On This Page
This set of Accounting for Management Multiple Choice Questions & Answers (MCQs) focuses on Accounting For Management Set 6
Q1 | Which of the following best describes a fixed cost ?
- remains constant irrespective of the level of activity
- represents a fixed proportion of total costs
- increases proportionately with output
- has a direct relationship with output
Q2 | The weighted average method of stock valuation would be mostappropriate for ………….
- chemical manufacturer
- a food retailer
- a building contractor
- a motor components retailer
Q3 | Direct labour costs will include……………
- all labor costs attributable to product
- direct labor costs plus any bonuses
- total direct labor hours at the normal hourly rate of pay
- direct labor costs plus any bonuses and overtime premium
Q4 | Management accounting is said to meet:
- the internal accounting needs of the organization
- the needs of laws that govern company financial reporting.
- the regulatory requirements of the organization
- the external accounting needs of the organisation.
Q5 | Which one of the following is not a recognised cost classification?
- time
- function
- performance
- type
Q6 | Direct costs are also known as:
- indirect cost
- overhead costs
- prime costs
- marginal costs
Q7 | Indirect costs are also known as
- direct cost
- overhead costs
- prime costs
- marginal costs
Q8 | Which of the following is not true?
- managerial accounting information is prepared for internal users
- managerial accounting information is not required by various laws
- there are specific standards of acceptability for managerial accounting
- the structure of managerial accounting practice is relatively flexible
Q9 | Which of the following are basic inventories for a manufacturer?
- indirect materials, goods in process, and raw materials
- finished goods, raw materials, and direct materials
- raw materials, goods in process, and finished goods
- raw materials, factory overhead, and direct labour
Q10 | The three basic elements of the cost of a manufactured product are:
- indirect materials, indirect labour, and manufacturing overhead
- merchandise inventory, work in process, and finished goods inventory
- direct materials, work in process, and finished goods inventory
- direct materials, direct labour, and manufacturing overhead
Q11 | A cost which changes in proportion to changes in volume of activity iscalled
- fixed cost
- controllable cost
- variable cost
- opportunity cost
Q12 | A 'direct' cost is a cost that is classified by:
- behaviour
- traceability
- controllability
- relevance
Q13 | A 'product' cost is a cost that is classified by:
- behaviour
- function
- controllability
- relevance
Q14 | Which of the following is a period cost?
- direct materials
- indirect materials
- factory utilities
- administrative expenses
Q15 | Managerial accounting information is generally prepared for
- shareholders
- creditors
- managers
- regulatory agencies
Q16 | Which of the following is not an internal user of management information?
- creditor
- department manager
- controller
- treasurer
Q17 | Sales commissions are classified as
- prime costs
- period costs
- product costs
- indirect labour