Management Accounting Exam Review
Course Introduction
Management Accounting is a course designed to introduce students to the key concepts and techniques used by managers for decision-making, planning, and control within organizations. The course explores the use of accounting information in budgeting, performance evaluation, cost analysis, and strategic planning. Students will learn about topics such as cost behavior, cost allocation, standard costing, variance analysis, and the preparation and interpretation of management reports. By examining real-world scenarios and case studies, students will develop skills to analyze financial data, make informed business decisions, and contribute effectively to organizational success.
Recommended Textbook
Cornerstones of Managerial Accounting 3rd Canadian Edition by Maryanne Mowen
Available Study Resources on Quizplus
14 Chapters
2190 Verified Questions
2190 Flashcards
Source URL: https://quizplus.com/study-set/3791 Page 2
Chapter 1: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/75703
Sample Questions
Q1) Which of the following is a characteristic of activity-based costing?
A)It is a traditional costing method.
B)It encourages process-value analysis.
C)It always results in a lower cost assigned to goods or services.
D)It assigns shared costs to jobs.
Answer: B
Q2) Managerial accounting is designed primarily for external users.
A)True
B)False
Answer: False
Q3) Only financial accounting is governed by IASB.
A)True
B)False
Answer: True
Q4) A cost accountant would normally occupy a staff position within an organization. A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Basic Managerial Accounting Concepts
Available Study Resources on Quizplus for this Chatper
222 Verified Questions
222 Flashcards
Source URL: https://quizplus.com/quiz/75702
Sample Questions
Q1) The cost of maintenance personnel in a factory building would be classified as direct labour.
A)True
B)False
Answer: False
Q2) A cost object is any item,such as products,customers,departments,regions,and so on,for which costs are measured and assigned.
A)True
B)False
Answer: True
Q3) How is conversion cost calculated?
A)direct materials cost plus prime costs
B)indirect labour cost plus opportunity costs
C)product costs plus period costs
D)direct labour cost plus overhead cost
Answer: D
Q4) Factory security costs
A)Product cost
B)Period cost
Answer: A
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Cost Behaviour
Available Study Resources on Quizplus for this Chatper
222 Verified Questions
222 Flashcards
Source URL: https://quizplus.com/quiz/75701
Sample Questions
Q1) Inuvik Company manufactures drill presses.Based on past experience,Inuvik has found that its total overhead cost can be represented by the following formula: total overhead cost = $40,000 + $1.25x,where x = number of machine hours.Last year,Inuvik incurred 150,000 machine hours.
Required:
A. What was the total overhead cost incurred by Inuvik last year?
B. What was the total variable overhead cost incurred by Inuvik last year?
C. What was the total overhead cost per machine hour last year?
D. What was the fixed overhead cost per machine hour last year?
E. If Inuvik incurs 180,000 machine hours next year, what will be the total overhead cost per machine hour?
Answer: A.$227,500 = $40,000 + ($1.25 × 150,000)
B.$1.25 × 150,000 = $187,500
C.$227,500/150,000 = $1.52
D.$40,000/150,000 = $0.27
E.
$265,000 = $40,000 + ($1.25 ×180,000)
$265,000/180,000 = $1.47
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Costvolumeprofit Analysis: a Managerial Planning Tool
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/75700
Sample Questions
Q1) Refer to the Figure.What is the sales mix of jungle gyms and tree houses (rounded down to whole numbers)?
A)2:3
B)3:1
C)3:2
D)4:1
Q2) Refer to the Figure.What is the contribution margin per unit?
A)$5.00
B)$5.40
C)$6.00
D)$6.30
Q3) What is the contribution margin?
A)the difference between sales and fixed costs
B)the difference between fixed and variable costs
C)the difference between sales and variable costs
D)the difference between sales and total costs
Q4) The cost-volume-profit graph shows the relationship between cost,volume,and operating income.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Job-Order Costing
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/75699
Sample Questions
Q1) Costs of product are removed from finished goods and added to cost of goods sold
A)Completion of job
B)End of each accounting period
C)Materials are removed from storage into production
D)Product is sold
E)End of year
Q2) Consider two costing systems,normal costing and actual costing.
