Managerial Accounting Final Exam Questions
Course Introduction
Managerial Accounting focuses on the concepts, techniques, and tools used by managers to make informed business decisions and to plan, control, and evaluate organizational operations. The course covers topics such as cost behavior, cost-volume-profit analysis, budgeting, performance measurement, and responsibility accounting. Students will learn how to analyze financial and non-financial information, prepare internal reports, and apply cost analysis to real-world scenarios, enabling them to support strategic planning and effective resource allocation within an organization.
Recommended Textbook
Horngren's Financial and Managerial Accounting The Managerial Chapters 6th Edition by Tracie
Available Study Resources on Quizplus
12 Chapters
2214 Verified Questions
2214 Flashcards
Source URL: https://quizplus.com/study-set/3465 Page 2
Chapter 15: Accounting Information Systems
Available Study Resources on Quizplus for this Chatper
159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/68871
Sample Questions
Q1) State the purpose of a subsidiary ledger.What is included in the accounts receivable subsidiary ledger?
Q2) An accounting information system is said to have good flexibility,if it ________.
A)works smoothly with the business's employees and organizational structure
B)safeguards a business's assets and reduces the likelihood of fraud and errors
C)provides information that will improve decision making and reduce uncertainty
D)accommodates changes in the business over time
Q3) Triangle Corporation sold a product on credit for $2,235 to Hexagon Sales.The cost of goods sold was $1,324.Assuming Triangle is following a perpetual inventory system and using a sales journal,it will record $2,235 in the ________.
A)Accounts Receivable CR,Sales Revenue DR column
B)Cost of Goods Sold DR,Merchandise Inventory CR column
C)Merchandise Inventory DR,Cost of Goods Sold CR column
D)Accounts Receivable DR,Sales Revenue CR column
Q4) Most small businesses have computerized all of their accounting.
A)True
B)False
Q5) Describe the transactions recorded in the cash payments journal.
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 16: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
230 Verified Questions
230 Flashcards
Source URL: https://quizplus.com/quiz/68870
Sample Questions
Q1) Citrine Manufacturing provided the following information for the month ended March 31:
\[\begin{array} { | l | r | }
\hline \text { Sales Revenue } & \$ 22,000 \\
\hline \text { Beginning Finished Goods Inventory } & 7,000 \\
\hline \text { Ending Finished Goods Inventory } & 6,500 \\
\hline \text { Cost of Goods Manufactured } & 10,600 \\
\hline \text { Selling and Administrative Expenses } & 5,125 \\
\hline
\end{array}\] Prepare the income statement.
Q2) Rios Corporation reports costs for the year as follows: \(\begin{array}{|r|r|}
\hline\text { Direct Materials Used } & \$ 780,000 \\
\hline \text { Wages to Line Workers } & 245,000 \\
\hline \text { Office Rent } & 33,000 \\
\hline \text { Indirect Materials Used } & 800,000\\\hline
\end{array}\) How much is the total product costs for the year?
A)$800,000
B)$1,825,000
C)$1,858,000
D)$1,025,000
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 17: Job Order Costing
Available Study Resources on Quizplus for this Chatper
191 Verified Questions
191 Flashcards
Source URL: https://quizplus.com/quiz/68869
Sample Questions
Q1) During the year,a company incurred $522,000 of manufacturing overhead costs and allocated $483,000 of manufacturing overhead costs.At year-end,the adjustment entry needed to adjust the Manufacturing Overhead account balance to zero will include a debit to Cost of Goods Sold.
A)True
B)False
Q2) Patrick Manufacturing Systems uses job order costing and a perpetual inventory system.When recording the sale of a job,which account(s)is(are)credited?
Q3) The predetermined overhead allocation rate is the rate used to ________.
A)assign direct material costs to jobs
B)allocate actual manufacturing overhead costs incurred during a period
C)allocate estimated manufacturing overhead costs to jobs
D)trace manufacturing and nonmanufacturing costs to jobs
Q4) When raw materials are requisitioned for a job,the Raw Materials Inventory account is debited.
A)True
B)False
Q5) Why would the manager of a service company need to use job order costing?
