Management Accounting – Set 5 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 5 Dear ! This is Management Accounting – Set 5 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Static budget variance for operating income is added in to static budget amount to calculate actual result expected results expected cost expected revenue 2 / 50 2) If flexible budget amount is $40000 and variable overhead flexible budget variance is $25000, then actual costs incur will be $15,000 $35,000 $65,000 $75,000 3 / 50 3) An expected performance of company is also known as price requirements supply requirements budgeted performance demand requirements 4 / 50 4) Flexible budget amount is added in to variable overhead flexible budget variance to calculate manufacturing costs incurred variable costs incurred fixed costs incurred actual costs incurred 5 / 50 5) Master budget, which is based on planned output level at start of budget period is considered as static budget varied budget marketing budget methodological budget 6 / 50 6) In standard costing, standard quantity allocation is multiplied to standard overhead rates for allocating flexible costs variable costs overhead costs fixed costs 7 / 50 7) In budget hierarchy, material handling cost is fixed manufacturing cost batch level cost per unit cost factory overall cost 8 / 50 8) Budget, which highlights difference between actual quantity and budgeted quantity is termed as actual cost budget flexible budget variance inflexible budget hourly budget 9 / 50 9) An unfavourable variance in static budget is also known as favourable variance adverse variance adverse standard deviation unfavourable variance 10 / 50 10) Formula to calculate return on investment, according to profitability analysis in DuPont method is return on sales * investment turnover return on sales + investment turnover return on sales – investment turnover investment turnover + residual income 11 / 50 11) Difference of current assets and working capital is equal to current liabilities long-term liabilities residual assets value net residual income 12 / 50 12) If actual input quantity is 300 units and budgeted input quantity is 100 units, then efficiency variance will be 600 units 200 units 400 units 500 units 13 / 50 13) A desire of an individual to give good performance for self-satisfaction is known as intrinsic motivation extrinsic motivation monetary motivation bounded motivation 14 / 50 14) Costing technique, which traces direct costs by multiplying price rate for producing actual outputs is known as constant costing standard costing unit costing batch costing 15 / 50 15) If input used in manufacturing is smaller in quantity and output produced is greater in quantity, this will be categorized under lesser effective greater efficiency smaller efficiency greater effective 16 / 50 16) If actual result is $65000 and static budget variance is $35000, then static budget amount will be $30,000 $100,000 $200,000 $30,000 17 / 50 17) If working capital is $265000 and current liabilities are $378000, then current assets can be $113,000 $643,000 $743,000 $543,000 18 / 50 18) An operating income is divided by revenues to calculate residual income return on after-tax operating income return on sales return on investment 19 / 50 19) Depreciation on plant equipment, salaries of plant managers and plant leasing costs are considered a fixed batch cost variable batch cost variable overhead cost fixed overhead cost 20 / 50 20) If current assets are $856000 and working capital is $654500, then current liabilities will be $501,500 $401,500 $201,500 $301,500 21 / 50 21) If budgeted input price is $80 and price variance is $40, then an actual price will be $20 $120 $40 $60 22 / 50 22) Current assets are subtracted from current liabilities to calculate opportunity cost of capital working capital total long term assets weighted average cost of capital 23 / 50 23) A company must eliminate all those activities that do not add value to all products or services in planning of variable overhead cost fixed overhead cost fixed batch cost variable batch cost 24 / 50 24) System in an organization, which defines behavior standards and code of conduct is known as interactive control system belief system boundary system diagnostic control system 25 / 50 25) Determined price at which company expects to pay for every single unit is called standard price input price actual input output price 26 / 50 26) If budgeted input quantity is 350 units and efficiency variance is 100, then an actual input quantity will be 250 units 450 units 550 units 650 units 27 / 50 27) Price variance for direct manufacturing labour is referred as direct variance rate variance labour variance manufacturing variance 28 / 50 28) If price variance is $20 and budgeted input price is $70, then an actual price will be $90 $50 -$50 $100 29 / 50 29) If current assets are $250000 and current liabilities are $135500, then working capital would be $3,855,500 $314,500 $214,500 $114,500 30 / 50 30) If price variance is $30 and budgeted input price is $80, then an actual price would be -$110 -$50 $110 $50 31 / 50 31) In an accounting measurement, income and investment is divided to calculate return on sales investment turnover residual income return on investment 32 / 50 32) Sum of all resources used to generate income is classified as DuPont investment return on investment investment investment turnover 33 / 50 33) Cost allocation base used by an operating manager is classified as machine hours flexible hours variable hours fixed hours 34 / 50 34) An investment is multiplied to required rate of return to calculate congruent cost of investment transfer cost of investment operating cost of investment imputed cost of investment 35 / 50 35) Consideration of increased operating income relative to budgeted amount is classified as favourable variance unfavourable variance revenue variance cost variance 36 / 50 36) Return on investment is also known as accrual accounting rate of return accounting rate of return nominal rate of return both a and b 37 / 50 37) In management control, point of reference for making comparisons of performance is focused performance merchandise performance distribution performance expected performance 38 / 50 38) After-tax average cost of funds used by company in long run is equal to weighted average cost of capital economic value added after-tax operating income net income 39 / 50 39) Costs that are not incorporated in accounting records, but are recognized in different situations are classified as congruent costs imputed costs operating costs transfer costs 40 / 50 40) If required rate of return is 13%, operating income is $375000 and total investment is $2650000, then residual income would be $30,500 $20,500 $25,500 $32,500 41 / 50 41) Sum of working capital and current liabilities is equal to imputed assets residual assets current assets nominal assets 42 / 50 42) If actual payment to labour is $1200 and budgeted rate is $1000, then labour price variance would be less than zero equal to zero favourable unfavourable 43 / 50 43) If an actual price of material is $700 and budgeted price is $900, then the cost variance is favourable cost variance is unfavourable price variance is favourable price variance is unfavourable 44 / 50 44) An economic value added method is specific type of method to calculate net income nominal income residual income residual investment 45 / 50 45) An energy, machine maintenance, indirect materials and engineering support are considered as variable overhead cost fixed overhead cost fixed batch cost variable batch cost 46 / 50 46) If operating income is $5650000 and revenue is $68558000, then return on sales will be 8.24% 7.24% 9.24% 10.24% 47 / 50 47) Difference between actual variable overhead cost and flexible budget variable overhead amount is termed as overhead flexible budget variance overhead fixed budget variance overhead flexible cost variance overhead flexible price variance 48 / 50 48) In costing and budgeting hierarchy, an example of product sustaining cost is initial offering cost batch marketing cost product marketing cost product design cost 49 / 50 49) System in an organization that articulates purpose, mission and core values of a company is classified as interactive control system belief system boundary system diagnostic control system 50 / 50 50) If static budget variance is $46000 and static budget amount is $15000, then an actual result would be $80,000 $71,000 $61,000 $31,000 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! Your feedback means the world to us. 🙏💖 Send feedback
