Management Accounting and Control
Test Preparation
Course Introduction
Management Accounting and Control explores the principles and practices used by managers to plan, control, and evaluate business operations. The course examines key topics such as budgeting, cost allocation, performance measurement, responsibility accounting, and the design of management control systems. Students learn how to interpret and use financial and non-financial data to support decision-making and to align organizational activities with strategic objectives. Emphasis is placed on the role of management accounting in motivating behavior, enhancing efficiency, and achieving organizational goals in dynamic business environments.
Recommended Textbook
Managerial Accounting 3rd Edition by Charles E. Davis
Available Study Resources on Quizplus
17 Chapters
2529 Verified Questions
2529 Flashcards
Source URL: https://quizplus.com/study-set/3513
Page 2
Chapter 1: Accounting As a Tool for Management
Available Study Resources on Quizplus for this Chatper
162 Verified Questions
162 Flashcards
Source URL: https://quizplus.com/quiz/69802
Sample Questions
Q1) Which of the following is not a component of the IMA Statement of Ethical Professional Practice standards?
A)Reliability
B)Confidentiality
C)Integrity
D)Credibility
Answer: A
Q2) Without affecting their ability to meet customer demand,some companies have found they can reduce inventory levels by using a just-in-time system as much as
A)5% to 10%.
B)20% to 25%.
C)35% to 40%.
D)50% to 60%.
Answer: D
Q3) Preparers of managerial accounting information are generally not active participants in the decision making process.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Cost Behavior and Cost Estimation
Available Study Resources on Quizplus for this Chatper
169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/69801
Sample Questions
Q1) A contribution format income statement presents all costs
A)by behavior rather than by function.
B)by function rather than behavior.
C)by cost classification rather than by behavior.
D)by category rather than behavior.
Answer: A
Q2) A contribution format income statement allows a manager to
A)assess the impact of product costs on net profit.
B)assess the impact of sales volume on gross margin.
C)assess the impact of sales volume on operating income.
D)assess the impact of profit margin on product costs.
Answer: C
Q3) Express the relationship between total cost TC,variable cost per
Answer: TC = VCX + FC
Q4) Suppose Kathy Lentz Company sells hand tatted lace for $25 per yard.Her materials cost $4 per yard and labor costs her $10 per yard.She also estimates her fixed cost to be $50 per month.If she sells 2,000 yards of lace during the month,what is her contribution margin ratio?
Answer: $25 - $4 + $10 = $11 contribution margin $11 ÷ $25 = 44% contribution margin ratio
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Cost-Volume-Profit Analysis and Pricing
Decisions
Available Study Resources on Quizplus for this Chatper
166 Verified Questions
166 Flashcards
Source URL: https://quizplus.com/quiz/69800
Sample Questions
Q1) Assume a sales price per A)Zero.
B)The amount of variable costs at the breakeven point.
C)$18,000.
D)$27,000.
Answer: C
Q2) A breakeven graph illustrates the relationship between
A)Volume and sales price.
B)Volume and total costs.
C)Breakeven and operating income.
D)Sales and costs.
Answer: D
Q3) Assume a sales price per
A)720 units
B)1,200 units
C)1,800 units
D)None of these answer choices is correct.
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Product Costs and Job Order Costing
Available Study Resources on Quizplus for this Chatper
189 Verified Questions
189 Flashcards
Source URL: https://quizplus.com/quiz/69799
Sample Questions
Q1) Which of the following expenses are reported on the income statement when they are incurred?
A)Product costs
B)Period costs
C)Indirect material
D)Direct material
Q2) Which of the following items would not be classified as direct material for Dole Food Company?
A)Pineapple
B)Sugar
C)Stainless steel pots
D)Glass jars
Q3) Luxury Bath Company produces Japanese-style soaking bath tubs.The company uses a job order costing system.During the period,the company incurred the following costs to complete job #SIS423: direct materials,$110,000 and direct labor,$128,000.The company also incurred $14,000 of administrative costs and $18,000 of selling costs to complete this job.Job #SIS423 required 10,600 machine hours.Factory overhead was applied to the job at a rate of $20 per machine hour.If job #SIS423 resulted in 1,800 soaking tubs,what was the
Q4) Predetermined overhead rates and manufacturing overhead application
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Planning and Forecasting
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/69798
Sample Questions
Q1) Deviations from the budget can occur because of good decisions,bad decisions,or events.
A)True
B)False
Q2) Starfish Industries' sales budget for the first quarter of the upcoming year shows budgeted sales of $325,000,$350,000,and $310,000 in January,February,and March,respectively.All sales are made on credit.The cash receipts budget for March shows total cash receipts equal to $296,780.Starfish grants a discount to customers who pay within 10 days of the invoice.Starfish collects 60% of sales within the discount period,20% in the month of sale but outside the discount period,15% in the month following sale and the remainder is uncollectible.What is the discount offered by Starfish,and what are the cash collections in March associated with March sales?
