Accounting for Managers Pre-Test Questions
Course Introduction
Accounting for Managers equips students with essential accounting concepts and tools needed to interpret and use financial information for effective decision-making in a managerial context. The course covers the fundamentals of financial and management accounting, including budgeting, cost analysis, performance evaluation, and financial statement analysis. By focusing on practical applications, students learn how to assess an organizations financial health, make informed planning and control decisions, and communicate financial insights to stakeholders, ultimately supporting strategic and operational goals.
Recommended Textbook
Horngrens Cost Accounting A Managerial Emphasis 3rd Australian Edition by Charles Horngren
Available Study Resources on Quizplus
21 Chapters
3782 Verified Questions
3782 Flashcards
Source URL: https://quizplus.com/study-set/3568 Page 2
Chapter 1: Management Accounting in Context
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/70842
Sample Questions
Q1) The purpose of a budget is strictly technical.It does NOT influence behaviour.
A)True
B)False
Answer: False
Q2) Cost leadership is an organisation's ability to achieve lower costs relative to competitors through productivity and efficiency improvements,elimination of waste,and tight cost control.
A)True
B)False
Answer: True
Q3) Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting.
A)True
B)False
Answer: False
Q4) The management accountant helps managers evaluate investment and R&D decisions.
A)True
B)False
Answer: True
Page 3
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: Different Costs for Different Purposes
Available Study Resources on Quizplus for this Chatper
324 Verified Questions
324 Flashcards
Source URL: https://quizplus.com/quiz/70843
Sample Questions
Q1) In the manufacturing plant,Margaret Thorpe is paid $20 an hour for straight-time and $30 an hour for overtime.One week she worked 46 hours,which included 6 hours of overtime,and 4 hours of idle time caused by material shortages.
Required:
a.What is Margaret's total compensation for the week?
b.What amount of compensation would be reported as direct manufacturing labour?
c.What amount of compensation would be reported as manufacturing overhead?
Answer: a.Direct manufacturing labour (42 hours × $20)+ Idle time (4 hrs × $20)+ Overtime premium (6 hrs × $10)= $980
b.Direct manufacturing labour (42 hours × $20)= $840
c.Manufacturing overhead costs = Idle time (4 hrs × $20)+ Overtime premium (6 hrs × $10)= $140
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Determining How Costs Behave
Available Study Resources on Quizplus for this Chatper
182 Verified Questions
182 Flashcards
Source URL: https://quizplus.com/quiz/70844
Sample Questions
Q1) Data collection problems can arise when data is recorded manually rather than electronically.
A)True
B)False
Answer: True
Q2) The 'industrial engineering method' uses a formal mathematical method to identify cause-and-effect relationships among past data observations.
A)True
B)False
Answer: False
Q3) The learning-curve models presented in the text examine:
A)how efficiency increases as more units are produced.
B)the change in variable costs when quantity discounts are available.
C)how quality increases over time.
D)how set-up costs decline as more workers are added.
Answer: A
Q4) Any linear cost function can be graphed by knowing only the slope coefficient.
A)True
B)False
Answer: False
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Costvolumeprofit Analysis
Available Study Resources on Quizplus for this Chatper
211 Verified Questions
211 Flashcards
Source URL: https://quizplus.com/quiz/70845
Sample Questions
Q1) The contribution income statement:
A)categorises costs as either direct or indirect.
B)can be used to predict future profits at different levels of activity.
C)is allowed for external reporting to shareholders.
D)reports gross margin.
Q2) The break-even point is not affected by income tax.
A)True
B)False
Q3) How many actions and events will a decision table contain?
A)1 action and 3 events
B)3 actions and 6 events
C)2 actions and 3 events
D)31 actions and 6 events
Q4) All of the following are assumed in the above analysis EXCEPT:
A)fixed costs increase when activity increases.
B)a constant product mix.
C)all costs can be classified as either fixed or variable.
D)cost and revenue relationships are reflected accurately.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Estimating the Cost of Producing Services
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/70846
Sample Questions
Q1) When calculating the budgeted rate for direct professional time,the denominator is:
A)budgeted number of professional hours.
