Accounting Quiz (Seminar 2019)

Which of the following best describes the purpose of cost and management accounting?

• to provide information for planning, decision making and control

• to detect fraud

• to comply to regulatory authorities

• none of the choices

Which of the following costs are Production costs:

(Pick 3 options)

• Direct material

• Direct labour

• Variable production overheads

• Administrative costs

Which of the following costs are Non-production costs?

(Pick 3 options)

• Administrative costs

• Fixed production overheads

• Finance costs

• Selling and distribution expenses

Which of the following is not an indicator of effectiveness?

• client satisfaction in the service being provided

• cost recovered as a proportion of costs incurred

• flexibility such as average waiting time

• quality of service/output measures

...................... are identified with goods produced for resale.

• Production costs

• Non-production costs

What are the indicators to measure efficiency?

• variance anlysis

• cost per unit of activity

• all of the choices

• comparisons with benchmark information

..................... are not directly associated with production of manufactured goods?

• Production costs

• Non-production costs

Which of the following are examples of revenue expenditure?

• Purchase of a company car by an estate agency business

• Purchase of inventories

• Addition of an extension to a building

• Improvement to the earning capacity of non-current assets

When producing written reports, the management accountant needs to determine the type of document required and established the user of the information.

• True

• False

There is a possibility that management accounting information may fail to meet the objective of assisting management in the decision making process due to its failure to meet the requirements of good information.

• True

• False