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 18: Process Costing
Available Study Resources on Quizplus for this Chatper
173 Verified Questions
173 Flashcards
Source URL: https://quizplus.com/quiz/68868
Sample Questions
Q1) A production cost report can help managers identify the most profitable products.
A)True
B)False
Q2) In a process costing system,
A)separate work-in-process inventory accounts are maintained for each process or department.
B)work-in-process inventory employs one general ledger account with a subsidiary ledger.
C)a job cost record is maintained for each job.
D)costs are transferred when jobs are complete.
Q3) The beginning inventory costs and the product costs of the current period are combined to determine the average cost of equivalent units of production under the
A)equivalent units method
B)conversion costs method
C)first-in,first-out method
D)weighted-average method
Q4) List the four steps,in the order of occurrence,that are used in preparing a production cost report.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 19: Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems
Available Study Resources on Quizplus for this Chatper
181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/68867
Sample Questions
Q1) Tungsten,Inc.manufactures both normal and premium tube lights.The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base.Estimated overhead costs for the year are $102,000.Additional estimated information is given below. \[\begin{array} { | l | r | r | }
\hline & \text { Normal } & \text { Premium } \\
\hline \text { Machine hours } ( \mathrm { MHr } ) & 24,000 & 39,000 \\
\hline \text { Direct materials } & \$ 51,000 & \$ 480,000 \\
\hline
\end{array}\] Calculate the predetermined overhead allocation rate.(Round your answer to the nearest cent.)
A)$4.25 per direct labor hour
B)$1.62 per machine hour
C)$2.62 per machine hour
D)$0.19 per direct labor hour
Q2) A product mix decision focuses on generating the maximum profit for a company but does not consider the company's limited production capabilities.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 20: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
197 Verified Questions
197 Flashcards
Source URL: https://quizplus.com/quiz/68866
Sample Questions
Q1) Fixed costs divided by the contribution margin ratio equals the breakeven point in sales dollars.
A)True
B)False
Q2) A cellphone service provider charges $5.00 per month and $0.20 per minute per call.If a customer's current bill is $55,how many minutes did the customer use? (Round any intermediate calculations and your final answer to the nearest whole minute.)
A)275 minutes
B)300 minutes
C)250 minutes
D)225 minutes
Q3) If the variable cost per unit decreases,the total number of units required to break even will increase.
A)True
B)False
Q4) When the variable cost per unit decreases,the contribution margin on each unit sold also decreases.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 21: Variable Costing
Available Study Resources on Quizplus for this Chatper
148 Verified Questions
148 Flashcards
Source URL: https://quizplus.com/quiz/68865
Sample Questions
Q1) Healthy Environs Company provides cleaning services for residential and commercial customers.Following are data for the month of June:
\[\begin{array} { | l | r | r | r | }
\hline & \textbf { Residential } & \textbf { Commercial } &{ \textbf { Total } } \\
\hline \text { Number of customers } & 600 & 400 & 1,000 \\
\hline \textbf { Service revenue } & \$ 48,000 & \$ 40,000 & \$ 88,000 \\
\hline \textbf { Variable costs } & \underline { 14,000} & \underline { 22,000} & \underline { 36,000 }_{_{}} \\
\hline \textbf { Contribution margin } & 34,000 & 18,000 & 52,000 \\
\hline \textbf { Fixed costs } & & & \underline { 41,000 } \\
\hline \textbf { Operating income } & & & \underline { \$ 11,000}_{} \\
\hline
\end{array}\] For each type of customer,determine both the contribution margin per customer and the contribution margin ratio.Round to two decimal places.Show your computations.What type of service is more profitable?
Q2) When units produced are less than units sold,how does operating income differ between variable costing and absorption costing? Explain your answer.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 22: Master Budgets
Available Study Resources on Quizplus for this Chatper
181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/68864
Sample Questions
Q1) For a merchandising company,the selling and administrative expense budget separates fixed and variable expenses.
A)True
B)False
Q2) The ________ details how the business expects to go from the beginning cash balance to the desired ending cash balance.
A)capital expenditures budget
B)budgeted income statement
C)cash flow statement
D)cash budget
Q3) The level of forecasted sales has little effect on other elements of the master budget.
