Management Accounting and Control
Exam Solutions
Course Introduction
Management Accounting and Control explores the key concepts, techniques, and practices of accounting that support effective management decision-making and organizational control. The course covers topics such as cost behavior analysis, budgeting, variance analysis, performance measurement, and the design of management control systems. Students will learn how to use financial and non-financial information to plan, monitor, and evaluate business operations, align actions with organizational strategy, and motivate employees toward organizational goals. Through case studies and real-world examples, the course emphasizes the role of management accounting in achieving operational efficiency and sustainable competitive advantage.
Recommended Textbook Managerial Accounting 4th Edition by Karen
W. Braun
Available Study Resources on Quizplus
15 Chapters
3456 Verified Questions
3456 Flashcards
Source URL: https://quizplus.com/study-set/3392 Page 2
Chapter 1: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
205 Verified Questions
205 Flashcards
Source URL: https://quizplus.com/quiz/67296
Sample Questions
Q1) A CFO would have all of the following responsibilities except
A)investing in new production equipment.
B)managing corporate financing.
C)preparing all corporate tax returns.
D)providing reports to creditors as required.
Answer: A
Q2) CPA firms are permitted to provide which of the following services to audit clients?
A)Tax preparation
B)Information systems design
C)Consulting
D)Bookkeeping
Answer: A
Q3) The ________ is a subcommittee of the Board of Directors.
A)managerial committee
B)stockholder committee
C)audit committee
D)financial committee
Answer: C
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
284 Verified Questions
284 Flashcards
Source URL: https://quizplus.com/quiz/67297
Sample Questions
Q1) Prime costs consist of
A)direct materials and direct labor.
B)direct labor and manufacturing overhead.
C)direct materials and manufacturing overhead.
D)direct materials,direct labor and manufacturing overhead.
Answer: A
Q2) American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as
A)finished goods inventory.
B)work in process inventory.
C)merchandise inventory.
D)raw materials inventory.
Answer: C
Q3) A product support hotline would be considered
A)marketing.
B)distribution.
C)production or purchases.
D)customer service.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Job Costing
Available Study Resources on Quizplus for this Chatper
334 Verified Questions
334 Flashcards
Source URL: https://quizplus.com/quiz/67298
Sample Questions
Q1) If manufacturing overhead has been overallocated during the year,it means the jobs have been overcosted.
A)True
B)False
Answer: True
Q2) Manufacturers follow four steps to implement a manufacturing overhead allocation system.In the last step,the company estimates the total amount of manufacturing overhead costs for the year.
A)True
B)False Answer: False
Q3) The overhead allocation base should be the cost driver of manufacturing overhead costs.
A)True
B)False Answer: True
Q4) A purchase order is used to order needed materials from suppliers.
A)True
B)False Answer: True
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: Activity-Based Costing, lean Operations, and the Costs of Quality
Available Study Resources on Quizplus for this Chatper
251 Verified Questions
251 Flashcards
Source URL: https://quizplus.com/quiz/67299
Sample Questions
Q1) The allocation base selected for each department should be the cost driver of the costs in the departmental overhead pool.
A)True
B)False
Q2) Which term listed below describes a system where companies purchase raw materials when needed in production and complete finished goods when needed by customers?
A)Internal failure costs
B)Backflush costing
C)Just-in-time
D)External failure costs
Q3) The cost of training quality control supervisors who are responsible for overseeing the inspection of units would be classified as a(n)________ cost.
A)appraisal
B)prevention
C)internal failure
D)external failure
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
259 Verified Questions
259 Flashcards
Source URL: https://quizplus.com/quiz/67300
Sample Questions
Q1) If all direct materials are added at the end 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 50%.
A)True
B)False
Q2) In process costing,there is only one Work In Process Inventory account for all of the individual processing departments.
A)True
B)False
Q3) Which of the following is the last step of the 5-step process costing procedure?
