This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 42 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 42 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Profit / PV ratio is equal to ..... A) Net Profit. B) Margin of Safety. C) BEP. D) Contribution. Show Answer Correct Answer: B) Margin of Safety. 2. Goodwill is one of the A) Intangible assets. B) Tangible assets. C) Liquid assets. D) Current assets. Show Answer Correct Answer: A) Intangible assets. 3. What are the main risks of kaizen budget? A) Margin Decline. B) Product quality decreases. C) Cost reduction. D) Decrease in production quantity. Show Answer Correct Answer: B) Product quality decreases. 4. Which of the following are the assumptions of marginal costing?A) Cost can be divided into fixed and variableB) Fixed cost remains constant at all levels of outputC) Variable costs varies in proportion to the volume of outputD) Per unit selling price remain unchanged at all levels A) B & C. B) A, B, C & D. C) A & D. D) A & B. Show Answer Correct Answer: B) A, B, C & D. 5. Furniture is regarded as A) Fixed Assett. B) Liability. C) Assett. D) Current Liability. Show Answer Correct Answer: A) Fixed Assett. 6. In the cost-volume-profit graph A) Neither the total revenue curve nor the total cost curve appear. B) The area of loss cannot be determined. C) The area of profit is to the left of the break-even point. D) Both the total revenue curve and the total cost curve appear. Show Answer Correct Answer: D) Both the total revenue curve and the total cost curve appear. 7. ..... is the tool/s of management accounting A) Marginal Costing. B) Budget and budgetary control. C) Standard Costing. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. What is the basic function of management accounting? A) To serve public. B) To manage the performance of the financial function. C) To serve government. D) All of the above . Show Answer Correct Answer: B) To manage the performance of the financial function. 9. Below is the information of Funder Bhd for the month:Total material costs RM80, 000Equivalent units of materials 10, 000Total conversion costs RM120, 000Equivalent units of conversion costs 20, 000How much is the total manufacturing cost per equivalent unit? A) RM14.00. B) RM6.67. C) RM8.00. D) RM6.00. Show Answer Correct Answer: A) RM14.00. 10. Total Fixed cost ..... A) Is inversely related to the output. B) No relation with output. C) Is directly related to the output. D) Remains constant irrespective of the output. Show Answer Correct Answer: D) Remains constant irrespective of the output. 11. Working out the ..... for each product helps managers to set the right price in order to be profitable A) Break-even price. B) Bottom line. C) Profit margin. D) Selling price. Show Answer Correct Answer: C) Profit margin. 12. Which is the traditional method of Capital budgeting? A) Accounting Method. B) Payout Method. C) Pay back Method. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. Total contribution margin divided by total sales is the A) Target income. B) Contribution margin ratio. C) Indifference point. D) Margin of safety. Show Answer Correct Answer: B) Contribution margin ratio. 14. What is the basic premise of cost concept? A) Cost ascertainment. B) Profit analysis. C) Tax compliance. D) Financial audit. Show Answer Correct Answer: A) Cost ascertainment. 15. X Ltd. has earned a contribution of Rs. 2, 00, 000 and Net Profits of Rs. 1, 50, 000 on sales of Rs. 8, 00, 000. What is its MOS A) Rs. 7, 50, 000. B) Rs. 6, 00, 000. C) Rs. 5, 75, 000. D) Rs. 6, 50, 000. Show Answer Correct Answer: B) Rs. 6, 00, 000. 16. Following falls under the ambit of scope of management accounting Except A) Cost accounting. B) None of these. C) Taxation. D) Revaluation account. Show Answer Correct Answer: B) None of these. 17. A ..... triggers a change in the cost of an activity. A) Cost driver. B) Resources. C) Activity. D) None of these. Show Answer Correct Answer: A) Cost driver. 18. Management is responsible towards which of the following? A) All shareholders. B) Employees. C) Government. D) Society. E) All stakeholders. Show Answer Correct Answer: E) All stakeholders. 19. What is a statement of financial position/ balance sheet? A) A statement of all assets and liabilities on a certain date. B) A statement of all the balances in the ledger accounts on a certain date. C) A statement showing all the receipts and payments for a financial year. D) A statement showing the income and expenditure for a financial year. Show Answer Correct Answer: A) A statement of all assets and liabilities on a certain date. 20. What is the primary benefit of EMA for organizations? A) Preparing financial statements. B) Supporting tax compliance. C) Improving decision-making. D) Calculating greenhouse gas emissions. Show Answer Correct Answer: C) Improving decision-making. 21. The company's performance evaluation system rewards managers for meeting profitability targets. Which of the following actions could be considered unethical? A) A manager makes a decision to replace old machines with an energy efficient machines but over the short-run profits will suffer. B) A senior manager design performance evaluation models that are inconsistent with the personal goals of the middle managers. C) Same facts as part B but the lower-level managers will be evaluated on the expectation that the first year would be poor and the next year would be much better. D) Lower level managers refuse to upgrade machinery because the first year will show lower than expected profits despite significant long-term savings. Show Answer Correct Answer: D) Lower level managers refuse to upgrade machinery because the first year will show lower than expected profits despite significant long-term savings. 22. If Capital is $ 17, 500 and Liabilities are $ 7, 500, how much are Assets? A) $ 7, 500. B) $ 10, 000. C) $ 25, 000. D) None of above. Show Answer Correct Answer: C) $ 25, 000. 23. A bond, in general, is..... A) A type of investment. B) A scheme by the government. C) Jimmy cracked corn and no one cares. D) A payment for a bridge. Show Answer Correct Answer: A) A type of investment. 24. The return on investment is usually considered the most popular approach to measure performance because: A) It blends all the ingredients of profitability into a single percentage. B) Once determined, there is no need to use it with other measures of performance. C) It throws light on the company's working capital. D) It measures the cash balance of the company in the most efficient manner. Show Answer Correct Answer: A) It blends all the ingredients of profitability into a single percentage. 25. Which ONE of the following is a characteristic of management accounting? A) It is based on future events. B) It provides information for people outside the business. C) It is based on past events. D) It complies with company law and accounting rules. Show Answer Correct Answer: A) It is based on future events. 26. Characteristics of total quality management include: A) Focusing on customer satisfaction. B) Striving on continuous improvement. C) Involvement of the entire work force. D) All of the above are characteristics of TQM. Show Answer Correct Answer: D) All of the above are characteristics of TQM. 27. Calculate the prime cost from the following information:Direct material purchased:Rs. 1, 00, 000 Direct material consumed:Rs. 90, 000 Direct labour:Rs. 60, 000 Direct expenses:Rs. 20, 000 Manufacturing overheads:Rs. 30, 000 A) Rs. 2, 10, 000. B) Rs. 1, 70, 000. C) Rs. 2, 00, 000. D) Rs. 1, 80, 000. Show Answer Correct Answer: B) Rs. 1, 70, 000. 28. Fixed or variable expense:Rent? A) Variable. B) Fixed. Show Answer Correct Answer: B) Fixed. 29. The shareholders fund consists of A) Preference shares. B) Equity shares. C) Reserves & Surplus. D) All. Show Answer Correct Answer: D) All. 30. What is the total of all direct cost known as A) Cost of production. B) Works cost. C) Cost of sales. D) Prime cost. Show Answer Correct Answer: D) Prime cost. ← 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