Course Introduction
Management Accounting
Pre-Test Questions
Management Accounting is a course designed to equip students with the skills and knowledge necessary to effectively gather, analyze, and use financial and non-financial information for internal decision-making purposes. The course covers key concepts such as cost behavior, budgeting, variance analysis, performance measurement, and the use of accounting data to support strategic planning and control within organizations. Students will learn how to apply management accounting tools and techniques to enhance organizational efficiency, support management decisions, and drive business performance in both manufacturing and service environments.
Recommended Textbook
Managerial Accounting The Cornerstone of Business Decision Making 7th Edition by Maryanne
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15 Chapters
2443 Verified Questions
2443 Flashcards
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Page 2
M.
Chapter 1: Introduction to Managerial Accounting
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57 Flashcards
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Sample Questions
Q1) _____________________________ is the continual search for ways to increase the overall efficiency and productivity of activities by reducing waste, increasing quality and managing costs.
Answer: Continuous improvement
Q2) Which of the following areas is not emphasized by the Certified Management Accountant (CMA) examination?
A) External auditing and business law
B) Management reporting, analysis, and behavioral issues
C) Decision analysis and information systems
D) Economics, finance, and management
Answer: A
Q3) Excellent customer service is an example of a value-added activity.
A)True
B)False
Answer: True
Q4) To promote ethical behavior by managers and employees, organizations commonly establish a__________________________.
Answer: code of conduct
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Chapter 2: Basic Managerial Accounting Concepts
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216 Flashcards
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Sample Questions
Q1) Cost of shipping products to customers
A)Period
B)Product Answer: A
Q2) Cost of goods sold is the total product cost of the units sold during a period.
A)True
B)False
Answer: True
Q3) A(n) __________________ is any item such as a product, customer, department, project, geographic region, and so on, for which costs are measured and assigned.
Answer: cost object
Q4) An opportunity cost is the benefit given up or sacrificed when one alternative is chosen over another.
A)True
B)False
Answer: True
Q5) Materials that become part of a product usually are classified as _______________.
Answer: direct materials.
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Chapter 3: Cost Behavior, Cost Forecasting, and Segmented Income Statements
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261 Verified Questions
261 Flashcards
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Sample Questions
Q1) "Outliers" are points that seem to fit the general pattern of behavior. A)True
B)False
Answer: False
Q2) The high-low method:
A) is the most accurate methods.
B) is not affected by the presence of outliers.
C) has the advantage of objectivity.
D) has the advantage of subjectivity.
Answer: C
Q3) Absorption costing income would be ____ the variable costing income.
A) $50,000 greater than
B) $70,000 greater than
C) $70,000 less than
D) $50,000 less than
Answer: A
Q4) The cost of advertising is usually a discretionary fixed cost. A)True
B)False
Answer: True
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Chapter 4: Job-Order Costing and Normal Cost Overhead Application
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Sample Questions
Q1) Job X4A consists of 500 units.One-half of Job X4A was sold for $10,000.What is the cost per unit for Job X4A?
A) $18
B) $31.50
C) $27
D) $40.50
Q2) Which of the following is reflected in the labor cost flows of a company?
A) Direct labor cost
B) Overtime labor cost
C) Administration cost
D) Both indirect and direct labor cost
E) Administration cost and indirect cost
Q3) Unit costs are calculated by:
A) dividing the total costs associated with the units produced by the overhead cost.
B) adding all the variable costs per unit associated with the units produced.
C) subtracting total fixed costs from the applied overhead.
D) dividing the process costs for the given period by the output of the period.
E) multiplying unit variable costs and estimated overhead.
Q4) Applied overhead costs are charged to ________________.
Page 6
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Chapter 5: Activity-Based Costing and Management
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123 Flashcards
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Sample Questions
Q1) Calculate the total customer cost for the JIT distributors.(Note: Round the activity rates and activity costs to the nearest dollar.)
A) $487,560
B) $362,890
C) $612,370
D) $250,020
E) $448,730
Q2) Result or product of an activity.
