MA - Full Course

Which of the following statements is NOT correct?

• Cost accounting can be used for inventory valuation to meet the requirements of

  internal reporting only.

• Management accounting provides appropriate information for decision making,

  planning, control and performance evaluation.

• Routine information can be used for both short-term and long-run decisions.

• Financial accounting information can be used for internal reporting purposes.

Which of the following statements is correct?

• Qualitative data is generally non-numerical information

• Information can only be extracted from external sources

• Operational information gives details of long-term plans only

• Quantitative data is always accurate

Which Of the following describes secondary data?

• data that does not provide any information

• data collected for another purpose

• data collected specifically for the purpose of the survey being undertaken

• data collected by post or telephone, not by personal interview

Which of the following is an example of external information that could be used in a

management accounting system?

• Consumer price index statistics

• Price list for the products sold by the business

• Production volume achieved by the production department

• Discounts given to customers

XYZ three main products. Which would be the most appropriate chart or diagram

for showing total revenue analysed into product revenue month by month?

• Scatter graph

• Line graph

• Pie chart

• Component bar chart

A line graph is being produced to show the cost of advertising and sales revenue for a

business. Which values would be shown on which axis?

• Both on the y-axis

• Both on the x-axis

• Cost of advertising on the x-axis and sales revenue on the y-axis

• Sales revenue on the x-axis and cost of advertising on the y-axis

A firm has to pay a $0.50 per unit royalty to the inventor of a device which it manufactures

and sells.

How would the royalty charge be classified in the firm's accounts?

• selling expense

• direct expense

• production overhead

• administrative overhead

Which Of the following describes depreciation Of fixtures?

• Not a cash cost so is ignored in the cost accounts

• Part of overheads

• Part Of prime cost

• Is a cash outflow

Which of the following would be classified as direct labour?

• Personnel manager in a company servicing cars

• Bricklayer in a construction company

• General manager in a shop

• Maintenance manager in a company producing cameras

Which of the following describes cost centres?

• units of product or service for which costs are ascertained

• amounts of expenditure attributable to various activities

• functions or locations for which costs are ascertained

• a section of an organisation for which budgets are prepared and control exercised