A)2%; $244,280
B)1.5%; $245,210
C)2%; $182,280
D)1.5%; $183,210
Q3) Standard direct labor prices are also referred to as direct labor rates.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Performance Evaluation: Variance Analysis
Available Study Resources on Quizplus for this Chatper
198 Verified Questions
198 Flashcards
Source URL: https://quizplus.com/quiz/69797
Sample Questions
Q1) Assume the actual sales volume is 69,000
A)$6,500 unfavorable
B)$6,500 favorable
C)$6,000 unfavorable
D)$6,000 favorable
Q2) A favorable variance is a variance that increases the flexible budget amount relative to the static budgeted amount.
A)True
B)False
Q3) The standard number of direct labor hours used in calculating the direct labor efficiency variance is based on
A)the static budget.
B)the actual number of finished units produced.
C)the number of units on the production budget.
D)the number of
Q4) Nantucket,Inc.uses a standard cost system with the following labor standards for one
Q5) Adler Industries uses a standard cost system.Adler has established the following standards for one
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Activity-Based Costing and Activity Based Management
Available Study Resources on Quizplus for this Chatper
178 Verified Questions
178 Flashcards
Source URL: https://quizplus.com/quiz/69796
Sample Questions
Q1) Organizational-level activities provide identifiable benefits to specific products or services.
A)True B)False
Q2) With activity-based costing,the goal is to develop a product cost that captures the amount of each resource consumed by the activities performed to produce a specific product.
A)True
B)False
Q3) The greatest use of activity-based costing information for managers is for A)product costing.
B)pricing decisions.
C)channel profitability decisions.
D)process improvement.
Q4) Activity-based management focuses on using the cost of performing the activities required to produce and sell products to identify activities that are non-value added.
A)True B)False
Page 9
Q5) What is an activity cost pool and how are activity cost pool rates calculated?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Using Accounting Information to Make Managerial Decisions
Available Study Resources on Quizplus for this Chatper
188 Verified Questions
188 Flashcards
Source URL: https://quizplus.com/quiz/69795
Sample Questions
Q1) Elton's Electronics is a wholesale distributer for TVs and other electronics and appliances.The selling price of TV Model 83G7 is $799.The following standard cost data per Model 83G7 includes $300 direct material,$30 direct labor and $200 manufacturing overhead 75% variable,25% fixed.Elton has received a special order for 200 Model 83G7s at a price of $450 each.The only additional cost of accepting the special order is a sales commission of $9 per
Q2) Because depreciation is a fixed cost that is not avoidable,it is irrelevant in making an outsourcing decision.
A)True
B)False
Q3) The formula for computing the contribution per constrained resource is
A)contribution margin per unit multiplied by the constrained resource per unit.
B)contribution margin per unit divided by the constrained resource per unit.
C)total contribution margin multiplied by the constrained resource per unit.
D)total contribution margin divided by the constrained resource per unit.
Q4) According to the Theory of Constraints,all production should be subordinated to the bottleneck operation.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Capital Budgeting
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/69794
Sample Questions
Q1) Friendly Freddie's Furniture Store uses an 8-year old van to deliver furniture to customers within a 50-mile radius of the store.The van has an original cost of $22,000.It costs $1,000 each month to operate the van.Unfortunately,the van was in an accident last week and it will cost $5,000 for repairs.Freddie has found a new van that will cost $35,000.Freddie expects to get 10 years use from the new van and estimates that the operating costs will be $800 each month.Freddie can sell his old van as is for $2,500.
Required:
Identify the amount and timing of the cash flows relevant to Friendly Freddie's decision to replace the van.
Q2) The payback period is used most often as a screening tool,by companies that have established a maximum acceptable payback period.
A)True
B)False
Q3) Your company is considering a capital project that will require a net initial investment of $249,972.The project is expected to have a 7-year life and will generate an annual cash inflow of $43,200.What is the internal rate of return?
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Decentralizing and Performance Evaluation
Available Study Resources on Quizplus for this Chatper
194 Verified Questions
194 Flashcards
Source URL: https://quizplus.com/quiz/69793
Sample Questions
Q1) On an organizational chart,from bottom to top,which of the following is the order of responsibility centers?
A)Cost,profit,investment
B)Cost,investment,profit
C)Profit,cost,investment
D)Profit,investment,cost
Q2) Common fixed costs are most likely the responsibility of
A)Top management only.
B)Managers who have no control of them.
C)Investment center managers only.
D)Cost center managers only.
Q3) Segment margin income statements are most useful to managers when they are prepared
A)On a cash basis.
B)Using a segment contribution margin basis.
C)On a GAAP basis.
D)Using a function basis.
Q4) In a decentralized organization,upper managers need a way to evaluate the performance of
Q5) What is a transfer price? List the four ways of determining a transfer price.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Performance Evaluation Revisited: a Balanced Approach
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/69792
Sample Questions
Q1) Which of the following is not one of the four balanced scorecard perspectives?
