This quiz works best with JavaScript enabled. Home > Finance > Accounting > Managerial Accounting > Managerial Accounting – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 17 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The subtotal, "Cost of goods manufactured" appears on A) A merchandising company's income statement. B) A manufacturing company's income statement. C) Both a manufacturing and a merchandising company's income statement. D) Neither a merchandising nor a manufacturing company's income statement. Show Answer Correct Answer: B) A manufacturing company's income statement. 2. Which of the following costs is an example of a period rather than a product cost? A) Insurance on production equipment. B) Wages of production machine operators. C) Salaries of salespersons. D) Depreciation on production equipment. Show Answer Correct Answer: C) Salaries of salespersons. 3. True or False:The cost driver is the intermediate and final disposition of cost pools. A) True. B) False. Show Answer Correct Answer: B) False. 4. Which is considered as the "act" function of management? A) Creating goals and budgets. B) Carry out plans, hiring people, managing the daily business. C) Looking at results to see if goals were met and plans need adjusting. D) None of above. Show Answer Correct Answer: B) Carry out plans, hiring people, managing the daily business. 5. Direct materials and direct labor are classified as A) Product costs and expensed when the goods are sold. B) Period costs and expensed when the goods are sold. C) Product costs and expensed when incurred. D) Period costs and expensed when incurred. Show Answer Correct Answer: C) Product costs and expensed when incurred. 6. Managerial accounting reports must comply with generally accepted accounting principles (GAAP). A) True. B) False. Show Answer Correct Answer: B) False. 7. Are costs that vary in total directly and proportionately with changes in the activity level. A) Irrelevant Cost. B) Mixed Cost. C) Fixed Cost. D) Variable Cost. Show Answer Correct Answer: D) Variable Cost. 8. What are fixed expenses? A) Irregular expenses that change from week to week or month to month. B) The amount of money in your bank account. C) The amount of cash in your purse or wallet. D) Expenses that stay the same from week to week or month to month. Show Answer Correct Answer: D) Expenses that stay the same from week to week or month to month. 9. When carrying out their planning activities, managers select a course of action and specify how the action will be implemented. A) False. B) True. Show Answer Correct Answer: B) True. 10. Cash inflows are ..... A) Expenses. B) Income. Show Answer Correct Answer: B) Income. 11. Responsibility for the overhead efficiency variance should be assigned to whoever is responsible for control of the activity base underlying the flexible budget. A) True. B) False. Show Answer Correct Answer: A) True. 12. Contribution margin / sales =? A) Contribution margin ratio. B) Gross margin. C) Unit contribution margin. D) Gross margin percentage. Show Answer Correct Answer: A) Contribution margin ratio. 13. Merchandise bought can be considered a(n): A) Cash inflow. B) Cash outflow. Show Answer Correct Answer: B) Cash outflow. 14. Process whereby cost items are charged direct to a cost unit or cost center is known as A) Cost accounting. B) Cost allocation. C) Cost apportionment. D) Cost absorption. Show Answer Correct Answer: B) Cost allocation. 15. Managerial accounting information is generally prepared for A) Managers. B) Regulatory agencies. C) Stockholders. D) Creditors. Show Answer Correct Answer: A) Managers. 16. Identify whether the item being described by the statement is Competence, Confidentiality, Credibility or Integrity: "Inform all relevant parties regarding appropriate use of information. ." A) Confidentiality,. B) Credibility. C) Integrity. D) Competence. Show Answer Correct Answer: A) Confidentiality,. 17. Factory overhead costs combined with direct labor costs are called ..... costs. A) Conversion costs. B) Direct material costs. C) Prime costs. D) Factory overhead costs. Show Answer Correct Answer: A) Conversion costs. 18. What is the different item that need to be transferred to Manufacturer Statement of Profit and Loss? A) Prime cost. B) Cost of Goods Manufactured. C) Direct labour. D) Net purchase. Show Answer Correct Answer: B) Cost of Goods Manufactured. 19. What is the key difference between Full (Absorption) and Variable Costing? A) Full Costing treats Manufacturing Overhead as a period cost. B) Variable Costing treats Fixed Manufacturing Overhead as a period cost. C) Absorption Costing only considers variable costs to calculate net income. D) Variable Costing only considers variable costs to calculate net income. Show Answer Correct Answer: B) Variable Costing treats Fixed Manufacturing Overhead as a period cost. 20. The direct materials budget shows:Desired ending direct materials 48, 000 poundsTotal materials required 69, 000 poundsDirect materials purchases 63, 200 poundsThe total direct materials needed for production is A) 15, 200 pounds. B) 5, 800 pounds. C) 21, 000 pounds. D) 132, 200 pounds. Show Answer Correct Answer: C) 21, 000 pounds. 21. An opportunity cost is: A) The benefit given up or sacrificed when one alternative is chosen over another. B) The cost to market, distribute, and service a product or service. C) The total product cost of goods completed during the current period and transferred to finished goods inventory. D) The difference between sales revenue and cost of goods sold. Show Answer Correct Answer: A) The benefit given up or sacrificed when one alternative is chosen over another. 22. Is the use of accounting information for the reporting to parties outside the organization. A) Accounting System. B) Managerial Accounting. C) Financial Accounting. D) Cost Accounting System. Show Answer Correct Answer: C) Financial Accounting. 23. Management accounting is used by A) Human resource employees who need to plan hiring. B) Marketing employees who make decisions on profit achievable through an advertising campaign. C) Accounting employees who make budget recommendations. D) All of the above. Show Answer Correct Answer: D) All of the above. 24. What is the total revenue from clients for the Family segment? A) $ 400, 000. B) $ 220, 000. C) $ 600, 000. D) $ 1, 000, 000. Show Answer Correct Answer: A) $ 400, 000. 25. A good budgeting system forces managers to examine the business as they plan, so they can: A) Get promoted for doing a good job. B) Complete the budgeting task on time. C) Set specific expectations against which actual results can be compared. D) Detect inaccurate historical records. Show Answer Correct Answer: C) Set specific expectations against which actual results can be compared. 26. Conversion Cost (Conversion Cost) is obtained from: A) DM + DL + FOH. B) DM + DL. C) DM + FOH. D) DL + FOH. Show Answer Correct Answer: D) DL + FOH. 27. Classification of these cost for an automobile manufacturer:Wages of assembly line workers A) Factory Overhead Costs. B) Direct Materials Costs. C) Direct Labor Costs. D) Indirect Labor Costs. Show Answer Correct Answer: C) Direct Labor Costs. 28. Both financial and management accounting: A) Must be performed by all accountants. B) Achieve the same objective. C) Must conform to rules issued by government departments. D) Use the same information system. Show Answer Correct Answer: D) Use the same information system. 29. In a vertical analysis, which number is ALWAYS the denominator, or divided by? Hint, every other numbers value for the column will be divided by this number. A) Total Selling expenses. B) Net Income. C) Net Sales. D) Total Administrative Expenses. Show Answer Correct Answer: C) Net Sales. 30. Financial accounting is primarily concerned with providing financial reports to all of the following EXCEPT A) Creditors such as banks and other financial institutions. B) Creditors such as suppliers. C) Shareholders of the. D) Management of the firm. Show Answer Correct Answer: D) Management of the firm. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesManagerial Accounting Quiz 1Managerial Accounting Quiz 2Managerial Accounting Quiz 3Managerial Accounting Quiz 4Managerial Accounting Quiz 5Managerial Accounting Quiz 6Managerial Accounting Quiz 7Managerial Accounting Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books