Accounting For Management Set 6

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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