Managerial Accounting Exam Materials
Course Introduction
Managerial Accounting focuses on the internal use of accounting information by managers for decision-making, planning, and control purposes. The course covers topics such as cost behavior, budgeting, performance evaluation, cost-volume-profit analysis, standard costing, and variance analysis. Students will learn how to analyze financial data, prepare managerial reports, and apply accounting techniques to support strategic business objectives. Emphasis is placed on the ethical use of accounting information and how managerial accounting supports operational efficiency and organizational effectiveness.
Recommended Textbook
Cornerstones of Cost Accounting 1st Edition by Don
Available Study Resources on Quizplus
20 Chapters
2433 Verified Questions
2433 Flashcards
Source URL: https://quizplus.com/study-set/3829
Page 2
R. Hansen
Chapter 1: Introduction to Cost Management
Available Study Resources on Quizplus for this Chatper
115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/76398
Sample Questions
Q1) Setting the company's profit targets for the upcoming year is an example of the management function of
A) planning.
B) control.
C) variance analysis.
D) internal auditing.
Answer: A
Q2) Software that has integrated system capability using real time data is
A) enterprise resource planning software.
B) on-line analytic programs.
C) computer-assisted engineering software.
D) none of these.
Answer: A
Q3) Factors that have led to a global market for manufacturing and service firms are A) improved transportation and communications systems.
B) improved telemarketing and communications.
C) improved distribution and transportation systems.
D) None of these factors have contributed.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Basic Cost Management Concepts
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/76387
Sample Questions
Q1) Which of the following costs would be included in traditional product costs used for external reporting?
A) research and development
B) production
C) marketing
D) all of these
Answer: B
Q2) In choosing a cost management system, the controller must balance the total costs of implementing such systems.What costs must be balanced to determine total cost? How do functional-based and activity-based cost systems balance the trade-offs?
Answer: Error costs and measurement costs must be considered in choosing a cost management system.Activity-based cost management has greater measurement costs due to analyzing many activities but has greater accuracy and fewer error costs.Functional-based cost systems have lower measurement costs but higher error costs.Controllers must assess the need for accuracy in costing, pricing, and managing profitability.
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Cost Behavior
Available Study Resources on Quizplus for this Chatper
132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/76385
Sample Questions
Q1) Refer to Figure 3-4.Using the high-low method, estimated variable cost per unit of production is
A) $1.26.
B) $1.53.
C) $1.65.
D) $1.75.
Answer: C
Q2) Salaries paid to shift supervisors are an example of a
A) step-variable cost.
B) step-fixed cost.
C) variable cost.
D) mixed cost.
Answer: B
Q3) Committed resources
A) are supplied as needed.
B) are acquired by a contract for the exact amount of their usage.
C) may exceed the demand for their usage.
D) all of these.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Activity-Based Costing
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/76384
Sample Questions
Q1) A(n) _______________ method first traces costs to a department and then to products.
A) direct costing
B) absorption costing
C) unit-based costing
D) indirect costing
Q2) Refer to Figure 4-10.What are the consumption ratios for mops and brooms respectively for the inspection of products activity?
A) .3; .7
B) .2; .8
C) .4; .6
D) .67; .33
Q3) Refer to Figure 4-21.Under this new approach, what cost would be assigned to the labor related cost pool?
A) 0
B) $120,000
C) $255,000
D) $315,000
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Product and Service Costing: Job-Order System
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/76383
Sample Questions
Q1) Refer to Figure 5-2.What is the materials cost per unit for Job XY5?
A) $4
B) $40
C) $80
D) $267
Q2) Refer to Figure 5-7.What is the plantwide overhead rate based on direct labor hours?
A) $3.00
B) $1.50
C) $9.00
D) $1.00
Q3) Which of the following is a pure service?
A) bungee jumping
B) beauty salon
C) restaurant
D) software
Q4) Compare and contrast perishability and intangibility in an automobile oil lubrication shop and architectural design firms.
