This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The following statements have been made about Cost-Volume-Profit analysis:(1) CVP analysis allows for fluctuating selling prices. (2) CVP analysis assumes productivity remains unchanged. (3) CVP analysis assumes that the only factor affecting cost is volume. Which of the above statements is/are true? A) Only. B) Only. C) , (2) and (3). D) And (3) only. Show Answer Correct Answer: D) And (3) only. 2. One method of absorption of overheads is A) Cost sheet. B) Ratio analysis. C) Machine hour rate. D) Apportionment. Show Answer Correct Answer: C) Machine hour rate. 3. Management accounting assists the management A) Decision Making. B) Planning. C) Control. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 4. Which is not the limitation of management accounting? A) Need of continuity. B) Lack of Knowledge. C) Determination of objects. D) Effect of time factor. Show Answer Correct Answer: C) Determination of objects. 5. The success of any business depends upon the proper ..... A) Organizing. B) Planning. C) Timing. D) None of above. Show Answer Correct Answer: B) Planning. 6. The ascertainment of costs after they have been incurred is known as A) Notional cost. B) Sunk cost. C) Marginal costing. D) Historical costing. Show Answer Correct Answer: D) Historical costing. 7. The net profit of a company is ₹ 2, 00, 000, preference dividend ₹ 25, 000, and taxes paid ₹ 15, 000. The number of equity shares is 1, 00, 000. The earnings per share (EPS) is- A) 1.6. B) 1.9. C) 1.8. D) 1.7. Show Answer Correct Answer: A) 1.6. 8. Which method of budgeting is usually used to manage indirect costs within production? A) Activity Based Budgeting. B) Zero Based Budgeting. C) Priority Based Budgeting. D) Incremental Budgeting. Show Answer Correct Answer: A) Activity Based Budgeting. 9. Liquid assets are determined by A) Current Assets-Stock-prepaid expenses. B) Current Assets + Stock + prepaid expenses. C) Current Assets + prepaid expenses. D) None of the above. Show Answer Correct Answer: A) Current Assets-Stock-prepaid expenses. 10. Which of the following is NOT a benefit of using a budget? A) A budget can help you decide the importance of your expenses. B) A budget can help you make plans to reach your financial goals. C) A budget can help you purchase anything you want. D) A budget can help you keep track of your money. Show Answer Correct Answer: C) A budget can help you purchase anything you want. 11. Financial accounting includes bookkeeping; management accounting includes costing A) True. B) False. Show Answer Correct Answer: A) True. 12. The sum of all direct expenses is called A) Chargeable cost. B) Prime cost. C) Cost of goods sold. D) Overaheads. Show Answer Correct Answer: D) Overaheads. 13. Which is not included in the recognizing and measuring impacts of using Environmental Management Accounting (EMA) A) ECONOMIC IMPACTS. B) ENVIRONMENTAL IMPACTS. C) SOCIAL IMPACTS. D) COSTS IMPACTS. Show Answer Correct Answer: D) COSTS IMPACTS. 14. Which of the following statements is/are correct?(i) A management control system is a term used to describe the hardware and software used to drive a database system which produces information outputs that are easily assimilated by management.(ii) An objective is a course of action that an organisation might pursue in order to achieve its strategy.(iii) Information is data that has been processed into a form meaningful to the recipient. A) (i), (ii) and (iii). B) (i) and (iii). C) (ii) and (iii). D) (iii) only. Show Answer Correct Answer: D) (iii) only. 15. At the point of break-even A) Profit = Revenue. B) Contribution = Profit. C) Fixed Costs = Variable Costs. D) Contribution = Fixed Costs. Show Answer Correct Answer: D) Contribution = Fixed Costs. 16. Increase in amount of prepaid expense result in A) Increase in cash. B) Decrease in cash. C) No change in cash. D) None of above. Show Answer Correct Answer: B) Decrease in cash. 17. What is a W-4 used for? A) Shoot deer. B) Withhold 4 paychecks for employees. C) Employees to fill out number of withholdings for taxes. D) Employers to fill out on employees. Show Answer Correct Answer: C) Employees to fill out number of withholdings for taxes. 18. The scare factors is also known as A) Key factor. B) Abnormal factor. C) Linking factor. D) None of the above. Show Answer Correct Answer: A) Key factor. 19. The purpose of management accounting is to A) Past orientation. B) Help investors make decision. C) Help banks make decisions. D) Help managers make decisions. Show Answer Correct Answer: D) Help managers make decisions. 20. A report analyzing the changes in the financial condition of a business between two periods on the basis of working capital is called..... A) Comparative reports. B) Which is not. C) Funds flow reports. D) Analysis of Ratios. Show Answer Correct Answer: C) Funds flow reports. 21. Managerial accounting may be thought of as the reporting of past financial performance and financial accounting as the estimation of future financial outcomes. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 22. THE FOLLOWING IS INFORMATION TO BE BASED IN MANAGEMENT DECISION MAKING PRESENTED IN ENVIRONMENTAL MANAGEMENT ACCOUNTING, EXCEPT ..... A) INFORMATION BASED ON MATERIAL AND ENERGY FLOWS. B) INFORMATION BASED ON ENVIRONMENTAL COSTS. C) MEASURABLE INFORMATION. D) UNMEASURABLE INFORMATION. Show Answer Correct Answer: D) UNMEASURABLE INFORMATION. 23. What is NOT a benefit of having a good credit score? A) It will be easier to get an apartment. B) You'll get better interest rates on your loans. C) When you need a loan, you'll have more loan offers to pick from. D) You'll get accepted to better education institutions. Show Answer Correct Answer: D) You'll get accepted to better education institutions. 24. Liquid assets mean A) Current assets-stock-prepaid expenses. B) Only stock. C) Cash + marketable securities. D) All of the above. Show Answer Correct Answer: A) Current assets-stock-prepaid expenses. 25. Tera manufacturing expenses 50% capacity produces 10000 units for 80 % capacity what will be the units? A) 16000. B) 20000. C) 18000. D) 15000. Show Answer Correct Answer: A) 16000. 26. Who is responsible to ensure that financial statements are free from material misstatements A) Board of Directors. B) Stakeholders. C) Independent Directors. D) External Auditors. Show Answer Correct Answer: D) External Auditors. 27. The formula for Margin of Safety is? A) Profit/PV Ratio. B) Fixed Cost/PV Ratio. C) BEP/PV Ratio. D) None of the above. Show Answer Correct Answer: A) Profit/PV Ratio. 28. Financial Institution A) Internal Users. B) External Users. Show Answer Correct Answer: B) External Users. 29. The statements are produced for shareholders A) Management Accounting. B) Financial Accounting. Show Answer Correct Answer: B) Financial Accounting. 30. The salary paid to the president of a company would be classified on the income statement as a(n): A) Direct labor cost. B) Manufacturing overhead cost. C) Selling expense. D) Administrative expense. Show Answer Correct Answer: D) Administrative expense. ← 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 8Management Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books