Answer Happy

1. Which of the following is not management accounting
information?
A. Sales budget
B. Variance report
C. Payroll report
D. Profitability report
2. Why is management information valuable for decision
making?
A. It enables management to make correct decisions.
B. It helps management to reach a more informed decision.
C. It can be used to judge whether the decision taken by management
was correct.
D. It enables managers to made decisions more quickly.
3. Which of the following is not correct?
A. Cost accounting can be used to for inventory valuation to meet
the requirement of
internal reporting only.
B. Management accounting provides appropriate information for
decision making, planning,
control, and performance evaluation.
C. Routine information can be used for both short-term and long-run
decisions.
D. Financial accounting information can be used for internal
reporting purposes.
4. Prime cost comprises__________________.
A. All variable costs.
B. Direct labour and material only.
C. Direct labour, direct material, and direct expense.
D. Direct labour, direct material, and production overhead.
5. A factory makes wooden chairs. Which of the following items
would be most likely to
behave as stepped costs?
A. Wood used to make chairs.
B. Factory supervisors’ salaries.
C. Heating and light costs.
D. Staples to fix the fabric to the seat of the chair.