A)activity analysis
B)value-added costs
C)velocity
D)activity inputs
E)activity output measure
F)activity output
Q3) A volume-based costing system emphasizes direct tracing and driver tracing.
A)True
B)False
Q4) Activities necessary to remain in business are known as _____________________.
Q5) ___________________ are performed each time a unit is produced.
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Chapter 6: Process Costing
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Sample Questions
Q1) Which of the following businesses is most likely to use process costing?
A) custom home builder
B) CPA firm
C) chemical manufacturer
D) custom machine tools manufacturer
Q2) Costing system used by a manufacturer of custom furniture.
A)Process Costing
B)Job Order Costing
Q3) The costs transferred from a prior process to a subsequent process.
A)equivalent units of production
B)transferred-in costs
C)FIFO costing methods
D)Production report
Q4) Different 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
Q5) ___________________ requires that units pass through one process before they can be worked on in the next process.
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Chapter 7: Cost-Volume-Profit Analysis
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154 Flashcards
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Sample Questions
Q1) The units sold or expected to be sold or sales revenue earned or expected to be earned above the break-even volume.
A)break-even point
B)Common fixed expenses
C)Contribution margin
D)Direct fixed expenses
E)Margin of safety
F)Operating leverage
G)Degree of operating leverage
H)Sales mix
Q2) Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000.The price per calendar is $10.What is the variable cost per unit?
A) $5.00
B) $4.00
C) $3.70
D) $1.30
E) $4.60
Q3) The ________________________ is the point where total revenue equals total cost.
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Chapter 8: Tactical Decision-Making and Relevant Costing
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Sample Questions
Q1) Flexible resources may have unused capacity.
A)True
B)False
Q2) Future costs that differ across alternatives are
A) opportunity costs.
B) sunk costs.
C) relevant costs.
D) variable costs.
E) product costs.
Q3) Brorsen, Inc., has just designed a new product with a target cost of $64.Brorsen requires new product to have a profit of 20%.What is the target price for the new product?
A) $64
B) $12.80
C) $320
D) $80
E) $53
Q4) If a future cost is the same for more than one alternative, and it has no effect on the decision is known as a(n) _____________ cost.
Q5) The percentage that is applied to the base cost is known as the _____________.
Page 10
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Chapter 9: Profit Planning and Flexible Budgets
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Sample Questions
Q1) The ________________ budget is based on the actual level of activity.
Q2) Looking ahead to see what actions should be taken to realize particular goals is:
A) planning.
B) directing.
C) decision making.
D) coordinating.
E) controlling.
Q3) ending inventory of product
A)production budget
B)direct materials purchases budget
Q4) ___________________ exists when a manager deliberately underestimates revenues or overestimates cost in an effort to make the future period appear less attractive in the budget than they think it will be in reality.
Q5) The ending finished goods inventory budget supplies information needed for the A) sales budget.
B) cash budget.
C) budgeted income statement.
D) cost of goods sold budget.
E) all of these.
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Chapter 10: Standard Costing and Variance Analysis
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Sample Questions
Q1) The total fixed overhead variance is calculated by the following formula:
A) Total actual overhead Total applied overhead
B) Actual Fixed Overhead - (Standard Overhead Rate × Standard Hours Allowed)
C) Actual Fixed Overhead (Standard Fixed Overhead Rate × Standard Hours Allowed)
D) Actual Fixed Overhead (Standard Fixed Overhead Rate × Actual Direct Labor Hours)
E) (Total actual overhead Standard Fixed Overhead Rate) × Standard Hours Allowed
Q2) Which of the following formulas calculates the total fixed overhead (FOH) variance?
A) Standard Fixed Overhead - Variable Fixed Overhead
B) Actual Fixed Overhead - (Standard Variable Overhead Rate × Standard Hours Allowed)
C) Actual Fixed Overhead - Applied Fixed Overhead
D) Actual Fixed Overhead - (Standard Fixed Overhead × Actual Direct Labor Hours Used)
E) (Total actual overhead - Standard Fixed Overhead) × Standard Hours Allowed
Q3) The variable overhead efficiency variance is directly related to the __________________ or usage variance.
