Management Accounting – Set 2 January 29, 2025 by aasi Home › Management › Management Accounting Management Accounting Management Accounting – Set 2 📝 Model Practice Set ⚡ Instant Answers & Explanation 🎯 Exam Oriented 0% Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950 Management Accounting – Set 2 Dear ! This is Management Accounting – Set 2 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Kind of costs that has been occurred in past are also known as unrecorded costs recorded costs sunk costs bunked costs 2 / 50 2) Kind of cost which on elimination, would not reduce perceived usefulness that customers can obtain by using market offering is known as designed-in costs locked-in costs value added cost non-value added cost 3 / 50 3) Cost of particular cost object which cannot be traced in economically plausible way is termed as indirect cost partial cost benchmark cost direct cost 4 / 50 4) Process which leads to disassembling and analysis of competitors, operating activities to become acquainted with competitors’ technologies is called outsource engineering reverse engineering target engineering off shore engineering 5 / 50 5) For increasing sales, decrease in selling price below selling price list is known as partial discount corporate discount treasury discount price discount 6 / 50 6) As compared to irrelevant cost, occurrence of relevant costs must have high correlation be in future be in past be zero correlated 7 / 50 7) In static budget, difference between corresponding budgeted amount and actual result is called sales mix variance sales volume variance flexible budget variance static budget variance 8 / 50 8) Major approaches to make decisions about pricing include market based sunk cost cost based both a and c 9 / 50 9) In corporate costs, cost incurred to finance construction of new equipment are classified as treasury costs discretionary costs human resource management costs corporate administration costs 10 / 50 10) If cost base is $350 and markup component is 11% then prospective selling price will be 388.5 350 362 368.5 11 / 50 11) In customer cost hierarchy, costs of all activities incurred to sell group of units to end consumers are classified as customer sustaining costs customer output unit-level costs customer batch-level costs corporate sustaining costs 12 / 50 12) Corporate sustaining costs and distribution channel costs are also classified as indirect costs variable costs fixed costs direct costs 13 / 50 13) Technique, which accumulates and tracks revenues of business function in value chain attributed to each market offering from R&D to final customer support is called product life cycle life cycle budgeting life cycle costing target costing 14 / 50 14) Major influential factors on supply and demand include customers costs competitors all of these 15 / 50 15) third step in decision making process is linear predictions dependent predictions making predictions independent predictions 16 / 50 16) In customer cost hierarchy, costs of those activities that cannot be traced to distribution channels or individual customers are called discretionary channel costs corporate-sustaining costs distribution-channel costs engineered resource costs 17 / 50 17) If cost is eliminated, then reducing perceived usefulness that customers can obtain by using market offering will come under designed-in costs locked-in costs value added cost non-value added cost 18 / 50 18) If an actual result in static budget is $2500 and corresponding budgeted amount is $2200, then static budget variance will be $3,000 $300 $4,700 $4,500 19 / 50 19) An insensitivity of demand in relevance to change in price will be called demand elasticity price elasticity price inelasticity demand inelasticity 20 / 50 20) A technique, which accumulates and tracks costs of business function in value chain attributed to each market offering from R&D to final customer support, is called product life cycle life cycle budgeting life cycle costing target costing 21 / 50 21) In customer cost hierarchy, costs of individual customer support activities are classified as discretionary channel costs corporate-sustaining costs distribution-channel costs customer-sustaining costs 22 / 50 22) Customer sustaining costs, customer batch-level costs and customer output-unit level costs are classified as customer level indirect costs customer level direct costs corporate level direct costs corporate level indirect costs 23 / 50 23) Companies that perform in less competitive markets and their market offerings significantly differ are classified as independent revenue approach market based approach cost based approach dependent revenue approach 24 / 50 24) Companies that perform in competitive markets using pricing approach are known as independent revenue approach market based approach dependent revenue approach cost based approach 25 / 50 25) In cost-plus pricing, ‘plus’ refers to a component named as off shore cost markup sunk cost outsource