ACC20007 MA QUIZ 1

What is the primary purpose of management accounting?

• To report financial information to external users

• To establish the cost incurred by an organisation

• To aid planning, control and decision making

• To analyze market trends and competition

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Noob 2.0

Which type of accounting is used for internal decision making?

• Financial accounting

• Cost accounting

• Management accounting

• Tax accounting

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Noob 2.0

Which of the following statements are correct?

(i) Management account is a tool for future planning and is not used as a historical record.

(ii) Management accounting information and financial accounting information are the same set of information presented in a different style and format.

(iii) The evaluation of the alternatives helps us arrive at an overall or master plan, known as a corporate plan.

(iv) In a profit centre both inputs and outputs are not measured in monetary terms.

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Noob 1.0

Which of the statements are correct?

(i) One person's information is another person's data depending on whether the data is relevant to the recipient

(ii) Data can become information if correctly orgarnised, filtered and presented.

(iii) An objective or goal can be achieved by talking necessary decisions without planning.

(iv) A strategic plan is prepared to achieve the organisation's goals.

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Noob 1.0

Revuelto is the manager of production department "Monza" in a factory which has ten other production departments. He receives monthly information that compares planned and actual expenditure for department "Monza". After department "Monza", all production goes into other factory departments to be completed prior to being dispatched to customers. Decision involving capital expenditure in department "Monza" are not taken by Revuelto.

Which of the following describes Revuelto's role in department "Monza"?

ANSWER:​ (a)  

• A cost centre manager
• An investment centre manager
• A profit centre manager
• A revenue centre manager

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Amateur

Which of the following is an example of a fixed cost?

• A) Direct materials used in production

• B) Rent for a factory space

• C) Wages of hourly workers

• D) Sales commissions

Semi-variable costs are best described as:

• A) Costs that remain constant regardless of production levels

• B) Costs that change in total with production but have a fixed component

• C) Costs that vary directly with the level of production

• D) Costs that are incurred only during specific periods

Which of the following statements is true regarding variable costs?

• A) They remain constant regardless of the volume of production.

• B) They can include both fixed and variable components.

• C) They vary directly with the level of output.

• D) They are typically incurred monthly.

Which of the following would NOT be classified as a semi-variable cost?

• A) Utility bills that have a fixed monthly charge plus a variable usage charge

• B) Salaries of managers that do not change with output

• C) Maintenance costs that include a fixed contract fee plus variable repairs

• D) A service fee that is charged per unit of product produced

In a manufacturing company, which of the following is most likely a variable cost?

• A) Insurance on equipment

• B) Depreciation on factory machinery

• C) Raw materials used in production

• D) Property taxes