This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 34 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What will be the Gross Profit if, total sales is Rs 2, 60, 000, cost of net goods sold is Rs 2, 00, 000 and sales return is Rs 10, 000? A) 28%. B) 20%. C) 13%. D) 26%. Show Answer Correct Answer: B) 20%. 2. Which of the following cannot be a reason of unfavorable direct materials price variance? A) Excellent employee training program. B) Inefficient standard setting. C) Ineffective purchasing agent. D) Sudden rise price of materials. Show Answer Correct Answer: A) Excellent employee training program. 3. Contingent Liability is shown on the liability side of the Balancesheet A) True. B) False. Show Answer Correct Answer: B) False. 4. The following expense is an example of a variable cost A) Rent. B) Materials. C) Depreciation. D) None of above. Show Answer Correct Answer: B) Materials. 5. Determine P/V ratio if sales per unit is Rs. 10 and variable cost per unit is Rs.7 A) 25%. B) 30%. C) 50%. D) 45%. Show Answer Correct Answer: B) 30%. 6. The statements below is the resolution of ethical conflict based on IMA code ethic of management accountants, EXCEPT ..... A) Follow established policies. B) The last resort is to resign. C) Clarify issues in a confidental discussion with an objective advisor. D) Consult a Doctor to legal obligations. Show Answer Correct Answer: D) Consult a Doctor to legal obligations. 7. A report that measures financial and nonfinancial performance measures for various organization units in a single report is called a(n): A) Investment success report. B) Balanced scorecard. C) Financial report scorecard. D) Goal-congruence report. Show Answer Correct Answer: B) Balanced scorecard. 8. Strategic Decisions are taken by A) Top Level Management. B) Middle Level Management. C) Lower Level Management. D) All the Above. Show Answer Correct Answer: A) Top Level Management. 9. Financial Budget, namely A) Cash Budget and Capital Budget. B) Budget Balance Sheet. C) Budget Statement of Cah Inflow. D) Budget Statement of Cash Flow. Show Answer Correct Answer: C) Budget Statement of Cah Inflow. 10. Standard costs are determined on ..... A) Zero base. B) The basis of trade cycle. C) Scientific basis. D) None of these. Show Answer Correct Answer: A) Zero base. 11. If the gross margin is $ 2000 and the revenue is $ 5000, then the cost of goods sold would be A) $ 2, 000. B) $ 8, 000. C) $ 3, 000. D) $ 4, 000. Show Answer Correct Answer: C) $ 3, 000. 12. What is the main purpose of the Statement of Financial Position (SOFP)? A) All of the above. B) To assess liquidity and capital employed. C) To show how the business is financed and how funds are deployed. D) To provide a basis for assessing the value of the business. Show Answer Correct Answer: A) All of the above. 13. The rental expenses for a factory operating at 50% capacity is Rs. 1, 00, 000, what shall be the rent if it operates at 75% capacity A) Rs. 50, 000. B) Rs. 1, 50, 000. C) Rs. 1, 00, 000. D) Rs. 75, 000. Show Answer Correct Answer: C) Rs. 1, 00, 000. 14. ABC Ltd has quoted that its total cost for producing 30000 units is Rs. 4, 50, 000 and the total cost for producing 20, 000 units is Rs. 3, 50, 000. The fixed cost for ABC Ltd is A) 1, 50, 000. B) 10, 000. C) 10. D) 1, 00, 000. Show Answer Correct Answer: A) 1, 50, 000. 15. The break even point occurs when the Total Revenue is equal to the Marginal Cost A) True. B) False. Show Answer Correct Answer: B) False. 16. What document is a summary of the money a company brought in (revenue) and what it paid out (expenses)? A) Tax Statement. B) Income Statement. C) Revenue Statement. D) Profit Statement. Show Answer Correct Answer: B) Income Statement. 17. Which statement is prepared in the process of funds flow analysis? A) Schedule of changes in working capital. B) Funds Flow Statement. C) Both a and b. D) None of the above. Show Answer Correct Answer: A) Schedule of changes in working capital. 18. Government statistics can be a useful source of data and information. Which of the following types of data is most likely to be obtained from government statistics? A) Interest rates. B) Foreign exchange rates. C) Population data. D) Details of industry costs. Show Answer Correct Answer: C) Population data. 19. Refrain the activity that could discredit the profession is the characteristics of ..... Based on IMA code of ethics. A) Objectivity. B) Competence. C) Confidentiality. D) Integrity. Show Answer Correct Answer: D) Integrity. 20. Which of the following items is not included in cost accounts A) Interest received on Bank deposits. B) Divided paid on share capital. C) Damage playable at law. D) All of these. Show Answer Correct Answer: D) All of these. 21. What will happen to your credit score if you do not manage your debt wisely? A) Your credit score will go up. B) You won't be able to track your credit score. C) Your credit score will go down. D) It will not affect your credit score. Show Answer Correct Answer: C) Your credit score will go down. 22. If Fixed cost is zero, operating leverage A) 1. B) -1. C) 0. D) None of these. Show Answer Correct Answer: A) 1. 23. The conceot of timeliness of data availability is most relevant to A) Online systems. B) Payroll systems. C) Inventory systems. D) Manual systems. Show Answer Correct Answer: A) Online systems. 24. A ..... reflects the company's position by showing what the company owes and what it owns. A) Cash flow forecast. B) Income Statement. C) P/L Account. D) Balance Sheet. Show Answer Correct Answer: D) Balance Sheet. 25. SMA(Strategic Managment accounting) refers to: A) Providing information to support strategic plans and decisions. B) Providing information to support accounting and digital transformation. C) Providing strategic Databases for Managers. D) Strategic information from Operations to General Managers. Show Answer Correct Answer: A) Providing information to support strategic plans and decisions. 26. Which of the following is a key component of EMA? A) Conducting environmental impact assessments. B) Setting environmental objectives. C) Integrating environmental data with financial data. D) Calculating greenhouse gas emissions. Show Answer Correct Answer: C) Integrating environmental data with financial data. 27. Revenue Expenditure is money spent on items in the day to day running of a business; (E.g Raw materials) A) False. B) True. Show Answer Correct Answer: B) True. 28. ECOEFFICIENCY OF ENVIRONMENTAL MANAGEMENT ACCOUNTING TO A BUSINESS EXCEPT A) The ecoefficiency of environmental management accounting to a business refers to the decrease cost of implementing environmental management accounting. B) The ecoefficiency of environmental management accounting to a business refers to the effectiveness of using environmental management accounting to improve a company's image. C) The ecoefficiency of environmental management accounting to a business refers to the competitive disadvantage. D) The ecoefficiency of environmental management accounting to a business refers to the impact on employee satisfaction lead to employees greater productivity. Show Answer Correct Answer: C) The ecoefficiency of environmental management accounting to a business refers to the competitive disadvantage. 29. Canteen expenses for factory workers are part of: A) Factory overhead. B) Administration Cost. C) Marketing cost. D) None of the above. Show Answer Correct Answer: A) Factory overhead. 30. The Board of Directors (BoD) remains in effective control of the affairs of the company at all times A) False. B) True. Show Answer Correct Answer: B) True. ← 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