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AAT Accounting Management Accounting — practice questions

Explore 29 free Management Accounting questions in AAT Accounting Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Management Accounting questions and exercises with answers

Showing questions 1–29 of 29.

Components whose cost can be traced to each item produced are classified as direct:Read the answer and worked solution →Production costs that cannot economically be traced to material or labour are grouped as manufacturing:Read the answer and worked solution →Direct materials plus direct labour together are called:Read the answer and worked solution →Direct labour plus factory overhead together are called:Read the answer and worked solution →A cost that moves in direct proportion to the level of activity is a:Read the answer and worked solution →Raw materials, direct production labour and activity-driven overhead are typical examples of costs that are:Read the answer and worked solution →As output rises, the total variable cost rises. What happens to the variable cost per unit?Read the answer and worked solution →Total cost is worked out by adding total variable costs to total:Read the answer and worked solution →The activity band inside which fixed costs stay unchanged, bounded by a minimum and a maximum, is the:Read the answer and worked solution →Fixed costs that cannot be removed if the business is to keep functioning are described as:Read the answer and worked solution →Some costs are neither purely fixed nor purely variable. Those are classified as:Read the answer and worked solution →A cost that changes with activity but not in a straight line, jumping at intervals, is a:Read the answer and worked solution →Three techniques are named for estimating cost behaviour: regression analysis, the scatter graph and the:Read the answer and worked solution →Once fixed and variable elements are known, future costs can be predicted with the total cost:Read the answer and worked solution →Labour costs incurred but not directly converting materials into products are classified as:Read the answer and worked solution →Materials used in production that are not traced to individual units are classified as:Read the answer and worked solution →All costs associated with acquiring or producing goods are known as:Read the answer and worked solution →Those costs sit in the finished goods inventory until the goods are:Read the answer and worked solution →Selling and administrative expenses, being everything that is not a product cost, are:Read the answer and worked solution →A business that buys finished products and resells them to consumers is a:Read the answer and worked solution →Costing in service firms differs from the others because service firms do not purchase or:Read the answer and worked solution →Catch the product costsRead the answer and worked solution →Pop the cost behavioursRead the answer and worked solution →Run the costing gatesRead the answer and worked solution →Slice the costing wordsRead the answer and worked solution →Product or periodRead the answer and worked solution →Sort the cost wordsRead the answer and worked solution →Type the numberRead the answer and worked solution →Costing bingoRead the answer and worked solution →

Worked practice questions

Components whose cost can be traced to each item produced are classified as direct:

  1. Materials
  2. Meetings
  3. Mailings
  4. Margins
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Correct answer: A. Materials

1. They go into the product itself. 2. Cost is measured per item. 3. They are direct materials. _Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._

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Production costs that cannot economically be traced to material or labour are grouped as manufacturing:

  1. Ordering
  2. Overhead
  3. Ownership
  4. Outsourcing
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Correct answer: B. Overhead

1. Tracing them is not worth the effort. 2. They still belong to production. 3. They are manufacturing overhead. _Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._

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Direct materials plus direct labour together are called:

  1. Prime costs
  2. Step costs
  3. Period costs
  4. Sunk costs
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Correct answer: A. Prime costs

1. Only the two direct costs are combined. 2. Overhead is left out. 3. They are prime costs. _Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._

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More Accounting topics

AccountingCost AccountingCost Classification