Management accounting assists the management a) Only in control b) Only in direction c) Only in planning d) In planning, direction and control

let's solve these multiple-choice questions. 1. Management accounting assists the management Explanation: Management accounting provides information that is crucial for all aspects of management, including setting goals (planning), guiding operations (direction), and evaluating performance (control). Answer: d) In planning, direction and control 2. If the stock turnover ratio is 4 times and the collection period is 30 days the operating cycle would be ____ days. Explanation: The operating cycle is the sum of Days Inventory Outstanding (DIO) and Days Sales Outstanding (DSO). Days Inventory Outstanding (DIO) = (360)/(Stock Turnover Ratio) = (360)/(4) = 90 days Days Sales Outstanding (DSO) = Collection Period = 30 days Operating Cycle = DIO + DSO = 90 + 30 = 120 days Answer: d) 120 3. Given that current liabilities are at N. 300,000, current ratio is 3:1 and quick ratio is 1:1, the value of stock will be: Explanation: Current Ratio = Current AssetsCurrent Liabilities 3 = Current AssetsN 300,000 Current Assets = 3 × N 300,000 = N 900,000 Quick Ratio = Current Assets - StockCurrent Liabilities 1 = N 900,000 - StockN 300,000 N 300,000 = N 900,000 - Stock Stock = N 900,000 - N 300,000 = N 600,000 Answer: a) 600,000 4. Acid test ratio should normally be ---- Explanation: The acid-test ratio (or quick ratio) measures a company's ability to meet its short-term obligations with its most liquid assets. A ratio of 1:1 is generally considered healthy. Answer: b) 1:1 5. The other name of marginal costing is ____ Explanation: Marginal costing is also widely known as variable costing or direct costing because it focuses on the variable costs of production. Incremental costing is a related concept used in decision-making, often employing marginal costing principles. Answer: d) All of the above. 6. Profit volume ratio establishes the relationship between ____ Explanation: The Profit/Volume (P/V) ratio, also known as the Contribution Margin Ratio, is calculated as Contribution MarginSales Value. It shows the proportion of sales revenue available to cover fixed costs and generate profit. Answer: d) Contribution and sales value 7. ____ is the excess of sales over the break-even sales. Explanation: The margin of safety indicates how much sales can decrease before the company reaches its break-even point and starts incurring losses. Answer: c) Margin of safety 8. Budgets can be classified according to ____ Explanation: Budgets can be classified in several ways, including by function (e.g., sales budget, production budget), by time (e.g., short-term, long-term), or by flexibility (e.g., fixed, flexible). Answer: function (or time, or flexibility, or purpose) What's next?