Management Accounting Quiz | Management Accounting Online Test for Practice

31. What is a variance?

1. The difference between actual results and budgeted amounts
2. The difference between actual costs and standard costs
3. The difference between actual sales and budgeted sales
4. The difference between actual production and budgeted production

32. What is a responsibility center?

1. A unit of an organization that is responsible for a specific set of activities
2. A department that is responsible for generating revenue
3. A department that is responsible for controlling costs
4. A department that is responsible for investing in assets

33. What is the purpose of transfer pricing?

1. To determine the price at which goods or services are transferred between divisions of a company
2. To determine the price at which goods or services are sold to external customers
3. To determine the cost of goods sold
4. To determine the value of inventory

34. Which of the following costs is NOT a direct cost?

1. Direct materials
2. Direct labor
3. Manufacturing overhead
4. Sales commissions

35. What is decentralization?

1. The delegation of decision-making authority to lower levels of management
2. The centralization of decision-making authority at the top level of management
3. The process of dividing a company into separate divisions
4. The process of merging two or more companies

36. What is the purpose of performance evaluation?

1. To assess the effectiveness and efficiency of operations
2. To identify areas for improvement
3. To motivate employees
4. All of the above

37. What is benchmarking?

1. The process of comparing a company's performance to that of other companies
2. The process of setting goals for future performance
3. The process of evaluating employee performance
4. The process of measuring customer satisfaction

38. What is a key performance indicator (KPI)?

1. A metric that is used to measure progress towards a goal
2. A financial ratio that is used to evaluate profitability
3. A non-financial measure that is used to evaluate customer satisfaction
4. A measure of employee productivity

39. What is the purpose of a balanced scorecard?

1. To provide a comprehensive view of organizational performance
2. To focus on financial performance only
3. To focus on non-financial performance only
4. To measure customer satisfaction only

40. What is activity-based costing (ABC)?

1. A costing system that assigns costs to activities and then to products based on their consumption of those activities
2. A costing system that assigns costs to products based on their direct labor content
3. A costing system that assigns costs to products based on their machine hours
4. A costing system that assigns costs to products based on their direct material content

41. What is a standard cost?

1. A predetermined cost that is used as a benchmark for measuring actual costs
2. An actual cost that is incurred in the production of a product
3. A budgeted cost that is estimated for a future period
4. A historical cost that is used for inventory valuation

42. What is a just-in-time (JIT) inventory system?

1. An inventory system that aims to minimize inventory levels by receiving materials only when they are needed for production
2. An inventory system that aims to maximize inventory levels to avoid stockouts
3. An inventory system that uses a fixed order quantity
4. An inventory system that uses a periodic review system

43. What is the purpose of cost-volume-profit (CVP) analysis?

1. To understand the relationship between costs, volume, and profit
2. To determine the break-even point
3. To assess the profitability of different products
4. All of the above

44. What is the formula for calculating the break-even point in units?

1. Fixed costs / Contribution margin per unit
2. Fixed costs / Sales price per unit
3. Variable costs / Contribution margin per unit
4. Variable costs / Sales price per unit

45. The break-even point is the level of sales at which:

1. Total revenue equals total costs
2. Total revenue equals fixed costs
3. Total costs equal variable costs
4. Fixed costs equal variable costs