A)True
B)False
Q4) An operational budget is a short-term financial plan that coordinates activities needed to achieve short-term goals.
A)True
B)False
Q5) What is a common method of accessing short-term financing?
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 23: Flexible Budgets and Standard Cost Systems
Available Study Resources on Quizplus for this Chatper
218 Verified Questions
218 Flashcards
Source URL: https://quizplus.com/quiz/68863
Sample Questions
Q1) A company is setting its direct materials and direct labor standards for its leading product.Direct materials cost from the supplier are $8 per square foot,net of purchase discount.Freight-in amounts to $0.10 per square foot.Basic wages of the assembly line personnel are $18 per hour.Payroll taxes are approximately 25% of wages.Benefits amount to $4 per hour.How much is the direct materials cost standard per square foot?
A)$8.10
B)$8.00
C)$22.00
D)$30.00
Q2) The difference between a standard and a budget is that ________.
A)a budget generally indicates a total amount while a standard indicates a per unit amount
B)a standard acts as an overall guide for operating the business on a planned course of action
C)a budget generally indicates a per unit amount while a standard indicates a total amount
D)a standard projects future costs while a budget examines past costs
Q3) List the direct materials variances,and briefly describe each.
Q4) What does the fixed overhead cost variance measure?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 24: Responsibility Accounting and Performance Evaluation
Available Study Resources on Quizplus for this Chatper
182 Verified Questions
182 Flashcards
Source URL: https://quizplus.com/quiz/68862
Sample Questions
Q1) The balanced scorecard focuses only on lead indicators,because lag indicators are not important for performance evaluation.
A)True
B)False
Q2) Operational performance measures are nonfinancial measures that evaluate a firm's performance on the basis of effectiveness and efficiency to ensure all segments of the business are working together to achieve the company's goals.
A)True
B)False
Q3) Sandpiper Inc.has a division that manufactures a component that sells for $150 and has a variable cost of $30.Another division of the company wants to purchase the component.Fixed cost per unit of the component is $20.What is the minimum transfer price if the division is operating at capacity?
A)$150
B)$30
C)$50
D)$20
Q4) Explain the difference between a controllable and a noncontrollable cost.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Short-Term Business Decisions
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/68861
Sample Questions
Q1) A company produces 1000 packages of chicken feed per month.The sales price is $4 per pack.Variable cost is $1.50 per unit,and fixed costs are $1800 per month.Management is considering adding a vitamin supplement to improve the value of the product.The variable cost will increase from $1.50 to $1.90 per unit,but there will be no change in fixed costs.The company will price the new product at $4.25 to compete with other products.How will this affect operating income?
A)Operating income will decrease by $150 per month.
B)Operating income will increase by $150 per month.
C)Operating income will decrease by $1800 per month.
D)Operating income will remain unchanged.
Q2) Management of Bluebird Manufacturing is considering whether to drop a product line.So far,management has determined that the product has a negative contribution margin and that lost revenues are less than the total cost savings.In making the final decision,what are other questions that the management of Bluebird should consider?
Q3) Explain the difference between price-takers and price-setters.
Q4) Define joint cost.Should joint costs be considered in the decision to sell or further process the product? Explain your answer.
Q5) Define the terms "Relevant Cost" and "Sunk Cost."
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 26: Capital Investment Decisions
Available Study Resources on Quizplus for this Chatper
152 Verified Questions
152 Flashcards
Source URL: https://quizplus.com/quiz/68860
Sample Questions
Q1) The residual value is discounted as a single lump sum because it will be received only once,when the asset is sold.
A)True
B)False
Q2) You have just won the lottery and have three payout options:
1.$1,000,000 now
2.$150,000 at the end of each year for the next ten years
3.$2,000,000 at the end of ten years.
What is a common basis for comparison that you can use to decide which option to choose? Explain your answer.
Q3) An annuity is a stream of equal cash payments made at equal time intervals.
A)True
B)False
Q4) When the internal rate of return is the same as the required rate of return,the net present value of an investment will be positive.
A)True
B)False
Q5) What are the strengths of the net present value capital budgeting method?
To view all questions and flashcards with answers, click on the resource link above. Page 14