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12
Chapter 11: Performance Evaluation and Decentralization
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Sample Questions
Q1) A key feature of economic value added (EVA) is that it emphasizes after-tax operating income and the actual cost of capital.
A)True
B)False
Q2) Divisions in a decentralized company can be created along which of the following lines?
A) geographical
B) types of goods or services produced
C) type of responsibility given to divisional manager
D) All of these answers are correct.
E) None of these answers are correct.
Q3) A _________________ is the price charged for a component by the selling division to the buying division of the same company.
Q4) The use of residual income encourages managers to accept any project that earns above the minimum rate.
A)True B)False
Q5) When a manager is responsible for only costs it is known as a(n)
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Chapter 12: Capital Investment Decisions
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Sample Questions
Q1) assumes that all future cash inflows earn the same rate of return as the project itself
A)Payback period
B)Accounting rate of return
C)Net present value
D)Internal rate of return
E)Discount rate
F)Annuity
G)Post-audit
H)Compounding of interest
Q2) A firm is considering a project with an annual cash flow of $100,000.The project would have an 8-year life, and the company uses a discount rate of 5%.What is the maximum amount the company could invest in the project and have the project still be acceptable?
A) $800,545
B) $646,321
C) $516,425
D) $960,110
Q3) _______________________ are the future cash flows expressed in terms of their present value.
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Page 14
Chapter
Sustainability, Quality Cost, Lean Accounting, International
Issues, Enterprise Risk Management, the Managerial
Accountant in Forensicfraud Accounting
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) Which of the following is true of foreign trade zones?
A) These are areas that are physically outside U.S.soil but are considered to be inside U.S.commerce.
B) Goods entering foreign trade zones are subject to duty until they leave the zones.
C) Federal government has made it mandatory for U.S.companies to set up manufacturing plants within the foreign trade zones.
D) Companies that have set up manufacturing plants within the foreign trade zones are free from paying duty on defective materials.
Q2) The forward rate is the exchange rate of one currency for another for immediate delivery.
A)True
B)False
Q3) An organization's overall desired level of risk taking is referred to as its:
A) residual risk.
B) risk assessment ability.
C) risk response.
D) risk appetite.
Q4) A _________ is one that does not conform to quality specifications. Page 15
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Chapter 14: Statement of Cash Flows
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Sample Questions
Q1) The net cash flows from financing activities last year was
A) $80,000.
B) $(80,000).
C) $20,000.
D) $(20,000).
Q2) Accounts receivable arising from sales to customers amounted to $80,000 and $65,000 at the beginning and end of the year respectively.Net income reported on the income statement for the year was $150,000.Exclusive of the effect of other adjustments, the cash inflows from operating activities to be reported on the statement of cash flows are:
A) $259,000.
B) $120,000.
C) $200,000.
D) $165,000.
Q3) Which of the following is used in determining the change in cash for a period?
A) An owner's equity statement
B) A purchase statement
C) Comparative balance sheets
D) Comparative income statements
Q4) Income statements are prepared on a (n) ______________.
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Chapter 15: Financial Statement Analysis
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Sample Questions
Q1) If a company has an acid-test ratio of 1.2, what respective effects will the borrowing of cash by short-term debt and the collection of accounts receivable have on the ratio?
Short-term Collection of Borrowing Receivable
A) Increase No effect
B) Increase Increase
C) Decrease No effect
D) Decrease Decrease
Q2) The dividend payout ratio is equal to common dividends divided by (Net Income Preferred Dividends).
A)True
B)False
Q3) Current ratio
A)Liquidity Ratio
B)Leverage Ratio
C)Profitability Ratio
Q4) Price-earnings ratio
A)Liquidity Ratio
B)Leverage Ratio
C)Profitability Ratio
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