Managerial Accounting Exam Questions
Course Introduction
Managerial Accounting focuses on the use of accounting information by managers within organizations to inform decision-making, planning, and control processes. This course covers key concepts such as cost behavior, budgeting, performance evaluation, and variance analysis. Students learn how to prepare and interpret internal financial reports, utilize relevant cost information for decision-making, and apply various costing methods such as job order and activity-based costing. Emphasis is placed on using accounting data to optimize operational efficiency, support strategic planning, and drive organizational success.
Recommended Textbook
Horngrens Cost Accounting A Managerial Emphasis 3rd Australian Edition by Charles Horngren
Available Study Resources on Quizplus
21 Chapters
3782 Verified Questions
3782 Flashcards
Source URL: https://quizplus.com/study-set/3568 Page 2
Chapter 1: Management Accounting in Context
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/70842
Sample Questions
Q1) Financial accounting reports financial and non-financial information that helps managers implement company strategies.
A)True
B)False
Answer: False
Q2) The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as:
A)enterprise resource planning.
B)customer value management.
C)value chain management.
D)cost management.
Answer: D
Q3) The process of preparing a budget:
A)forces coordination and communication across business functions.
B)reduces overcapacity.
C)promotes production automation.
D)increases accounting efficiencies.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Different Costs for Different Purposes
Available Study Resources on Quizplus for this Chatper
324 Verified Questions
324 Flashcards
Source URL: https://quizplus.com/quiz/70843
Sample Questions
Q1) Absorption costing:
A)treats direct manufacturing costs as a period cost.
B)includes fixed manufacturing overhead as an inventoriable cost.
C)expenses marketing costs as cost of goods sold.
D)is required for internal reports to managers.
Answer: B
Q2) Some costs have both fixed and variable elements and are called mixed or ________ costs.
A)allocated
B)estimated
C)accumulated
D)semi-variable
Answer: D
Q3) An actual cost is the cost incurred (a historical or past cost),as distinguished from a budgeted cost,which is a predicted or forecasted cost (a future cost).
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Determining How Costs Behave
Available Study Resources on Quizplus for this Chatper
182 Verified Questions
182 Flashcards
Source URL: https://quizplus.com/quiz/70844
Sample Questions
Q1) The first step in estimating a cost function using quantitative analysis is to identify the independent variable.
A)True
B)False
Answer: False
Q2) In multiple regressions,when two or more independent variables are correlated with one another,the situation is known as:
A)multicollinearity.
B)heteroscedasticity.
C)homoscedasticity.
D)auto-correlation.
Answer: A
Q3) The 'conference method' estimates cost functions:
A)using time-and-motion studies.
B)using quantitative methods that can be very time-consuming and costly.
C)based on analysis and opinions gathered from various departments.
D)by mathematically analysing the relationship between inputs and outputs in physical terms.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Costvolumeprofit Analysis
Available Study Resources on Quizplus for this Chatper
211 Verified Questions
211 Flashcards
Source URL: https://quizplus.com/quiz/70845
Sample Questions
Q1) What is the operating profit,assuming actual sales total 150 000 units,and the sales mix is two units of Product Q and one unit of Product P?
A)$1 200 000
B)$1 250 000
C)$1 750 000
D)None of these answers are correct.
Q2) If contribution margin decreases by $1 per unit,then operating profits will increase by $1 per unit.
A)True
B)False
Q3) The selling price per unit is $30,variable cost per unit $20,and fixed cost per unit is $3.When this company operates above the break-even point,the sale of one more unit will increase net profit by $7.
A)True
B)False
Q4) In CVP analysis,variable costs include direct variable costs,but do not include indirect variable costs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Estimating the Cost of Producing Services
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/70846
Sample Questions
Q1) If you identify as many direct costs as is economically feasible,this increases the amount of costs classified as indirect,thereby minimising the extent to which costs have to be allocated rather than traced.
A)True
B)False
Q2) How does Schmenner classify services?
Q3) Degree of variation captures the extent to which the service provider customises its services and interacts with its customers.
A)True
B)False
Q4) A cost driver causes a change in the cost of an activity and has an effect on costs.Managers use cost drivers to allocate overhead costs to cost objects. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Estimating the Costs of Products and Inventory
Available Study Resources on Quizplus for this Chatper
356 Verified Questions
356 Flashcards
Source URL: https://quizplus.com/quiz/70847
Sample Questions
Q1) Manufacturing overhead costs are allocated to individual job-cost records with the use of indirect-cost rates.
A)True
B)False
Q2) Many companies use variable costing for internal reporting to reduce the undesirable incentive to build up inventories.
A)True
B)False
Q3) The production-volume variance is:
A)$2400
B)$1500
C)0
D)$2000
Q4) One reason indirect costs may be underapplied is if actual indirect costs exceed budgeted indirect costs.
A)True
B)False
Q5) Maroubra Company has the following balances as of the year ended 31 December 2018.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Target Costing, Managing Activities and Managing Capacity
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/70848
Sample Questions
Q1) Mt Safety Avionics currently sells radios for $1800 each.Each radio costs $1400 to make.A competitor is introducing a new radio that will sell for $1600.Mt Safety believes it must lower the price to $1600 to compete in the market for radios.However,its Marketing Department believes that the new price will cause sales to increase by 10%,even with a new competitor in the market.Mt Safety's sales are currently 1000 radios per year.
