Management Accounting – Set 6 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 6 Dear ! This is Management Accounting – Set 6 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Annual earned income is divided from a project by capital invested to calculate accrual accounting rate of return returned working capital increase in expected average annual decrease in expected average annual 2 / 50 2) Degree which predetermines target or income achieved, can be grouped under growth evaluation performance evaluation efficiency effectiveness 3 / 50 3) Consideration of decreased operating income relative to budgeted amount in static budget is classified as revenue variance cost variance favourable variance unfavourable variance 4 / 50 4) A costing system, which focuses on individual activities as particular cost object is classified as activity based costing improved costing learned improvements positive effectiveness 5 / 50 5) Level of used input to achieve a determined level of output is termed as efficiency effectiveness growth evaluation performance evaluation 6 / 50 6) If actual cost is $356000 and flexible budget cost is $255000, then flexible budget variance will be $104,000 $103,000 $101,000 $102,000 7 / 50 7) Capital budgeting method to analyze information of financials include internal rate of return accrual accounting rate of return net present value all of these 8 / 50 8) Rate of return, which is made up of risk free and business risk element is known nominal rate of return accrual accounting rate of return real rate of return required rate of return 9 / 50 9) If actual price input is $500, budgeted price of input is $300 and actual quantity of input is 50 units, then price variance would be $4,000 $6,000 $8,000 $10,000 10 / 50 10) If budgeted price of input is $70, actual quantity of input is 250 units and allowed budgeted quantity of input is 90 units, then efficiency variance will be $23,800 $11,200 $12,200 $13,200 11 / 50 11) In cost accounting, goal of variance analysis is to understand variance reason improve future performance learning of improvement all of these 12 / 50 12) An actual rate paid to labour is greater than budgeted rate, it means that the cost is unfavourable variance is unfavourable variance is favourable cost is favourable 13 / 50 13) Quantity of input which is carefully determined is called output unit input unit standard input standard output 14 / 50 14) Actual price of material is less than budgeted price, this means that price variance is favourable price variance is unfavourable cost variance is favourable cost variance is unfavourable 15 / 50 15) Performance is evaluated only on basis of price variance, if performance evaluation is positive negative zero one 16 / 50 16) Flexible budget variance is subtracted from actual cost to calculate flexible budget cost flexible investment cost static budget cost static variable cost 17 / 50 17) Payback period is multiplied for constant increase in yearly future cash flows to calculate cash value of money net initial investment net future value time value of money 18 / 50 18) Decrease in purchasing power of any monetary unit such as euro, dollars etc. is classified as net investment parity inflation purchasing parity buying parity 19 / 50 19) An actual input quantity is 200 units and budgeted input quantity is 50 units, then efficiency variance will be 275 units 250 units 150 units 650 units 20 / 50 20) Sum of returned working capital and net initial investment is divided by 2 to calculate increase in operating income average investment over five years average capital invested average rate of return 21 / 50 21) If an actual result is $250000 and static budget amount is $150000, then static budget variance for operating income will be $400,000 $500,000 $100,000 $600,000 22 / 50 22) Difference between actual quantity use and input quantity for output is multiplied with budgeted price to calculate efficiency deviation efficiency variance budgeted variance usage variance 23 / 50 23) If actual price input is $700, budgeted price of input is $400 and actual quantity of input is 50 units, then price variance will be $15,000 $13,000 $11,000 $9,000 24 / 50 24) Cash flows method, used by net present value method and internal rate of return are vertical cash flows discounted cash flows lean cash flows future cash flows 25 / 50 25) If an actual input price is $70 and budgeted input price is $40, then price variance will be $120 $50 $110 $30 26 / 50 26) Horizontally across dimension of cost analysis is also called project dimension accounting-period dimension back-flush accounting dimension lean accounting dimension 27 / 50 27) Project’s expected monetary loss or gain by discounting all cash outflows and inflows, using required rate of return is classified as net present value net future value net discounted value net recorded cash value 28 / 50 28) If tax operating income is $885000 per year and net initial investment is $35750000 then increase in average is 2.475% per year 4.475% per year 3.475% per year 2.475% per year 29 / 50 29) An efficiency variance is 200 units and actual input quantity is 500 units, then budgeted input quantity will be 300 units 700 units 800 units 500 units 30 / 50 30) According to net present value, projects that would be acceptable must have a negative net present value zero net present value positive net present value both b and c 31 / 50 31) Variance is stated difference between expected performance and the revenue planning actual results marketing results cost planning 32 / 50 32) In management control, an efficiency variance is also referred as control variance uncontrolled variance usage variance effective variance 33 / 50 33) Working capital cash outflow, cash outflow to buy machine and cash inflow from machine are examples of cash flow from operations terminal disposal of investment net initial investment average return on investment 34 / 50 34) Difference between an actual budget and corresponding amount in static budget is classified as correspondent budget full budget variance methodology variance static budget variance 35 / 50 35) An actual cost is subtracted from flexible budget cost to calculate positive cost variance negative cost variance flexible budget variance flexible cost variance 36 / 50 36) Budgeted input quantity is added in to efficiency variance to calculate actual input quantity actual output quantity actual input price actual output price 37 / 50 37) Point at which control functions and planning of management come together is known as functioning variance variation deviation 38 / 50 38) An efficiency variance is subtracted from actual input quantity to calculate actual quantity manufactured budgeted quantity manufactures budgeted quantity sold budgeted input quantity 39 / 50 39) If flexible budget variance is $105000, actual cost is $65000 then flexible budget cost will be $40,000 $50,000 $150,000 $170,000 40 / 50 40) If a company uses large quantity of input than budgeted quantity for output level, then company is known to be variable growth of company constant growth of company company is inefficient company is efficient 41 / 50 41) If an efficiency variance is 200 units and actual input quantity is 750 units, then budgeted input quantity will be 275 units 125 units 550 units 650 units 42 / 50 42) Budget which is planned around a single output level is called marketing budget methodological budget static budget varied budget 43 / 50 43) Rate of required return to cover risk of investment in absence of inflation is classified as real rate of return required rate of return nominal rate of return none of these 44 / 50 44) Standard input allows one unit, to be divided by standard cost per output unit for variable direct cost input, to calculate standard price per input unit standard price per output unit standard cost per input unit standard cost per output unit 45 / 50 45) Difference between actual input variance and budgeted input variance is called price variance actual output price budgeted output price actual selling price 46 / 50 46) Static budget amount is subtracted from actual result to calculate static budget receipts static budget deviation static budget variance multiple budget variance 47 / 50 47) If budgeted input price is $50, price variance is $30 then an actual price will be $100 $20 $80 $60 48 / 50 48) If actual input price is $150 and budgeted input price is $80, then price variance will be $130 $70 $150 $80 49 / 50 49) If an actual result is $50000 and static budget variance is $25000, then static budget amount will be $75,000 $25,000 $35,000 $45,000 50 / 50 50) If flexible budget variance is $95000 and an actual cost is $40000, then flexible budget cost would be $135,000 $45,000 $50,000 $55,000 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! 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