This quiz works best with JavaScript enabled. Home > Finance > Accounting > Managerial Accounting > Managerial Accounting – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... refers to the calculation of production cost of goods and services. A) Internal rate of return. B) Break even analysis. C) Product costing and valuation. D) None of above. Show Answer Correct Answer: C) Product costing and valuation. 2. Fahsai Tour Company organizes a One Day Trip to Krabi, 4 islands, price 500 baht per person (including car, boat fees, and lunch and snacks). Costs for organizing the tour include bus rental 3, 000 baht, guide and management fees 2, 000 baht. The boat is 100 baht per head, lunch is 100 baht per head, snacks are 50 baht per head. This tour has a total of 40 seats. Fahsai Tour Company How many minimum seats should be sold to break even? A) 30 people. B) 10 people. C) 25 people. D) 20 people. E) 40 people. Show Answer Correct Answer: D) 20 people. 3. How does managerial accounting differ from financial accounting? A) Financial accounting involves more unknowns and uncertainties than managerial accounting. B) Financial accounting is more concerned with interest rates than managerial accounting. C) Managerial accounting deals primarily with summary data and explicit formulas. D) Managerial accounting informs decision-making through documented assumptions. Show Answer Correct Answer: D) Managerial accounting informs decision-making through documented assumptions. 4. Which of the following is not correct regarding the manufacturing overhead budget? A) Total budgeted cash disbursements for manufacturing overhead is equal to the total of budgeted variable and fixed manufacturing overhead. B) Manufacturing overhead costs should be broken down by cost behavior. C) The manufacturing overhead budget should provide a schedule of all costs of production other than direct materials and direct labor. D) A schedule showing budgeted cash disbursements for manufacturing overhead should be prepared for use in developing the cash budge. Show Answer Correct Answer: A) Total budgeted cash disbursements for manufacturing overhead is equal to the total of budgeted variable and fixed manufacturing overhead. 5. A statement of the financial position of a business on a specified date or for a period of time. A) Balance Sheet. B) Statement of Owner's Equity. C) Financial Statement. D) Statement of Cash Flows. Show Answer Correct Answer: C) Financial Statement. 6. The salary for Assembly employees is: A) Direct Material (DM). B) Selling/ Administrative Expense. C) Direct Labor (DL). D) Factory Overhead (FOH). Show Answer Correct Answer: C) Direct Labor (DL). 7. ..... is the employees who convert materials into the company's product and can be traced directly to the finished product. A) Direct Material. B) Direct material. C) Direct labour. D) Manufacturing overhead. Show Answer Correct Answer: C) Direct labour. 8. What is a transition cost? A) A one-off cost to account for changes. B) The liability for old facilities. C) A projected interest rate. D) The cost of moving facilities. Show Answer Correct Answer: A) A one-off cost to account for changes. 9. The following is a classification of costs based on function A) Sunk Cost dan Opportunity Cost. B) Direct Cost dan Indirect Cost. C) Product Cost dan Period Cost. D) Fixed Cost dan Variable Cost. Show Answer Correct Answer: C) Product Cost dan Period Cost. 10. Which are characteristics of financial accounting? A) Is mandatory, Follows GAAP, and reporting on past decisions. B) Is not mandatory, Follows GAAP, reporting on future decisions. C) Is mandatory but does not follow GAAP, reports on past decisions. D) None of above. Show Answer Correct Answer: A) Is mandatory, Follows GAAP, and reporting on past decisions. 11. Absorption costing treats all fixed costs as product costs A) False. B) True. Show Answer Correct Answer: A) False. 12. If Quantity Produced is greater than Quantity sold, what can account for the difference in the Net Incomes under the two costing methods. A) The difference in Net Incomes can be accounted for by the differences in Ending Inventory. B) The difference in Net Incomes can be accounted for by the differences in Selling Expenses. C) The difference in Net Incomes can be accounted for by the differences in Administrative Expenses. D) The difference in Net Incomes can be accounted for by the differences in Beginning Inventory. Show Answer Correct Answer: A) The difference in Net Incomes can be accounted for by the differences in Ending Inventory. 13. ..... is devoted to providing information for external users. A) Management accounting. B) Financial accounting. C) Cost accounting. D) Internal accounting. Show Answer Correct Answer: B) Financial accounting. 14. What are the component of management functions? A) Planning. B) Controlling. C) Decision making. D) All the above. Show Answer Correct Answer: D) All the above. 