Accounting for Managers
Exam Materials
Course Introduction
Accounting for Managers is designed to equip future business leaders with fundamental accounting principles and practices relevant to managerial decision-making. The course emphasizes the interpretation and analysis of financial statements, budgeting, cost control, and performance evaluation techniques. Managerial accounting topics such as cost-volume-profit analysis, budgeting processes, variance analysis, and internal controls are explored to provide students with the skills needed to use accounting data for strategic planning and operational management. Real-world case studies and practical examples illustrate how managers can leverage accounting information to improve organizational effectiveness and guide business decisions.
Recommended Textbook Cornerstones of Cost Management 2nd Edition by Don R. Hansen
Available Study Resources on Quizplus
20 Chapters
3210 Verified Questions
3210 Flashcards
Source URL: https://quizplus.com/study-set/3755 Page 2
Chapter 1: Introduction to Cost Management
Available Study Resources on Quizplus for this Chatper
157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/74805
Sample Questions
Q1) Which of the following is a staff position?
A) vice president of production
B) vice president of finance
C) vice president of marketing
D) plant foreman
Answer: B
Q2) Companies with a strong __________ can benefit from strong customer and employee loyalty.
Answer: Code of Ethics
Q3) Which of the following activities is NOT associated with the cost management information system?
A) preparing a cost of quality report
B) preparing a performance report that compares actual costs to budgeted costs
C) determining the cost of a customer
D) using future expected earnings to estimate the price of a share of common stock
Answer: D
Q4) Only Certified Public Accountants are permitted by law to serve as __________ .
Answer: external auditors
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Basic Cost Management Concepts
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/74794
Sample Questions
Q1) The cost management subsystem designed to provide accurate and timely feedback concerning the performance of managers relative to their control of activities is the __________ information system.
Answer: operational control
Q2) The accounting information subsystem that is primarily concerned with producing outputs for external users is called:
A) cost management information system
B) computer system
C) internal accounting system
D) financial accounting information system
Answer: D
Q3) Which of the following accounts would appear on the financial statements of ONLY a manufacturing firm?
A) materials inventory
B) bonds payable
C) prepaid insurance
D) retained earnings
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Cost Behavior
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/74792
Sample Questions
Q1) In the formula Y = F + VX, VX refers to the A) total variable costs.
B) intercept.
C) dependent variable.
D) independent variable.
Answer: A
Q2) Based on managerial judgement, the best predictor of manufacturing costs is the units available.
A)True
B)False
Answer: False
Q3) In the formula Y = F + VX, F refers to the A) slope.
B) intercept.
C) dependent variable.
D) independent variable.
Answer: B
Q4) __________ result when organizations acquire many multiperiod service capacities by paying cash up front.
Answer: Committed fixed expenses
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Activity-Based Costing
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/74791
Sample Questions
Q1) If activity-based costing is used, electricity usage would be an example of a
A) batch-level activity.
B) unit-level activity.
C) product-level activity.
D) facility-level activity.
Q2) The simple list of activities identified in an ABC system is called:
A) Activity inventory
B) Activity dictionary
C) Activity attributes
D) Activity driver
Q3) Which of the following quantities is an example of an activity driver in activity-based costing?
A) number of direct labor hours
B) number of labor transactions
C) number of machine hours
D) all of these
Q4) The justification for not using a departmental rate for overhead cost assignment is that it increases accuracy.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Product and Service Costing: Job-Order System
Available Study Resources on Quizplus for this Chatper
150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/74790
Sample Questions
Q1) __________ are the source of information for posting the labor cost flows.
Q2) Which of the following firms would make extensive use of a job-order costing?
A) dental and medical services
B) canned foods
C) discount brokers
D) petroleum
Q3) In a job-order costing system, direct labor costs assigned to a job are different than the costs assigned to work-in-process inventory.
A)True
B)False
Q4) In __________ a single product is produced on a continuous basis.
Q5) Which of the following would NOT use a process costing system?
A) electrical wire
B) cotton yarn
C) newsprint
D) satellites
Q6) The __________ form indicates the type and quantity of each material issued to the factory.
Q7) When a job is completed the total costs are transferred to a __________ inventory file.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Process Costing
Available Study Resources on Quizplus for this Chatper
188 Verified Questions
188 Flashcards
Source URL: https://quizplus.com/quiz/74789
Sample Questions
Q1) The process that accumulates production costs by process and uses a work-in-process account for each process is called:
A) Process costing
B) Joint costing
C) Variable costing
D) Job-order costing
Q2) The usual approach in process manufacturing is to treat transferred-in goods as a separate material category when calculating __________ .
