Managerial Accounting Review Questions
Course Introduction
Managerial Accounting focuses on the processes and techniques that organizations use to generate, analyze, and utilize financial information for internal decision-making. The course covers topics such as cost behavior, cost-volume-profit analysis, budgeting, performance evaluation, and the use of relevant costs for decision-making. Managerial Accounting equips students with the skills to interpret and apply accounting data to solve business problems, support strategic planning, and drive organizational efficiency and effectiveness. Through real-world examples and case studies, students learn to provide critical financial insights that aid managers in planning, controlling, and improving business operations.
Recommended Textbook
Managerial Accounting 4th Edition by Karen W. Braun
Available Study Resources on Quizplus 15 Chapters 3456 Verified Questions
3456 Flashcards
Source URL: https://quizplus.com/study-set/3392
2
Chapter 1: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
205 Verified Questions
205 Flashcards
Source URL: https://quizplus.com/quiz/67296
Sample Questions
Q1) Country Western Clothing Outfitters is considering investing in an inventory tracking system.It will have $10,000 in software costs and $8,000 in employee training costs.Computer hardware also needs to be upgraded for the system;the hardware upgrades are expected to be $12,000.The expected benefits from the inventory tracking system should be $28,000.Do the benefits outweigh the costs or do the costs outweigh the benefits,and by how much?
A)Costs outweigh benefits by $2,000.
B)Benefits outweigh costs by $2,000.
C)Costs outweigh benefits by $10,000.
D)Benefits outweigh costs by $10,000.
Answer: A
Q2) Oral and written communications skills are considered among the skills that are critical to management accountants.
A)True
B)False Answer: True
Q3) The IMA issues the CMA designation.
A)True
B)False Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Building Blocks of Managerial Accounting
Available Study Resources on Quizplus for this Chatper
284 Verified Questions
284 Flashcards
Source URL: https://quizplus.com/quiz/67297
Sample Questions
Q1) An accounting firm would be classified as a
A)manufacturing company.
B)merchandising company.
C)simple company.
D)service company.
Answer: D
Q2) The activities in the value chain must take place in a specific order.
A)True
B)False
Answer: False
Q3) Controlling costs across the whole value chain often requires a trade-off between the individual elements of the value chain.
A)True
B)False
Answer: True
Q4) Manufacturing companies usually have three types of inventory.
A)True
B)False Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Job Costing
Available Study Resources on Quizplus for this Chatper
334 Verified Questions
334 Flashcards
Source URL: https://quizplus.com/quiz/67298
Sample Questions
Q1) To record direct labor costs incurred,which of the following accounts would be debited?
A)Finished Goods Inventory account
B)Manufacturing Overhead Account
C)Work-in-Process Inventory Account
D)Wages Payable account
Answer: C
Q2) Since a service firm does not carry a large amount of inventory,it is not necessary to know the individual costs related to each individual job.
A)True
B)False
Answer: False
Q3) Under which of the following situations is Raw Materials Inventory account credited and Work-in-Process Inventory account debited?
A)We ship goods to the customer.
B)Material is transferred to the factory.
C)We transfer goods to the storeroom.
D)We purchase goods on account.
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Activity-Based Costing, lean Operations, and the Costs of Quality
Available Study Resources on Quizplus for this Chatper
251 Verified Questions
251 Flashcards
Source URL: https://quizplus.com/quiz/67299
Sample Questions
Q1) The use of which of the following costing systems is most likely to reduce cost distortion to a minimum?
A)Plantwide overhead rate
B)Departmental overhead allocation rates
C)Traditional costing system
D)Activity-based costing
Q2) All of the following are considered to be part of the cost hierarchy often used to implement ABC,with the exception of
A)production-level activity.
B)batch-level activity.
C)product-level activity.
D)unit-level activity.
Q3) ABC can be used in routine planning and control decisions as well as pricing,product mix and cost cutting decisions.
A)True
B)False
Q4) Lean companies typically cross-train employees to perform more than one task.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Process Costing
Available Study Resources on Quizplus for this Chatper
259 Verified Questions
259 Flashcards
Source URL: https://quizplus.com/quiz/67300
Sample Questions
Q1) The number of equivalent units is usually the same for direct materials and conversion costs.
A)True
B)False
Q2) Costs are transferred,along with the units,from one WIP Inventory to the next.
