Management Accounting Quiz

Which one of the following is NOT an objective of management accounting?

• To formulate financial plans and policies

• To assist in decision making process

• To help in cost ascertainment and control

• To prepare summarised periodical reports

Which one of the following costs is NOT an overhead cost in a processing factory?

• Indirect materials cost

• Cost of ingredients

• Factory rent expenses

• Administrative expenses

A good management accountant should avoid conflict of interest while carrying out his duties. The code of ethics that prohibits unethical behaviour is called _____________________.

• Confidentiality

• Credibility

• Integrity

• Competency

Which one of the following is a major problem when installing a management accounting system? Lack of ____________________.

• communication among managers

• enough funds to install machines

• customers to buy the goods

• support from top management and resistance from existing employees

The correct basis of classifying expenses such as administrative overheads and production overheads is _____________________.

• time classification

• decision classification

• functional classification

• behaviour classification

Which one of the following users of management accounting information is concerned with firm’s credit worthiness before accepting the transaction?

• Sales managers

• Creditors

• Debtors

• Production managers

Calculate the value of variable cost per patient.

• Sh.90.91

• Sh.68.48

• Sh.30.58

• Sh.25.03

Calculate the fixed cost per month.

• Sh.14,931.615

• Sh.7,353

• Sh.15,485.32

• Sh.17,125

Calculate the total cost of carrying out health checks on 85 patients.

• Sh.17,530.49

• Sh.17,612.87

• Sh.17,125

• Sh.18,360

The inventory control systems where stock take is normally done periodically is known as __________________.

• continuous stock take

• perpetual stock take

• physical stock take

• verification stock take