Home » MCQs » Managerial Accounting Multiple Choice Questions#20



Note: Select the correct choice of a question by clicking on it
Show Answers


1 ABC company has relatively high operating leverage. Which of the following is true for ABC company?
ABC company has relativity high fixed cost
ABC company has relativity high variable cost
ABC company has relativity high fixed asset turnover
ABC company has relatively high operating expenses
2 Cost incurred in the past and has nothing to do with the current managerial decisions is known as:
Opportunity cost
Prime cost
Relevant Cost
Sunk cost
3 Which of the following uses comparatively more allocation bases for the allocation of manufacturing overhead?
Activity-based costing
Marginal costing
Absorption costing
Process costing
4 The total manufacturing overhead variance is divided into:
Fixed variance and spending variance
Volume variance and spending variance
Volume variance and variable variance
Factory overhead variance and spending variance
5 A cost of $500 is incurred for 0 to 100 units but the cost increases to $1000 for 101 to 200 units of production. What type of cost is this?
Fixed cost
Variable cost
Step fixed cost
Semi variable cost
6 Which of the following statements regarding budgeting is untrue?
While budgeting, the principal budget factor should be considered
Budged must be prepared in conformity with GAAPs
Budgeting is helpful in planning and control
A budget could be flexible or fixed
7 Which of the following statements is the most appropriate with reference to one-off contract decisions?
The decisions whether or not a contract should be revoked
The decisions whether or not a product should be produced
The decisions whether or not a contract should be accepted
The decision whether or not a contract should legally be enforced
8 Which of the following is true in relation to service companies?
Often use process costing
Often use job order costing
Never ascertain their services cost
Rely only on financial accounting
9 Which of the following is NOT included in a cash budget?
Cash sales
Receipts from debtors
Cash Drawings
Accrued expenses
10 Which one of the following is not a responsibility center in conformity with the nature of the control over the inputs and outputs?
Investment center
Control center
Revenue center
Cost or expense center


No. of questions you got right on this page:
0
out of 10, Success Rate:
0%
Reset All