Accounting for Managers
Final Test Solutions
Course Introduction
Accounting for Managers is designed to equip future business leaders with a comprehensive understanding of accounting principles and their application in managerial decision-making. This course covers fundamental concepts such as financial statement analysis, cost classification, budgeting, and performance evaluation. Emphasizing the interpretation and use of accounting information rather than its technical preparation, the course helps managers effectively communicate financial insights, identify opportunities for cost control, and make informed strategic decisions that drive organizational success. Real-world case studies and practical exercises enable students to analyze financial data and translate it into actionable business strategies.
Recommended Textbook
Managerial Accounting 3rd Canadian Edition by Karen W. Braun
Available Study Resources on Quizplus 12 Chapters
3096 Verified Questions
3096 Flashcards
Source URL: https://quizplus.com/study-set/3665
Page 2
Chapter 1: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/72957
Sample Questions
Q1) Compilation of allowed and disallowed behaviours is evidence of ________ in the CPA Guidelines for Ethical Behaviour.
A) Adherence to Rules of Professional Conduct
B) Enabling Competencies
C) Conclude, Advise and Communicate
D) Integrative Analysis
Answer: A
Q2) Evaluating the results of business operations against a plan and then making adjustments to that plan is called budgeting.
A)True
B)False
Answer: False
Q3) The person MOST likely to use ONLY financial accounting information would be the A) bank loan officer.
B) plant manager.
C) vice president of plant operations.
D) product manager.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Building Blocks of Managerial Accounting
Available Study Resources on Quizplus for this Chatper
265 Verified Questions
265 Flashcards
Source URL: https://quizplus.com/quiz/72956
Sample Questions
Q1) Period costs for First Sporting Equipment totaled
A) $116,000.
B) $99,000.
C) $201,000.
D) $32,000.
Answer: A
Q2) What was the value of goods available for sale at Back Yards Inc.?
A) $138,000
B) $156,000
C) $133,000
D) $96,000
Answer: C
Q3) What is the cost of goods available for sale at the Olde Tyme Beverage Company?
A) $128,000
B) $132,000
C) $63,000
D) $144,000
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Cost Behaviour
Available Study Resources on Quizplus for this Chatper
374 Verified Questions
374 Flashcards
Source URL: https://quizplus.com/quiz/72955
Sample Questions
Q1) The line determined by regression analysis is sometimes referred to as the "line of best fit."
A)True
B)False
Answer: True
Q2) Under variable costing, fixed manufacturing costs are treated as inventoriable product costs.
A)True
B)False
Answer: False
Q3) If the number of units sold exceeds the number of units produced, how is operating income affected?
A) Operating income would be the same under both a variable costing and absorption costing income statement.
B) Operating income would be lower under a variable costing income statement.
C) Operating income would be higher under an absorption costing income statement.
D) Operating income would be higher under a variable costing income statement.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
272 Verified Questions
272 Flashcards
Source URL: https://quizplus.com/quiz/72954
Sample Questions
Q1) The break-even sales volume in units for The Snack Hut is
A) 4,875.
B) 6,500.
C) 1,625.
D) 3,333.
Q2) The sales mix can greatly affect CVP relationships.
A)True
B)False
Q3) If the sale price per unit decreases and variable costs remain the same, what will be the effect on the contribution margin ratio?
A) It will increase.
B) It will decrease.
C) It will remain the same.
D) It is impossible to determine with the given information.
Q4) What is the contribution margin per rider at Express Bus Company?
A) $15.00
B) $0.30
C) $35.00
D) $3.33
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Job Costing
Available Study Resources on Quizplus for this Chatper
353 Verified Questions
353 Flashcards
Source URL: https://quizplus.com/quiz/72953
Sample Questions
Q1) If manufacturing overhead has been overallocated during the period, then
A) the jobs produced during the period have been undercosted.
B) the jobs produced during the period have been costed correctly.
C) all the jobs produced during the period have been overcosted.
D) the jobs overcosted were greater in amount than those undercosted.
Q2) If the Garrett Company allocates overhead based on direct labour cost, what are the total actual manufacturing overhead costs?
A) $230,100
B) $173,600
C) $260,300
D) $283,800
Q3) Direct labour hours are often used as a cost driver for allocating manufacturing overhead even though direct labour does not cause most overhead costs to occur. A)True
B)False
Q4) Manufacturing overhead costs can have more than one cost driver.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Process Costing
Available Study Resources on Quizplus for this Chatper
288 Verified Questions
288 Flashcards
Source URL: https://quizplus.com/quiz/72952
Sample Questions
Q1) What are the total equivalent units for direct materials?
A) 2,400
B) 6,400
C) 3,000
D) 7,000
Q2) The total number of physical units for which we have to account is
A) 42,000.
B) 60,000.
C) 57,000.
D) 54,000.
Q3) Both process and job costing assign costs to units as they proceed through the process.
A)True
B)False
Q4) At the end of the period, what are the total equivalent units for conversion costs for the Adams Company?
