Financial Planning and Analysis
Exam Solutions
Course Introduction
Financial Planning and Analysis (FP&A) is a course designed to equip students with the analytical skills and practical tools necessary to evaluate an organization's financial health and support sound business decision-making. The course covers key concepts such as budgeting, forecasting, variance analysis, and financial modeling, providing insights into how to interpret financial statements and performance metrics. Emphasis is placed on integrating strategic and operational planning with financial analysis, enabling students to identify trends, assess risks, and recommend actions that drive value creation. By the end of the course, students will be proficient in leveraging data-driven insights to inform strategic financial management in both corporate and entrepreneurial settings.
Recommended Textbook
Managerial Accounting 2nd Edition by Karen W. Braun
Available Study Resources on Quizplus
14 Chapters
2698 Verified Questions
2698 Flashcards
Source URL: https://quizplus.com/study-set/3504
Page 2
Chapter 1: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/69606
Sample Questions
Q1) Which one of the following manager responsibilities encompasses the other three?
A)Decision-making
B)Feedback
C)Planning
D)Controlling
Answer: A
Q2) Communicating information fairly and objectively represents what ethical standard?
A)Competence
B)Confidentiality
C)Credibility
D)Integrity
Answer: C
Q3) The standards in the IMA Statement of Ethical Professional Practice include:
A)Competence,Confidentiality,Integrity,and Objectivity.
B)Competence,Confidence,Integrity,and Credibility.
C)Competence,Objectivity,Credibility,and Honesty.
D)Competence,Confidentiality,Integrity,and Credibility.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Building Blocks of Managerial Accounting
Available Study Resources on Quizplus for this Chatper
211 Verified Questions
211 Flashcards
Source URL: https://quizplus.com/quiz/69605
Sample Questions
Q1) A product support hot line would be considered:
A)customer service.
B)distribution.
C)production or purchases.
D)marketing.
Answer: A
Q2) Conversion costs consist of:
A)direct labor and manufacturing overhead.
B)direct materials and direct labor.
C)direct materials and manufacturing overhead.
D)direct materials,direct labor and manufacturing overhead.
Answer: A
Q3) What was cost of goods sold?
A)$133,000
B)$96,000
C)$106,000
D)$ 81,000
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Job Costing
Available Study Resources on Quizplus for this Chatper
260 Verified Questions
260 Flashcards
Source URL: https://quizplus.com/quiz/69604
Sample Questions
Q1) Which of the following is an example of an industry that would use a process costing-rather than a job costing-system?
A)Boeing Jets
B)Coca-Cola
C)Centex Custom Homes
D)Snyder & Lewis,Attorneys at Law
Answer: B
Q2) The end goal of process costing and job costing at a manufacturing company is the same-to find the cost of producing one unit of product.
A)True
B)False
Answer: True
Q3) What is the total amount of direct materials,direct labor,and manufacturing overhead that should be shown on Job #231's job cost record?
A)$ 5,470
B)$ 4,670
C)$ 800
D)$24,000
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Activity-Based Costing, lean Production, and the Costs of Quality
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/69603
Sample Questions
Q1) If the cost to purchase the same pillow from a supplier is $17.00,what should Traditions Home Accessories do to maximize profits?
A)Purchase the pillow from the supplier.
B)Continue to manufacture the pillow.
C)Since the cost to manufacture the pillow is also $17.00,the company would make the same profit whether it bought the pillow or manufactured it.
D)Close down the business.
Q2) Total manufacturing costs for part B is:
A)$ 8,200.
B)$15,200.
C)$ 5,400.
D)$12,400.
Q3) Which term below best describes the quality cost category for "cost to re-inspect reworked food processors"?
A)Prevention costs
B)Appraisal costs
C)Internal failure costs
D)External failure costs
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Process Costing
Available Study Resources on Quizplus for this Chatper
224 Verified Questions
224 Flashcards
Source URL: https://quizplus.com/quiz/69602
Sample Questions
Q1) On December 31,the total costs of units complete and transferred would be closest to:
A)$ 1,153.
