Managerial Accounting Final Exam Questions
Course Introduction
Managerial Accounting provides students with an understanding of how accounting information is used by managers to plan, control, and make decisions within organizations. The course covers key topics such as cost behavior, budgeting, variance analysis, performance measurement, and internal reporting. Emphasis is placed on the analysis and interpretation of financial data to support strategic objectives, promote operational efficiency, and facilitate effective resource allocation. Through real-world case studies and practical exercises, students learn to apply managerial accounting techniques to drive business success and adapt to dynamic organizational environments.
Recommended Textbook
Managerial Accounting 4th Edition by John Wild
Available Study Resources on Quizplus
16 Chapters
2594 Verified Questions
2594 Flashcards
Source URL: https://quizplus.com/study-set/3476 Page 2
Chapter 1: Managerial Accounting Concepts and Principles
Available Study Resources on Quizplus for this Chatper
196 Verified Questions
196 Flashcards
Source URL: https://quizplus.com/quiz/69077
Sample Questions
Q1) The Institute of Management Accountants has developed a code of ethics that requires management accountants to behave in certain ways.Which of the following behaviors is not required?
A)Competence.
B)Integrity.
C)Maintenance of confidentiality.
D)Communication of information in credible manner.
E)Timeliness.
Answer: E
Q2) Manufacturers usually have three inventories: raw materials, goods in process, and finished goods.
A)True
B)False Answer: True
Q3) Fraud affects all business.
A)True
B)False
Answer: True
Q4) _____________________ are beliefs that distinguish right from wrong. Answer: Ethics
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Job Order Costing and Analysis
Available Study Resources on Quizplus for this Chatper
153 Verified Questions
153 Flashcards
Source URL: https://quizplus.com/quiz/69076
Sample Questions
Q1) The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $7,750 debit balance after all posting is completed.The cost sheet of the one job still in process shows direct material cost of $6,000 and direct labor cost of $1,000.Therefore, the company's overhead application rate is:
A)10.7%
B)75.0%
C)133.0%
D)90.3%
E)111.0%
Answer: B
Q2) Since a predetermined overhead allocation rate is established before a period begins, this rate is revised many times during the period to compensate for inaccurate estimates previously made.
A)True
B)False
Answer: False
Q3) _______________________, or customized production, produces products in response to customer orders.
Answer: Job order manufacturing
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Process Costing and Analysis
Available Study Resources on Quizplus for this Chatper
185 Verified Questions
185 Flashcards
Source URL: https://quizplus.com/quiz/69075
Sample Questions
Q1) Assume that the Painting Department of the Richardson Factory uses the weighted-average method.What is the cost of all units that were completed and transferred to finished goods in June? What is the total cost of ending goods in process?
Answer: 11ed5a84_d516_133c_a655_f9899ac386a9_TB6311_11
11ed5a84_e0c7_3d3d_a655_45a3d1acb57b_TB6311_11
Q2) If the allocated overhead equaled the actual overhead, then total manufacturing costs incurred in both departments during the reporting period were $35,300.
A)True
B)False
Answer: True
Q3) ________ distinct groups of units must be considered in determining the equivalent units of production under the FIFO method of process costing.
Answer: Three
Q4) What was the cost of the goods transferred out of the Bagging Department and into the finished goods inventory?
Answer: The cost of goods transferred out of the Bagging Department equals the $150,000 cost transferred into the Finished Goods inventory.
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Activity-Based Costing and Analysis
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/69074
Sample Questions
Q1) Time Bender Company makes watches and clocks.The following estimated data are available for the company's next fiscal year:
Total direct labor costs: $1,700,000
Total setup costs: $190,000
\[\begin{array} { | l | c | c | }
\hline & \text { Watches } & \text { Clocks } \\
\hline \text { Expected production } & 800,000 & 100,000 \\
\hline \text { Direct labor hours needed } & 68,000 D L H & 17,000 D L . H \\
\hline \text { Machine setups needed } & 1,000 \text { setups } & 1,000 \text { setups } \\ \hline
\end{array}\] Determine the setup cost per unit for the watches and the clocks if setup costs are assigned using a plantwide overhead rate based on direct labor hours.(Round to two decimal places.)
