This quiz works best with JavaScript enabled. Home > Finance > Accounting > Managerial Accounting > Managerial Accounting – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 21 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In the production of shirts, buttons are classified as ..... A) Direct labor. B) Direct materials. C) Non-manufacturing cost. D) Manufacturing overhead. Show Answer Correct Answer: D) Manufacturing overhead. 2. Which of the following is the process of choosing whether to make a product in-house or purchase it from an external source? A) Linear regression. B) Variance Analysis. C) Make or buy decision. D) Cost-profit decision. Show Answer Correct Answer: C) Make or buy decision. 3. Yes or No:If current assets is twice the current liabilities the current ratio is 1:2 A) Yes. B) No. Show Answer Correct Answer: B) No. 4. Identify whether the following statement are true or false.Managerial accounting applies only to merchandising and manufacturing companies. A) False. B) True. Show Answer Correct Answer: A) False. 5. What is the definition of a budget? A) A budget is a written financial plan for a business over a specific period of time, usually a year. B) A budget shows the net income of a company as well its inflows and outflows. C) A budget shows the important financial ratios that are being used. D) A budget is a written financial plan for a business over its lifetime. Show Answer Correct Answer: A) A budget is a written financial plan for a business over a specific period of time, usually a year. 6. The managerial function of controlling A) Is only applicable when the company sustains a loss. B) Includes performance evaluation by management. C) Is concerned mainly with operating a manufacturing segment. D) Is performed only by the controller of a company. Show Answer Correct Answer: B) Includes performance evaluation by management. 7. Identify whether the following statement are true or false.Financial accounting report are generally-purpose reports. A) False. B) True. Show Answer Correct Answer: B) True. 8. True or False:The manufacturing cost is composed of overhead, materials and labor A) Yes. B) No. Show Answer Correct Answer: B) No. 9. The following is information about investing in the Trang sea tour boat project:initial investment of 12, 000, 000 baht, project life of 12 years, net annual cash receipts of 3, 000, 000 baht, depreciation (straight line) of 1, 000, 000 baht, assuming a capital cost of 10. % Calculate the net present value (NPV). A) 1, 628, 000 baht. B) 4, 950, 000 baht. C) 8, 442, 000 baht. D) -11, 043, 000 baht. E) -700, 000 baht. Show Answer Correct Answer: C) 8, 442, 000 baht. 10. Which best describes cash flows in service companies A) Inventory for WIP. B) Inventory for finished goods. C) Inventory for both WIP and finished goods. D) No inventory for WIP or finished goods. Show Answer Correct Answer: D) No inventory for WIP or finished goods. 11. Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports. A) False. B) True. Show Answer Correct Answer: B) True. 12. Cash Receipts, Cash Sales, Customers on account, interest revenue are what? A) Outflow. B) Inflow. Show Answer Correct Answer: B) Inflow. 13. The following is an incorrect statement regarding cost objects..... A) A cost object is the item whose cost is measured. B) Cost objects are activities that are usually accumulated. C) Processes cannot be cost objects. D) Strategic objectives can be cost objects. Show Answer Correct Answer: C) Processes cannot be cost objects. 14. The list of accounts with their balances is the: A) Trial Balance. B) Journal. C) Ledger. D) Balance Sheet. Show Answer Correct Answer: A) Trial Balance. 15. Calculate the cost of good manufactured whenmanufacturing overhead = RM1500prime cost =RM2300beginning work in process = RM330ending work in process = RM560 A) RM 3570. B) RM 1304. C) RM 4350. D) RM 2156. Show Answer Correct Answer: A) RM 3570. 16. Manager performs two broad functions which are planning and A) Calculating. B) Controlling. C) Budgeting. D) Supporting. Show Answer Correct Answer: B) Controlling. 17. Which is NOT a risk by not having a budget schedule? A) Not enough inventory. B) People losing jobs because of poor numbers. C) Late payments. D) Bankruptcy. Show Answer Correct Answer: B) People losing jobs because of poor numbers. 18. Fixed or Variable?Insurance A) Fixed. B) Variable. Show Answer Correct Answer: A) Fixed. 19. If an expense is increasing at a faster rate than the sales, what kind of trend is it? A) Unfavorable trend. B) Favorable Trend. C) Not enough information is given. D) Neutral Trend. Show Answer Correct Answer: A) Unfavorable trend. 20. The following statements regarding Management Accounting are true, except: A) Emphasizes thoroughness and objectivity. B) Future oriented. C) Provides information for management to make decisions. D) Does not have a standard format for reporting. Show Answer Correct Answer: A) Emphasizes thoroughness and objectivity. 21. Identify whether the following statement are true or false.Financial accounting reports pertain to subunits of the business and are very detailed. A) False. B) True. Show Answer Correct Answer: A) False. 22. Which one of the following would not be classified as manufacturing overhead? A) Indirect materials. B) Insurance on factory building. C) Indirect labor. D) Direct materials. Show Answer Correct Answer: D) Direct materials. 23. All of the significant materials that are an integral part of the finished product A) Direct Materials. B) Total materials. C) Indirect Materials. D) None of above. Show Answer Correct Answer: A) Direct Materials. 24. Cost of direct materials purchased is cost of direct material used ..... beginning inventory ..... ending inventory. A) Less, more. B) Plus, minus. C) More more. D) Less, less. Show Answer Correct Answer: A) Less, more. 25. What an entity owes A) Equity. B) Expense. C) Liability. D) Asset. Show Answer Correct Answer: C) Liability. 26. A projection of the revenues, expenses, and net income for a fiscal year. A) Budgeted Income Statement. B) Income Statement. Show Answer Correct Answer: A) Budgeted Income Statement. 27. Schultz Company expects to manufacture and sell 30, 000 baskets in 20X4 for $ 6 each. There are 3, 000 baskets in beginning finished goods inventory with target ending inventory of 4, 000 baskets. The company keeps no work-in-process inventory. What amount of sales revenue will be reported on the 20X4 budgeted income statement? A) $ 204, 000. B) $ 174, 000. C) &186, 000. D) $ 180, 000. Show Answer Correct Answer: D) $ 180, 000. 28. Identify whether the item being described by the statement is Competence, Confidentiality, Credibility or Integrity: "Communicate information fairly and objectively." A) Confidentiality,. B) Competence. C) Integrity. D) Credibility. Show Answer Correct Answer: D) Credibility. 29. What is Break Even Point? A) Total sales = total Cost. B) No Profit No loss. C) In units and value is Calculated. D) None. Show Answer Correct Answer: B) No Profit No loss. 30. A general term that is used to measure a company's debt in relation to its assets. A) Debt ratio. B) Liability ratio. C) Expense ratio. D) None of above. Show Answer Correct Answer: A) Debt ratio. ← 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