FORMATIVE QUIZ

Which of the following does not represents the characteristics of Management Accounting?

• Helps in finding out cost of products and control costs

• Measures the operating efficiency of the enterprise

• Helps in identifying the financial position of the business

• Process of determining and accumulating the cost of products or activity

Please select the most appropriate answer for the statement.

A cost center and a cost unit are the same

• YES. Both are used to ascertain cost

• YES. Both are used for cost control

• NO. Cost center is a section of the business to which costs are charged. Cost unit helps to ascertain cost for a product or service.

Which of the following is true about the behavior of fixed and variable costs?

• Total FC changes with output.

• Per unit FC reduces when output increases.

• Total VC does not change with output.

• Per unit VC reduces when output increases.

Companies are incurring extra costs for providing work from home facilities to employees during the current pandemic. Identify whether these are controllable or non controllable costs.

• Controllable

• Non controllable

• We need further information to arrive at a decision as whether a cost is controllable or non controllable depends on the level of management authority .

Cost accounting is needed most by which type of user?

• Internal users

• External users

What is the reporting frequency for management accounting?

• Once at the end of accounting period

• As frequently as information needed for decision making purposes

What is the roles of management accountant?

• Provide budgeting information and accounting reports

• Responsible for carrying out the task of helping the management in making decision for production and process

• Assist departments in achieving the organization objectives by assigning the appropriate costs

• All of the above

The following is the objective of cost accounting except....

• Ascertainment of cost

• Planning and controlling cost

• Decision making

• Observations

What is the cost unit for electricity cost used for machinery?

• Kilowatt hours

• Litres

• Tonnes

• Square feet

Litres were used to ascertain cost of.......

• Sugar

• Flour

• Cooking oil

• Petrol