Accounting for Management MCQs and Notes

M

Mr. Dubey • 52.30K Points
Coach

Q 1. Sales commissions are classified as

(A) prime costs

(B) period costs

(C) product costs

(D) indirect labour

M

Mr. Dubey • 52.30K Points
Coach

Q 2. Which of the following is not an internal user of management information?

(A) creditor

(B) department manager

(C) controller

(D) treasurer

M

Mr. Dubey • 52.30K Points
Coach

Q 3. Managerial accounting information is generally prepared for

(A) shareholders

(B) creditors

(C) managers

(D) regulatory agencies

M

Mr. Dubey • 52.30K Points
Coach

Q 4. Which of the following is a period cost?

(A) direct materials

(B) indirect materials

(C) factory utilities

(D) administrative expenses

M

Mr. Dubey • 52.30K Points
Coach

Q 5. A 'product' cost is a cost that is classified by:

(A) behaviour

(B) function

(C) controllability

(D) relevance

M

Mr. Dubey • 52.30K Points
Coach

Q 6. A 'direct' cost is a cost that is classified by:

(A) behaviour

(B) traceability

(C) controllability

(D) relevance

M

Mr. Dubey • 52.30K Points
Coach

Q 7. A cost which changes in proportion to changes in volume of activity is called

(A) fixed cost

(B) controllable cost

(C) variable cost

(D) opportunity cost

M

Mr. Dubey • 52.30K Points
Coach

Q 8. The three basic elements of the cost of a manufactured product are:

(A) indirect materials, indirect labour, and manufacturing overhead

(B) merchandise inventory, work in process, and finished goods inventory

(C) direct materials, work in process, and finished goods inventory

(D) direct materials, direct labour, and manufacturing overhead

M

Mr. Dubey • 52.30K Points
Coach

Q 9. Which of the following are basic inventories for a manufacturer?

(A) indirect materials, goods in process, and raw materials

(B) finished goods, raw materials, and direct materials

(C) raw materials, goods in process, and finished goods

(D) raw materials, factory overhead, and direct labour

M

Mr. Dubey • 52.30K Points
Coach

Q 10. Which of the following is not true?

(A) managerial accounting information is prepared for internal users

(B) managerial accounting information is not required by various laws

(C) there are specific standards of acceptability for managerial accounting

(D) the structure of managerial accounting practice is relatively flexible