Management Accounting Trivia Quizzes for Practice

Correct Answer is: A cost that has already been incurred and cannot be recovered

Correct Answer is: A budget is a plan for the future, while a forecast is a prediction of the future

Correct Answer is: To provide an overall plan for the organization

Correct Answer is: A budget that is continuously updated by adding a new period and dropping the most recent period

Correct Answer is: A budget that starts from scratch each year

Correct Answer is: To identify the causes of deviations from budgeted amounts

Correct Answer is: Rolling budget

Correct Answer is: A variance that increases profit

Correct Answer is: A variance that decreases profit

Correct Answer is: To track the costs associated with preventing, detecting, and correcting defects

Correct Answer is: All of the above

Correct Answer is: Efficiency is doing things right, while effectiveness is doing the right things

Correct Answer is: Variance

Correct Answer is: None of the above (all are responsibility centers)