Q5) Why are unit costs important? Why do full-cost unit costs change from accounting period to accounting period.
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
137 Verified Questions
137 Flashcards
Source URL: https://quizplus.com/quiz/76382
Sample Questions
Q1) The two methods used to determine equivalent units of production are
A) weighted average and FIFO.
B) weighted average and LIFO.
C) FIFO and LIFO.
D) FIFO and specific identification.
Q2) Refer to Figure 6-16.The number of units started and completed in the second department during October is
A) 14,500 units.
B) 18,500 units.
C) 9,500 units.
D) 27,500 units.
Q3) Refer to Figure 6-14.The cost per equivalent unit of production for materials using the weighted average method is
A) $3.60.
B) $3.12.
C) $2.88.
D) $2.70.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Allocating Costs of Support Departments and Joint Products
Available Study Resources on Quizplus for this Chatper
143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/76381
Sample Questions
Q1) If the allocation is for product costing, the allocation of variable support department costs would be calculated as
A) Actual rate ´ Actual usage.
B) Actual rate ´ Budgeted usage.
C) Budgeted rate ´ Actual usage.
D) Budgeted rate ´ Budgeted usage.
Q2) What is the gross profit of No.3 common if the constant gross margin percentage method is used?
A) $45,900
B) $168,750
C) $81,600
D) $135,000
Q3) What are the total overhead costs associated with Department X after allocating the Maintenance and Personnel Departments using the direct method?
A) $9,000
B) $29,000
C) $11,250
D) $31,250
Q4) Compare and contrast the various methods of accounting for joint product costs.
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Budgeting for Planning and Control
Available Study Resources on Quizplus for this Chatper
167 Verified Questions
167 Flashcards
Source URL: https://quizplus.com/quiz/76380
Sample Questions
Q1) The cost of goods sold for next month is expected to be
A) $40,000.
B) $60,000.
C) $90,000.
D) $89,000.
Q2) What is the cash balance at the end of July, assuming that cash is received only from customers and that $40,000 is paid out during April?
A) $20,000
B) $16,800
C) $6,800
D) $10,800
Q3) Refer to Figure 8-8.The flexible budget variance for indirect labor for 2011 is
A)$1,250 F.
B)$50 F.
C)$150 F.
D)$1,200 U.
Q4) Discuss the features of an ideal budgetary process.
Q5) Compare and contrast static budgets, flexible budgets, and activity-based budgets.
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Standard Costing: a Functional-Based Control Approach
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/76379
Sample Questions
Q1) Refer to Figure 9-1.What is the material price variance for Bender Corporation?
A) $27 (U)
B) $60 (F)
C) $33 (F)
D) $33 (U)
Q2) Variances indicate
A) the cause of the variance.
B) who is responsible for the variance.
C) that actual performance is not going according to plan.
D) when the variance should be investigated.
Q3) What is the standard activity level on which Crawford based its fixed overhead rate?
A) 110,000 direct labor hours
B) 105,000 direct labor hours
C) 100,000 direct labor hours
D) 50,000 direct labor hours
Q4) Compare and contrast mix and yield variances.
Q5) How are standards developed? What is the difference between ideal and currently attainable standards?
11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Decentralization: Responsibility Accounting, Performance
Evaluation, and Transfer Pricing
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/76397
Sample Questions
Q1) Hasslehoff Inc., is a multinational company with divisions around the world.Division A in the United States purchases a part from Division G in Canada.There is no outside market for the part.The part is sold for $12 and normally receives a 20% markup on cost. What is the transfer price using the resale price method?
A) $10
B) $9.60
C) $12
D) $14.40
Q2) Which of the following departments would NOT be a cost center?
A) advertising department
B) city police department
C) building and grounds department
D) sales department
Q3) The company uses the opportunity cost approach to transfer pricing.What is the minimum transfer price in Case 1?
