Accounting for Managers
Exam
Materials
Course Introduction
Accounting for Managers provides an essential overview of accounting principles and practices tailored for managerial decision-making. The course covers fundamental topics such as financial statement analysis, budgeting, cost behavior, and variance analysis to equip managers with the skills to interpret financial data and make informed business decisions. Through real-world examples and case studies, students learn how accounting information can be used to plan, control, and evaluate organizational performance, emphasizing the strategic role of accounting in achieving business objectives.
Recommended Textbook
Managerial Accounting 13th Edition by Carl Warren
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14 Chapters
2568 Verified Questions
2568 Flashcards
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Chapter 1: Managerial Accounting Concepts and Principles
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201 Verified Questions
201 Flashcards
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Sample Questions
Q1) Which of the following are basic phases of the management process?
A)supervising and directing
B)decision making and supervising
C)organizing and directing
D)planning and controlling
Answer: D
Q2) Baker's wages
A)Direct materials
B)Direct labor
C)Factory overhead
D)Non-manufacturing cost
Answer: B
Q3) Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as
A)period costs and expensed when incurred
B)product costs and expensed when the goods are sold
C)product costs and expensed when incurred
D)period costs and expensed when the goods are sold
Answer: B
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Page 3
Chapter 2: Job Order Costing
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195 Verified Questions
195 Flashcards
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Sample Questions
Q1) a subsidiary ledger that maintains a separate account for each type of material
A)job order cost system
B)process cost system
C)activity-based costing
D)under applied overhead
E)over applied overhead
F)finished goods ledger
G)materials ledger
Answer: G
Q2) The Cavy Company estimates that the factory overhead for the following year will be $1,470,000.The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours.The machine hours for the month of April for all of the jobs was 4,780.Prepare the journal entry to apply factory overhead.
Answer: 11ea855c_6e6b_1c0e_9aec_cb8e92a82469_TB6237_00 *$1,470,000/40,000 × 4,780
Q3) Direct labor cost is an example of a period cost.
A)True
B)False
Answer: False
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Chapter 3: Process Cost Systems
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198 Verified Questions
198 Flashcards
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Sample Questions
Q1) Using the FIFO method and rounding cost per unit to four decimal places, the cost of goods completed and transferred out during July was
A)$227,270
B)$225,060
C)$236,905
D)$228,200
Answer: A
Q2) The Bottling Department of Mountain Springs Water Company had 5,000 liters in beginning work in process inventory 20% complete.During the period, 58,000 liters were completed.The ending work in process inventory was 3,000 liters 90% complete.What are the equivalent units for conversion costs under the FIFO method?
Answer: 11ea855c_6e73_80ab_9aec_fffeb0bc5a7e_TB6237_00
Q3) In a just-in-time system, processing functions are combined into work centers, sometimes called departments.
A)True
B)False
Answer: False
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Chapter 4: Cost Behavior
and Cost-Volume-Profit Analysis
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225 Verified Questions
225 Flashcards
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Sample Questions
Q1) If Kaden Company's fixed costs are $46,800, the unit selling price is $42, and the unit variable costs are $24.What is the break-even sale units?
A)2,400
B)1,950
C)1,114
D)2,600
Q2) What was Carter Co.'s variable cost of E?
A)$140
B)$70
C)$64
D)$60
Q3) Lee Industry sales are $525,000, variable costs are 53% of sales, and operating income is $19,000.What is the contribution margin ratio?
A)47%
B)26.5%
C)9.5%
D)53%
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Chapter 5: Variable Costing for Management Analysis
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160 Verified Questions
160 Flashcards
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Sample Questions
Q1) Generally provides the most useful report for setting long-term prices.
A)Absorption costing only
B)Variable costing only
C)Both absorption and variable costing
Q2) Generally provides the most useful report for controlling costs.
A)Absorption costing only
B)Variable costing only
C)Both absorption and variable costing
Q3) In contribution margin analysis, the increase or decrease in unit sales price or unit cost on the number of units sold is referred to as the:
A)sales factor
B)cost of goods sold factor
C)quantity factor
D)unit price or unit cost factor
Q4) If the ability to sell and the amount of production facilities devoted to each of two products is equal, it is profitable to increase the sales of that product with the lowest contribution margin.
A)True
B)False
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Chapter 6: Budgeting
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197 Flashcards
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Sample Questions
Q1) Budgeted production of Product A for the year would be
A)22,400 units
B)20,400 units
C)20,000 units
D)12,200 units
Q2) At the beginning of the period, the Assembly Department budgeted direct labor of $110,000, direct materials of $170,000, and fixed factory overhead of $28,000 for 8,000 hours of production.The department actually completed 10,000 hours of production.What is the appropriate total budget for the department, assuming it uses flexible budgeting?
A)$288,000
B)$305,000
C)$350,000
D)$378,000
Q3) A process whereby the effect of fluctuations in the level of activity is built into the budgeting system is referred to as flexible budgeting.
A)True
B)False
Q4) What is a cash budget? How does management use a cash budget?
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Chapter 7: Performance Evaluation Using Variances From
Standard Costs
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175 Verified Questions
175 Flashcards
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Sample Questions
Q1) Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity is indicated by the
A)fixed factory overhead volume variance
B)direct labor time variance
C)direct labor rate variance
D)variable factory overhead controllable variance
Q2) The controllable variance measures
A)operating results at less than normal capacity
B)the efficiency of using variable overhead resources
C)operating results at more than normal capacity
D)control over fixed overhead costs
Q3) The labor rate variance is
A)$4,920 unfavorable
B)$4,920 favorable
C)$4,560 favorable
D)$4,560 unfavorable
Q4) The direct labor time variance measures the efficiency of the direct labor force.
