Managerial Accounting Exam Review
Course Introduction
Managerial Accounting focuses on the internal use of accounting information by managers within organizations to aid in planning, controlling, and decision-making processes. The course covers key topics such as cost behavior and analysis, budgeting, performance evaluation, and the development of financial strategies to enhance organizational efficiency and profitability. Students will learn to interpret financial data, prepare relevant managerial reports, and apply various analytical tools to support business decisions. Emphasis is placed on practical applications and real-world scenarios to equip future managers with the skills necessary for effective resource management.
Recommended Textbook
Cornerstones of Managerial Accounting 2nd Canadian Edition by Maryanne Mowen
Available Study Resources on Quizplus
14 Chapters
2059 Verified Questions
2059 Flashcards
Source URL: https://quizplus.com/study-set/3658
Page 2
Chapter 1: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/72830
Sample Questions
Q1) Positions that have direct responsibility for the basic objectives of an organization are referred to as staff positions.
A)True
B)False
Answer: False
Q2) CMA,CGA and CA organizations have recently have been brought together under a new professional body called CPA Canada.
A)True
B)False Answer: True
Q3) The process of choosing among competing alternatives is decision making. A)True
B)False Answer: True
Q4) Management accounting information is important for both for-profit and not-for-profit organizations.
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
156 Verified Questions
156 Flashcards
Source URL: https://quizplus.com/quiz/72829
Sample Questions
Q1) Which of the following is included in nonmanufacturing costs?
A) marketing
B) direct materials
C) indirect materials
D) overhead
Answer: A
Q2) Direct materials,direct labour,and overhead are the three classifications of manufacturing costs.
A)True
B)False
Answer: True
Q3) Refer to the Figure.What were the total manufacturing costs in July?
A) $50,000
B) $69,600
C) $70,100
D) $71,000
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Cost Behaviour
Available Study Resources on Quizplus for this Chatper
186 Verified Questions
186 Flashcards
Source URL: https://quizplus.com/quiz/72828
Sample Questions
Q1) Direct labour
A)Variable
B)Fixed
Answer: A
Q2) Refer to the Figure.Assume that 400 machine hours are budgeted.What would be the budgeted cost for maintenance next month?
A) $985
B) $2,943
C) $3,928
D) $4,913
Answer: D
Q3) Internet advertising
A)Discretionary
B)Committed
Answer: A
Q4) The slope of a mixed cost line is equal to the variable cost per unit element of the cost.
A)True
B)False
Answer: True
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
160 Verified Questions
160 Flashcards
Source URL: https://quizplus.com/quiz/72827
Sample Questions
Q1) What formula is used to calculate the number of units needed to earn a desired profit?
A) (fixed costs + variable costs) / sales
B) (fixed costs + desired profit) / sales
C) (fixed costs + desired profit) / contribution margin per unit
D) (fixed costs + variable costs) / contribution margin per unit
Q2) What formula is used to calculate the degree of operating leverage?
A) contribution margin / profit
B) profit / fixed costs
C) profit / variable costs
D) total sales / profit
Q3) Refer to the Figure.What is the contribution margin per unit?
A) $5.00
B) $5.40
C) $6.00
D) $6.30
Q4) In the equation to determine the number of units that must be sold to earn a target income,targeted income is added to fixed expense in the numerator.
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
176 Verified Questions
176 Flashcards
Source URL: https://quizplus.com/quiz/72826
Sample Questions
Q1) Refer to the Figure .What is the total cost of Job 3?
A) $112,000
B) $134,600
C) $145,800
D) $229,000
Q2) Departmental overheads can be added together to get plantwide overhead.
A)True
B)False
Q3) Which of the following types of businesses is most likely to use a process-costing system?
A) print shop
B) doctor's office
C) home building
D) petroleum
Q4) Refer to the Figure.Which of the following best represents the departmental overhead rates?
A) Applied overhead for the testing department is $4,860.
B) Applied overhead for the assembly department is $54,000.
C) Applied overhead for both departments combined is $63,720.
D) Overhead for the assembly department is underapplied.
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/72825
Sample Questions
Q1) Green Company adds materials at the beginning of the process in the forming department,which is the first of two stages of its production cycle.Information concerning the materials used in the forming department in May follows: \(\begin{array}{lll}&&\text { Materials }\\&\text { Units }&\text { Costs }\\ \text { Work in process at May } 1 & 15,000 & \$ 8,000 \\ \text { Units started during May } & 60,000 & \$ 38,500\\\text { Units completed and transferred to next department }\\\text { during May }&65,000 \end{array}\) Using the FIFO method,what is the materials cost of the work in process at May 31? (Round unit calculations to the nearest cent.)
Q2) Which two methods are used to determine equivalent units of production in process costing?
A) weighted average and FIFO
B) FIFO and LIFO
C) exact costing and LIFO
D) weighted average and exact costing
Q3) Describe the differences between sequential and parallel processing.
Q4) Describe the differences between process costing and job-order costing.
Q5) List the five steps in preparing a production report.
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
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/72824
Sample Questions
Q1) What is the term for the process of choosing among different sets of activities caused by competing strategies?
A) activity elimination
B) activity reduction
C) activity costing
D) activity selection
Q2) Refer to the Figure.What is the cost for inspection?
A) $50,500
B) $52,000
C) $54,000
D) $56,000
Q3) Costs necessary to perform value-added activities with perfect efficiency.
A)Activity analysis
B)Value-added costs
C)Velocity
D)Activity inputs
E)Activity output measure
F)Activity output
Q4) What is the activity based costing hierarchy? Give an example for each.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Absorption and Variable Costing,and Inventory Management
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/72823
Sample Questions
Q1) If the number of units produced in a period is smaller than the number of units sold in period,absorption costing income will be higher than variable costing income.
