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REVISION 1 : TOPIC 1 & 2 [AA025]

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

Product costs are

a)

Costs that assigned to the manufacture of products and recognized when sold.

b)

Costs that cannot identified on the product.

c)

Costs that mixed between sales and other expenses.

d)

costs that involved directly in the manufacturing

2.

Costs that complicated to identified through units or batches of units are known as a (n) _____________

a)

Direct costs

b)

Product costs

c)

Indirect manufacturing costs

d)

Indirect costs

3.

These workers transform the direct materials into a finished product.

a)

Direct labour

b)

Indirect labour

c)

Factory manager

d)

Factory supervisor

4.

These are all other costs of transforming the materials into a finished product.

a)

Factory utilities expenses

b)

Advertising expenses

c)

Direct materials

d)

Factory Supervisor Salary

5.

The sum of Direct materials and direct labour is known as

(a)  

6.

The sum of direct labour and manufacturing overhead is known as

(a)  

7.

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

a)

Helps in finding out cost of products and control costs

b)

Measures the operating efficiency of the enterprise

c)

Helps in identifying the financial position of the business

d)

Process of determining and accumulating the cost of products or activity

8.

What is the roles of management accountant?

a)

Provide accounting information and accounting reports

b)

Responsible for carrying out the task of helping the management

c)

Assist departments in achieving the organization goals and objectives.

d)

All of above

9.

Which of the following would be an example of a direct materials cost?

a)

engine on an airplane

b)

lubricant used to manufacture a lighting fixture

c)

glue used to build cabinets

d)

nails used to manufacture a table

10.

Fixed costs, variable costs, mixed costs are a cost classification based on ____________

a)

behaviour

b)

functions

c)

assignment

d)

all of above

11.

The branch of accounting that generates reports and information for the use of internal management only is known as:

a)

Tax accounting

b)

Managerial or management accounting

c)

Auditing

d)

Financial accounting

12.

Which one of the following is not an external user of accounting information?

a)

Investor

b)

Creditor

c)

Manager

d)

Customer

13.

What activities and responsibilities are not associated with management's functions?

a)

Planning

b)

Accountability

c)

Controlling

d)

Decision making

14.

Planning is a function that involves

a)

hiring the right people for a particular job.

b)

coordinating the accounting information system.

c)

setting goals and objectives for an entity.

d)

analyzing financial statements.

15.

The managerial function of controlling

a)

is performed only by the controller of a company.

b)

is only applicable when the company sustains a loss.

c)

is concerned mainly with operating a manufacturing segment.

d)

includes performance evaluation by management.

16.

The management function that requires managers to look ahead and establish objectives is

a)

controlling.

b)

directing.

c)

planning.

d)

constraining.

17.

Which of the following is not classified as direct labor?

a)

Bottlers of mineral water

b)

Copy machine operators at a copy shop

c)

Wages of supervisors

d)

Bakers in a bakery

18.

Which of the following are period costs?

a)

Raw materials

b)

Direct materials and direct labor

c)

Direct labor and manufacturing overhead

d)

Selling expenses

19.

Which one of the following is not an external user of accounting information?

a)

Investor

b)

Creditor

c)

Manager

d)

Customer

20.

Decision making is about choosing among alternative courses of action

a)

True

b)

False