A)True
B)False
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Chapter 8: Performance Evaluation for Decentralized Operations
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218 Flashcards
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Sample Questions
Q1) What is the service department charge rate for Graphics Production?
A)$2.00
B)$10.00
C)$6.66
D)$0.50
Q2) Operational issues are made by managers closest to the operations
A)Advantage of decentralization
B)Disadvantage of decentralization
C)Neither an advantage or disadvantage
Q3) What additional information is needed to calculate the rate of return on investment if income from operations is known?
A)invested assets
B)residual income
C)direct expenses
D)sales
Q4) The manager of the furniture department of a leading retailer does not control the salaries of departmental personnel.
A)True
B)False
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Chapter 9: Differential Analysis, Product Pricing, and
Activity-Based Costing
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175 Verified Questions
175 Flashcards
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Sample Questions
Q1) An unfinished desk is produced for $36.00 and sold for $65.00.A finished desk can be sold for $75.00.The additional processing cost to complete the finished desk is $5.95.Provide a differential analysis for further processing.
Q2) What is the activity rate for material handling?
A)$1.50 per part
B)$3.75 per part
C)$7.50 per part
D)$2.50 per part
Q3) What is the contribution margin per machine hour for Tales?
A)$4
B)$7
C)$28
D)$35
Q4) If the total unit cost of manufacturing Product Y is currently $36 and the total unit cost after modifying the style is estimated to be $48, the differential cost for this situation is $12.
A)True
B)False
11
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Chapter 10: Capital Investment Analysis
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190 Flashcards
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Sample Questions
Q1) Cash payback method
A)Methods that does not use present value
B)Methods that uses present value
Q2) The methods of evaluating capital investment proposals can be grouped into two general categories that can be referred to as 1 methods that ignore present value and 2 present values methods.
A)True
B)False
Q3) Jimmy Co.is considering a 12-year project that is estimated to cost $1,050,000 and has no residual value.Jimmy Co.seeks to earn an average rate of return of 18% on all capital projects.Determine the necessary average annual income using straight-line depreciation that must be achieved on this project for it to be acceptable to Jimmy Co.
Q4) The net present value for this investment is
A)$20,140
B)$20,140.
C)$19,875.
D)$19,875
Q5) What is capital investment analysis? Why are capital investment analysis decisions often difficult and risky?
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Chapter 11: Cost Allocation and Activity-Based Costing
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110 Verified Questions
110 Flashcards
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Sample Questions
Q1) Service organizations can use activity-based costing to allocate selling and administrative costs to services provided.
A)True B)False
Q2) Activity-based costing can be used to allocate period costs to various products that the company sells.
A)True B)False
Q3) Determine the activity rate for procurement per purchase order.
A)$43.53
B)$18.50
C)$15.42
D)$37.00
Q4) Activity rates are computed by dividing the cost budgeted for each activity pool by the estimated activity base for that pool.
A)True
B)False
Q5) Explain why it is imperative that proper factory overhead be allocated in factories that produce multiple products.
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Chapter 12: Lean Principles, Lean Accounting, and Activity Analysis
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137 Flashcards
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Sample Questions
Q1) Make-to-order companies produce mainly to stock inventory.
A)True
B)False
Q2) Large batch sizes increase lead time.
A)True
B)False
Q3) Lead time includes both value-added time and non-value-added time.
A)True
B)False
Q4) Under a lean environment, employees have the responsibility and authority to A)purchase inventory.
B)determine output amounts.
C)make decisions about operations, rather than waiting for management.
D)make engineering changes.
Q5) Scrap
A)Preventive costs
B)Appraisal costs
C)Internal failure costs
D)External failure costs
Q6) From the above schedule, calculate the a prevention and b appraisal costs. Page 14
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Page 15
Chapter 13: Statement of Cash Flows
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189 Flashcards
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Sample Questions
Q1) Cash paid to acquire treasury stock should be shown on the statement of cash flows under investing activities.
A)True
B)False
Q2) Preferred stock issued in exchange for land would be reported in the statement of cash flows in
A)the cash flows from financing activities section
B)the cash flows from investing activities section
C)a separate schedule
D)the cash flows from operating activities section
Q3) Cash dividends of $45,000 were declared during the year.Cash dividends payable were $10,000 at the beginning of the year and $15,000 at the end of the year.The amount of cash for the payment of dividends during the year is
A)$50,000
B)$40,000
C)$55,000
D)$35,000
Q4) The cash flows from operating activities are reported by the direct method on the statement of cash
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Chapter 14: Financial Statement Analysis
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198 Flashcards
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Sample Questions
Q1) A company with working capital of $720,000 and a current ratio of 2.2 pays a $125,000 short-term liability.The amount of working capital immediately after payment is
A)$845,000
B)$595,000
C)$720,000
D)$125,000
Q2) If a firm has a quick ratio of 1, the subsequent payment of an account payable will cause the ratio to increase.
A)True
B)False
Q3) In horizontal analysis, each item is expressed as a percentage of the A)base year figure
B)retained earnings figure
C)total assets figure
D)net income figure
Q4) The denominator of the rate of return on total assets ratio is the average total assets.
A)True B)False
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