A)True
B)False
Q3) There are 34,400 units started.25,600 were completed and transferred out and the 8,800 remaining units were 60% complete for conversion costs.The total number of equivalent units for conversion costs is
A)30,880.
B)20,640.
C)25,600.
D)5,280.
Q4) If all direct materials are added at the end of the production process,and the units have made it 50% of the way through the production process,then the percentage completion for direct materials is 100%.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Cost Behavior
Available Study Resources on Quizplus for this Chatper
294 Verified Questions
294 Flashcards
Source URL: https://quizplus.com/quiz/67301
Sample Questions
Q1) In a regression output,the "X variable 1 coefficient" represents the variable cost component of a mixed cost equation.
A)True
B)False
Q2) On a contribution margin income statement,sales revenue less variable expenses equals
A)operating expenses.
B)gross profit.
C)operating income.
D)contribution margin.
Q3) Cost behavior can be mathematically expressed using equations.
A)True
B)False
Q4) Managers often approximate curvilinear costs and step costs as fixed costs.
A)True
B)False
Q5) Traditional income statements do not distinguish fixed operating costs from variable operating costs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
261 Verified Questions
261 Flashcards
Source URL: https://quizplus.com/quiz/67302
Sample Questions
Q1) Companies with low operating leverage have relatively higher variable costs and lower fixed costs.
A)True
B)False
Q2) Sally's Fries sells three large fries for every two small ones.A small fry sells for $2 with a variable cost of $1.A large fry sells for $3 with a variable cost of $1.25.What is the weighted average contribution margin?
A)$0.69
B)$0.65
C)$3.75
D)$1.45
Q3) Barkley Company sells two products,red cups and black mugs.Barkley predicts that it will sell 2,500 red cups and 1,000 black mugs in the next period.The unit contribution margins for red cups and black mugs are $2.80 and $3.50,respectively.What is the weighted average unit contribution margin?
A)$2.33
B)$7.00
C)$3.00
D)$1.00
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 8: Relevant Costs for Short-Term Decisions
Available Study Resources on Quizplus for this Chatper
253 Verified Questions
253 Flashcards
Source URL: https://quizplus.com/quiz/67303
Sample Questions
Q1) Which of the following best describes a "sunk cost"?
A)Costs that were incurred in the past and cannot be changed
B)Benefits foregone by choosing a particular alternative course of action
C)A factor that restricts the production or sale of a product
D)Expected future data that differ among alternatives
Q2) A special order occurs when a customer requests a one-time order at an increased sales price.
A)True
B)False
Q3) Fixed costs that may be avoided in the future are referred to as
A)relevant costs.
B)opportunity costs.
C)replacement costs.
D)sunk costs.
Q4) An "opportunity cost" is best described by which of the following?
A)Benefits foregone by choosing a particular alternative course of action
B)Costs that were incurred in the past and cannot be changed
C)The distribution of all products to be sold
D)Expected future costs that differ among alternatives
Q5) Buy the part and use facilities to make another product
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: The Master Budget
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/67304
Sample Questions
Q1) On the production budget,the number of units to be produced is computed as
A)unit sales + desired end inventory + beginning inventory.
B)unit sales + desired end inventory - beginning inventory.
C)unit sales - desired end inventory - beginning inventory.
D)unit sales - desired end inventory + beginning inventory.
Q2) "Combined cash budget" is best defined by which of the following?
A)A company's plan to purchase of property,plant and equipment,and other long-term assets
B)Details about how the company expects to move out of the beginning cash balance and into the desired ending cash balance
C)A system to evaluate the performance and manager of each responsibility center
D)A budget that projects assets,liabilities,and stockholders' equity at the end of a period
Q3) The master budget includes both the operating budgets and the financial budgets. A)True
B)False
Q4) The manager at a service company does not prepare a cash budget.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 10: Performance Evaluation
Available Study Resources on Quizplus for this Chatper
212 Verified Questions
212 Flashcards
Source URL: https://quizplus.com/quiz/67305
Sample Questions
Q1) Potential duplication of costs is a disadvantage of decentralized organizations.
A)True
B)False
Q2) The production line at Morningstar Farms may be classified as a(n)
A)investment center.
B)cost center.
C)profit center.
D)revenue center.
Q3) Sales margin is a component of the Return on Investment (ROI)calculation.