A. Which costing system do most firms use to assign costs to units of product or service? What does this costing system include?
B. What is the other costing system? What does this costing system include?
Q3) Direct materials,direct labour and applied overhead are totalled to yield manufacturing cost of job
A)Completion of job
B)End of each accounting period
C)Materials are removed from storage into production
D)Product is sold
E)End of year
Q4) What are the three steps of overhead application?
Q5) Discuss overapplied and underapplied overhead.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Process Costing
Available Study Resources on Quizplus for this Chatper
157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/75698
Sample Questions
Q1) CandyMan Manufacturing uses a process-cost system and computes cost using the weighted average method.During the current period,the beginning work-in-process inventory cost was $15,000.Manufacturing cost added was $65,000.Suppose CandyMan's ending work-in-process inventory was valued at $22,000.What must have been the cost of goods transferred?
A)$43,000
B)$58,000
C)$65,000
D)$80,000
Q2) Similar percentage completion figures for manufacturing inputs pose a problem for the calculation of equivalent units,unit cost,and valuation of ending work in process.
A)True
B)False
Q3) If changes occur in the prices of the manufacturing inputs from one period to the next,then FIFO produces a more accurate unit cost than does the weighted average method.
A)True
B)False
Q4) Explain how nonuniform inputs and multiple departments affect process costing.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Activity-Based Costing and Management
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/75697
Sample Questions
Q1) What is the term for products having different consumption ratios for different overhead activities?
A)volume costing
B)activity-based costing
C)product diversity
D)overhead diversity
Q2) Which of the following must be determined to calculate an activity rate?
A)practical capacity of each activity
B)expenditure level of each activity
C)processing ratio of each activity
D)value of each activity
Q3) The number of times an activity is performed.
A)Activity analysis
B)Value-added costs
C)Velocity
D)Activity inputs
E)Activity output measure
F)Activity output
To view all questions and flashcards with answers, click on the resource link above.
9
Chapter 8: Absorption and Variable Costing, and Inventory Management
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/75696
Sample Questions
Q1) Suppose monthly production volume is constant and sales volume is less than production.How will net income react when using variable-costing procedures?
A)It will be greater than net income determined using absorption costing.
B)It will be less than net income determined using absorption costing.
C)It will be equal to net income determined using absorption costing.
D)It will be equal to contribution margin per unit times units sold.
Q2) What are the two major costs associated with inventory?
A)ordering costs and setup costs
B)setup costs and stockout costs
C)stockout costs and carrying cost
D)ordering costs and carrying costs
Q3) Lauren Company orders 250 units at a time and places 15 orders per year.Total ordering cost is $1,600,and total carrying cost is $1,250.What is the economic order quantity?
A)The economic order quantity (EOQ) is 250.
B)The economic order quantity (EOQ) is more than 250.
C)The economic order quantity (EOQ) is less than 250.
D)The economic order quantity (EOQ) is 15.
Q4) What are the traditional reasons for carrying inventory?
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Budgeting, production, cash, and Master Budget
Available Study Resources on Quizplus for this Chatper
165 Verified Questions
165 Flashcards
Source URL: https://quizplus.com/quiz/75695
Sample Questions
Q1) Which budget adds an additional month in the future as one month expires so that the company always has a 12-month plan on hand?
A)a continuous budget
B)a financial budget
C)an operational budget
D)a yearly budget
Q2) Refer to the Figure.What are the expected cash receipts for November?
A)$40,000
B)$190,000
C)$114,000
D)$158,700
Q3) Cash receipts must be at least as much as sales.
A)True
B)False
Q4) For which of the following organizations is having a production budget most important?
A)retail stores
B)manufacturing firms
C)not-for-profit agencies
D)local government agencies
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Standard Costing: a Managerial Control Tool
Available Study Resources on Quizplus for this Chatper
173 Verified Questions
173 Flashcards
Source URL: https://quizplus.com/quiz/75694
Sample Questions
Q1) Refer to the Figure.What is Allan's materials usage variance?
