Accounting & Auditing
Branches of Accounting
Which branch commonly supports inventory valuation by determining product costs?
A. Social accounting
B. Cost accounting
C. Forensic accounting
D. Fiduciary accounting
Correct Answer: B
Cost accounting provides product cost information used in inventory valuation and internal decisions.
Accounting & Auditing
Branches of Accounting
Process costing is most suitable for:
A. Legal trust administration
B. Tax return preparation
C. Continuous production of homogeneous units
D. Unique custom jobs only
Correct Answer: C
Process costing averages costs across large volumes of similar units.
Accounting & Auditing
Branches of Accounting
A job cost sheet is most closely associated with:
A. Job order costing
B. Process costing
C. Tax accounting
D. Fiduciary accounting
Correct Answer: A
Job order costing accumulates costs by specific job or order.
Accounting & Auditing
Branches of Accounting
Manufacturing overhead generally includes:
A. Indirect production costs
B. Dividends
C. Corporate income tax only
D. Direct materials only
Correct Answer: A
Manufacturing overhead includes indirect materials, indirect labor, and other factory overhead.
Accounting & Auditing
Branches of Accounting
Which cost is directly traceable to units produced?
A. Dividend
B. Direct labor
C. General corporate legal cost in all cases
D. Income tax expense
Correct Answer: B
Direct labor can normally be traced to production units or jobs.
Accounting & Auditing
Branches of Accounting
Which of the following is a basic element of manufacturing cost?
A. Share premium
B. Income tax refund
C. Direct materials
D. Dividend paid
Correct Answer: C
Direct materials are a core manufacturing cost element.
Accounting & Auditing
Branches of Accounting
The main purpose of cost accounting is to:
A. Determine, analyze, and control costs
B. Issue audit opinions
C. Prepare only tax returns
D. Record only cash receipts
Correct Answer: A
Cost accounting measures and analyzes costs for products, services, jobs, and processes.
Accounting & Auditing
Branches of Accounting
The broader field that includes planning, control, performance evaluation, and internal decision support is:
A. Bookkeeping
B. Management accounting
C. Cost accounting only
D. Tax accounting only
Correct Answer: B
Cost accounting is important, but management accounting is broader and includes many decision-support functions.
Accounting & Auditing
Branches of Accounting
Which branch is most useful for pricing decisions based on costs, demand, and capacity?
A. Financial accounting only
B. Bookkeeping
C. Fiduciary accounting
D. Management accounting
Correct Answer: D
Pricing decisions are managerial decisions requiring relevant cost and market information.
Accounting & Auditing
Branches of Accounting
Which statement is true about management accounting?
A. It may include estimates, forecasts, and qualitative information
B. It is intended only for tax authorities
C. It must exclude estimates
D. It cannot use non-financial data
Correct Answer: A
Management accounting is designed for decisions and can use a wide range of information.
Accounting & Auditing
Branches of Accounting
Strategic planning information is most closely associated with:
A. Fiduciary accounting
B. Payroll recording only
C. Bookkeeping
D. Management accounting
Correct Answer: D
Management accounting supports strategic as well as operational decisions.
Accounting & Auditing
Branches of Accounting
Which branch is more flexible regarding report frequency and format?
A. Management accounting
B. Financial accounting
C. Statutory tax accounting
D. External auditing
Correct Answer: A
Management accounting reports can be produced as needed and tailored to users.
Accounting & Auditing
Branches of Accounting
A manager wants a daily sales dashboard by product. Which branch best meets this need?
A. Governmental accounting
B. Management accounting
C. Tax accounting
D. Financial accounting only
Correct Answer: B
Management accounting can produce frequent, customized internal reports.
Accounting & Auditing
Branches of Accounting
Which branch typically prepares forecasts of future revenues and costs?
A. Financial accounting only
B. Management accounting
C. Forensic accounting
D. Fiduciary accounting
Correct Answer: B
Forecasting is a core internal planning function.
Accounting & Auditing
Branches of Accounting
Relevant costing is mainly used in:
A. General-purpose external reporting only
B. Fiduciary statements only
C. Environmental disclosure only
D. Management accounting decisions
Correct Answer: D
Relevant costing identifies future costs and benefits that differ among alternatives.
Accounting & Auditing
Branches of Accounting
Which technique is commonly used in management accounting for decision-making?
A. Probate accounting only
B. Customs valuation only
C. Cost-volume-profit analysis
D. External audit confirmation only
Correct Answer: C
CVP analysis examines relationships among costs, volume, and profit.
Accounting & Auditing
Branches of Accounting
Performance measurement by divisions and departments is closely related to:
A. Bookkeeping only
B. Management accounting
C. Fiduciary accounting
D. Tax accounting
Correct Answer: B
Management accounting evaluates organizational units and managers.
Accounting & Auditing
Branches of Accounting
Which statement best describes confidentiality of management accounting reports?
A. They cannot contain forecasts
B. They must always be published
C. They are usually intended for internal use
D. They are automatically court evidence
Correct Answer: C
Management reports are generally internal and confidential.
Accounting & Auditing
Branches of Accounting
Management accounting may use non-financial information such as:
A. Only dividend declarations
B. Only taxable income
C. Only audited profit
D. Units produced and defect rates
Correct Answer: D
Management accounting often combines financial and operational measures.
Accounting & Auditing
Branches of Accounting
A flexible budget is primarily used in:
A. Management accounting
B. Fiduciary accounting
C. Forensic accounting
D. International accounting
Correct Answer: A
Flexible budgets support internal planning and control at different activity levels.