B)actual number of professional hours.
C)budgeted cost of professional time.
D)actual cost of professional time.
Q2) Where managers use cost information about outputs to guide pricing decisions,they are likely to __________ outputs that they have under-costed,resulting in increased demand for these outputs while profit will fall.
A)underprice
B)overprice
C)over-cost
D)under-cost
Q3) _______________ cross-subsidisation means that if management under-costs one of its outputs,then it will over-cost at least one of its other outputs.
A)Input-cost
B)Output-price
C)Output-cost
D)Input-price
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Estimating the Costs of Products and Inventory
Available Study Resources on Quizplus for this Chatper
356 Verified Questions
356 Flashcards
Source URL: https://quizplus.com/quiz/70847
Sample Questions
Q1) A major advantage of using the FIFO process-costing method is that:
A)in contrast with the weighted-average method,FIFO is considered GAAP.
B)FIFO provides managers with information about changes in the costs per unit from one period to the next.
C)FIFO makes the unit cost calculations simpler.
D)All of these answers are correct.
Q2) Fixed manufacturing costs included in ending inventory total:
A)0
B)$1200
C)$900
D)$1500
Q3) The ending balance of finished goods inventory is:
A)$146 000.
B)$29 000.
C)$47 000.
D)$18 000.
Q4) The actual costs of all individual overhead categories are recorded in the Manufacturing Overhead Control account.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Target Costing, Managing Activities and Managing Capacity
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/70848
Sample Questions
Q1) Estimating capacity costs is unique to manufacturing and it is not applicable to non-production entities.
A)True
B)False
Q2) What is the estimated life-cycle operating profit for the first year?
A)$(1 040 000)
B)$6 640 000
C)$(1 400 000)
D)$5 600 000
Q3) What is the effect of spreading fixed manufacturing costs over a shrinking budgeted capacity utilisation amount?
A)Increased unit costs
B)Greater utilisation of capacity
C)Greater demand for the product
D)More competitive selling prices
Q4) What is the total target cost?
A)$2 484 000
B)$9 200 000
C)$1 000 000
D)$11 500 000
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Activity-Based Management and Activity-Based Costing
Available Study Resources on Quizplus for this Chatper
230 Verified Questions
230 Flashcards
Source URL: https://quizplus.com/quiz/70849
Sample Questions
Q1) The inspections activity-cost driver rate is:
A)$20.00
B)$2.00
C)$0.50
D)$5.00
Q2) The activity-cost driver for the materials handling activity is: A)orders.
B)maintenance hours.
C)set-ups.
D)production units.
Q3) Different products consume different proportions of production overhead costs because of differences in all of the following EXCEPT:
A)selling prices.
B)product design.
C)set-up times.
D)customers' customisation specifications.
Q4) ABC systems always provide decision-making benefits that exceed implementation costs.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Pricing and Customer Profitability
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/70850
Sample Questions
Q1) For Rockhampton Manufacturing,what is the minimum acceptable price of this one-time-only special order?
A)$66
B)$40
C)$60
D)$55
Q2) Companies should ONLY produce and sell units as long as:
A)the revenue from an additional unit exceeds the cost of producing it.
B)there is customer demand for the product.
C)there is a generous supply of low-cost direct materials.
D)the competition allows it.
Q3) If one of four distribution channels is discontinued,organisation-sustaining costs such as general administration costs will most likely be reduced by 25%.
A)True
B)False
Q4) Price discounts must be uniform among all customers.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Decision Making and Relevant Information
Available Study Resources on Quizplus for this Chatper
211 Verified Questions
211 Flashcards
Source URL: https://quizplus.com/quiz/70851
Sample Questions
Q1) How can conflicts arise between the decision model and the performance evaluation model used to evaluate managers? Provide an example of this type of conflict.
Q2) A supplier offers to make Part A for $70.Jansen Company has relevant costs of $80 a unit to manufacture Part A.If there is excess capacity,the opportunity cost of buying Part A from the supplier is:
A)$10 000.