Q2) Allocated overhead costs vary depending upon the allocation methods used. A)True
B)False
Q3) Product costs consist of direct labor, direct materials, and ______________.
Q4) Explain some of the disadvantages of the departmental overhead rate method.
To view all questions and flashcards with answers, click on the resource link above.
Page 6
Chapter 5: Cost Behavior and Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
179 Verified Questions
179 Flashcards
Source URL: https://quizplus.com/quiz/69073
Sample Questions
Q1) The following information describes a product expected to be produced and sold by Pepin Corporation:
\[\begin{array} { l l }
\text { Selling price } & \$ 32 \text { per unit } \\
\text { Variable costs } & \$ 27 \text { per unit } \\
\text { Total fixed costs } & \$ 850,000 \text { per year } \end{array}\] Required:
a.Calculate the contribution margin per unit.
b.Calculate the break-even point in units.
Q2) Cost-volume-profit analysis is based on three basic assumptions.Which of the following is not one of these assumptions?
A)Total fixed costs remain constant over changes in volume.
B)Curvilinear costs change proportionately with changes in volume throughout the relevant range.
C)Variable costs per unit of output remain constant as volume changes.
D)Sales price per unit remains constant as volume changes.
E)The relationship between volume, costs, and profits do not necessarily hold outside the relevant range.
Q3) Briefly describe a CVP chart, including its major components.
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Variable Costing and Performance Reporting
Available Study Resources on Quizplus for this Chatper
176 Verified Questions
176 Flashcards
Source URL: https://quizplus.com/quiz/69072
Sample Questions
Q1) ________________ is the amount remaining from sales revenues after cost of goods sold has been deducted.
Q2) A traditional product costing approach is referred to as ______________.
Q3) Given the Cool Pools Company data, what is net income using absorption costing?
A)$1,649,480
B)$1,648,600
C)$1,627,150
D)$1,709,480
E)$1,708,600
Q4) When evaluating a special order, management should:
A)Only accept the order if the incremental revenue exceeds all product costs.
B)Only accept the order if the incremental revenue exceeds fixed product costs.
C)Only accept the order if the incremental revenue exceeds total variable product costs.
D)Only accept the order if the incremental revenue exceeds full absorption product costs.
E)Only accept the order if the incremental revenue exceeds regular sales revenue.
Q5) ________________________ is a costing method that includes all manufacturing costs in unit product costs.
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Master Budgets and Performance Planning
Available Study Resources on Quizplus for this Chatper
160 Verified Questions
160 Flashcards
Source URL: https://quizplus.com/quiz/69071
Sample Questions
Q1) A June sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit.The desired ending inventory of units is 15% higher than the beginning inventory of 1,000 units.Total June sales are anticipated to be:
A)$63,000
B)$67,500
C)$61,250
D)$74,250
E)$60,000
Q2) Which of the following statements about budgeting is false?
A)Budgeting is an aid to planning and control.
B)Budgets create standards for performance evaluation.
C)Budgets help coordinate the activities of the entire organization.
D)Budgeting forces managers to think ahead and formalize long-range objectives.
E)The master budget should only be prepared by top management.
Q3) The __________________________ shows expected cash inflows and outflows during the budget period.
Q4) Briefly describe the process by which budgets are developed and administered.
Q5) What is activity-based budgeting?
Q6) The budget process is usually administered by a _____________________.
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Flexible Budgets and Standard Costing
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/69070
Sample Questions
Q1) During November, Heim Company allocated overhead to products at the rate of $26 per direct labor hour.This figure was based on 80% of capacity or 1,600 direct labor hours.However, Heim Company operated at only 70% of capacity, or 1,400 direct labor hours.Budgeted overhead at 70% of capacity is $38,900, and overhead actually incurred was $38,000.What is the company's volume variance for November? (Indicate whether the variance is favorable or unfavorable.)
