This quiz works best with JavaScript enabled. Home > Finance > Accounting > Managerial Accounting > Managerial Accounting – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Managerial Accounting Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Budgeting can assist with companies in the following areas:Communication, Coordination, Planning and what? A) Evaluation. B) Controlling. Show Answer Correct Answer: A) Evaluation. 2. At the beginning of the year, Ventra expected to produce 10, 000 jewelry boxes and estimated overhead costs of $ 40, 000. Actual overhead costs ended up being $ 45, 000 and Ventra only produced 9, 000 jewelry boxes. Based on the information given, what is the predetermined overhead rate? A) $ 4.50. B) $ 4.44. C) $ 4.00. D) $ 5.00. Show Answer Correct Answer: A) $ 4.50. 3. A jewelry manufacturer makes charm necklaces. Staff attaches a necklace to a preprinted card and slips it into cellophane envelopes. This will create ..... inventory. A) Materials. B) Finished goods. C) Packing. D) Work in process. Show Answer Correct Answer: B) Finished goods. 4. A portion of the accounts receivable that proves to be uncollectible is termed: A) Bad debts. B) Doubtful debts. C) Provision for bad debts. D) All of the above. Show Answer Correct Answer: A) Bad debts. 5. The current market price of land that a company purchased for 100 million won three years ago is 200 million won. It is said that this land was decided as a park site due to urban planning, and the compensation price is 80 million. If this company decides to donate for free without receiving compensation, what is the opportunity cost? A) Purchase cost 100 million won 3 years ago. B) The current market price is 200 million won. C) The government's compensation price is 80 million won. D) None of above. Show Answer Correct Answer: C) The government's compensation price is 80 million won. 6. Used to show profitability trends and calculated by dividing the gross profit by the total sales. A) Net Profit Margin. B) Gross Profit Margin. C) Contribution Margin. D) Required Contribution Margin. Show Answer Correct Answer: B) Gross Profit Margin. 7. Which one reports on the past? A) Managerial Accounting. B) Financial Accounting. Show Answer Correct Answer: A) Managerial Accounting. 8. Which of the following describes the cost of direct materials, direct labor and manufacturing overhead incurred in producing the goods. A) Cost of goods sold. B) Cost of goods manufactured. C) Manufacturing costs. D) Manufacturing overhead. Show Answer Correct Answer: C) Manufacturing costs. 9. Management accountants would not A) Assist in budget planning. B) Prepare reports primarily for external users. C) Determine cost behavior. D) Be concerned with the impact of cost and volume on profits. Show Answer Correct Answer: B) Prepare reports primarily for external users. 10. Managerial accounting guides ..... users. A) Internal. B) External. Show Answer Correct Answer: A) Internal. 11. The benefits of management accounting information include: A) Improved decisions. B) Providing a means of motivating workers and rewarding performance. C) More effective planning. D) All of the above. Show Answer Correct Answer: D) All of the above. 12. Position is vacant if it is occupied A) False. B) True. Show Answer Correct Answer: A) False. 13. Managerial accountants should, but have no obligation to, maintain their professional skills. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 14. Depreciation expense is what type of Expense? A) Administrative. B) Selling. C) Tax. D) None of above. Show Answer Correct Answer: A) Administrative. 15. Abnormal cost is the cost: A) Cost normally incurred at a given level of output. B) Cost not normally incurred at a given level of output. C) Cost which is charged to customer. D) Cost which is included in the cost of the product. Show Answer Correct Answer: A) Cost normally incurred at a given level of output. 16. Which are true about Management accounting? A) Places emphasis on future. B) Must comply with GAAP standards. C) Presents very detailed information. D) Presents only monetary information. Show Answer Correct Answer: A) Places emphasis on future. 17. The percentage by which a retailer increases wholesale price; also called gross profit. A) Markup. B) Markdown. C) MSRP. D) None of above. Show Answer Correct Answer: A) Markup. 18. Management accounting and financial accounting differ in that management accounting information is prepared A) Following prescribed rules. B) Using whatever methods the company finds beneficial. C) To summarize the whole company with little detail. D) For shareholders. Show Answer Correct Answer: B) Using whatever methods the company finds beneficial. 19. Published financial statements show costs classified by behavior. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 20. Cost of goods sold is beginning finished goods inventory plus ..... minus ending finished goods inventory. A) Costs of goods purchased. B) Costs of goods available for sales. C) Costs of direct material purchased. D) Costs of goods manufactured. Show Answer Correct Answer: D) Costs of goods manufactured. 21. Yes or No:If current assets is higher than current liabilities, it is a favorable net working capital A) Yes. B) No. Show Answer Correct Answer: A) Yes. 22. Gross profit is calculated as A) Cost-depreciation. B) Revenue-total costs. C) Revenue-cost of goods sold. D) None of above. Show Answer Correct Answer: C) Revenue-cost of goods sold. 23. The wages of factory maintenance personnel would usually be considered to be a A) Manufacturing overhead cost. B) Administrative cost. C) Direct labor cost. D) Selling cost. Show Answer Correct Answer: A) Manufacturing overhead cost. 24. Identify whether the item being described by the statement is Competence, Confidentiality, Credibility or Integrity: "Perform professional duties in accordance with relevant laws, regulations and technical standards." A) Confidentiality,. B) Integrity. C) Credibility. D) Competence. Show Answer Correct Answer: D) Competence. 25. Predicting the sales of goods or services based on historical data gathered from financial statements. A) Forecasting. B) Budgeting. C) Process analysis. D) None of above. Show Answer Correct Answer: A) Forecasting. 26. The indirect method of reporting reports net income and then adjusts it for items that do not affect cash. A) False. B) True. Show Answer Correct Answer: B) True. 27. Expenses-4, 000Income-10, 000This is simple example of ..... A) Cash flow analysis. B) Break even analysis. C) Product costing and valuation. D) None of above. Show Answer Correct Answer: A) Cash flow analysis. 28. Out-of-pocket costs involve an actual outlay of cash. A) T. B) F. Show Answer Correct Answer: A) T. 29. Basic objectives of cost accounting is ..... A) Profit analysis. B) Financial audit. C) Tax compliance. D) Cost ascertainment. Show Answer Correct Answer: D) Cost ascertainment. 30. 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 set to take 1.5 hours/each, paying labor costs of 300 baht per hour. Other production expenses are set at 100 baht/direct labor hour from the above information. What is the standard cost of producing 1 shirt? A) 850 baht. B) 1, 050 baht. C) 550 baht. D) 900 baht. E) 700 baht. Show Answer Correct Answer: D) 900 baht. ← 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books