This quiz works best with JavaScript enabled. Home > Finance > Accounting > Managerial Accounting > Managerial Accounting – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 20 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which items are classified as outputs in a financial model? A) Costs, cash flows, and return on investment. B) Current resources and overhead costs. C) Transition costs and the lifecycle term. D) Financial return and corporate strategy. Show Answer Correct Answer: A) Costs, cash flows, and return on investment. 2. Direct material are: A) Product costs and Manufacturing overhead. B) Product costs. C) Product costs, Manufacturing overhead and period costs. D) None of above. Show Answer Correct Answer: B) Product costs. 3. Yes or No:It is better to have longer number of days in inventory A) No. B) Yes. Show Answer Correct Answer: A) No. 4. What does a favorable variable overhead spending variance indicate? A) Actual variable overhead rate is higher than standard variable overhead rate. B) Actual variable overhead rate is lower than standard variable overhead rate. C) Actual variable overhead is lower than standard variable overhead. D) Actual variable overhead is higher than standard variable overhead. Show Answer Correct Answer: B) Actual variable overhead rate is lower than standard variable overhead rate. 5. Information which are related to you is considered as a/ an ..... information and is considered to be a good information. A) Objective. B) Understandability. C) Relevant. D) Subjective. Show Answer Correct Answer: C) Relevant. 6. Contribution margin is the difference between the net sales and the variable costs. The contribution margin shows the amount of money a business has available to pay its fixed costs and contribute to net income. Calculate the contribution margin if net sales equal $ 26, 000 and variable costs is $ 14, 000 A) $ 13, 000. B) $ 11, 000. C) $ 12, 000. D) $ 40, 000. Show Answer Correct Answer: C) $ 12, 000. 7. Management accounting is concerned with accounting information that is useful to A) Government. B) Investors. C) Bankers. D) Managers. Show Answer Correct Answer: D) Managers. 8. Economic data and changes in consumer buying habits would be considered what type of source for budgets? A) External. B) Internal. Show Answer Correct Answer: A) External. 9. A few major products; Higher Volume A) Job Shop. B) Continuous Flow. C) Assembly. D) Batch. Show Answer Correct Answer: C) Assembly. 10. A manufacturing requires small amounts of glue. The glue used in the production process is classified as A) Indirect material. B) Direct material. C) Period cost. D) Miscellaneous expense. Show Answer Correct Answer: A) Indirect material. 11. A company's income after expenses are subtracted from revenues for a particular period of time. A) Net income. B) Gross income. C) Revenue. D) None of above. Show Answer Correct Answer: A) Net income. 12. Costs that remain the same in total regardless of changes in the activity level. A) Relevant Cost. B) Fixed Cost. C) Sunk Cost. D) Variable Cost. Show Answer Correct Answer: B) Fixed Cost. 13. The formula to determine the costs of goods manufactured is: A) Beginning work in process inventory + Total manufacturing costs-Ending work in process inventory. B) Beginning work in process inventory + Total manufacturing costs-Ending finished goods inventory. C) Beginning raw materials inventory + Total manufacturing costs-Ending work in process inventory. D) Beginning finished goods inventory + Total manufacturing costs-Ending finished goods inventory. Show Answer Correct Answer: A) Beginning work in process inventory + Total manufacturing costs-Ending work in process inventory. 14. It is the property of a company such as land, equipment, buildings etc. A) Liabilities. B) Equity. C) Assets. D) Own. Show Answer Correct Answer: C) Assets. 15. The process of collecting and reporting the direct materials, direct labor, and factory overhead costs related to producing a good or service. A) Payment Accounting. B) Cost Accounting. C) Financial Accounting. D) Managerial Accounting. Show Answer Correct Answer: B) Cost Accounting. 16. Which factor in determining a company's net income is outside of the company's control? A) Sales volume. B) Fixed costs. C) Sales price. D) Variable costs. Show Answer Correct Answer: A) Sales volume. 17. What is the ratio for Merchandise Inventory Turnover Ratio? A) Cost of merchandise sold $\div$. B) Average Merchandise Inventory $\div$. C) Net Sales $\div$. D) None of above. Show Answer Correct Answer: A) Cost of merchandise sold $\div$. 18. A product, sales territory, department, or activity to which costs are traced is called a A) Direct cost. B) Cost object. C) Direct material. D) Factory overhead costs. Show Answer Correct Answer: B) Cost object. 19. Which of the following characteristics does NOT pertain to management accounting? A) Provides information and estimates about future activity. B) Generates financial statements and reports. C) Provides financial and operating data multidisciplinary' in scope. D) Has externally imposed standards. Show Answer Correct Answer: D) Has externally imposed standards. 20. Identify whether the item being described by the statement is Competence, Confidentiality, Credibility or Integrity: "Keep information from other parties except when disclosure is authorized or legally required." A) Integrity. B) Confidentiality,. C) Credibility. D) Competence. Show Answer Correct Answer: B) Confidentiality,. 21. Financial accounting information is prepared according to generally accepted accounting principles. A) T. B) F. Show Answer Correct Answer: A) T. 22. The budget schedule that projects the outflow of cash for merchandise, operating expenses, and any other payment of cash. A) Cash Flow Schedule. B) Expense Flow Schedule. C) Cash Payments Budget Schedule. D) None of above. Show Answer Correct Answer: C) Cash Payments Budget Schedule. 23. Managerial Accounting and Financial Accounting differ in the following way: A) Financial Accounting is private information for company managers. B) Financial Accounting summarizes information for the company as a whole. C) Financial Accounting emphasizes timeliness over precision. D) Financial Accounting emphasizes forecasts of future performance. Show Answer Correct Answer: B) Financial Accounting summarizes information for the company as a whole. 24. Multiple products; Low volume A) Assembly. B) Batch. C) Continous Flow. D) Job Shop. Show Answer Correct Answer: B) Batch. 25. What is the contribution margin for the Companywide? A) $ 1, 000, 000. B) $ 780, 000. C) $ 480, 000. D) $ 300, 000. Show Answer Correct Answer: B) $ 780, 000. 26. Total Contribution is calculated as A) Sales revenue-fixed costs. B) Total variable costs / units. C) Sales revenue-total variable costs. D) None of above. Show Answer Correct Answer: C) Sales revenue-total variable costs. 27. Recurring payments occasional payments and cash payments are what? A) Inflow. B) Outflow. Show Answer Correct Answer: B) Outflow. 28. Business enterprise is separate from its owner according to ..... concept. A) Matching concept. B) Money measurement concept. C) Entity concept. D) Dual aspectconcept. Show Answer Correct Answer: C) Entity concept. 29. The reason of the managerial accounting is prepared for looking-forward information is because A) Give opportunity for the creditors to well evaluate the business. B) The futuristic nature of making decision. C) The main reason is to assist the external users. D) The management accountant do not consider the past financial information. Show Answer Correct Answer: B) The futuristic nature of making decision. 30. Which branch of accounting only issues reports when needed but not necessarily required to do so? A) Financial Accounting. B) Managerial Accounting. Show Answer Correct Answer: B) Managerial Accounting. ← 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