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WorksheetsRevision- Management Accounting Quiz
Total questions: 14
Worksheet time: 28mins
Which of the following is NOT included in prime cost?
Direct materials
Direct labour
Direct expenses
Factory rent
Break-even point is reached when:
Contribution equals fixed costs
Sales equal variable costs
Profit equals contribution
Sales equal total costs plus profit
Which costing method is most suitable for a hospital providing patient treatments?
Process costing
Job costing
Batch costing
Absorption costing
If fixed costs are $60,000 and contribution per unit is $15, the break-even point in units is:
4,000
6,000
10,000
15,000
Which of the following is a qualitative factor in make-or-buy decisions?
Cost of raw materials
Supplier reliability
Labour hours required
Machine depreciation
A favourable material price variance occurs when:
Actual price > Standard price
Actual price < Standard price
Actual usage > Standard usage
Actual usage < Standard usage
Which ratio best indicates how quickly a company collects cash from customers?
Current ratio
Inventory turnover
Accounts receivable collection period
Gross profit margin
Which of the following is part of absorption costing but NOT marginal costing?
Direct materials
Direct labour
Fixed production overheads
Variable production overheads
A flexible budget is useful because:
It adjusts costs for actual levels of activity
It ignores variable costs
It requires less management effort
It provides control for only one level of output
Which of the following best describes a controllable cost?
A cost influenced by its budget holder
A cost unaffected by activity levels
A cost specifically identified with a cost object
A cost easily forecasted using budgets
Which of the following is NOT a feature of standard costing?
Comparison of actual cost with predetermined standard cost
Helps in cost control
Costs calculated for each individual job separately
Variance analysis
A favourable labour efficiency variance means:
Workers took longer than expected
Actual hours were less than standard hours
Labour cost exceeded budget
Workers were paid less per hour
Which of the following best explains what a high inventory turnover ratio indicates?
Excessive inventory held, leading to storage costs
Inventory sold quickly, suggesting strong demand
Struggling to sell inventory, resulting in slow turnover
Low cost of goods sold compared to average inventory
Which of the following is a qualitative factor in capital investment appraisal?
Net present value
Payback period
Impact on employee morale
Internal rate of return