A) $90
B) $86
C) $83
D) $73
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Strategic Cost Management
Available Study Resources on Quizplus for this Chatper
121 Verified Questions
121 Flashcards
Source URL: https://quizplus.com/quiz/76396
Sample Questions
Q1) The operational activity of assembling parts is an example of a A) unit-level activity.
B) batch-level activity.
C) product-level activity.
D) facility-level activity.
Q2) Which of the following is NOT a stage of the production life-cycle viewpoint?
A) design
B) introduction
C) research
D) testing
Q3) If research and development costs and marketing costs are traced to each product, life-cycle income for Product B would be
A) $35,000.
B) $20,000.
C) $12,000.
D) $7,000.
Q4) Explain the difference between acceptable quality level and total quality control.
To view all questions and flashcards with answers, click on the resource link above.
13
Chapter 12: Activity-Based Management
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/76395
Sample Questions
Q1) If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for inspections was $5,000, the total variance for inspections is
A) $2,000 favorable.
B) $2,000 unfavorable.
C) $1,000 favorable.
D) $1,000 unfavorable.
Q2) The capacity variance is composed of the unused capacity variance and
A) the activity volume variance.
B) the used capacity variance.
C) the activity benchmark.
D) the value-added standard.
Q3) The non-value-added costs are
A) $72.
B) $66.
C) $12.
D) $6.
Q4) Describe how the activity-based management model combines the process and costing views.What are the steps involved in each? What are the objectives of the activity-based management system?
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: The Balanced Scorecard: Strategic-Based Control
Available Study Resources on Quizplus for this Chatper
92 Verified Questions
92 Flashcards
Source URL: https://quizplus.com/quiz/76394
Sample Questions
Q1) The theoretical velocity per hour is
A) 1.8 units.
B) 2.0 units.
C) 0.5 units.
D) 0.55units.
Q2) A strategy map
A) links the cause-and-effect relationships in the proposed strategy, creating a testable strategy.
B) maps the organization's strategies over time.
C) documents the performance results of an organization.
D) strategizes about the organization's competitors.
Q3) Which of the following statements is true regarding lag measures?
A) lag measures are measures that relate to customers
B) lag measures are factors that drive future performance
C) lag measures are performance drivers
D) lag measures include measures such as customer profitability
Q4) Activity-based responsibility and strategic-based responsibility incorporate some of the same elements.However, strategic-based responsibility adds some new elements to the common dimensions.What are the elements in common and what new elements are included?
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Quality and Environmental Cost Management
Available Study Resources on Quizplus for this Chatper
157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/76393
Sample Questions
Q1) An example of additional revenue that might result from environmental activities is A) revenue from recycling.
B) finding new applications for waste.
C) increased sales as a result of improved environmental image.
D) all of these.
Q2) Which of the following is NOT a detection activity?
A) inspecting products and processes
B) developing environmental performance measures
C) testing for contamination
D) operating pollution control equipment
Q3) What is the packing cost per unit of Product X1?
A) $0.60
B) $0.90
C) $0.30
D) $0.24
Q4) In 2013, Shelby Foods instituted a quality improvement program.At the end of 2014, the management of the corporation requested a report to show the amount saved by the measures taken during the year.The actual sales and actual quality costs for 2013 and 2014 are as follows:
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Lean Accounting and Productivity Measurement
Available Study Resources on Quizplus for this Chatper
137 Verified Questions
137 Flashcards
Source URL: https://quizplus.com/quiz/76392
Sample Questions
Q1) Explain the difference between technical and input trade-off efficiency.
Q2) What is the partial operational productivity measure for materials for 2011?
A) 0.3125
B) 0.6250
C) 3.2000
D) 3.2500
Q3) By how much did profits change as a result of changes in productivity related to labor?
A) $1,650.00 decrease
B) $1,650.00 increase
C) $1,237.50 decrease
D) $1,237.50 increase
Q4) Which of the following is a reason traditional costing approaches may NOT work in a lean manufacturing environment?
A) Standard costing variances encourage overproduction.
B) Distorted product costs may conceal the outcome of success of a lean system.
C) Traditional operational controls work against demand-pull systems.