Q2) A cost variance is the difference between actual cost and standard cost. A)True
B)False
Q3) The direct labor efficiency variance is:
A)$28,000 unfavorable
B)$28,000 favorable
C)$45,000 unfavorable
D)$45,000 favorable
E)$17,000 unfavorable
Q4) A favorable variance for a cost means that when compared to the budget, the actual cost is ____________________ than the budgeted cost.
Q5) Identify and explain the primary differences between fixed and flexible budgets.
Q6) Explain variance analysis.Describe how variance analysis assists managers.
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Performance Measurement and Responsibility Accounting
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/69069
Sample Questions
Q1) A department can never be considered to be a profit center.
A)True
B)False
Q2) In a responsibility accounting system:
A)Controllable costs are assigned to managers who are responsible for them.
B)Each accounting report contains all items allocated to a responsibility center.
C)Organized and clear lines of authority and responsibility are only incidental.
D)All managers at a given level have equal authority and responsibility.
E)Control over costs belongs only to the top level of management.
Q3) Cycle time is the sum of _____________ plus ____________ plus __________ plus ______________.
Q4) Return on investment for a given investment center can be split into two components: profit margin and investment turnover. A)True B)False
Q5) Joint costs are a group of several costs incurred in producing or purchasing a single product.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Relevant Costing for Managerial Decisions
Available Study Resources on Quizplus for this Chatper
136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/69068
Sample Questions
Q1) Beta Inc.can produce a unit of Zed for the following costs: \(\begin{array}{l}
\text { Direct material } & \$10 \\
\text { Direct labor } & 20 \\
\text { Overhead } &\underline { 50} \\
\text { Total costs per unit } & \underline { \$80} \end{array}\)
An outside supplier offers to provide Beta with all the Zed units it needs at $58 per unit.If Beta buys from the supplier, it will still incur 40% of its overhead.Beta should:
A)Buy Zed since the relevant cost to make it is $60.
B)Make Zed since the relevant cost to make it is $60.
C)Buy Zed since the relevant cost to make it is $80.
D)Make Zed since the relevant cost to make it is $30.
E)Buy Zed since the relevant cost to make it is $30.
Q2) A cost-plus method of determining a product's selling price adds a _________________________ to total product cost to reach a target price.
Q3) What is the difference between an opportunity cost and a sunk cost?
Q4) Relevant costs are also known as ___________________.
Q5) Explain and give several examples of qualitative decision factors.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Capital Budgeting and Investment Analysis
Available Study Resources on Quizplus for this Chatper
146 Verified Questions
146 Flashcards
Source URL: https://quizplus.com/quiz/69067
Sample Questions
Q1) There are two basic steps in calculating the internal rate of return.Which of the following represents those two steps?
A)(1)Compute the PV factor for the project and (2)compare it to the hurdle rate.
B)(1)Compute the PV factor for the project and (2)identify the discount rate.
C)(1)Identify the discount rate and (2)compare the IRR to the hurdle rate.
D)(1)Compare IRR to the hurdle rate and (2)accept or reject the project.
E)(1)Select the hurdle rate and (2)compute the PV factor for the project.
Q2) A company bought a machine that has an expected life of six years and no salvage value.Management estimates that this machine will generate annual after-tax net income of $700.If the accounting rate of return is 10%, what was the purchase price of the machine?
A)$7,000
B)$700
C)$28,000
D)$14,000
E)$3,500
Q3) The process of restating future cash flows in terms of their present value is called
Q4) What is discounting?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Reporting and Analyzing Cash Flows
Available Study Resources on Quizplus for this Chatper
170 Verified Questions
170 Flashcards
Source URL: https://quizplus.com/quiz/69066
Sample Questions
Q1) Cash flow information can assist internal users in planning day-to-day operating activities.
A)True
B)False
Q2) To be classified as a cash equivalent, an investment must be readily convertible to an unknown amount of cash because the market value may be affected by interest rate changes.
