This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 40 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 40 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Management accounting deals with managing ..... A) Final accounts preparation . B) Tax returns. C) Raising finance. D) Decision making. Show Answer Correct Answer: D) Decision making. 2. A business bought a new computer system for office use. Which of the following is treated as revenue expenditure? A) Computer speaker. B) Computer software. C) Laser printer. D) Laser printer cartridge refill. Show Answer Correct Answer: D) Laser printer cartridge refill. 3. Profit maximisation is A) It is indicator of economic efficiency. B) Primary objective of business. C) Measurement of Success of business decisions. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. 1) Which of the following is correct? A) Owner's Equity = Liabilities + Assets. B) Liabilities = Assets + Owner's Equity. C) Assets = Owner's Equity. D) Assets = Liabilities + Owner's Equity. Show Answer Correct Answer: D) Assets = Liabilities + Owner's Equity. 5. The concept of management accounting was coined by A) American Accounting Association. B) R.N.Anthony. C) James H.Bliss. D) J.Batty. Show Answer Correct Answer: C) James H.Bliss. 6. Current ratio is 2:1 and working capital is Rs. 5000, then current asset is A) Rs. 10000. B) Rs. 5000. C) Rs 1000. D) Rs 20000. Show Answer Correct Answer: A) Rs. 10000. 7. Which of the following can be treated as either current liability or non-current liability depending on the adjustments? A) Provision for taxation. B) General reserve. C) Goodwill. D) None of the above. Show Answer Correct Answer: A) Provision for taxation. 8. Given the cost formula Y = $ 23, 000 + $ 8X, total cost at an activity level of 7, 000 units would be: A) $ 79, 000. B) $ 23, 000. C) $ 33, 000. D) $ 56, 000. Show Answer Correct Answer: A) $ 79, 000. 9. Debit is on the left and credit is on the right for ALL t accounts. A) False. B) True. Show Answer Correct Answer: B) True. 10. Throughput revolves around A) Resources. B) Bottleneck resources. C) KPI. D) Operating expenses. Show Answer Correct Answer: B) Bottleneck resources. 11. There are the function of Management Accounting, except ..... A) Information Systems for External Parties. B) Data sources for the accountability of each level of management. C) Coordination of Various Company Activities. D) As an Audit Access. Show Answer Correct Answer: D) As an Audit Access. 12. Cost unit of a sugar industry can be A) Per meter. B) Per ton. C) Per acre. D) Per liter. Show Answer Correct Answer: B) Per ton. 13. EOQ expands to mean A) Equal order quantity. B) Economic order quality. C) Equal opportunity production. D) Economic order quantity. Show Answer Correct Answer: D) Economic order quantity. 14. Which of the following costs is not relevant when considering the closure of a department within a factory? A) Fixed Overheads. B) Direct Material Cost. C) Direct Labour Cost. D) Variable Overheads. Show Answer Correct Answer: A) Fixed Overheads. 15. Looks mainly at historical information A) Financial Accounting. B) Management Accounting. Show Answer Correct Answer: A) Financial Accounting. 16. Security and Exchange Commission A) External User. B) Internal User. Show Answer Correct Answer: A) External User. 17. Cost accounting aims at A) Cost control and reduction. B) Finding profit or loss. C) Ascertaining financial position. D) Making plans and decisions. Show Answer Correct Answer: A) Cost control and reduction. 18. The accounting which gives segregated information about the various products of Dabur is A) Financial Accounting. B) Money Accounting. C) Management Accounting. D) Cost Accounting. Show Answer Correct Answer: C) Management Accounting. 19. If the desired profit is Rs.250000 and the fixed cost is Rs.1, 80, 000, how many units should be made to attain the required profit? The Contribution received from each unit is Rs.25 and selling price per unit is Rs.40. A) 10750 units. B) 17200 units. C) 15000 units. D) 28667 units. Show Answer Correct Answer: B) 17200 units. 20. Expenses DECREASE owners equity. A) False. B) True. Show Answer Correct Answer: B) True. 21. ..... is a detailed budget of cash receipts and cash expenditure incorporating both revenue and capital items A) Cash budget. B) Sales budget. C) Overhead budget. D) Capital Expenditure budget. Show Answer Correct Answer: A) Cash budget. 22. Which one of the following is least likely to be an objective of cost accounting system? A) Product Costing and Inventory Valuation. B) Sales Commission Determination. C) Department Efficiency. D) Income Determination. Show Answer Correct Answer: B) Sales Commission Determination. 23. Cost of Goods Manufactured is $ 200, 000, beginning Finished Goods is $ 50, 000, ending Finished Goods is $ 100, 000, and ending Work In Process is $ 10, 000. What is the Cost of Goods Sold? A) $ 50, 000. B) $ 250, 000. C) $ 100, 000. D) $ 150, 000. Show Answer Correct Answer: D) $ 150, 000. 24. Solvency ratio include A) G/P Ratio. B) P/E ratio. C) Fixed Assets turnover. D) Capital gearing ratio. Show Answer Correct Answer: D) Capital gearing ratio. 25. Feed-forward control provides information about performance deficiencies by monitoring outputs. A) True. B) False. Show Answer Correct Answer: B) False. 26. What is the formula for cost of sales? A) Opening Stock-Purchases-Closing Stock. B) Opening Stock + Purchases + Closing Stock. C) Opening Stock-Purchases + Closing Stock. D) Opening Stock + Purchases-Closing Stock. Show Answer Correct Answer: D) Opening Stock + Purchases-Closing Stock. 27. Describe the method of costing to be applied in case of Nursing Home A) Job Costing. B) Process Costing. C) Contract Costing. D) Operating Costing. Show Answer Correct Answer: D) Operating Costing. 28. Management accounting involves A) Recording of costs. B) Recording of transaction. C) Analysis and interpretation of data. D) Preparing of financial statement. Show Answer Correct Answer: C) Analysis and interpretation of data. 29. Calculate MCVactual quantity is 100Actual price is 600Budgeted quantity 150Budgeted price 650 A) 37500(A). B) 36000(F). C) 45000(A). D) None. Show Answer Correct Answer: D) None. 30. Data about Anabelle Company's production and inventories for the month of June are as follows:Purchases-direct materials P143, 440Freight in P5, 000Purchase returns and allowances P2, 440Direct Labor P175, 000Actual Factory Overhead P120, 000InvetoriesJune 1:Finished Goods P68, 000Work in Process P110, 000Direct Materials P52, 000June 30:Finished goods P56, 000Work in Process P135, 000Direct Materials P44, 000Annabelle Company applied factory overhead to production at 80% of direct labor cost. Over-or underapplied overhead is closed to cost of goods sold at year-end. The company's accounting period is on the calendar year basis.The amount of over/under applied for the month of June was A) 120, 000 UA. B) 20, 000 UA. C) 140, 000 OA. D) 20, 000 OA. Show Answer Correct Answer: D) 20, 000 OA. ← 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