A)Learning and growth
B)Production
C)Customer
D)Financial
Q2) Which of the following is not a measure that relates to the financial perspective?
A)EVA
B)Return on investment
C)Cost per unit
D)Profit margin
Q3) Which of the following is an example of a fifth perspective that some organizations may want to add to their balanced scorecard?
A)Supplier relations
B)Community involvement
C)Environmental impact
D)Any of these answer choices are correct
Q4) Benchmarking is appropriate only within a company's industry.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/69791
Sample Questions
Q1) The quality of assets is assessed through the profitability ratios.
A)True
B)False
Q2) Hannah Corporation purchased merchandise totaling $180,000 during the year.At the end of the year,the income statement showed $200,000 of cost of goods sold and ending inventory to $40,000.What was Hannah's inventory turnover?
Q3) A high inventory turnover might signal
A)A problem with old and obsolete inventory.
B)An overstock of inventory.
C)Poor inventory management.
D)Credit terms that are too tight.
Q4) Which of the following is not a leverage ratio?
A)Debt-to-equity ratio
B)Times interest earned ratio
C)Price earnings ratio
D)Debt ratio
Q5) Working capital is the difference between a firm's total assets and total liabilities.
A)True
B)False
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
163 Verified Questions
163 Flashcards
Source URL: https://quizplus.com/quiz/69790
Sample Questions
Q1) Brandon,Inc.had a $1,000 decrease in accounts receivable during the year.Which of the following would appear on the statement of cash flows prepared using the indirect method?
A)Add $1,000 to net income in order to arrive at net cash provided by operating activities
B)Deduct $1,000 from net income in order to arrive at net cash provided by operating activities
C)Deduct $1,000 to arrive at net cash flows from investing activities
D)Do not include the $1,000 in the statement of cash flows,but show it in an accompanying schedule of non-cash transactions
Q2) A company's unearned revenue account increased by $1,000 during the year.Which of the following would appear on the statement of cash flows prepared using the indirect method?
A)An addition under financing activities
B)A deduction under financing activities
C)An addition under operating activities
D)A deduction under operating activities
Q3) What is the basic form of the statement of cash flows?
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Topic Focus: Process Costing
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/69789
Sample Questions
Q1) In a process costing system,labor and overhead costs are typically combined and referred to as equivalent costs.
A)True
B)False
Q2) Which of the following types of entities would probably use a process costing system?
A)Construction
B)Ship building
C)Soft drink bottler
D)CPA firm
Q3) Which of the following is a similarity between job order costing and process costing systems?
A)Both accumulate product costs throughout the production process and assign those costs to individual units of production
B)Both track individual product costs
C)Both accumulate product costs in each production department during the period
D)Both accumulate costs on a job cost sheet
Q4) List three goods or services likely to use a process costing system and three that are likely to use a job order costing system.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Topic Focus Variable and Absorption Costing
Available Study Resources on Quizplus for this Chatper
51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/69788
Sample Questions
Q1) In absorption costing,all manufacturing costs are considered to be
A)product costs.
B)period costs.
C)variable costs.
D)mixed costs.
Q2) To make predictions about costs and income,you must first classify costs by their behavior.
A)True
B)False
Q3) The matching principle states that expenses should be matched with the revenues they generate.
A)True
B)False
Q4) When production volume equals sales volume,the amount of fixed overhead expensed is higher using absorption costing than with variable costing.
A)True
B)False
Q5) The following table shows Jackson Company's inventory balances,in
Q6) What managerial behavior does variable costing render ineffective?
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Topic Focus Standard Costing Systems
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/69787
Sample Questions
Q1) Wolfe Manufacturing Company's standards are set at one gallon of liquid for each
a.Calculate the direct material price variance.
b.Calculate the direct material quantity variance.
Q2) What is the difference between a normal costing system and a standard costing system?
Q3) When using a standard costing system,the direct materials price variance is recorded at the time direct materials are transferred to the production floor.
A)True
B)False
Q4) The following information is available for Haven Industries: Actual production 14,000
Q5) Haven Industries transferred 5,500
Q6) Manufacturing Overhead is a temporary account that must have a zero balance at the end of the accounting period.
A)True B)False
Q7) Haven Industries purchased 1,000
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Topic Focus Customer Profitability
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/69786
Sample Questions
Q1) Revenues a customer generates less cost of goods associated with those revenues and the selling expenses allocated based on the customer-specific selling activities is referred to as
A)Customer revenue margin,
B)Times revenue earned per customer.
C)Customer profit margin.
D)Customer net profit,
Q2) The customer profit margin divides
A)Customer net profit by customer revenue.
B)Customer net profit by customer profit margin.
C)Customer revenue by customer net profit.
D)Customer profit margin by customer revenue.
Q3) In their book Killer Customers,Larry Selden and Geoffrey Colvin estimate that the top 20% of a company's customers generate approximately 120% of the company's profits.
A)True
B)False
Q4) Customer net profit divides customer net profit by customer revenues.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19