A)Summarize total costs to account for
B)Assign total costs to units completed and to units in ending WIP Inventory
C)Compute the cost per equivalent unit
D)Summarize the flow of physical units
Q4) The journal entry to record the use of direct labor in Processing Department #1 would include a credit to Wages Payable.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Cost Behavior
Available Study Resources on Quizplus for this Chatper
294 Verified Questions
294 Flashcards
Source URL: https://quizplus.com/quiz/67301
Sample Questions
Q1) Describe the scatter plot method.Discuss the advantages and disadvantages of using the scatter plot method.
Q2) Which of the following would be considered a discretionary fixed cost?
A)Property taxes and insurance
B)Advertising
C)Employees wages
D)Depreciation
Q3) The Maple Company has total fixed costs of $400,000.It also has $200,000 in total variable costs.These costs exist at a production level of 100,000 units.The fixed cost per unit is
A)$2.00.
B)$6.00.
C)$1.50.
D)$4.00.
Q4) If a company's overhead cost equation is y = $8.80x + $120,020.The "x" is A)the cost driver in units.
B)total fixed costs.
C)total overhead costs.
D)the variable costs.
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
261 Verified Questions
261 Flashcards
Source URL: https://quizplus.com/quiz/67302
Sample Questions
Q1) To find the number of units that need to be sold to breakeven,the formula used could be
A)fixed expenses ÷ contribution margin per unit.
B)contribution margin per unit ÷ fixed expenses.
C)fixed expenses ÷ contribution margin ratio.
D)contribution margin ratio ÷ fixed expenses.
Q2) Which of the following statements is true if the sales price per unit decreases while the variable cost 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.
Q3) The line that begins at the origin on a CVP graph represents
A)total fixed expenses.
B)total sales revenues.
C)total expenses.
D)both the total expenses and the total sales revenues.
Q4) CVP stands for Company-Volume-Profit.
A)True
B)False
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Relevant Costs for Short-Term Decisions
Available Study Resources on Quizplus for this Chatper
253 Verified Questions
253 Flashcards
Source URL: https://quizplus.com/quiz/67303
Sample Questions
Q1) Fixed costs affect product mix considerations.
A)True
B)False
Q2) Which of the following best describes a "sunk cost"?
A)Costs that were incurred in the past and cannot be changed
B)Benefits foregone by choosing a particular alternative course of action
C)A factor that restricts the production or sale of a product
D)Expected future data that differ among alternatives
Q3) Mountaintop golf course is planning for the coming season.Investors would like to earn a 12% return on the company's $50 million of assets.The company primarily incurs fixed costs to groom the greens and fairways.Fixed costs are projected to be $25,000,000 for the golfing season.About 400,000 golfers are expected each year.Variable costs are about $8 per golfer.The Mountaintop golf course has a favorable reputation in the area and therefore,has some control over the price of a round of golf.Using a cost-plus approach,what price should Mountaintop charge for a round of golf?
Q4) When making a pricing decision,it is not necessary to separate costs into fixed and variable.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: The Master Budget
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/67304
Sample Questions
Q1) Define operating budgets and financial budgets.List the specific budgets which are operating budgets.List the specific budgets which are financial budgets.
Q2) Beloved Baby Company manufactures and sells children's strollers.Each stroller requires eight screws.For September,Beloved Baby Company will begin September with 380 screws in its beginning inventory.Beloved Baby Company has budgeted stroller sales of 530 strollers,while 570 strollers are scheduled to be produced.How many screws should Beloved Baby Company purchase in September?
A)150
B)4,180
C)4,940
D)4,560
Q3) The financial budget projects the collection and payment,of cash,and the forecast of the company's budgeted balance sheet.
A)True
B)False
Q4) The capital expenditures budget is not a component of the operating budget.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Performance Evaluation
Available Study Resources on Quizplus for this Chatper
212 Verified Questions
212 Flashcards
Source URL: https://quizplus.com/quiz/67305
Sample Questions
Q1) The difference between actual results and budget results is known as decentralization.
A)True
B)False
Q2) Total hours of continuing professional education taken by employees may be an example of measuring which perspective of the balanced scorecard?
A)Financial
B)Customer
C)Internal business
D)Learning and growth
Q3) Sales margin is a component of the Return on Investment (ROI)calculation.