B)$70 000.
C)0.
D)indeterminable.
Q3) Generally,managers use total costs rather than unit costs because total costs are easier to work with and reduce the chance for erroneous conclusions.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
12
Chapter 11: Budgeting, Management Control and Responsibility Accounting
Available Study Resources on Quizplus for this Chatper
215 Verified Questions
215 Flashcards
Source URL: https://quizplus.com/quiz/70852
Sample Questions
Q1) Which of the following describes what a responsibility centre manager can do to a controllable cost for a period of time?
A)Segregate
B)Influence
C)Control
D)Exclude
Q2) Responsibility accounting:
A)examines how a result will change if the original plan is not achieved.
B)is an arrangement of lines of responsibility within the organisation.
C)explicitly incorporates continuous improvement anticipated during the budget period.
D)is a system that measures the plans,budgets,actions,and actual results of a responsibility centre.
Q3) What are the 2018 budgeted costs for direct materials,direct manufacturing labour,and manufacturing overhead,respectively?
A)$12 200;$61 000;$18 300
B)$2000;$10 000;$3000
C)$2000;$0;$18 000
D)$12 000;$60 000;$18 000
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Flexible Budgets, Direct Cost Variances and Management Control
Available Study Resources on Quizplus for this Chatper
246 Verified Questions
246 Flashcards
Source URL: https://quizplus.com/quiz/70853
Sample Questions
Q1) For the contribution margin,what is the total static-budget variance?
A)$725 unfavourable.
B)$300 favourable
C)$500 favourable
D)$650 unfavourable
Q2) The sales-volume variance is:
A)$2400 favourable.
B)$1200 unfavourable.
C)$6000 favourable.
D)$5000 unfavourable.
Q3) What is the static-budget variance of revenues?
A)$50 000 favourable
B)$50 000 unfavourable
C)$5000 unfavourable
D)$5000 favourable
Q4) The actual amount spent for Material B was:
A)$28 000.
B)$29 000.
C)$31 000.
D)$30 000.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Flexible Budgets, Overhead Cost Variances and Management Control
Available Study Resources on Quizplus for this Chatper
170 Verified Questions
170 Flashcards
Source URL: https://quizplus.com/quiz/70854
Sample Questions
Q1) Explain what each of the variances presented under the level 4-,3-,2-,and 1-variance analysis methods shows about overhead costs.
Q2) What is the variable overhead efficiency variance?
A)$4832.39 favourable
B)$4832.39 unfavourable
C)$2250 unfavourable
D)$2250 favourable
Q3) Explain why there is no efficiency variance for fixed manufacturing overhead costs.
Q4) Explain why sales-volume variance could be helpful to managers.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Allocation of Support-Department Costs,
Common Costs and Revenues
Available Study Resources on Quizplus for this Chatper
137 Verified Questions
137 Flashcards
Source URL: https://quizplus.com/quiz/70855
Sample Questions
Q1) The single-rate cost-allocation method provides better information for decision making than the dual-rate method.
A)True
B)False
Q2) Under the incremental method,the _________ party typically receives the highest allocation of the common costs.
A)first incremental
B)primary
C)second incremental
D)tertiary
Q3) Which of the following is an example of a revenue object?
A)Division of a company
B)Customer
C)Specific product
D)All of these answers are correct.
Q4) Allocating common costs is clear-cut and can best be achieved by using the stand-alone cost-allocation method.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Strategy Formation, Strategic Control and the Balanced Scorecard
Available Study Resources on Quizplus for this Chatper
157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/70856
Sample Questions
Q1) Total factor productivity will increase if:
A)the company incurs fewer costs per input.
B)current technology becomes obsolete.
C)the company uses more total inputs per output.
D)outputs increase.
Q2) The partial productivity of overhead resources can be measured by considering the cost driver as:
A)the denominator.
B)budgeted input.
C)the fixed input.
D)the numerator.
Q3) What is an organisation's ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors called?
