Management Accounting – Set 1 January 29, 2025 by aasi 0% Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950 Management Accounting – Set 1 Dear ! This is Management Accounting – Set 1 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Means of collecting and using information, to coordinate decision and planning through an organization are termed as customer control system business control system financial control system management control systems 2 / 50 2) First step in decision making process is to identify problem identify linear variable identify certainty identify multiplier 3 / 50 3) Low level managers in organizations are to make decisions about net income irrelevancy operating income maximization operating income minimization operating income relevancy 4 / 50 4) Cost such as dispose value of an old machine is $6000 is classified as irrelevant depreciated cost salvages relevant 5 / 50 5) An investment of money in idle inventory, in place of investing same amount of money somewhere else is an example of offshore cost outsource cost in-source cost opportunity cost 6 / 50 6) Production of goods or services that can be bought from outside suppliers is classified as idle sourcing sunk sourcing outsourcing in-sourcing 7 / 50 7) In today’s global world, an outsourcing of products or services from lower cost countries is classified as differential in-sourcing off-shoring incremental outsourcing differential outsourcing 8 / 50 8) Costs that are unavoidable and remain unchanged no matter what done are classified as sunk costs bunked costs unrecorded costs recorded costs 9 / 50 9) Fourth step in decision making process is linear correlation making decisions implement decisions evaluate performance 10 / 50 10) Forgone contribution of resources, in to revenues because of not using resources, in next best use is classified as in-source cost opportunity cost offshore cost outsource cost 11 / 50 11) Formal method of making choices, considering help of quantitative and qualitative analysis is classified as quantitative analysis decision method qualitative method linearity method 12 / 50 12) When an essential information for calculation of income statement is missing, then costs that can be considered for this purpose is called expected cost expected revenues irrelevant costs relevant costs 13 / 50 13) Some of methods used for determining transfer prices are market-based transfer prices cost-based transfer prices negotiated transfer prices all of these 14 / 50 14) In broader categories, outcomes of decisions are classified as sunk factors quantitative factors qualitative factors both B and C 15 / 50 15) Difference of cost, which occurs while considering alternatives can be classified as dependent cost independent cost incremental cost differential cost 16 / 50 16) Decision making methods, used for subunits of company are highly interdependent on each other is called incongruent decision making functional decision making congruent decision making duplication decision making 17 / 50 17) Costs that behaves as irrelevant costs in process of decision making are classified as past costs future costs expected costs sunk costs 18 / 50 18) An example of quantitative factor is employee behavior at workplace employee satisfaction employee morale cost of materials 19 / 50 19) Method of pricing, when two separate pricing methods are used to price transfer of products from one subunit to another, is called dual pricing functional pricing congruent pricing optimal pricing 20 / 50 20) Financial factors measured in numerical terms, having some monetary value are considered as qualitative factors quantitative factors expected factors erecorded factors 21 / 50 21) In relevance concepts, relevant revenues are also termed as parallel revenues abnormal revenues expected future revenues serial revenues 22 / 50 22) An organizational practice, according to which decision making freedom is available to lower level managers is known as decentralization centralization autonomy of effort congruency 23 / 50 23) Per unit opportunity cost to selling subunit of company, is added into per unit incremental cost is incurred at point of transfer to calculate minimum operating cost maximum operating costs maximum transfer price minimum transfer price 24 / 50 24) Type of outcomes, which can never be measured in numerical terms in books of accounts are classified as expected factors recorded factors qualitative factors quantitative factors 25 / 50 25) Dysfunctional decision making is also known as dysfunctional decision making congruent decision making incongruent decision making both a and c 26 / 50 26) A desire to achieve a particular goal with pursuit of that goal is called motivation goal congruence effort autonomy 27 / 50 27) An exertion for achieving a set goal is known as motivation goal congruence effort autonomy 28 / 50 28) Maximum freedom for managers and minimum constraints are main features of total autonomy total centralization total decentralization total congruency 29 / 50 29) Degree to which freedom is given to lower level managers for decision making is classified as decentralization centralization autonomy congruency 30 / 50 30) Type of outcomes that can be measured in numerical terms are classified as qualitative factors quantitative factors expected factors recorded factors 31 / 50 31) An example of qualitative factor is employee morale cost of materials cost of workers cost of marketing 32 / 50 32) Difference that exists between total revenues, can be earned from two different alternatives is termed as independent revenue incremental revenue differential revenue dependent revenue 33 / 50 33) An example of qualitative factor is employee morale cost of materials cost of workers cost of marketing 34 / 50 34) relevant costs are classified in relevance concepts as expected future costs serial costs parallel costs abnormal costs 35 / 50 35) Costs which are related to different functions of value chain of company, such as marketing and manufacturing costs are considered as value costs future function costs business function costs sunk function costs 36 / 50 36) If opportunity cost per barrel is $45 per unit, incremental cost per barrel is $65, then minimum transfer price will be $45 $110 $20 $65 37 / 50 37) Financial factors measured in numerical terms, having some monetary value are considered as qualitative factors quantitative factors expected factors erecorded factors 38 / 50 38) Second step in decision making process is multi-collinearity information quantitative information qualitative analysis obtaining information 39 / 50 39) Products or services that are transferred between different subunits of a company are classified as mobile products dysfunctional products intermediate product territorial product 40 / 50 40) Price charged by one subunit to supply products or services to another unit is called subunit autonomy cost transfer price performance prices effort cost 41 / 50 41) Production of goods or services that can be bought from outside suppliers is classified as idle sourcing sunk sourcing outsourcing in-sourcing 42 / 50 42) An amount of additional cost incurred for any particular activity is classified as incremental cost differential cost dependent cost independent cost 43 / 50 43) Decisions made by company, which products to manufacture and sell and in what quantities out, of many product lines are called incremental decisions outsource decisions product mix decisions in-source decisions 44 / 50 44) Book value of existing equipment is a historical cost and not necessary for deciding equipment replacement, thus it can be considered as operating cost sunk cost in-house cost out-house cost 45 / 50 45) Buying of goods or services from suppliers or vendors of some other country instead of local supplier is classified as outsourcing insourcing idle sourcing sunk sourcing 46 / 50 46) A situation when groups and individuals work together for achieving a particular goal can be classified as motivation goal congruence effort autonomy 47 / 50 47) Cost of new machine is considered as relevant bunk dispose value sunk 48 / 50 48) Costs such as book value of old machines are $25000 can be a classified as an example of salvages relevant irrelevant depreciated cost 49 / 50 49) Decisions made by team of individuals or single person, whether to outsource products or in-source are classified as demand or supply decisions make or buy decisions relevant or irrelevant decision idle or busy decisions 50 / 50 50) Minimum freedom for managers and maximum constraints are main features of total autonomy total centralization total decentralization total congruency Your score isThe average score is 0%🎉 Challenge alert! 💡 Share this quiz with your friends and see who scores the highest! 🏆🤩🔥 LinkedIn Facebook Follow Us @ 0% Restart quiz Exit We’d love to hear your thoughts! 📝 Share your valuable review with us. 🙌 🌟 Thank you for your support! 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