A)True
B)False
Q3) The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:
A)Operating activities.
B)Financing activities.
C)Investing activities.
D)Schedule of noncash investing or financing activity.
E)None of these as this is not reported on the statement of cash flows.
Q4) Explain the purpose and format of the statement of cash flows.Also, describe its use to decision makers.
Q5) All cash transactions eventually affect noncash ___________ accounts.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Analyzing Financial Statements
Available Study Resources on Quizplus for this Chatper
183 Verified Questions
183 Flashcards
Source URL: https://quizplus.com/quiz/69065
Sample Questions
Q1) A company's sales in 2012 were $280,000 and its sales in 2013 were $341,600.Using 2012 as the base year, what is the sales trend percent for 2013?
Q2) A company had a market price of $37.50 per share, earnings per share of $1.25, and dividends per share of $0.40.Its price-earnings ratio is equal to:
A)3.1
B)30.0
C)93.8
D)32.0
E)3.3
Q3) What is the company's gross margin ratio for 2013?
A)65%
B)35%
C)67%
D)33%
E)39%
Q4) Describe the purpose of horizontal financial statement analysis and how it is applied.
Q5) What are the standards for financial analysis comparison? Give examples of each.
Q6) Explain the form and content of a complete income statement.
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Time Value of Money
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/69080
Sample Questions
Q1) Crowe Company has acquired a building with a loan that requires payments of $20,000 every six months for five years.The annual interest rate on the loan is 12%.What is the present value of the building?
A)$72,096
B)$113,004
C)$147,202
D)$86,590
E)$200,000
Q2) Interest is:
A)Time.
B)A borrower's payment to the owner of an asset for its use.
C)The same as a savings account.
D)Always a liability.
E)Always an asset.
Q3) You hope to retire in 10 years.Regrettably you are only just now beginning to save money for this purpose.You expect to save $6,000 a year at an annual rate of 8%.How much will you have accumulated when you retire?
Q4) What is interest?
Q5) An _____________ is a series of equal payments occurring at equal intervals.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Basic Accounting for Transactions
Available Study Resources on Quizplus for this Chatper
209 Verified Questions
209 Flashcards
Source URL: https://quizplus.com/quiz/69079
Sample Questions
Q1) In a double-entry accounting system, the total amount debited must always equal the-total amount credited.
A)True
B)False
Q2) Increases in assets are _______________, while increases in liabilities are
Q3) According to the seller, a customer's promise to pay is called an account payable.
A)True
B)False
Q4) Land and buildings are generally recorded in the same ledger account.
A)True
B)False
Q5) The journal is known as a book of original entry.
A)True
B)False
Q6) It is not necessary to keep separate accounts for all items of importance for business decisions.
A)True
B)False
Page 17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Accounting for Partnerships
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/69078
Sample Questions
Q1) During 2013, Carpenter invested $75,000 and DiAngelo invested $90,000 in a partnership.They agreed to share income and loss by allowing a $40,000 per year salary allowance to Carpenter and a $42,000 per year salary allowance to DiAngelo, plus an interest allowance on the partners' beginning-year capital investments at 8%, with the balance to be shared equally.Under this agreement, if the partnership earns net income of $300,000 during 2013 the income allocated to each partner is:
A.$40,000 to Carpenter; $42,000 to DiAngelo.
B.$148,400 to Carpenter; $151,600 to DiAngelo.
C.$43,200 to Carpenter; $45,360 to DiAngelo.
D.$150,000 to Carpenter; $150,000 to DiAngelo.
E.$105,720 to Carpenter; $105,720 to DiAngelo.
Q2) If partners devote their time and services to their partnership, their salaries are expenses on the income statement.
A)True
B)False
Q3) A _____________________ is an unincorporated association of two or more people to pursue a business for profit as co-owners.
Q4) The life of a partnership is ____________________ in duration.
To view all questions and flashcards with answers, click on the resource link above.
Page 18