Q3) Beginning inventory for the month contained 3,000 units that were 35 percent complete with respect to materials. 55,000 units were completed and transferred out during the month. 5,500 units were in ending inventory, 10 percent complete with respect to materials. The weighted average equivalent units of production for materials for the month would be
A) 55,000 units.
B) 55,550 units.
C) 56,500 units.
D) 57,550 units.
Q4) For the receiving department, transferred in goods are added at the __________ of the process.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Allocating Costs of Support Departments and Joint Products
Available Study Resources on Quizplus for this Chatper
173 Verified Questions
173 Flashcards
Source URL: https://quizplus.com/quiz/74788
Sample Questions
Q1) The activities or variables within a producing department that provoke the incurrence of support costs are called:
A) Causal factors
B) Common costs
C) Cost objectives
D) Activity output
Q2) Joint costs are allocated because of
A) financial reporting requirements.
B) tax reporting requirements.
C) IMA requirements.
D) both b and a.
Q3) Examples of support departments include all of the following EXCEPT
A) maintenance.
B) personnel.
C) machining.
D) data processing.
Q4) The overhead rate may be computed once allocation from support service cost to producing department has been performed.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Budgeting for Planning and Control Key
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/74787
Sample Questions
Q1) Alana Company manufactures books. Manufacturing a book takes 10 units of A1 and 1 unit of A2. Scheduled production of books for the next two months is 1,000 and 1,200 units, respectively. Beginning inventory is 4,000 units of A1 and 30 units of A2. The ending inventory of A1 is planned to decrease 500 units in each of the next two months, and the A2 inventory is expected to increase 5 units in each of the next two months. Based on this information, the number of units of A1 that needs to be purchased by Alana during the first month is
A) 9,500 units.
B) 10,000 units.
C) 1,000 units.
D) 10,500 units.
Q2) The sales forecast is the basis for the sales budget.
A)True
B)False
Q3) Cash disbursements and cash excess or deficiency are components of the __________ budget.
Q4) The capital expenditures budget is a long-term financial plan.
A)True
B)False
Q5) Activity-based budgets also focus on __________ processes.
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Standard Costing: a Functional-Based Control Approach
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/74786
Sample Questions
Q1) The costing that establishes price and quantity standards for inputs is called __________ costing.
Q2) The factors where actual performance differs from planned are called: __________ .
Q3) Which of the following equations measures the total budget variance?
A) AQ ´ (AP - SP)
B) SP ´ (AQ - SQ)
C) SQ ´ (AP - SP)
D) (AQ ´ AP) - (SQ ´ SP)
Q4) The standard cost sheet includes all of the following EXCEPT
A) the standard cost per unit.
B) the standard quantity allowed for actual production.
C) the standard price.
D) the standard quantity per unit.
Q5) If variable manufacturing overhead is applied based on direct labor hours and there is an unfavorable direct labor efficiency variance
A) the direct materials usage variance will be unfavorable.
B) the direct labor rate variance will be favorable.
C) the variable manufacturing overhead efficiency variance will be unfavorable.
D) the variable manufacturing overhead spending variance will be unfavorable.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Decentralization: Responsibility
Accounting, Performance Evaluation, and Transfer Pricing
Available Study Resources on Quizplus for this Chatper
139 Verified Questions
139 Flashcards
Source URL: https://quizplus.com/quiz/74804
Sample Questions
Q1) Firms encourage goal congruence by constructing management early retirement programs.
A)True
B)False
Q2) An example of an investment center is a
A) production department.
B) company.
C) marketing department.
D) credit department.
Q3) Responsibility accounting is defined as a system that
A) defines responsibility by function only.
B) measures actual results against a flexible budget.
C) measures the results of a manager responsible for revenues and costs.
D) measures the results of each responsibility center and compares those results with some measure of expected or budgeted outcome.
Q4) One disadvantage of ROI in evaluating performance is that it encourages managers to slack off.