Required:
a.What is the target cost if target operating profit is 25% of sales?
b.What is the change in operating profit if marketing is correct and only the sales price is changed?
c.What is the target cost if the company wants to maintain its same profit level,and marketing is correct?
Q2) The first step in target pricing is to determine the target cost of the product.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 8: Activity-Based Management and Activity-Based Costing
Available Study Resources on Quizplus for this Chatper
230 Verified Questions
230 Flashcards
Source URL: https://quizplus.com/quiz/70849
Sample Questions
Q1) Department-costing systems are a further refinement of ABC systems.
A)True
B)False
Q2) During October,Flinders produced 700 000 regular ceramic paperweights and Flinders' production manager counted 2000 orders;1000 maintenance-hours;2000 set-ups;and 2000 inspections for the regular product line.For October,Flinders' controller assigned ________ indirect costs to the regular product line.
A)$43 000
B)$25 000
C)$34 000
D)None of these answers are correct.
Q3) To be useful for planning,control and making decisions,managers specify budgeted costs for activities and use ________ cost-driver rates to estimate the cost of outputs.
A)actual
B)estimated
C)budgeted
D)historical
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Pricing and Customer Profitability
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/70850
Sample Questions
Q1) What factors may influence the level of mark-ups?
Q2) To determine whether or not a product,customer,program or department is profitable,managers must ________ costs.
A)determine
B)calculate
C)assign
D)evaluate
Q3) Companies try to keep their best customers happy in a number of ways,including special phone numbers and upgrade privileges for elite-level frequent flyers and free usage of luxury hotel suites and big credit limits for high-rollers at casinos.
A)True
B)False
Q4) When demand is elastic,an increase in price will lead to an increase in profits.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Decision Making and Relevant Information
Available Study Resources on Quizplus for this Chatper
211 Verified Questions
211 Flashcards
Source URL: https://quizplus.com/quiz/70851
Sample Questions
Q1) What is a mathematical inequality or equality that must be appeased called?
A)Constraint
B)Objective function
C)Business function
D)Operating policy
Q2) One type of decision that affects ________ levels is accepting or rejecting special orders when there is idle production capacity and the special orders have no long-run implications.
A)input
B)relevant
C)output
D)financial
Q3) TOC emphasises management of _________ operations as the key to improving performance of production operations as a whole.
A)sunk
B)manufacturing
C)bottleneck
D)relevant
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Budgeting, Management Control and Responsibility Accounting
Available Study Resources on Quizplus for this Chatper
215 Verified Questions
215 Flashcards
Source URL: https://quizplus.com/quiz/70852
Sample Questions
Q1) The number of units to be produced is the key to computing the usage of direct materials in quantities and in dollars.
A)True
B)False
Q2) A rolling budget is created by continually adding a month,quarter or ___________ to the period that just ended.
A)week
B)year
C)day
D)weekend
Q3) If we increase the selling price of our product,we can always expect an increase in total revenue.
A)True
B)False
Q4) Budgets help managers assess strategic risks and opportunities (including both environmental and social opportunities)by providing them with feedback about the likely effects of their strategies and plans.
A)True
B)False
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Flexible Budgets, Direct Cost Variances and Management Control
Available Study Resources on Quizplus for this Chatper
246 Verified Questions
246 Flashcards
Source URL: https://quizplus.com/quiz/70853
Sample Questions
Q1) What is the sales-quantity variance?
A)$800 F
B)$1200 U
C)$400 U
D)The variance cannot be determined.
Q2) What is the total static-budget variance?
A)$5200 favourable
B)$1880 favourable
C)$3320 favourable
D)$1880 unfavourable
Q3) Cost control is the focus of the sales-volume variance.
A)True
B)False
Q4) An unfavourable variance is conclusive evidence of poor performance. A)True
B)False
Q5) A flexible budget is calculated at the start of the budget period.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Flexible Budgets, Overhead Cost Variances and Management Control
Available Study Resources on Quizplus for this Chatper
170 Verified Questions
170 Flashcards
Source URL: https://quizplus.com/quiz/70854
Sample Questions
Q1) Under activity-based costing,the flexible-budget amount equals the static-budget amount for fixed overhead costs.
A)True
B)False
Q2) Detailed 4-variance analyses are most common in large,complex businesses.
A)True
B)False
Q3) Explain the meaning of a favourable production-volume variance.
Q4) How is a budgeted fixed overhead cost rate calculated?
Q5) Explain why sales-volume variance could be helpful to managers.
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Allocation of Support-Department Costs,
Common Costs and Revenues
Available Study Resources on Quizplus for this Chatper
137 Verified Questions
137 Flashcards
Source URL: https://quizplus.com/quiz/70855
Sample Questions
Q1) Explain why organisations use budgeted rates instead of actual rates to allocate the costs of support departments to each other and to user departments and divisions.
Q2) If the stand-alone method were used,what amount of cost would be allocated to the start-up business?