cost 26 / 50 26) Span time from initial research and development of product till support and customer service, if not offered for that particular product will be called product life cycle life cycle budgeting life cycle costing target costing 27 / 50 27) Concept, which states that resources are used to meet particular goals is cost incurrence valued incurrence locked incurrence non valued incurrence 28 / 50 28) An income, which a company aims to earn by selling each unit of market offering is classified as target operating income per unit target cost per unit total current full cost total cost per unit 29 / 50 29) Division of all costs related to customers on basis of different cost allocation bases or cost drivers is called customer cost hierarchy customer profitability hierarchy treasury costing hierarchy partial costing hierarchy 30 / 50 30) If flexible budget amount is $7500 and sales volume variance is $6500, then static budget amount would be $7,500 $6,500 $1,000 $10,000 31 / 50 31) If budgeted contribution margin for budgeted and actual sales mix are $35000 and $27000, then sales mix variance will be $8,000 $80,000 $62,000 $35,000 32 / 50 32) Selection of target price, understanding customer requirements, improving product designs and use of cross functional teams are considered as aspects of target pricing target costing value engineering all of these 33 / 50 33) Practice of seller to charge higher price for same market offering is classified as peak-load pricing elastic pricing elastic demand inelastic demand 34 / 50 34) If an actual result is $5500 and corresponding amount of flexible budget on basis of actual level of output is $3500, then flexible budget variance will be $2,500 $5,500 $3,500 $2,000 35 / 50 35) Pricing method used by services companies, such as home repair services, architectural firms and automobile repair services is known as product life cycle method life cycle budgeting method life cycle costing method time and material method 36 / 50 36) Total cost incur by customer to use, acquire, maintain and dispose service or product is classified as budgeted life cycle targeted life cycle customer life cycle operating life cycle 37 / 50 37) An estimated price, which is expected to be paid by customers for particular market offering is classified as target price target cost outsource price off shore price 38 / 50 38) If total production is 25000 units and target annual operating income is $300000 then target operating income per unit would be $15 $12 $16 $18 39 / 50 39) Systematic evaluation of value chain, to reduce costs and high quality to achieve satisfied customers is known as reverse engineering value engineering target engineering operation engineering 40 / 50 40) If invested capital is $150000 and target rate of return on investment is 16%, then target annual operating income would be $27,000 $26,000 $24,000 $25,000 41 / 50 41) An estimated cost per unit in long run, which enables company to achieve it’s per unit target, operating income is classified as target operating income per unit target cost per unit total current full cost total cost per unit 42 / 50 42) Product costing technique in which markup component is added into cost base, to set a target price is known as market based approach cost incurrence pricing cost plus pricing locked-in cost pricing 43 / 50 43) In customer cost hierarchy, costs of all incurred activities to sell a unit of product are classified as customer sustaining costs customer output unit-level costs customer batch-level costs corporate sustaining costs 44 / 50 44) Target annual operating income is divided with invested capital to calculate target rate of return on investment operating income per unit operating cost per unit cost of goods sold 45 / 50 45) Which of following do not include among major categories of corporate costs? human resource management costs corporate administration costs treasury costs discretionary costs 46 / 50 46) Costs that are planned in future and has not been incurred are known as designed-in costs locked-in costs value added cost both a and b 47 / 50 47) Factor, which are largely considered in making or buying decisions is quality of suppliers dependability of suppliers production irrelevancy both a and b 48 / 50 48) Practice by seller of offering same product at different prices, to different customers is known as price incurrence price discrimination price targeting price engineering 49 / 50 49) Target price is subtracted from per unit target operating income to calculate total current full cost total cost per unit target operating income per unit target cost per unit 50 / 50 50) An analysis and reporting of revenues earned, and incurred costs to earn these revenues from customers is classified as partial productivity analysis treasury cost analysis customer profitability analysis customer cost analysis 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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