Managerial Accounting Test Bank
Course Introduction
Managerial Accounting focuses on the internal use of accounting information by managers in planning, controlling, and decision-making within organizations. The course examines cost behavior, budgeting, performance evaluation, and the use of accounting data to support strategic and operational choices. Emphasis is placed on analyzing financial and nonfinancial data to enhance organizational effectiveness, manage resources efficiently, and achieve business objectives. Students will learn cost-volume-profit analysis, budgeting techniques, standard costing, variance analysis, and relevant costing for decision-making, equipping them with essential skills to influence managerial decisions and drive business success.
Recommended Textbook
Managerial Accounting v. 2.1 by Kurt Heisinger and Joe Hoyle
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13 Chapters
876 Verified Questions
876 Flashcards
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Chapter 1: What Is Managerial Accounting
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75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/71029
Sample Questions
Q1) Period costs are not related to the production of goods.
A)True
B)False
Answer: True
Q2) Financial accounting focuses on external users,while managerial accounting focuses on internal users.
A)True
B)False
Answer: True
Q3) In a wooden boat factory,which of the following would most likely be classified as indirect labor?
A)Salaries for the factory supervisors.
B)Salaries for sanding operators.
C)Salaries for production machine operators.
D)Salaries for staining and painting personnel.
E)None of the above.
Answer: A
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Page 3
Chapter 2: How Is Job Costing Used to Track Production Costs
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44 Verified Questions
44 Flashcards
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Sample Questions
Q1) The Work in Process Inventory account for Baja Manufacturing Company shows a balance of $7,200 at the end of the accounting period.The job cost sheets of the only two uncompleted jobs,Jobs 4 and 7,show respective charges of $2,400 and $1,200 for direct materials used.Jobs 4 and 7 also show respective charges of $1,600 and $800 for direct labor used.Based on this information,what is the predetermined overhead rate as a percentage of direct labor costs that Morris is using?
A)200%
B)50%
C)33.3%
D)16.7%
E)None of the answer choices is correct.
Answer: B
Q2) A process costing system is used by companies that make identical units of product in batches.
A)True
B)False
Answer: True
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4
Chapter 3: How Does an Organization Use Activity-Based
Costing to Allocate Overhead Costs
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70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/71027
Sample Questions
Q1) Which of the following items is a facility-level activity?
A)Maintenance performed on the factory building.
B)Purchase requisitions issued for raw materials.
C)Direct labor assembling products.
D)Product designed for a specific customer.
E)None of the answer choices is correct.
Answer: A
Q2) Refer to Exhibit 3-3.Using the direct method of allocating service department costs to production departments,how much of the Purchasing service department costs should be allocated to the Molding Department?
A)$84,000
B)$150,000
C)$96,000
D)$36,000
E)None of the answer choices is correct.
Answer: A
Q3) Indirect manufacturing costs are easily traceable to products.
A)True
B)False
Answer: False
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Chapter 4: How Is Process Costing Used to Track
Production Costs
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) A process costing system is used by companies that produce similar or identical units of product.
A)True
B)False
Q2) In a process costing system,partially completed units in Work-in-Process Inventory are typically converted to equivalent completed units.
A)True
B)False
Q3) Refer to Exhibit 4-2.What is the cost per gallon for the packaging process?
A)$1.66
B)$1.78
C)$1.70
D)$1.56
E)None of the answer choices is correct.
Q4) A job costing system would be appropriate for an oil refinery. A)True B)False
Q5) A bike repair shop would most likely use a process costing system. A)True B)False
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Chapter 5: How Do Organizations Identify Cost Behavior
Patterns
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68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/71025
Sample Questions
Q1) When using a graph of total mixed costs,the y-intercept represents:
A)unit mixed costs
B)total mixed costs
C)total variable costs
D)total fixed costs
E)None of the answer choices is correct.
Q2) Cost estimates made using activity levels outside the relevant range:
A)Are more accurate.
B)May result in poor decisions.
C)Mean that cost behavior patterns are accurate at all levels of activity.
D)Mean the cost estimates will be relevant.
E)None of the answer choices is correct.
Q3) All of the following are steps of the high-low method except:
A)stating the results in equation form Y = f + vX.
B)calculating the fixed cost per unit.
C)calculating the variable cost per unit.
D)identifying the high and low activity data points.
E)None of the answer choices is correct.
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Chapter 6: How Is Cost-Volume-Profit Analysis Used for Decision Making
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79 Verified Questions
79 Flashcards
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Sample Questions
Q1) Refer to Exhibit 6-6.Which of the following is the correct contribution margin per machine hour?
A)$12.50
B)$6.25
C)$0.08
D)$0.10
E)None of the answer choices is correct.
Q2) Refer to Exhibit 6-5.What would be the operating profit if the Charcoal Barbecue sales price decreases 20 percent?
A)$132,000
B)$50,400
C)$18,000
D)$48,000
E)None of the answer choices is correct.
Q3) An advantage of using absorption costing is that it prevents managers from increasing production solely for the purpose of inflating profit.
A)True
B)False
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Chapter 7: How Are Relevant Revenues and Costs Used to
Make Decisions
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76 Verified Questions
76 Flashcards
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Sample Questions
Q1) Differential analysis can be used to decide whether to outsource production,but it is not used for product line decisions.
