Management Accounting MCQs

✅ The correct answer is option A.
DIrect materials’ partial productivity = Quantity of manufactured jackets ÷ Leather used to produce output
= 2250000 units ÷ 3500000 sq.m
= 0.642 unit of jacket per sq.m of leather.

✅ The correct answer is option D.
In broader categories, outcomes of decisions are classified as quantitative factors and qualitative factors.

✅ The correct answer is option A.
Practice of seller to charge higher price for same market offering is classified as peak-load pricing. The Peak Load Pricing is the pricing strategy wherein the high price is charged for the goods and services during times when their demand is at peak.

✅ The correct answer is option C.
An exertion for achieving a set goal is known as effort. The term effort refers to the specific and quantifiable count and/or measure of definable labor units that it is deemed are to be required in the attempts to arrive at completion of a phase (or of the entirety) of a particular schedule activity and/or work breakdown structure component, a distinct control account, or the project as a whole.

✅ The correct answer is option A.
Revenue = Cost of goods sold + Gross margin
= $8000 + $5000 = $13,000.

✅ The correct answer is option C.

✅ The correct answer is option D.
When an essential information for calculation of income statement is missing, then costs that can be considered for this purpose is called relevant costs. Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions. The concept of relevant cost is used to eliminate unnecessary data that could complicate the decision-making process.

✅ The correct answer is option A.
Breakeven in units = Fixed cost ÷ Contribution margin per unit
= $30000 ÷ $600 = 50 units.

✅ The correct answer is option B.
Decisions made by team of individuals or single person, whether to outsource products or in-source are classified as relevant or irrelevant decision.

✅ The correct answer is option D.
In customer cost hierarchy, costs of individual customer support activities are classified as customer-sustaining costs. A customer-sustaining cost is the cost of resources consumed to service a customer regardless of the number of units sold to the customer.