A)True
B)False
Q2) Refer to the Figure.What is the cost of ending inventory for Westwood using the variable costing method?
A) $80,000
B) $120,000
C) $180,000
D) $320,000
Q3) Refer to the Figure.What is the value of ending inventory when using the variable costing method?
A) $288,000
B) $320,000
C) $250,000
D) $390,000
Q4) Product cost includes all costs of the company.
A)True
B)False
10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Budgeting, production, cash, and Master Budget
Available Study Resources on Quizplus for this Chatper
166 Verified Questions
166 Flashcards
Source URL: https://quizplus.com/quiz/72822
Sample Questions
Q1) A company has provided a sales budget for the next four months (January,February,March,and April).It bases its production budget on the sales budget.According to company policy,each month's ending inventory of finished product must be equal to 25% of the following month's sales needs.The direct materials purchases budget is based on the production budget.Company policy states that each month's ending inventory of raw materials must be equal to 10% of the following month's production needs for raw materials.For how many months can the company prepare direct materials purchases budgets?
A) one month
B) two months
C) three months
D) four months
Q2) Refer to the Figure.What is the total overhead budgeted for the month of June?
A) $42,100
B) $80,000
C) $92,100
D) $160,000
Q3) Describe some problems with participative budgeting.
Q4) What are the advantages of budgeting?
Q5) Does a not-for-profit agency need to budget? Why or why not?
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
174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/72821
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) Refer to the Figure.How many standard hours are allowed for a volume of 10,000 airplanes?
A) 60,000 hours
B) 65,000 hours
C) 70,000 hours
D) 420,000 hours
Q3) Actual usage of inputs is less than the standard usage.
A)Favourable variance
B)Unfavourable variance
Q4) A favourable usage variance would occur when the actual usage of inputs is greater than the standard usage.
A)True
B)False
Q5) How are standards developed?
Q6) 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/72820
Sample Questions
Q1) What is the formula for fixed overhead volume variance?
A) (AFOH SFOR)× SH
B) (AFOH SFOR)× AH
C) AFOH (SH × SFOR)
D) (AFOH SFOR)× SH.
Q2) In an activity framework,what do controlling costs translate into?
A) managing activities
B) reducing direct labour hours
C) selling more goods
D) carefully identifying resource drivers
Q3) Suppose a company had actual fixed overhead of $99,500,a $3,100 favourable spending variance,and a $700 unfavourable volume variance.What would be the budgeted fixed overhead?
A) $96,400
B) $99,700
C) $100,680
D) $102,600
Q4) Discuss why activity-based flexible budgeting provide a more accurate prediction of costs than a traditional flexible budget.
Q5) Define static budget and flexible budget.What is each type used for?
Page 13
To view all questions and flashcards with answers, click on the resource link above.
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/72819
Sample Questions
Q1) Decentralization is usually achieved by creating units called divisions.
A)True
B)False
Q2) Economic value added (EVA)can be calculated by multiplying margin by turnover.
A)True
B)False
Q3) What are the advantages and disadvantages of return on investment (ROI)?
Q4) The most common measure of performance for an investment centre.
A)Turnover
B)Margin
C)ROI
D)Residual income
Q5) What is the term for the strategic management system that translates an organization's mission and strategy into operational objectives and performance measures?
A) activity-based management
B) responsibility accounting
C) strategic accounting
D) Balanced Scorecard
Q6) Describe the four perspectives of the Balanced Scorecard.
Page 14
To view all questions and flashcards with answers, click on the resource link above.
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/72818
Sample Questions
Q1) Winston Custom Cabinetry makes cabinets to order and prices the completed jobs at product cost plus 40%.Recently,Winston finished a job and billed the customer $560.Suppose direct materials for the job cost $130 and direct labour cost $180.What was the applied overhead for the job?
A) $90
B) $179
C) $250
D) $350
Q2) Sherpa Company manufactures tents and sleeping bags.Tents are priced at $80,have variable costs of $55,and have direct fixed costs of $120,000.Sleeping bags are priced at $60,have variable costs of $35,and have direct fixed costs of $66,000.Common fixed costs equal $200,000.Last year,the division sold 5,000 tents and 10,000 sleeping bags. A. What was the segment margin for tents last year?
B. What was the segment margin for sleeping bags last year?
C. What was Sherpa's operating income last year?
D. If Sherpa stopped making tents, what would operating income be?
Q3) Irrelevant costs are costs that vary across alternatives.
A)True
B)False
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/72817
Sample Questions
Q1) Marco Marousis invested in a project that required an initial amount of $52,160 and returned cash inflows of $10,000 per year for 10 years.A partial table of the present value of an annuity of $1 in arrears is as follows: \(\begin{array}{|c|r|r|r|r|r|r|r|r|}
\hline \text { Year } & 2 \% & 4 \% & 6 \% & 8 \% & 10 \% & 12 \% & 14 \% & 16 \% \\
\hline 10 & 7.983 & 8.111 & 7.360 & 6.710 & 6.145 & 5.650 & 5.216 & 4.833 \\ \hline
\end{array}\) What is the internal rate of return for this investment?
A) 8%
B) 10%
C) 12%
D) 14%
Q2) Which of the following is NOT a benefit of postaudits of capital investments?
A) They consider changes in the actual operating environment.
B) They guide managers to make capital investment in the best interests of the firm.
C) They ensure that resources are used wisely by evaluating profitability.
D) They supply feedback to managers that should help improve decision making.
Q3) Which model of capital investment decision making is most widely used? Why?
To view all questions and flashcards with answers, click on the resource link above.
Page 16