Managerial Accounting Final Exam Questions
Course Introduction
Managerial Accounting is a course designed to introduce students to the fundamental concepts and techniques used by managers to make informed business decisions. The course covers the analysis and interpretation of financial data for internal use, focusing on budgeting, cost behavior, performance evaluation, and decision-making processes. Students learn how to use accounting information to plan, control, and assess business operations, including the use of standard costing, variance analysis, and relevant cost analysis for short-term and long-term decisions. Emphasis is placed on the application of these concepts to real-world business scenarios, preparing students to contribute effectively to strategic planning and management in various organizational settings.
Recommended Textbook
Horngren's Accounting The Managerial Chapters 10th Edition by Tracie L. Miller Nobles
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9 Chapters
1348 Verified Questions
1348 Flashcards
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Chapter 1: Introduction to Managerial Accounting
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179 Verified Questions
179 Flashcards
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Sample Questions
Q1) Transportation costs paid to ship raw materials to a company warehouse are considered product costs.
A)True
B)False
Answer: True
Q2) Which of the following is most likely a service company?
A) a law firm
B) a car manufacturer
C) a fruit seller
D) a baker
Answer: A
Q3) What is the amount of direct labor incurred by Jasper in March?
A) $29,600
B) $39,870
C) $126,970
D) $23,030
Answer: D
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Page 3
Chapter 2: Job Order Costing
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152 Verified Questions
152 Flashcards
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Sample Questions
Q1) The amount of taxes and insurance incurred and paid for the plant of a manufacturing company should be debited to the Manufacturing Overhead account.
A)True
B)False
Answer: True
Q2) The journal entry to record $1,500 of direct labor and $200 of indirect labor incurred will include debit(s) to the:
A) Manufacturing Overhead account for $1,700.
B) Work-in-Process Inventory account for $1,500 and Finished Goods Inventory account for $200.
C) Finished Goods Inventory account for $1,700.
D) Work-in-Process Inventory account for $1,500 and Manufacturing Overhead account for $200.
Answer: D
Q3) For a service company, such as an accounting firm, each client is considered a job. A)True
B)False
Answer: True
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4
Chapter 3: Process Costing
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144 Flashcards
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Sample Questions
Q1) Process costing is the most appropriate costing method for a restaurant serving specialty cuisine.
A)True
B)False
Answer: False
Q2) Cost amounts that are transferred out of one process become the transferred in cost for the next process.
A)True
B)False
Answer: True
Q3) Productions costs are transferred from one Work-in-Process Inventory account to the next and eventually to:
A) Manufacturing Overhead.
B) Sales Revenue.
C) Finished Goods Inventory.
D) Accounts Payable.
Answer: C
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Page 5
Chapter 4: Cost-Volume-Profit Analysis
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Sample Questions
Q1) Dorothy Products sells its products for $20 per unit. Additional data for the month of April, 2014, are as follows: \[\begin{array} { | l | r | }
\hline \text { Beginning inventory } & 0 \text { units } \\
\hline \text { Units produced } & 8,000 \\
\hline \text { Units sold } & 7,500 \\
\hline \text { Ending inventory } & 500 \\
\hline \text { Direct materials } & \$ 4 \text { per unit } \\
\hline \text { Direct labor } & \$ 8 \text { per unit } \\
\hline \text { Variable manufacturing overhead } & \$ 20,000 \\
\hline \text { Fixed manufacturing overhead } & \$ 14,000 \\
\hline \text { Operating expenses } & \$ 21,000 \\
\hline
\end{array}\] Using variable costing, calculate the product cost per unit produced.
A) $12.00 per unit
B) $16.25 per unit
C) $14.50 per unit
D) $13.75 per unit
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6
Chapter 5: Master Budgets
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114 Flashcards
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Sample Questions
Q1) A flexible budget is prepared to represent different levels of sales volume.
A)True
B)False
Q2) Budgeting requires managers to decide upon the course of action and then to plan for the same.
A)True
B)False
Q3) Developing a budget reduces coordination and communication at different levels in an organization.
A)True
B)False
Q4) Sensitivity analysis is a what-if technique.
A)True
B)False
Q5) Based on the new data, calculate the new projected cash balance at the end of July.
A) $8,500
B) $2,400
C) $7,000
D) $900
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Chapter 6: Flexible Budgets and Standard Cost Systems
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Sample Questions
Q1) Elite Brands Company uses standard costs for their manufacturing division. Standards specify 0.1 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data: \(\begin{array}{ll}
\text { Production volume } & 6,000 \text { units } \\
\text { Estimated variable overhead costs } & \$ 13,500 \\
\text { Estimated direct labor hours } & 600 \text { hours } \end{array}\) At the end of the year, actual data were as follows: \(\begin{array}{ll}
\text { Production volume } & 4,000 \text { units } \\
\text { Actual variable overhead costs } & \$ 15,000 \\
\text { Actual direct labor hours } & 480 \text { hours } \end{array}\) How much is the standard cost per direct labor hour for variable overhead?
A) $22.50 per direct labor hour
B) $33.75 per direct labor hour
C) $28.12 per direct labor hour
D) $25.00 per direct labor hour
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Chapter 7: Cost Allocation and Responsibility Accounting
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130 Flashcards
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Sample Questions
Q1) Which of the following statements most accurately describes the company's "climate for action?"
A) a corporate culture that encourages communication, change, and growth
B) a corporate culture that is focused on strong, top-down command and control
C) a corporate culture which is aimed exclusively at period earnings
D) a corporate culture that encourages physical activity, sports and recreation to improve employee health and morale
Q2) A system of evaluating the performance of each responsibility center and its manager is known as responsibility accounting system.
A)True
B)False
Q3) What is the total manufacturing cost per ceiling fan?
A) $125.75
B) $121.13
C) $115.32
D) $124.30
Q4) Activity-based costing uses a common allocation base for all activities.
A)True B)False
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Chapter 8: Short-Term Business Decisions
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161 Flashcards
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Sample Questions
Q1) Enthusiastic Products is deciding whether to outsource production of a certain component that is included in all of its products. It currently costs Enthusiastic Products $1.20 to make each component in-house. If Enthusiastic Products outsources, it can buy the component ready-made for $0.90 each, and can shut down the production facilities it is currently using to manufacture the component, and save $20,000 a year in fixed costs. Annual requirement for the component is 12,000 units. What is the effect of outsourcing?
Q2) In deciding whether to accept a special sales order, management should only consider the quantitative data and disregard qualitative factors.
A)True
B)False
Q3) A sunk cost is a cost that was incurred in the past and cannot be changed regardless of which future action is taken.
A)True
B)False
Q4) Price-setters emphasize a cost-plus pricing approach.
A)True
B)False
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Page 10
Chapter 9: Capital Investment Decisions
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Sample Questions
Q1) Which of the following most accurately describes the term annuity?
A) an investment which produces increasing cash flows overtime
B) an installment loan with amortizing principal payments
C) a stream of equal installments of cash flows made at equal time intervals
D) a term life insurance policy
Q2) Which of the following most accurately describes the discount rate used in NPV analysis?
A) the rate of inflation
B) the rate of interest earned on a savings account
C) the required rate of return or the hurdle rate
D) the rate of interest charged for debt financing of an investment
Q3) The payback considers only those cash flows that occur during the payback period and ignores any cash flows that occur after that period.
A)True
B)False
Q4) The residual value is discounted as a single lump sum because it will be received only once at the end of life of the asset.
A)True
B)False
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