A)$440 000
B)$20 000
C)$80 000
D)$115 500
Q3) Which of the following is NOT one of the three methods of allocating support department costs to operating departments?
A)Direct method
B)Incremental method
C)Reciprocal method
D)Step-down method
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Strategy Formation, Strategic Control and the Balanced Scorecard
Available Study Resources on Quizplus for this Chatper
157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/70856
Sample Questions
Q1) A 'strategy map' is a diagram that shows how an organisation creates value by connecting strategic objectives in explicit cause-and-effect relationships with one another in the financial,customer,internal-business-process,and learning-and-growth perspectives.
A)True
B)False
Q2) What is the revenue effect of the price-recovery component?
A)$47 500 F
B)$51 500 U
C)$50 000 F
D)$2500 U
Q3) Measures of the balanced scorecard's customer perspective include:
A)market share.
B)employee satisfaction ratings.
C)revenue growth.
D)number of process improvements.
Q4) Productivity measures the relationship between actual inputs used (both quantities and costs)and standard outputs produced.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Quality, Time and the Balanced Scorecard
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/70857
Sample Questions
Q1) What is the average waiting time,in minutes?
A)7
B)3
C)5
D)2
Q2) The costs relating to new materials testing are classified as appraisal costs.
A)True
B)False
Q3) Managers must improve ________________ business processes because they affect many of the quality-related factors that influence customer satisfaction and improve financial performance.
A)external
B)strategic
C)internal
D)customer
Q4) Customer-response time is a measure of how long it takes for the customer to return a call.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Inventory Management, Just-In-Time and Simplified Costing Methods
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/70858
Sample Questions
Q1) The freight and transportation costs on goods acquired from suppliers are generally included in purchasing costs.
Variant question
A)True
B)False
Q2) As it pertains to purchase orders,what are requirements of just-in-time systems?
Variant question
A)Larger and more frequent purchase orders
B)Larger and less frequent purchase orders
C)Smaller and less frequent purchase orders
D)Smaller and more frequent purchase orders
Q3) All of the following are potential financial benefits of just-in-time EXCEPT:
A)lower investments in plant space for inventories.
B)lower investments in inventories.
C)reducing the risk of obsolescence of products.
D)reducing manufacturing lead time.
Q4) The economic order quantity (EOQ)model solely guides just-in-time purchasing.
Variant question
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Capital Budgeting and Cost Analysis
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/70859
Sample Questions
Q1) A 'what-if' technique that examines how a result will change if the original predicted data are not achieved or if an underlying assumption changes is called:
A)adjusted rate-of-return analysis.
B)sensitivity analysis.
C)internal rate-of-return analysis.
D)net present value analysis.
Q2) Post-investment audits:
A)provide management with feedback about the performance of a project.
B)are usually not feasible in a large project because the cost accounting system does not collect actual costs at the same level of detail as the initial plans had.
C)include obtaining appropriation requests so that the funding will be authorised to purchase the equipment.
D)should be done as soon as possible after the investment is made.
Q3) Capital budgeting focuses on projects over their entire lives to consider all the cash flows or cash savings from investing in a single project.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Management Control Systems, Transfer Pricing and
Multinational Considerations
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/70860
Sample Questions
Q1) The choice of a transfer-pricing method has minimal effect on the allocation of company-wide operating profit among divisions.
A)True
B)False
Q2) ________ means minimum constraints and maximum freedom for managers at the lowest levels of an organisation to make decisions and to take actions.
A)Total decentralisation
B)Use of negotiated transfer pricing
C)Use of market-based transfer pricing
D)Total centralisation
Q3) Which of the following is NOT a benefit of decentralisation?
A)Sharpens the focus of managers
B)Leads to quicker decision making
C)Decreases management and worker morale
D)Creates greater responsiveness to local needs
Q4) If a firm uses a cost-based transfer price,its selling division will never be able to achieve goal congruence.
A)True
B)False
21
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Performance Measurement, Compensation
and Multinational Considerations
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/70861
Sample Questions
Q1) What is the value of the operating assets belonging to the Beta Division?
A)$4 333 333
B)$5 952 380
C)$6 500 000
D)$7 151 800
Q2) Many common performance measures,such as customer satisfaction,rely on internal financial accounting information.
A)True
B)False
Q3) What is the value of the operating assets belonging to the Jetski Division?
A)$2 250 000
B)$1 750 000
C)$2 000 000
D)$3 750 000
Q4) What is the Jetski Division's investment turnover?
A).50
B)2.5
C)2.0
D)1.0
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Measuring and Reporting Sustainability
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/70862
Sample Questions
Q1) What is the world's most widely used sustainability reporting framework referred to as?
A)The Global Reporting Initiative
B)The International Standards for Environmental Management
C)The Corporate Social Responsibility Reporting Framework
D)The Australian Sustainability Index
Q2) Briefly explain what is meant by 'environmental management accounting' (EMA).
Q3) Sustainability does not include:
A)climate change.
B)recycling.
C)the impact of globalisation on living standards in developing countries.
D)None of the above are excluded.
Q4) Currently,very few organisations are truly sustainable.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23