B)$22,617.
C)$21,047.
D)$15,124.
Q2) If all direct materials are added at the beginning of the production process,and the units have made it 50% of the way through the production process,then the percentage completion for direct materials is 100%.
A)True
B)False
Q3) A system for assigning costs for products made in a continuous process is:
A)job costing.
B)process costing.
C)equivalent units costing.
D)conversion cost costing.
Q4) Costs are transferred,along with the units,from one WIP inventory to the next.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Cost Behavior
Available Study Resources on Quizplus for this Chatper
266 Verified Questions
266 Flashcards
Source URL: https://quizplus.com/quiz/69601
Sample Questions
Q1) Under variable costing,variable manufacturing costs are treated as inventoriable product costs.
A)True
B)False
Q2) The contribution margin income statement presents _________ below the contribution margin line.
A)only variable expenses relating to selling and administrative activities
B)only fixed expenses relating to selling and administrative activities
C)all variable expenses
D)all fixed expenses
Q3) On a contribution margin income statement,sales revenue less variable expenses equals:
A)contribution margin.
B)gross profit.
C)operating income.
D)expenses.
Q4) The intercept-coefficient in regression analysis yields the fixed cost portion of the total costs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
182 Verified Questions
182 Flashcards
Source URL: https://quizplus.com/quiz/69600
Sample Questions
Q1) The contribution margin derived from different products is used to motivate the sales force to increase sales of the most profitable products.
A)True
B)False
Q2) CVP stands for Cost-Volume-Profit.
A)True
B)False
Q3) Which of the following statements is TRUE if the variable cost per unit decreases while the sales price per unit and total fixed costs remain constant?
A)The contribution margin increases and the breakeven point decreases.
B)The contribution margin decreases and the breakeven point decreases.
C)The contribution margin increases and the breakeven point increases.
D)The contribution margin decreases and the breakeven point increases.
Q4) CVP assumes that inventory levels change.
A)True
B)False
Q5) A hotel would be an example of a company with low operating leverage.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Short Term Business Decisions
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/69599
Sample Questions
Q1) Managers' decisions are based on qualitative as well as quantitative factors.
A)True
B)False
Q2) A constraint is a factor that restricts production or sale of a product.
A)True
B)False
Q3) The Rosemont Country Club and Tennis Courts has a favorable reputation in the area and therefore,has some control over the price per hour of court time.Using a cost-plus approach,what price should Rosemont Tennis charge for an hour of court time?
A)$33.00
B)$36.00
C)$24.00
D)$ 0.20
Q4) Which of the following best describes an "opportunity cost"?
A)Costs that were incurred in the past and cannot be changed
B)Benefits foregone by not choosing an alternative course of action
C)The distribution of all products to be sold
D)Expected future costs that differs among alternatives
Q5) Based on these numbers,what are Burr Hill's total costs?
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: The Master Budget and Responsibility Accounting
Available Study Resources on Quizplus for this Chatper
178 Verified Questions
178 Flashcards
Source URL: https://quizplus.com/quiz/69598
Sample Questions
Q1) Describe the four types of responsibility centers.Give a specific example of each of the four types of responsibility centers.
Q2) Service companies prepare a cash budget.
A)True
B)False
Q3) There are four types of responsibility centers used to evaluate a company's performance.
A)True
B)False
Q4) Merchandising companies prepare a direct materials budget.
A)True
B)False
Q5) Which of the following type(s)of companies use a capital expenditures budget?
A)Manufacturing
B)Merchandising
C)Service
D)All of the above
To view all questions and flashcards with answers, click on the resource link above. Page 11
Q6) Define operating budgets and financial budgets.List the specific budgets which are operating budgets.List the specific budgets which are financial budgets.