15. What is Managment Accounting? A) Planning. B) Controlling. C) Decision making. D) All the above. Show Answer Correct Answer: D) All the above. 16. The cost of products that are partially complete A) Manufacturing overhead. B) Period costs. C) Work in process inventory. D) Direct materials. Show Answer Correct Answer: C) Work in process inventory. 17. Advertising costs are usually viewed as (period, product) costs. A) Conversion. B) Period. C) Prime. D) Product. Show Answer Correct Answer: B) Period. 18. The work of factory employees that can be directly associated with converting raw materials into finished goods is A) Direct labor. B) Indirect labor. C) Indirect materials. D) Manufacturing overhead. Show Answer Correct Answer: A) Direct labor. 19. A branch of accounting that provides financial information about a business to help managers make decisions. A) Management Accounting. B) Cost Accounting. C) Managerial Accounting. D) Financial Accounting. Show Answer Correct Answer: C) Managerial Accounting. 20. Which one describe product cost? A) Direct Material, Direct Labour, Manufacturing overhead. B) Identified with specific time interval. C) Non-Manufacturing cost. D) Operating cost. Show Answer Correct Answer: A) Direct Material, Direct Labour, Manufacturing overhead. 21. What is the purpose of a balance sheet? A) The purpose of a balance sheet is to provide a snapshot of a company's financial position at a specific point in time. B) The purpose of a balance sheet is to forecast future financial performance of a company. C) The purpose of a balance sheet is to measure the market value of a company's assets. D) The purpose of a balance sheet is to track the daily expenses of a company. Show Answer Correct Answer: A) The purpose of a balance sheet is to provide a snapshot of a company's financial position at a specific point in time. 22. Which one is not part of managment function? A) Decision making. B) Throwing rubbish bins. C) Controlling. D) Planning. Show Answer Correct Answer: B) Throwing rubbish bins. 23. Compute the companywide break-even point in dollar sales. A) $ 120, 000. B) $ 935, 897. C) $ 110, 000. D) $ 50, 000. Show Answer Correct Answer: B) $ 935, 897. 24. Compute the break-even point in dollar sales for the Commercial Law. A) $ 10 million. B) $ 500, 000. C) $ 0. D) 487, 500. Show Answer Correct Answer: D) 487, 500. 25. Which of the following best explains what is meant by 'Capital Expenditure'? Capital Expenditure is expenditure: A) On non-current assets, including repairs and maintenance. B) On expensive items over $ 10, 000. C) On the acquisition of non-current assets, or improvement in their earning capacity. D) On items relating to owners' capital. Show Answer Correct Answer: C) On the acquisition of non-current assets, or improvement in their earning capacity. 26. When used together, Financial Accounting and Managerial Accounting can provide a complete picture of a company's overall financial health A) False. B) True. Show Answer Correct Answer: B) True. 27. A shop that tailors batik shirts to sell as souvenirs to tourists. Determine the standard cost of producing 1 shirt as follows:the cost of 2 yards of batik fabric, 150 baht each, the labor cost of the tailor. It is scheduled to take 1.5 hours/piece, paying 300 baht per hour for labor. Other production expenses are set to be 100 baht/direct labor hour. Last May, the shop produced 500 shirts, using all the fabric. 1, 050 yards has a total fabric purchase cost of 154, 350 baht. I would like to know how much the difference in raw material prices is. A) 3, 150 baht (U). B) 3, 000 baht (F). C) 4, 350 baht (F). D) 3, 000 baht (U). E) 3, 150 baht (F). Show Answer Correct Answer: E) 3, 150 baht (F). 28. BOBS Corporation began operations on January 1st. During the year, it started and completed 2, 700 units of product. The company incurred the following costs:Raw materials purchased and used-$ 5, 600Wages of production workers-$ 6, 890.Salaries of administrative and sales personnel-$ 2, 450.Depreciation on manufacturing equipment-$ 4, 280.Depreciation on administrative equipment-$ 7, 010.BOBS corporation sold 2, 100 units of product.Determine cost of inventory per unit A) $ 7.99. B) $ 8.14. C) $ 6.21. D) $ 5.85. Show Answer Correct Answer: C) $ 6.21. 29. Positions are filled by A) Employees. B) Tender number is always assigned manually. C) Career planning consists of all positions. D) None of above. Show Answer Correct Answer: A) Employees. 30. Flour-1, 000.00Salt-200.00Sugar-240.00Oil-100.00This is an example of ..... A) Internal rate of return. B) Break even analysis. C) Product costing and valuation. D) None of above. Show Answer Correct Answer: C) Product costing and valuation. ← 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 8Managerial Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books