A)True
B)False
Q4) Peddlin' Pete's Cycles sells its entry-level bicycles for $400 each.Its variable cost is $250 per bicycle.Fixed costs are $35,000 per month for volumes up to 1,200 bicycles.Above 1,200 bicycles,monthly fixed costs are $55,000.What is the budgeted operating income at a level of 900 bicycles per month?
A)$100,000
B)$135,000
C)$325,000
D)$80,000
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Standard Costs and Variances
Available Study Resources on Quizplus for this Chatper
241 Verified Questions
241 Flashcards
Source URL: https://quizplus.com/quiz/67306
Sample Questions
Q1) The unemployment rate is high in the city in which a company has a factory.The company finds that they are able to pay new employees a lower wage per hour than when the unemployment rate was lower a year ago.Which of the following variances may be directly impacted?
A)Direct materials price variance
B)Direct materials quantity variance
C)Direct labor efficiency variance
D)Direct labor rate variance
Q2) The managerial accountant at Aquatics Pools and Spas assess a fixed overhead budget variance of $3,400 U in the month of April.The standard hours in April were 2,900 hours and the standard rate was projected at $13 per machine-hour.There were unforeseen complications that involved raw materials and the standard rate projected per machine hour-was inaccurate.What was the standard rate per-machine hour if the standard fixed overhead cost of production is $41,100? What is the budgeted fixed overhead amount if the actual fixed overhead is $43,100?
A)$14.17 /machine hour;$39,700
B)$13.86 /machine hour;$44,500
C)$14.15 /machine hour;$46,500
D)$12.15 /machine hour;$40,200
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Capital Investment Decisions and the Time Value of Money
Available Study Resources on Quizplus for this Chatper
195 Verified Questions
195 Flashcards
Source URL: https://quizplus.com/quiz/67307
Sample Questions
Q1) "A measure of profitability computed by dividing the average annual operating income by the amount of the investment" is best described by which of the following terms?
A)Net present value
B)Discount rate
C)Internal rate of return
D)Accounting rate of return
Q2) (Present value tables required)Assuming an interest rate of 10%,the present value of $50,000 to be received 8 years from now would be closest to A)$23,350.
B)$21,200.
C)$19,300.
D)$107,200.
Q3) When the profitability index is less than 1.00 for a project,that project has a positive net present value.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
183 Verified Questions
183 Flashcards
Source URL: https://quizplus.com/quiz/67308
Sample Questions
Q1) On the statement of cash flows,which of the following would be considered an investing activity?
A)A purchase of treasury stock
B)A sale of land
C)Depreciation of equipment
D)A sale of inventory
Q2) Which of the following parties would have an interest in the amount of cash at a company?
A)Creditors expecting consumers to repay loans and interest
B)Employees expecting payment for their work
C)Investors expecting a dividend
D)All of the above are parties interested in the amount of cash at a company
Q3) Using the direct method of cash flow,which of the following is a category in the statement of cash flows?
A)Amortization expense
B)Loss on sale of equipment
C)Collections from customers
D)Net income
Q4) Identify and describe the three sections of the statement of cash flows.
Q5) List three ways that owners and investors use the statement of cash flows.
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/67309
Sample Questions
Q1) Rate of return on net sales is a measure of a company's profitability.
A)True
B)False
Q2) The data provided by the horizontal or vertical analysis of the financial statements can be used in benchmarking.
A)True
B)False
Q3) Generally,using more than one year of data to analyze company performance is desirable.
A)True
B)False
Q4) Days' sales in receivables is a measure of a company's ability to collect their accounts receivable.
A)True
B)False
Q5) Which of the following types of analysis include trend percentage analysis?
A)Vertical
B)Horizontal
C)Benchmarking
D)Profitability
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Sustainability
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/67310
Sample Questions
Q1) The categories of costs collected by an EMA system are similar to the costs collected by traditional accounting systems.
A)True
B)False
Q2) Which of the following is not an example of a cost reduction reason to support environmental sustainability?
A)Utilizing tax credits to upgrade to more energy efficient windows
B)Encouraging hotel guests to turn off air-conditioning units when leaving their rooms
C)Requiring employees to print on both sides of a piece of paper
D)Installing motion sensing lights in restrooms
Q3) The current accounting system for Moss Company does not include an estimate of the cost of losing access to markets with environmental-related product restrictions.This scenario is an example of which type of EMA implementation challenge?
A)Historical orientation of accounting
B)Communication issue
C)Newness of EMA
D)Hidden Cost
To view all questions and flashcards with answers, click on the resource link above.