A)Cost leadership
B)The balanced scorecard
C)Product differentiation
D)Strategy
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 16: Quality, Time and the Balanced Scorecard
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/70857
Sample Questions
Q1) Freemantle Laundry has a variable demand.The daily demand ranges from 60 to 100 customers a day with an average of 5 items.The average daily demand is 75 customers.The laundry operates 7 hours a day.Each wash cycle takes approximately 5 minutes.
Required:
a.What is the average customer waiting time,in minutes?
b.What is the cycle time for an order?
c.The manager has decided that the waiting time is too long and has increased the workday to 8 hours.What is the waiting time now? Will the customers be any happier?
Q2) What is the average waiting time,in minutes?
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Inventory Management, Just-In-Time and Simplified Costing Methods
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/70858
Sample Questions
Q1) In managing inventory,the costs that result when features and characteristics of a product or service are not in conformance with the specifications are known as:
A)inspection costs.
B)design costs.
C)costs of quality.
D)purchasing costs.
Q2) What is the time required to get equipment,tools,and materials ready to start production called?
Variant question
A)Pass-through time
B)Set-up time
C)Manufacturing lead time
D)None of these answers are correct.
Q3) What is the economic order quantity (EOQ)assuming each order was made at the economic-order-quantity (EOQ)amount?
A)1560 units
B)1040 units
C)1248 units
D)500 units
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Capital Budgeting and Cost Analysis
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/70859
Sample Questions
Q1) The stage of the capital budgeting process that considers the expected costs and the expected benefits of alternative capital investments is the:
A)evaluate each possible course of action stage.
B)collect information stage.
C)identify the problem stage.
D)make decisions by choosing among alternatives stage.
Q2) The use of an accelerated method of depreciation for tax purposes would usually increase the present value of the investment.
A)True
B)False
Q3) In using the net present value method,only projects with a zero or positive net present value are acceptable because:
A)the return from these projects equals or exceeds the cost of capital.
B)the company will be able to pay the necessary payments on any loans secured to finance the project.
C)a positive net present value on a particular project guarantees company profitability.
D)Both A and B are correct.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Management Control Systems, Transfer Pricing and
Multinational Considerations
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/70860
Sample Questions
Q1) Market-based transfer pricing and cost-based transfer pricing are the only two methods for determining transfer prices.
A)True
B)False
Q2) Briefly explain each of the three methods used to determine a transfer price.
Q3) Which of the following is NOT a benefit of decentralisation?
A)Sharpens the focus of managers
B)Leads to quicker decision making
C)Decreases management and worker morale
D)Creates greater responsiveness to local needs
Q4) The formal management control system includes:
A)incentive plans.
B)mutual commitments.
C)performance measures.
D)Both A and C are correct.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Performance Measurement, Compensation
and Multinational Considerations
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/70861
Sample Questions
Q1) What is the EVA for Mt Iron?
A)$710 000
B)$511 000
C)$738 500
D)$677 126
Q2) 'Return on investment' is also called the 'imputed cost' of the investment.
A)True
B)False
Q3) What is the Tractor Division's return on sales?
A)0.10
B)0.15
C)0.12
D)0.20
Q4) Timing of feedback depends on:
A)the sophistication of the organisation's information technology.
B)the specific level of management receiving the feedback.
C)how critical the information is for the success of the organisation.
D)All of the above.
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Measuring and Reporting Sustainability
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/70862
Sample Questions
Q1) Which of these product labels does not indicate socially and environmentally responsible production conditions?
A)A 'made in Canada' label
B)A fair trade label
C)A rainforest alliance for coffee beans label
D)None of the above;i.e.all are labels indicating socially and environmentally responsible production conditions.
Q2) In which sector has the Global Reporting Initiative not issued sector supplement guidelines?
A)Non-government organisations
B)Small business
C)Financial services
D)None of the above;i.e.it has issued them in all of these sectors.
Q3) The International Standards for Environmental Management Systems are ISO 14001 and ISO 14004.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23