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Free Fundamentals of management accounting Practice Questions

Question # 41

Which of the following items would not be found in a cash budget?

Options:

A.  

Receipts from customers

B.  

Payments to suppliers

C.  

Purchases of non-current assets

D.  

Depreciation

Discussion 0
Question # 42

The managing director of a small expanding company has a limited understanding of accounting and has asked you to explain the role of the management accountant in value creation.

Which ONE of the following is NOT a primary role of the management accountant?

Options:

A.  

Design and implementation of management information systems

B.  

Provision of strategic planning information to senior managers

C.  

Provision of routine performance information to junior managers

D.  

Provision of statutory financial information to the tax authorities

Discussion 0
Question # 43

Refer to the exhibit.

Question # 43

The budget for product Sentra for the month of August is given below:

Each unit of Sentra requires 4kg of raw materials.

The raw materials usage budget for the month of August is:

Options:

A.  

504,000 kg

B.  

516,000 kg

C.  

492,000 kg

D.  

496,000 kg

Discussion 0
Question # 44

Refer to the exhibit.

Question # 44

Which type of cost do the following figures represent?

Options:

A.  

Curvi-linear

B.  

Fixed

C.  

Semi-variable

D.  

Variable

Discussion 0
Question # 45

Which of the following are not examples of intangible and nonfinancial factors in decision making? (Select ALL that apply.)

Options:

A.  

Profitability ratios

B.  

Market share

C.  

Return on investment

D.  

Employee morale

E.  

Competitor reaction

F.  

Government regulations

Discussion 0
Question # 46

Relevant costs for decision making are.

Options:

A.  

Past costs incurred

B.  

Future costs which will be affected by the decision

C.  

Variable costs only

D.  

Unavoidable costs

Discussion 0
Question # 47

The total cost of a product is £200.

In order to achieve a profit margin of 20% of sales, the selling price would have to be:

Give your answer to 2 decimal places.

Options:

Discussion 0
Question # 48

Refer to the exhibit.

Question # 48

The following details were recorded for product 'Moe' for period 2:

What was the direct labor efficiency variance?

Options:

A.  

£1,000 Adverse

B.  

£750 Adverse

C.  

£750 Favorable

D.  

£1,000 Favorable

Discussion 0
Question # 49

A profit margin of 20% of sales is the same as a profit on total cost of:

Give your answer to 2 decimal places.

Options:

Discussion 0
Question # 50

Which one of the following is NOT one of the main roles of the management accountant?

Options:

A.  

Control operations and ensure the efficient use of resources

B.  

Implement corporate governance procedures and internal controls

C.  

Plan short-run operations

D.  

Prepare statutory financial information such as the cash flow statement

Discussion 0

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