A)$48,750 U
B)$48,750 F
C)$50,000 U
D)$50,000 F
Q2) Operating personnel can easily achieve standards set by engineering studies.
A)True
B)False
Q3) Refer to the Figure.What are the costs of leather and direct labour incurred for the production of 150 saddles?
A)$36,000 and $36,000
B)$37,200 and $40,000
C)$45,000 and $33,750
D)$46,500 and $37,500
Q4) Refer to the Figure.What was AirSoar's actual cost per labour hour?
A)$11.25
B)$11.50
C)$12.50
D)$12.75
Q5) Explain the kaizen approach to costing.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Flexible Budgets and Overhead Analysis
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/75693
Sample Questions
Q1) In an activity flexible budget,what does the variable cost component typically correspond to?
A)those resources that vary with direct labour hours
B)resources acquired as needed
C)resources acquired in advance of usage
D)resources that do not change as the activity output changes
Q2) What does the variable overhead efficiency variance claim to measure?
A)changes in spending efficiency because the company paid too much for direct labour
B)changes in productive efficiency caused by the overuse of producing assets
C)changes in variable overhead costs because of the efficient (inefficient) use of direct labour
D)changes in variable overhead costs attributable to inefficient purchase of variable inputs
Q3) Practical capacity is always used to calculate fixed overhead rates.
A)True
B)False
Q4) How does activity flexible budgeting differ from functional-based flexible budgeting?
Q5) What is a performance report?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Performance Evaluation and Decentralization
Available Study Resources on Quizplus for this Chatper
145 Verified Questions
145 Flashcards
Source URL: https://quizplus.com/quiz/75692
Sample Questions
Q1) A segment of Syntex,Inc.manufactures and sells blankets.The various models of blankets are produced in a single factory using stable technology.They are sold by the sales department,which is also located in the factory.What centre is most probably used to account for this segment?
A)a cost centre
B)a revenue centre
C)a profit centre
D)an investment centre
Q2) A hospital decided to streamline its surgical suite operation.The nurses in charge studied the amount of time patients actually spent in various activities.They found that,on average,a patient scheduled for an operation spent about 2 hours waiting and 2.5 hours moving from the lab to the X-ray to the operating room.The average operation takes 120 minutes.What is the MCE?
A)20.0%
B)30.8%
C)50.0%
D)60.8%
Q3) Describe the four perspectives of the Balanced Scorecard.
Q4) What is Strategy?
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Short-Run Decision Making: Relevant Costing
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/75691
Sample Questions
Q1) In deciding the optimal mix of products that use a constrained resource,it is important to determine the contribution margin per unit of scarce resource.
A)True
B)False
Q2) Refer to the Figure.What is the amount of machine time for model K-3 in terms of percentage of a machine hour?
A)0.10
B)0.20
C)0.25
D)0.40
Q3) A segment margin is always greater than or equal to zero.
A)True
B)False
Q4) Refer to the Figure.What is the contribution margin per hour of machine time for Test B?
A)$10
B)$20
C)$40
D)$100
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Capital Investment Decisions
Available Study Resources on Quizplus for this Chatper
153 Verified Questions
153 Flashcards
Source URL: https://quizplus.com/quiz/75690
Sample Questions
Q1) What is another term for the required rate of return when using the net present value model?
A)the huddle rate
B)the maximum acceptable rate of return
C)the payback rate
D)the discount rate
Q2) Which of the following is characteristic of the measurement and use of indirect and intangible benefits in capital investment decision making?
A)ABC has made identifying indirect benefits easier.
B)Intangible benefits cannot be measured.
C)Indirect and intangible benefits should not be considered; only direct costs and benefits are considered.
D)Actions by competitors are not considered.
Q3) Which of the following measure results in the time required for a firm to recover its original investment?
A)the internal rate of return
B)the net present value
C)the life of the project
D)the payback period
To view all questions and flashcards with answers, click on the resource link above.
Page 16