A)True
B)False
Q2) Cost-plus pricing is often used by companies that produce custom products where market prices are not easily available.
A)True
B)False
Q3) Refer to Exhibit 7-5.What is the amount of allocated fixed costs to be assigned to Customer Z?
A)$580,000
B)$420,000
C)$400,000
D)$600,000
E)None of the answer choices is correct.
Q4) Production capacity is the only consideration when evaluating special orders. A)True
B)False
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Chapter 8: How Is Capital Budgeting Used to Make Decisions
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72 Verified Questions
72 Flashcards
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Sample Questions
Q1) When evaluating long-term investment proposals,firms that pay income taxes can ignore the impact these taxes have on cash flows.
A)True
B)False
Q2) Managers often rank investment opportunities by internal rate of return.
A)True
B)False
Q3) The appropriate rate to be used for evaluating a long-term investment proposal can be referred to as all of the following except:
A)the required rate of return.
B)the discount rate.
C)the cash flow rate.
D)the hurdle rate.
E)None of the answer choices is correct.
Q4) An advantage of using the payback method for evaluating long-term investments is that it considers the time value of money.
A)True
B)False
Page 10
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Chapter 9: How Are Operating Budgets Created
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Sample Questions
Q1) For most nonprofit organizations,the approved budget serves as the legal authority for expenditures.
A)True
B)False
Q2) When preparing a production budget,the desired ending finished goods inventory for the first period is:
A)the beginning finished goods inventory for the second period.
B)always the same as the beginning finished goods inventory for the first period.
C)not used in this budget.
D)always less than the beginning finished goods inventory for the second period.
E)None of the answer choices is correct.
Q3) All of the following appear on the direct labor budget except:
A)units to be produced.
B)labor rate per hour.
C)direct labor hours per unit.
D)indirect labor hours per unit.
E)None of the answer choices is correct.
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11
Chapter 10: How Do Managers Evaluate Performance Using Cost Variance Analysis
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Sample Questions
Q1) Jake's Cheese Company produces gourmet cheese for resale at local grocery stores.Jake's expected to use 3.0 pounds of direct materials to produce one unit (batch)of product at a cost of $8 per pound.Actual results are in for last year,which indicates 45,000 batches of cheese were sold.The company purchased 160,000 pounds of materials at $7.50 per pound,and used 145,000 pounds in production.
(1)Calculate the materials price variance.
(2)Calculate the materials quantity variance.
(3)Suggest several possible reasons for the materials price and quantity variances calculated in requirements (1)and (2).
Q2) Refer to Exhibit 10-2.What is the standard cost per unit for direct labor?
A)$80.00
B)$5.00
C)$24.00
D)$7.20
E)None of the answer choices is correct.
Q3) Standard costs are used to establish the flexible budget for direct labor.
A)True
B)False
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Chapter 11: How Do Managers Evaluate Performance in
Decentralized Organizations
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) Refer to Exhibit 11-5.After the EVA adjustments to operating income,what would be the amount of net operating profit after tax (adjusted)for the Snowboards Division?
A)$493,500
B)$467,250
C)$705,000
D)$570,000
E)None of the answer choices is correct.
Q2) Refer to Exhibit 11-1.Using the segmented income statements,what is the profit margin ratio for the Bikes Division (to the nearest tenth of a percent)?
A)13.5
B)41.7%
C)22.5%
D)58.3%
E)None of the answer choices is correct.
Q3) Asset turnover is calculated as sales divided by average operating assets.
A)True
B)False
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Page 13
Chapter 12: How Is the Statement of Cash Flows Prepared and Used
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65 Flashcards
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Sample Questions
Q1) Significant noncash financing and investing activities are reported in:
A)a note below the statement of cash flows.
B)the investing activities section of the statement of cash flows.
C)the financing activities section of the statement of cash flows.
D)the operating activities section of the statement of cash flows.
E)None of the answer choices is correct.
Q2) The capital expenditure ratio is calculated as:
A)Cash provided by operating activities divided by capital expenditures.
B)Cash provided by operating activities plus capital expenditures.
C)Cash provided by operating activities divided by current liabilities.
D)Capital expenditures divided by cash provided by operating activities.
E)None of the answer choices is correct.
Q3) When preparing the operating activities section of the statement of cash flows using the indirect method,increases in current assets are added to net income.
A)True
B)False
Q4) Operating cash flow ratios are always greater than 1.0.
A)True
B)False
Page 14
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Chapter 13: How Do Managers Use Financial and
Nonfinancial Performance Measures
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62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/71017
Sample Questions
Q1) If Company A had earnings per share of $4 and Company B had earnings per share of $3,then it is accurate to conclude that Company A was more profitable.
A)True
B)False
Q2) Times interest earned indicates the company's ability to cover its interest expense related to long-term debt with current period earnings..
A)True
B)False
Q3) Which of the following types of measures focuses primarily on income statement information?
A)long-term solvency measures.
B)short-term liquidity measures.
C)market valuation measures.
D)profitability measures.
E)None of the answer choices is correct.
Q4) In general,managers prefer expenses as a percent of net sales to increase over time. A)True
B)False
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