Managerial Accounting Quiz

What is the definition of managerial accounting?

• Management accounting provides economic and financial information for internal users and external users.

• Management accounting provides economic and financial information for creditors and other external users.

• Management accounting provides economic and financial information for managers and other internal users.

• Management accounting provides economic and financial information for managers and creditors.

Managerial Accounting focuses on all of these functions EXCEPT

• Product costing.

• Annual profit reporting

• Determining the cost behaviour.

• Setting targeted profit

Planning is a function that involves

• hiring the right people for a particular job.

• coordinating the accounting information system.

• setting goals and objectives for an entity.

• analyzing financial statements.

The main consideration in presenting managerial accounting information is

• the relevance of the information

• the generally accepted accounting principles.

• the cost principle.

• the current tax law.

"Benefits of information must outweigh the cost of providing it". This statement relates to which characteristic of managerial accounting information?

• Cost-Effective

• Accuracy

• Timeliness

• Flexibility

"Must be understood by managers where most managers have no accounting or financial background". This statement relates to which characteristic of managerial accounting information?

• Relevance

• Accuracy

• Timeliness

• Understandability

Management accountants does not

• assist in budget planning.

• prepare financial reports for external users.

• determine cost behavior.

• analyse the impact of cost and volume on profits.

Which of the following costs would be included as part of manufacturing overhead in the production of wooden tables?

• The wages paid to the individual who painted the table.

• The commission paid to the salesperson who sold the table.

• The cost of glue used in making the table.

• The cost of the wood used in making the table.

Direct materials, direct labour and factory overhead incurred in producing the goods are classified as

• Prime cost

• Manufacturing cost

• Non-Manufacturing cost

• Conversion cost

Prime cost consists of

• Direct material and Indirect material

• Direct Labour and Indirect labour

• Direct labour and Direct material

• Indirect material and Indirect labour