A)True
B)False
Q5) Investments are not controlled by managers of a __________ center.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Strategic Cost Management
Available Study Resources on Quizplus for this Chatper
151 Verified Questions
151 Flashcards
Source URL: https://quizplus.com/quiz/74803
Sample Questions
Q1) Luminous Company sells a product for $450 per unit. Its market share is 25 percent. The marketing manager feels that the market share can be increased to 33 percent with a reduction in price to $390. The product is currently earning a profit of $72 per unit. The president of Luminous Company feels that the $72 profit per unit must be maintained. What is the original cost per unit?
A) $390
B) $450
C) $378
D) $318
Q2) Value-chain analysis is identifying and exploiting internal and external linkages to achieve strong strategic positions.
A)True
B)False
Q3) The time a product exists-from conception to abandonment is called the:
A) Revenue producing life
B) Product life cycle
C) Consumable life
D) Introduction stage
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Activity-Based Management
Available Study Resources on Quizplus for this Chatper
146 Verified Questions
146 Flashcards
Source URL: https://quizplus.com/quiz/74802
Sample Questions
Q1) Describe how the activity-based management model combines the process and costing views. What are the steps involved in each? What are the objectives of the activity-based management system?
Q2) The major source of information for the activity management system is
A) driver analysis.
B) an activity-based costing system.
C) a performance measurement system.
D) product information.
Q3) What is responsibility accounting? Compare and contrast financial-based responsibility accounting with activity-based responsibility accounting.
Q4) Which of the following is NOT an objective of responsibility accounting?
A) to redesign processes to be more effective
B) to align individual and organizational goals
C) to influence behavior
D) to increase profitability
Q5) The process of improving performance and constantly eliminating waste is known as __________ .
Q6) What is Kaizen costing? How does activity analysis help reduce costs?
Q7) What is process value analysis?
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: The Balanced Scorecard: Strategic-Based Control
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/74801
Sample Questions
Q1) Cycle time is
A) the time it takes to collect the account after the sale.
B) the time it takes to turn inventory over.
C) the time it takes to deliver the product after it is sold.
D) the time it takes to produce one unit of product.
Q2) Which of the following features make stretch targets feasible?
A) The targets are set in isolation by top management.
B) The measures are linked by causal relationships.
C) The measures are based on currently attainable standard costs.
D) The targets are set at desired levels for twenty years to ensure long-term performance.
Q3) Objectives for increasing revenue growth include
A) adopting a new pricing strategy.
B) reducing the cost per unit.
C) eliminating non-value-added activities.
D) reducing distribution channel cost.
Q4) The strategy map connects the balanced scorecard strategy with an organization's administration.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Quality and Environmental Cost Management
Available Study Resources on Quizplus for this Chatper
202 Verified Questions
202 Flashcards
Source URL: https://quizplus.com/quiz/74800
Sample Questions
Q1) The decision making contexts related to quality cost information are strategic pricing and strategic analysis.
A)True
B)False
Q2) Managers use interim quality standards to express quality goals on an interim basis.
A)True
B)False
Q3) From the operational content view, a quality product or service is one that meets or exceeds
A) customer expectations.
B) customer satisfaction.
C) company targets.
D) company standards.
Q4) Which of the following is NOT a detection activity?
A) inspecting products and processes
B) developing environmental performance measures
C) testing for contamination
D) operating pollution control equipment
Q5) A measure of how well requirements are met by a product is called __________ .
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Lean Accounting and Productivity Measurement
Available Study Resources on Quizplus for this Chatper
172 Verified Questions
172 Flashcards
Source URL: https://quizplus.com/quiz/74799
Sample Questions
Q1) Discuss the linkage between quality and productivity.
Q2) If a facility has costs of $100,000 per year and 20,000 square feet, and if 19,000 square feet are absorbed by the value streams, what happens to the unabsorbed cost of the remaining 1,000 feet?
A) allocated to all the value streams based on proportionate square foot usage
B) assigned to all value streams equally
C) absorbed by the largest value stream
D) deducted from revenue as a separate item
Q3) Which of the following is an advantage of using partial productivity measures?
A) Partial productivity measures keep managers aware of trade-offs in inputs.
B) Partial productivity measures keep top management involved because it is difficult for operating personnel to understand.
C) Partial productivity measures are easily interpreted.
D) Partial productivity measures provide a system wide focus.
Q4) Which of the following is NOT a characteristic of a lean manufacturing system?
A) delivery of the right product in the right quantity
B) zero defect
C) delivery of product the exact time a customer needs it
D) all of the above
Q5) Describe the objectives and characteristics of a Lean Manufacturing system.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/74798
Sample Questions
Q1) Units to earn target profit equal total fixed costs plus target profit divided by the contribution margin ratio.