D) All of these.
Q6) Discuss the linkage between quality and productivity. Page 17
Q5) Explain the difference between partial and total measures of productivity.
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 16: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/76391
Sample Questions
Q1) In multiple-product analysis, direct fixed costs are
A) fixed costs that are not traceable to the segments and would remain even if one of the segments were eliminated.
B) fixed costs which can be traced to each segment and would remain even if one of the segments were eliminated.
C) fixed costs that are not traceable to the segments and would be avoided if the segment did not exist.
D) the fixed costs which can be traced to each segment and would be avoided if the segment did not exist.
Q2) Baker Company sells its product for $60.In addition, it has a variable cost ratio of 40 percent and total fixed costs of $9,000.How many units must be sold in order to obtain a before-tax profit of $12,000?
A) 350 units
B) 584 units
C) 875 units
D) 333 units
Q3) In the Cost-Volume-Profit analysis, what are two ways management can deal with risk and uncertainty?
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 17: Activity Resource Usage Model and Tactical
Decision Making
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/76390
Sample Questions
Q1) Which of the following costs is NOT relevant for special decisions?
A) incremental costs
B) sunk costs
C) avoidable costs
D) all of the above costs are relevant for special decisions
Q2) ______________ are future costs that differ across alternatives.
A) Relevant costs
B) Irrelevant costs
C) Sunk costs
D) Past costs
Q3) What is the effect on profits if Miller Company packages the speakers?
A) decrease of $36,000
B) decrease of $24,000
C) increase of $36,000
D) no change
Q4) The product margin for product M using ABC would be
A) $9,000.
B) $13,840.
C) $19,000.
D) $27,000.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 18: Pricing and Profitability Analysis
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/76389
Sample Questions
Q1) What is the net income for Barmore Company?
A) $300,000
B) $20,500
C) $150,000
D) $32,500
Q2) What is the markup based on cost of goods sold?
A) 50.0%
B) 100.0%
C) 37.5%
D)
Q3) Which of the following statements is FALSE?
A) The markup is a percentage applied to base cost.
B) The markup is an absolute rule.
C) A major advantage of markup pricing is that standard markups are easy to apply.
D) The markup can be calculated using a variety of bases.
Q4) Compare and contrast the various pricing policies used by companies.
Q5) Discuss the limitation of profit measurement.
Q6) What are some of the pricing practices regulated by law?
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 19: Capital Investment
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/76388
Sample Questions
Q1) Explain what a capital investment decision is.In your answer, distinguish between independent and mutually exclusive capital investment decisions.
Q2) The internal rate of return is defined as
A) a blend of the costs of capital from all sources.
B) the minimal acceptable interest rate on investments.
C) the difference between the present value of the cash inflows and outflows associated with a project.
D) the interest rate that sets the present value of a project's cash inflows equal to the present value of a project's cost.
Q3) Cooper Industries is considering a project that would require an initial investment of $101,000.The project would result in cost savings of $62,000 in year 1 and $70,000 in year 2.The internal rate of return is
A) between 16% and 17%.
B) between 18% and 20%.
C) under 15%.
D) none of these.
Q4) What are the differences that affect capital investment decisions regarding advanced technology and environmental considerations?
To view all questions and flashcards with answers, click on the resource link above.
Page 22
Chapter 20: Inventory Management: Economic Order
Quantity, Jit, and the Theory of Constraints
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/76386
Sample Questions
Q1) The Kanban system is used to
A) ensure parts or materials are available when needed.
B) signal when preventive maintenance is needed.
C) signal when a defective unit has been produced.
D) ensure idle time of workers is not wasted.
Q2) Which of the following elements could be determined by using the economic order quantity formula?
A) the optimum size of production run
B) reorder point
C) safety stock
D) annual demand
Q3) The objectives of JIT are achieved by
A) controlling costs.
B) improving delivery performance.
C) improving quality.
D) all of these.
To view all questions and flashcards with answers, click on the resource link above. Page 23