of safety in percentage? A) 0.4%. B) 400%. C) 40%. D) 4%. Show Answer Correct Answer: D) 4%. 13. The cost of Insurance and Taxes are included in A) Inventory Carrying cost. B) Set up cost. C) Cost of shortage. D) Cost of ordering. Show Answer Correct Answer: A) Inventory Carrying cost. 14. Launch target Presentation of BPP per generating machine A) July 31, 2022. B) July 01, 2022. C) 15 Sept 2022. D) 30 Sept 2022. Show Answer Correct Answer: D) 30 Sept 2022. 15. The total contribution margin is the A) Difference between sales and total cost. B) Difference between sales and total variable cost. C) Amount by which sales exceed total fixed cost. D) Difference between sales and operating income. Show Answer Correct Answer: B) Difference between sales and total variable cost. 16. Determine P/V ratio if sales is Rs. 80, 000 and Variable cost is Rs. 60, 000 A) 40%. B) 25%. C) 50%. D) None of the above. Show Answer Correct Answer: B) 25%. 17. EVA in SMA refers to? A) Economic vulnerability added. B) Economic Value Addition. C) Economic Value Analysis. D) Economic value added. Show Answer Correct Answer: D) Economic value added. 18. Taking the time to set goals wastes your limited time. A) False. B) True. Show Answer Correct Answer: A) False. 19. Which of the following items are not included in a cash budget? A) Cash sales. B) Payment received from debtors. C) Gain on sale of asset. D) Interest received from the bank. Show Answer Correct Answer: C) Gain on sale of asset. 20. Management of a business enterprise is the major external user of information. A) False. B) True. Show Answer Correct Answer: A) False. 21. Cost driver can be established using the below except A) A cost driver rate is the rate of overheads expressed in terms of units of activities that will be charged to the products and services. B) A cost driver is any activity that causes a cost to be incurred. C) This method is used only if the company produces a single product. D) Cost driver or activity driver is the unit of an activity that causes the change of an activity cost. Show Answer Correct Answer: C) This method is used only if the company produces a single product. 22. Profit on sales is measured as A) Sales * P/V ratio-Fixed cost. B) Sales * P/V ratio + Fixed cost. C) Sales + P/V ratio + Fixed cost. D) None of the above. Show Answer Correct Answer: A) Sales * P/V ratio-Fixed cost. 23. The Institute of Management Accountants' Code of Ethics A) Is a legally enforceable contract with all management accountants. B) Should be viewed as a goal for professional behavior. C) Is a legally enforceable contract with all CPAs. D) Provides ways to measure departures from ethical behavior. Show Answer Correct Answer: B) Should be viewed as a goal for professional behavior. 24. Overapplied manufacturing overhead would result if: A) Manufacturing overhead costs incurred were less than estimated manufacturing overhead costs. B) The plant was operated at less than normal capacity. C) Manufacturing overhead costs incurred were less than manufacturing overhead costs charged to production. D) Manufacturing overhead costs incurred were greater than manufacturing overhead costs charged to production. Show Answer Correct Answer: C) Manufacturing overhead costs incurred were less than manufacturing overhead costs charged to production. 25. How to determine the flexible budget? A) Actual Quantity x Actual Price. B) Budgeted Quantity x Budgeted Price. C) Budgeted Quantity x Actual Price. D) Actual Quantity x Budgeted Price. Show Answer Correct Answer: D) Actual Quantity x Budgeted Price. 26. What is considered the language of business used to communicate financial information? A) Accounting. B) Profit. C) Marketing. D) Pricing. Show Answer Correct Answer: A) Accounting. 27. Which one is ideal for cost control purpose A) Normal cost. B) Standard cost. C) Average cost. D) Continuous costing. Show Answer Correct Answer: B) Standard cost. 28. On the basis of period, budgets may be classified into ..... groups. A) Five. B) Three. C) Two. D) Four. Show Answer Correct Answer: B) Three. 29. Which of the following types of costs is a product cost for absorption costing but a period cost for variable costing? A) Direct materials. B) Fixed factory overhead per unit sold. C) Direct labor. D) Variable selling expense. Show Answer Correct Answer: B) Fixed factory overhead per unit sold. 30. P & L statement is also known as A) Statement of operations. B) Statement of earnings. C) Statement of income. D) None of the above. Show Answer Correct Answer: C) Statement of income. ← 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