A)True
B)False
Q2) In a cost-volume-profit graph,
A) the total revenue line crosses the horizontal axis at the break-even point.
B) beyond the break-even sales volume, profits are maximized at the sales volume where total revenues equal total costs.
C) an increase in unit variable costs would decrease the slope of the total cost line.
D) an increase in the unit selling price would shift the break-even point in units to the left.
Q3) Which of the following equations is TRUE?
A) Contribution margin = Sales revenue ´ Variable cost ratio
B) Contribution margin ratio = Contribution margin/Variable costs
C) Contribution margin = Fixed costs
D) Contribution margin ratio = 1 - Variable cost ratio
Q4) In the Cost-Volume-Profit analysis, what are two ways management can deal with risk and uncertainty?
To view all questions and flashcards with answers, click on the resource link above.
18
Chapter 17: Activity Resource Usage Model and Tactical
Decision Making
Available Study Resources on Quizplus for this Chatper
128 Verified Questions
128 Flashcards
Source URL: https://quizplus.com/quiz/74797
Sample Questions
Q1) Past cost __________ represents an allocation of a cost already incurred.
Q2) The future costs that differ across alternatives are called
A) Sunk costs
B) Irrelevant costs
C) Relevant costs
D) Past costs
Q3) A decision to make a component internally versus purchasing from a supplier is a
A) special-order decision.
B) keep-or-drop a product-line decision.
C) make-or-buy decision.
D) both a and c.
Q4) Which of the following items would be classified as flexible resources?
A) salaried employees
B) depreciation on building
C) fuel to generate electricity internally
D) lease on machinery
Q5) A tariff is a tax on exports levied by the federal government.
A)True
B)False
Page 19
Q6) Leasing or buying a building are examples of resources.
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 18: Pricing and Profitability Analysis
Available Study Resources on Quizplus for this Chatper
164 Verified Questions
164 Flashcards
Source URL: https://quizplus.com/quiz/74796
Sample Questions
Q1) Which of the following statements is FALSE?
A) The markup is a percentage applied to base cost.
B) The markup is an absolute rule.
C) A major advantage of markup pricing is that standard markups are easy to apply.
D) The markup can be calculated using a variety of bases.
Q2) When monthly production volume is constant and sales volume is less than production, net income determined with variable costing procedures will
A) always be greater than net income determined using absorption costing.
B) always be less than net income determined using absorption costing.
C) be equal to net income determined using absorption costing.
D) be equal to contribution margin per unit times units sold.
Q3) There are three types of market structure: monopoly, oligopoly, and perfect competition.
A)True
B)False
Q4) The variance that compares actual volume with expected volume multiplied by expected price is the __________ variance.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Capital Investment
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/74795
Sample Questions
Q1) NVP measures the __________ in a firm's wealth caused by a project.
Q2) Clementine Company is considering the purchase of a new machine for $160,000. The machine would generate an annual cash flow before depreciation and taxes of $62,588 for four years. At the end of four years, the machine would have no salvage value. The company's cost of capital is 12 percent. The company uses straight-line depreciation with no mid-year convention and has a 40 percent tax rate. What is the annual net after-tax cash flow per year?
A) $62,588
B) $53,553
C) $37,552
D) $16,000
Q3) When conflicting signals are received from using NPV and IRR, NPV always produces the correct signal to invest.
A)True
B)False
Q4) Mutually exclusive projects do not affect the __________ of other projects.
Q5) The __________ rate of return uses income instead of cash flows.
Q6) Accelerated methods of __________ are preferred because of the tax benefits created.
Page 22
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Inventory Management: Economic Order
Quantity, Jit, and the Theory of Constraints
Available Study Resources on Quizplus for this Chatper
127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/74793
Sample Questions
Q1) Reducing ordering and setup costs interfere with the reduction of inventory costs.
A)True
B)False
Q2) The costs of holding inventory are called __________ costs.
Q3) The order quantity used in the EOQ model is the quantity of inventory ordered
A) during one year.
B) for one job.
C) for one department.
D) at one time.
Q4) Dry Creek Company decreased the size of inventory order quantities that had previously been determined using the EOQ model. If demand remains the same, what is the impact on the number of orders made during the year?
A) no change
B) increase
C) decrease
D) cannot be determined
Q5) Throughput is the rate at which an organization generates money through sales.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23