Home » MCQs » Managerial Accounting Multiple Choice Questions#18

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

1 A responsibility center headed by a manager who is responsible for costs and revenues only is referred to as:
Cost or expense center
Revenue center
Profit center
Investment center
2 When there has been overestimation of factory overhead, the amount of over applied overhead is:
Added to the net profit figure
Deducted from the net profit figure
Added to the cost of goods sold
Credited to the contra a/c of assets
3 Which of the following budgets will typically be prepared first in the budget preparation cycle of a manufacturing company?
Production budget
Sales budget
Cost of goods sold budget
Factory or manufacturing overhead
4 Which of the following is false about marginal costing?
It assumes that cost can be segregated or divided in fixed and variable elements
In the short run, fixed cost remains constant for the whole production volume
It helps maintaining the desired level of profit
Marginal costing considers the fact the some fixed costs are controllable
5 A single rate for the absorption of manufacturing overhead of all production centers is referred to as:
Departmental absorption rate
Total overhead absorption rate
Blanket absorption rate
Production absorption rate
6 In comparatively big organizations, the primarily responsibly of approval of budgets and administration of budgeting process is normally entrusted to:
Board of directors
Top management
Budget committee
Budgeting process manager
7 A diagram where X axis is the number of units sold and Y axis the revenue and cost. The point at which sales line intersects total cost line is the:
Maximum sales revenue
Net profit
Net loss
Break-even point
8 Which of the following is normally viewed to be a controllable cost?
Supervisor’s salary
Direct labor cost
Machine and plant’s depreciation
Rent of the factory’s building
9 Which of the following functions does the managerial accounting support?
Decision making
All of the above
10 Which of the following is incorrect? In comparison to Just in case, Just in time :
Minimizes storage space needed
Reduces chances of inventory expiring
Emphasizes on supplier relationships
Produces cutting edge goods

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