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WorksheetsFORMATIVE QUIZ
Total questions: 35
Worksheet time: 17mins
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
Patient nights is the cost unit to ascertain cost of.....
Hotel
Hospital
Home-stay
Accommodation services (AirBNB)
Choose the most appropriate answer for the question.
Why management of a company need to know the cost of a product?
To make the products famous
To determine the selling price
To determine the GST
To promote the product in social media
Financial accounting is....
A language which communicates economic information to interested parties
Is a financial type of accounting information and the reporting of the results and financial position of a business.
Accumulation of accounting information for a company's internal users
Accumulation of accounting information for a company's external users
Which of the following is an example of a tangible product?
lawn care
accounting services
customer service
computer
Which of the following would not be a period cost?
research and development
direct materials
advertising costs
office supplies
Which of the following would be an example of a direct materials cost?
engine on an airplane
lubricant used to manufacture a lighting fixture
glue used to build cabinets
nails used to manufacture a table
Which of the following information is not TRUE about abnormal cost?
Costs that have not been planned for
Is not charged to the cost of production; transferred to profit and loss account
Is part of production costs
Not normally incurred at a given level of production
Functions of management accounting include
Planning
Controlling
Decision-making
Communicating
Prime Cost comprise of
direct material cost
direct labour cost
overhead cost
non-manufacturing overhead cost
Conversion costs comprise of
Direct labour cost
Manufacturing overhead cost
Product Cost
Period Cost
Manufacturing costs is also known as
inventoriable cost
period cost
conversion costs
overhead costs
Non-manufacturing cost includes
marketing cost
general and administration costs
factory rental
factory insurance
Costs that remain fixed or constant, although there are changes in output in a given relevant range:
variable cost
fixed cost
mixed cost
semi-variable cost
Mixed costs is a combination of variable costs and fixed costs. It is also known as
semi-variable costs
semi-fixed costs
fixed cost
relevant cost
Indirect costs examples
utility cost
sales manager salary
direct materials
direct labour
factory insurance
Which TWO of the following statements about qualities of good information are true?
It should be relevant for its purposes
It should be communicated to the right person
It should be completely accurate
It should be provided whatever the cost
The sales manager has prepared a manpower plan to ensure that sales quotas for the forthcoming year are achieved. This is an example of what type of planning?
Strategic planning
Tactical planning
Operational planning
Corporate planning
Which TWO of the following statements about management accounting information are true?
They may include non-financial information
They are required by law to be produced
They are used to aid planning
They are for use by parties external to the organisation
Which of the following statements is/are correct?
(i) A management control system is a term used to describe the hardware and software used to drive a database system which produces information outputs that are easily assimilated by management.
(ii) An objective is a course of action that an organisation might pursue in order to achieve its strategy.
(iii) Information is data that has been processed into a form meaningful to the recipient.
(i), (ii) and (iii)
(i) and (iii)
(ii) and (iii)
(iii) only
Good information should have certain qualities.
Which TWO of the following are required as qualities of good management information?
Complete
Extensive
True and fair
Accurate
Which of the following statements is/are correct?
(i) Information for decision-making should incorporate uncertainty in some way.
(ii) The data used to prepare financial accounts and management accounts are the same.
(i) is true and (ii) is false
(ii) is true and (i) is false
Both are true
Both are false
Which of the following processes occurs at the business planning stage?
Obtaining data about actual results
Taking corrective action
Comparing actual performance with budge
Establishing objectives
Which of the following statements is correct?
Management accounting systems provide information for use in fulfilling legal requirements.
Management accounting systems provide information for the use of decision-makers within an organisation.
Management accounting systems provide information for use by shareholders.
Management accounting systems provide information for use by tax authorities.
Which TWO of the following would be data rather than information?
Sales increase/decrease per product in last quarter
Total sales value per product
Total material usage
Sales staff commission as a percentage of total sales
