This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What happens if the price of a product is too high? A) High markup on variable cost but low demand quantity. B) Low markup on variable cost but high demand quantity. C) High markup on fixed cost but low demand quantity. D) Low markup on fixed cost but high demand quantity. Show Answer Correct Answer: A) High markup on variable cost but low demand quantity. 2. If a company's total fixed cost decreases by $ 10, 000, which of the following will be true? A) The break-even point will increase. B) The break-even point will be unchanged. C) The variable cost ratio will be unchanged. D) Only Bu Yani and God know. Show Answer Correct Answer: C) The variable cost ratio will be unchanged. 3. The share capital of A Ltd. stood at Rs 20, 00, 000 in 2013 and at Rs 26 lac in 2014. As per records, the company bought asset of another company for Rs 6 lac payable in fully paid shares. These assets included Goodwill Rs 2, 00, 000 Machinery Rs 1, 83, 600 and Stock Rs 2, 16, 400. What is the fund from issue of shares? A) Rs 2, 15, 600. B) Rs 2, 16, 400. C) Rs 2, 00, 000. D) None of the above. Show Answer Correct Answer: B) Rs 2, 16, 400. 4. In non-trading concerns, excess of income over expenditure is called ..... A) Deficit. B) Loss. C) Profit. D) Surplus. Show Answer Correct Answer: D) Surplus. 5. What is responsibility accounting various types, except? A) Investment Center. B) Profit Center. C) Cost Center. D) Asset Center. Show Answer Correct Answer: D) Asset Center. 6. Inventory ratio is a relationship between ..... A) Cost of goods purchased and cost of average inventory. B) Cost of goods sold and cost of average inventory, and cost of goods purchased and cost of average inventory. C) Cost of goods sold and cost of average inventory. D) None of the options is correct. Show Answer Correct Answer: C) Cost of goods sold and cost of average inventory. 7. Who discovered the term Management Accounting? A) R. N Carter. B) Philip Cotler. C) James H Bliss. D) F.W. Taylor . Show Answer Correct Answer: C) James H Bliss. 8. Which of the following would be considered Capital income? A) Sales of fixed assets. B) Monthly rent receieved. C) Receipts from cash sales. D) Discounts received. Show Answer Correct Answer: A) Sales of fixed assets. 9. Shut down point= fixed cost ..... /P/v ratio A) Semi-variable cost. B) Contribution. C) Variable cost. D) Minimum fixed cost. Show Answer Correct Answer: D) Minimum fixed cost. 10. How does the company's profitability compare to other companies? A) Finance. B) Creditors. C) Investors. D) Management. Show Answer Correct Answer: C) Investors. 11. A business problem can be solved by choosing any one of the best and most profitable alternative. A) Revaluation Accounting. B) Decision-making Accounting. C) Management Information System. D) Budgetary Control. Show Answer Correct Answer: B) Decision-making Accounting. 12. Which of the following items is not included in factory overhead? A) Factory depreciation and supplies. B) Costs of Marketing departments. C) Costs of Maintenance departments. D) Costs of service departments. Show Answer Correct Answer: B) Costs of Marketing departments. 13. All of the following are advantages of implementing activity based costing EXCEPT A) Greater costing accuracy. B) Greater understanding of overhead cost. C) Allocate service center costs to production center. D) Easy interpretation of cost for internal management. Show Answer Correct Answer: C) Allocate service center costs to production center. 14. Which of the following is NOT a function of management? A) Directing. B) Planning. C) Organizing. D) Analyzing. Show Answer Correct Answer: D) Analyzing. 15. Debt to equity ratio establishes the relationship between ..... A) Long-term debt (external equities) and current assets (internal equities). B) Long-term debt (external equities) and equity (internal equities), and long-term debt (external equities) and current assets (internal equities). C) Long-term debt (external equities) and equity (internal equities). D) None of the options are correct. Show Answer Correct Answer: C) Long-term debt (external equities) and equity (internal equities). 16. There are the relation between Financial Accounting and Management Accounting, except ..... A) Controlling Financial Report. B) Classifying and Recording Transactions. C) Information For Management Decision Making. D) Preparing and Publishing Financial Statements. Show Answer Correct Answer: A) Controlling Financial Report. 17. Budgeting provides all of the following EXCEPT: A) A means to communicate the organization's short-term goals to its members. B) Support for the management functions of planning and coordination. C) A means to anticipate problems. D) An ethical framework for decision making. Show Answer Correct Answer: D) An ethical framework for decision making. 18. Costs that remain fixed or constant, although there are changes in output in a given relevant range: A) Variable cost. B) Mixed cost. C) Semi-variable cost. D) Fixed cost. Show Answer Correct Answer: D) Fixed cost. 19. What are direct expenses also known as? A) Major expenses. B) Overhead expenses. C) Sundry expenses. D) Chargeable expenses. Show Answer Correct Answer: D) Chargeable expenses. 20. A budget prepared for variuos levels of capacity is called A) Flexible. B) Fixed. C) Master. D) Cash. Show Answer Correct Answer: A) Flexible. 21. At break even point there is A) Minimum loss. B) Minimum profit. C) Maximum Profit. D) No Profit nor loss. Show Answer Correct Answer: D) No Profit nor loss. 22. If Assets are $ 19, 500 and Capital is $ 14, 300, how much are Liabilities? A) 33, 800. B) $ 5, 200. C) $ 19, 500. D) None of above. Show Answer Correct Answer: B) $ 5, 200. 23. There are the purpose of Management Accounting, except ..... A) To provide information to make informed judment and decisons. B) To provide information for control purposes. C) To report financial information. D) To provide financial report. Show Answer Correct Answer: D) To provide financial report. 24. Tender is an estimation of units to be produced A) False. B) True. Show Answer Correct Answer: A) False. 25. Cost estimates are made on the basis of A) Past experience. B) Future anticipation. C) Both. D) Intention. Show Answer Correct Answer: C) Both. 26. In the cost sheet, income from sale of empty containers used for dispatch of the goods produced shall be ..... A) Deducted from cost of production. B) Added to sales. C) Added to cost of production. D) Ignored. Show Answer Correct Answer: A) Deducted from cost of production. 27. Debtors is an element of..... A) Current Asset. B) Current Liabilities. C) Debt. D) CRR. Show Answer Correct Answer: A) Current Asset. 28. Funds Flow Statement holds significance for A) Shareholders. B) Financiers. C) Government. D) All of the above. Show Answer Correct Answer: D) All of the above. 29. Following is the role of management accountant Except: A) Controlling. B) Planning. C) Executing. D) Coordinating. Show Answer Correct Answer: C) Executing. 30. Which of these statement on semi variable cost is false A) Semi-variable costs have properties of both variable and fixed elements attached to the total cost. B) High/low method is a 'method of estimating cost behaviour by comparing the total cost associated with two different level of outputs. C) For semi-variable costs, the distinction between the fixed and variable costs element is not important for decision-making purposes. D) Cost estimation methods such as high-low method, scatter diagram and regression analysis are used to separate the fixed and variable elements in semi-variable costs. Show Answer Correct Answer: C) For semi-variable costs, the distinction between the fixed and variable costs element is not important for decision-making purposes. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesManagement Accounting Quiz 1Management Accounting Quiz 2Management Accounting Quiz 3Management Accounting Quiz 4Management Accounting Quiz 6Management Accounting Quiz 7Management Accounting Quiz 8Management Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books