A) 1,340
B) 1,200
C) 1,480
D) 1,400
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Activity Based Costing
Available Study Resources on Quizplus for this Chatper
184 Verified Questions
184 Flashcards
Source URL: https://quizplus.com/quiz/72951
Sample Questions
Q1) What is the last step in developing an ABC system?
A) Identify the primary activities and estimate a total cost pool for each.
B) Allocate the costs to the cost object using the activity cost allocation rates.
C) Select an allocation base for each activity.
D) Calculate an activity cost allocation rate for each activity.
Q2) ABC costing is generally more accurate than traditional cost systems.
A)True
B)False
Q3) Which of the following statements is TRUE regarding activity-based costing systems?
A) ABC systems accumulate overhead costs by departments.
B) ABC costing systems are less complex and, therefore, less costly than traditional systems.
C) ABC costing systems can be used in manufacturing firms only.
D) ABC costing systems have separate indirect cost allocation rates for each activity.
Q4) Unit-level activities and costs are incurred once for every batch.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
9
Chapter 8: Short-Term Business Decisions
Available Study Resources on Quizplus for this Chatper
271 Verified Questions
271 Flashcards
Source URL: https://quizplus.com/quiz/72950
Sample Questions
Q1) Which of the following is the factor that restricts production or sale of a product?
A) Constraint
B) Demanding factor
C) Sunk factor
D) Relevant factor
Q2) A cost-plus approach to pricing is more likely than a target costing approach when the product is unique in terms of features, service, or quality.
A)True
B)False
Q3) What would be the effect on Venus Corporation's operating income of accepting a special order for 2,000 units at a sale price of $45 per product assuming additional fixed manufacturing overhead costs of $7,000 are incurred? The company has excess capacity and regular sales will not be affected by this special order.
A) Decrease by $5,000
B) Decrease by $2,000
C) Increase by $5,000
D) Increase by $2,000
Q4) What the reasons a firm would adopt target costing?
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: The Master Budget and Responsibility Accounting
Available Study Resources on Quizplus for this Chatper
228 Verified Questions
228 Flashcards
Source URL: https://quizplus.com/quiz/72949
Sample Questions
Q1) Which term below best fits "a part, segment, or subunit of a company whose manager is accountable for specified activities"?
A) Operating budget
B) Master budget
C) Responsibility centre
D) Sensitivity analysis
Q2) The three components of the operating budget are the sales budget; inventory, purchases and cost of goods sold budget; and the cash budget.
A)True
B)False
Q3) There are four types of responsibility centres used to evaluate a company's performance.
A)True
B)False
Q4) Which of the following budgets is part of the financial budgets?
A) Production budget
B) Budgeted balance sheet
C) Budgeted income statement
D) Sales budget
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Flexible Budgets and Standard Costs
Available Study Resources on Quizplus for this Chatper
260 Verified Questions
260 Flashcards
Source URL: https://quizplus.com/quiz/72948
Sample Questions
Q1) The difference between total actual variable overhead costs and the flexible budget amount for variable overhead costs for actual production is referred to as
A) the variable overhead flexible budget variance.
B) the production volume variance.
C) the variable overhead efficiency variance.
D) the variable overhead spending variance.
Q2) Which term below is best paired with "arises when actual sales volume differs from expected sales volume"?
A) Static budget variance
B) Standard budget
C) Overhead flexible budget variance
D) Sales volume variance
Q3) The flexible budget variance arises because the number of units actually sold differs from the static budget units.
A)True
B)False
Q4) Another name for a static budget is a flexible budget.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Performance Evaluation and the Balanced Scorecard
Available Study Resources on Quizplus for this Chatper
195 Verified Questions
195 Flashcards
Source URL: https://quizplus.com/quiz/72947
Sample Questions
Q1) The taxation department for department store chain is likely to be classified as a(n)
A) cost centre.
B) investment centre.
C) profit centre.
D) revenue centre.
Q2) What is the First Electronics Corporation cell phone division's Economic Value Added (EVA)?
A) $157,500
B) $472,500
C) $600,000
D) $630,000
Q3) A cost centre will show revenues and costs.
A)True
B)False
Q4) Goal congruence is more likely to be achieved at a decentralized organization rather than a centralized organization.
A)True
B)False
Q5) Discuss two potential problems associated with decentralization.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Capital Investment Decisions and the Time
Value of Money
Available Study Resources on Quizplus for this Chatper
205 Verified Questions
205 Flashcards
Source URL: https://quizplus.com/quiz/72946
Sample Questions
Q1) How long is the payback period for Investment A?
A) 4.50 years
B) 4.10 years
C) 11.25 years
D) 2.49 years
Q2) The accounting rate of return for the Kentucky proposal is closest to A) 10.83%.
B) 11.17%.
C) 12.50%.
D) 20.83%.
Q3) Rinky Dink Family Fun Centre bought new bumper boats for its recreation facility. The useful life is 6 years. The bumper boats had a total cost $5,338 and will generate $1,570 total cash inflows each year for the life of the boats. The residual value of the bumper boats is $650. The payback period in years is closest to
A) 2.40.
B) 2.99.
C) 3.40.
D) 3.81.
To view all questions and flashcards with answers, click on the resource link above. Page 14