A)True
B)False
Q4) The balanced scorecard considers only financial performance measures.
A)True
B)False
Q5) All favorable variances are investigated when using management by exception.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Standard Costs and Variances
Available Study Resources on Quizplus for this Chatper
241 Verified Questions
241 Flashcards
Source URL: https://quizplus.com/quiz/67306
Sample Questions
Q1) When deciding whether or not to adopt standard costs and perform variance analysis,management should do which of the following?
A)Examine the costs and benefits of a standard costing system
B)Update inaccurate standard costs
C)Adopt lean thinking
D)Increase automation of assembly lines
Q2) A cost benchmark is valid only if the standards are
A)based on historical costs.
B)kept up to date.
C)reviewed by salaried assembly-line workers.
D)practical and attainable.
Q3) The total direct labor variance is the sum of the direct labor rate variance and the direct labor efficiency variance.
A)True
B)False
Q4) A price variance for direct materials measures how well a company keeps unit prices of material within standards.
A)True
B)False
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
195 Verified Questions
195 Flashcards
Source URL: https://quizplus.com/quiz/67307
Sample Questions
Q1) Which of the following is used as the equation's numerator when computing the payback period for a capital asset with equal annual net cash inflows?
A)Expected annual cash inflow
B)Total cash inflows
C)Amount invested
D)Net cash outflow
Q2) (Present value tables are required. )Westin Manufacturing is considering the purchase of a new machine to use in its packing department.The new machine will have an initial cost of $170,000,a useful life of 12 years and a $10,000 residual value.Westin will realize $15,750 in annual savings for each of the machine's 12-year useful life.Given Westin's 4% required rate of return,the new machine will have a net present value (NPV)of
A)($28,436).
B)($15,936).
C)($154,064).
D)($22,186).
Q3) The net present value method does not incorporate the time value of money.
A)True
B)False
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
183 Verified Questions
183 Flashcards
Source URL: https://quizplus.com/quiz/67308
Sample Questions
Q1) If a company uses the indirect method to prepare the statement of cash flows,how would the adjustment to reflect the amount of cash payments to employees be presented on the statement of cash flows?
A)The adjustment will be for the increase or decrease in accounts payable during the period and will adjust net income in the operating activities section in the statement of cash flows.
B)The adjustment will be for the increase or decrease in accounts receivable during the period and will adjust net income in the operating activities section in the statement of cash flows.
C)The adjustment will be for the increase or decrease in inventory during the period and will adjust net income in the operating activities section in the statement of cash flows.
D)The adjustment will be for the increase or decrease in wages payable during the period and will adjust net income in the operating activities section in the statement of cash flows.
Q2) The direct method lists the receipt and payment of cash for specific operating activities.
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
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/67309
Sample Questions
Q1) A table that lists items of a balance sheet in dollars and percentages for two companies would be
A)used for vertical analysis.
B)a common-size balance sheet.
C)used for benchmarking.
D)used for horizontal analysis.
Q2) The formula to compute the rate of return on net sales is
A)net income/net sales.
B)net income/average common stockholder's equity.
C)net income + interest expense,then divide by average total assets.
D)net income/interest expense.
Q3) In performing a vertical analysis of a balance sheet,which of the following is generally used as the base amount?
A)Total liabilities
B)Net assets
C)Total assets
D)Total stockholder's equity
Q4) Managers use a variety of financial ratios to evaluate a company's performance.
A)True
B)False
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Sustainability
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/67310
Sample Questions
Q1) There are several reasons an organization might pursue sustainable initiatives."A national hotel chain instituted a paper-saving program that reduced the cost of office paper purchased by 20% annually." This situation is an example of which type of reason to implement sustainable initiatives?
A)Cost reduction
B)Regulatory compliance
C)Stakeholder influence
D)Competitive strategy
Q2) Environmental management accounting (EMA)utilizes three types of information for internal decision making.
A)True
B)False
Q3) The "triple bottom line" reports on three factors: profits,people,and planet.
A)True
B)False
Q4) Government grants and tax credits increase the costs of implementing sustainability measures.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17