Chapter 10: Flexible Budgets and Standard Costs
Available Study Resources on Quizplus for this Chatper
204 Verified Questions
204 Flashcards
Source URL: https://quizplus.com/quiz/69597
Sample Questions
Q1) The standard cost of direct labor per hour is $10.00.Two standard direct labor hours are allowed per finished good.During the current period,512 finished goods were produced using 1,000 direct labor hours.The direct labor price variance is $100,unfavorable.Calculate the actual cost of direct labor per hour.
A)$2.40
B)$10.00
C)$10.10
D)$20.00
Q2) Gutierrez Company budgeted 10,000 pounds of direct materials costing $21.50 per pound to make 5,000 units of product.The company actually used 10,200 pounds of direct materials costing $24.00 per pound to make the 5,000 units.What is the direct materials price variance?
A)$25,000 favorable
B)$25,500 unfavorable
C)$25,000 unfavorable
D)$25,500 favorable
Q3) Journalize the allocation of overhead costs to Work in Process Inventory and closing manufacturing overhead costs to overhead variances.
Q4) Identify five benefits of standard costs.
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
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/69596
Sample Questions
Q1) The central reservation office at American Airlines is most likely treated as a(n):
A)cost center.
B)investment center.
C)profit center.
D)revenue center.
Q2) KPI in the Balanced Scorecard stands for Key Performance Indicator.
A)True
B)False
Q3) Which of the following goals of a performance evaluation system is accomplished when bonuses are provided to subunit managers who achieve performance targets?
A)Benchmarking
B)Motivating unit managers
C)Promoting goal congruence
D)Communicating expectations
Q4) Decentralization allows top management to hire workers with expert knowledge for each business unit.
A)True
B)False
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Capital Investment Decisions and the Time Value of Money
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/69595
Sample Questions
Q1) The payback and accounting rate of return models are conceptually better than the discounted cash flow models because they are based on cash flows,and they consider both profitability and the time value of money.
A)True
B)False
Q2) (Present value tables are required.)Mansfield Motors is evaluating a capital investment opportunity.This project would require an initial investment of $30,000 to purchase one machine and $10,000 to purchase the other machine (both machines are required).The project equipment will have a residual value at the end of its life of $3,000.The useful life of the equipment is 5 years.The new project is expected to generate additional net cash inflows of $12,000 per year for each of the five years.Mansfield Motors' required rate of return is 14%.The net present value of this project is closest to: A)($3,994).
B)$ 1,196.
C)$ 2,753.
D)$26,386.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
135 Verified Questions
135 Flashcards
Source URL: https://quizplus.com/quiz/69594
Sample Questions
Q1) An outflow of cash from an investing activity would be:
A)purchasing treasury stock.
B)issuing notes payable.
C)paying cash dividends to stockholders.
D)making loans to third parties.
Q2) The investing activities section of the statement of cash flows is the most important section.
A)True
B)False
Q3) What will appear in the operating activities section related to accounts payable?
A)The increase of $8,000 will be subtracted from purchases to determine payments to suppliers.
B)The increase of $8,000 will be added to net income.
C)The increase of $8,000 will be added to purchases to determine payments to suppliers.
D)The increase of $8,000 will be subtracted from net income
Q4) The statement of cash flows reflects cash flows on a particular date.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/69593
Sample Questions
Q1) What should Johnston do to improve its performance to match or to exceed Haley's performance?
A)Reduce percentage of COGS.
B)Reduce percentage of income tax expense.
C)Reduce percentage of selling/general expenses.
D)Any of the above would be useful to improve performance.
Q2) What is the times-interest-earned ratio for the current year?
A)4.64 times
B)1.44 times
C)3.64 times
Q3) What is the percentage change in net income?
A)-20.00%
B)17.15%
C)80.00%
D)35.00%
Q4) Common size statements allow the comparison of two or more companies with different amounts of net sales and net assets.
A)True
B)False
Page 16
To view all questions and flashcards with answers, click on the resource link above.