This quiz works best with JavaScript enabled. Home > Finance > Accounting > Managerial Accounting > Managerial Accounting – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the equation for the Break-Even Point? A) Net Sales + Variable costs-Fixed Costs = Break even point. B) Net Sales-Fixed Costs-Variable Costs = Break even point. C) Net Sales + Fixed Costs + Variable Costs = Break even point. D) Net Sales + Fixed Costs-Variable Costs = Break even point. Show Answer Correct Answer: B) Net Sales-Fixed Costs-Variable Costs = Break even point. 2. Cost accounting information is needed by..... A) Management in manufacturing companies, namely companies that process raw materials into finished products. B) Management in trading companies, namely companies that buy goods for resale. C) Management of service companies, namely companies that sell services such as airlines, architects and hairdressers. D) A, b, and c are true. Show Answer Correct Answer: D) A, b, and c are true. 3. Which of the following is not classified as direct labor? A) Copy machine operators at a copy shop. B) Wages of supervisors. C) Bakers in a bakery. D) Bottlers of mineral water. Show Answer Correct Answer: B) Wages of supervisors. 4. The Orange Company plans to sell a new product. The selling price is expected to be P150 per unit. The company is able to produce 15, 000 units but the company's marketing manager feels that a more realistic level of sales would be 12, 000 units. Variable cost is estimated at P70 per unit. Total fixed costs will be P900, 000. How much is the income/(loss) if the company sells all the units it can produce? A) (Badhah, 500). B) P330, 000. C) P300, 000. D) For 122, 500. Show Answer Correct Answer: C) P300, 000. 5. Which industry buys raw materials and convert to finished products, and is a heavy producer of goods? A) Manufacturing industry. B) Merchandising industry. Show Answer Correct Answer: A) Manufacturing industry. 6. Process costing is appropriate for products that are manufactured continuously. Which would be best considered process costing? A) Repair Shop. B) Hospitals. C) Coca-Cola Bottling facility. D) Printers. Show Answer Correct Answer: C) Coca-Cola Bottling facility. 7. Cost categories facilitate work with primary account types only A) False. B) True. C) -. D) -. Show Answer Correct Answer: A) False. 8. Identify whether the item being described by the statement is Competence, Confidentiality, Credibility or Integrity: "Mitigate actual conflicts of interest; regularly communicate with business associates to avoid apparent conflicts of interest." A) Integrity. B) Credibility. C) Confidentiality,. D) Competence. Show Answer Correct Answer: A) Integrity. 9. Which of the following costing activities is associated with the financial accounting system? A) Determining the cost of a department. B) Determining the cost of goods sold for financial statements. C) Preparing budgets. D) Determining the cost of customer. Show Answer Correct Answer: B) Determining the cost of goods sold for financial statements. 10. The plant manager's salary would be considered ..... to the product. A) Direct. B) Indirect. Show Answer Correct Answer: B) Indirect. 11. Which one is an example of manufacturing overhead? A) Direct expense. B) Utilities. C) Direct labour. D) Screw. Show Answer Correct Answer: B) Utilities. 12. Financial Accounting can still be used to make internal business decisions A) True. B) False. Show Answer Correct Answer: A) True. 13. What is not included in production costs is: A) Advertising costs. B) Labor costs. C) Overhead costs. D) Helper costs. Show Answer Correct Answer: A) Advertising costs. 14. Management activities that "establish the framework within which activities are carried out that bring together the many functional units of an enterprise into a coordinated structure and assign responsibility and authority to individuals" are called..... A) Organizing. B) Controlling. C) Planning. D) Accountability. Show Answer Correct Answer: A) Organizing. 15. A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. A fixed overhead volume variance will NOT necessarily occur in a month in which production volume differs from sales volume. A) True. B) False. Show Answer Correct Answer: A) True. 16. The difference between the net sales and the variable costs. shows the amount of money a business has available to pay its fixed costs and contribute to net income. A) Contribution Margin. B) Net Income. C) Gross Profit. D) Take home pay. Show Answer Correct Answer: A) Contribution Margin. 17. ..... is anexample of managerial accounting. A) Purchase of asset. B) Cash payment to supplier. C) Credit sales. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. Do you think the Family Law should be eliminated? A) Yes. B) No. Show Answer Correct Answer: B) No. 19. What are the variable expenses for the Commercial segment? A) $ 120, 000. B) $ 300, 000. C) $ 220, 000. D) $ 100, 000. Show Answer Correct Answer: A) $ 120, 000. 20. Process costing is more appropriate in what kind of business? A) Cornflakes factory. B) Law firm. C) Dentist office. D) Cruise shipbuilder. Show Answer Correct Answer: A) Cornflakes factory. 21. Which account types normally have a credit balance? A) Revenues. B) Liabilities. C) Expenses. D) Both a and b. Show Answer Correct Answer: D) Both a and b. 22. Managerial accounting places greater emphasis on the future than financial accounting, which is primarily concerned with the past. A) False. B) True. Show Answer Correct Answer: B) True. 23. Which of the following statements related to cost is incorrect? Select them all. A) Avoidable costs are costs that are saved or not incurred by choosing a specific alternative. B) Sunk costs that have already occurred due to past decisions can be recovered through future decisions, so they must be considered when making decisions. C) Opportunity cost refers to the amount of money that can be gained if resources are used for alternative purposes other than their current use. D) Manufacturing overhead increases as operating rate increases. Show Answer Correct Answer: B) Sunk costs that have already occurred due to past decisions can be recovered through future decisions, so they must be considered when making decisions. 24. Depreciation for administrative office buildings is A) Direct Material (DM). B) Direct Labor (DL). C) Factory Overhead (FOH). D) Selling/ Administrative Expense. Show Answer Correct Answer: D) Selling/ Administrative Expense. 25. ..... can be related to the production of a particular product and vary directly with the level of output A) Direct costs. B) Cost centre. C) Marginal cost. D) Indirect costs. Show Answer Correct Answer: A) Direct costs. 26. Rouse Manufacturing's operating activities for the year are listed below. Beginning inventory $ 1, 000, 400Ending inventory $ 350, 800Purchases $ 750, 700Sales revenue $ 1, 500, 900Operating expenses $ 700, 600 What is the cost of goods sold for the year? A) $ 750, 200. B) $ 1, 751, 100. C) $ 1, 400, 300. D) $ 50, 100. Show Answer Correct Answer: C) $ 1, 400, 300. 27. The wages of an hourly timekeeper in the factory would be classified as A) A period cost. B) Compliance costs. C) Direct labor. D) Indirect labor. Show Answer Correct Answer: D) Indirect labor. 28. Financial accounting is concerned with A) Determining profit and loss of the business. B) Financial position of the business. C) Communicating to the interested parties. D) All of them. Show Answer Correct Answer: D) All of them. 29. As current technology changes manufacturing processes, it is likely that direct A) Labor will decrease. B) Materials will decrease. C) Labor will increase. D) Materials will increase. Show Answer Correct Answer: A) Labor will decrease. 30. The sum of direct labour and manufacturing overhead is ..... A) Period costs. B) Direct costs. C) Conversion costs. D) Product costs. Show Answer Correct Answer: C) Conversion costs. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesManagerial Accounting Quiz 1Managerial Accounting Quiz 2Managerial Accounting Quiz 4Managerial Accounting Quiz 5Managerial Accounting Quiz 6Managerial Accounting Quiz 7Managerial Accounting Quiz 8Managerial Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books