Strategic Management Accounting Test
Questions
Course Introduction
Strategic Management Accounting focuses on the use of accounting information for strategic decision-making within organizations. The course explores how management accounting techniques support the formulation and implementation of business strategies, emphasizing topics such as cost analysis, performance measurement, value chain analysis, and competitor benchmarking. Students will learn how to interpret and utilize financial and non-financial data to drive long-term organizational success, align resources with strategic objectives, and respond effectively to changing competitive environments.
Recommended Textbook
Managerial Accounting 2nd Edition by
Karen W. Braun
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14 Chapters
2698 Verified Questions
2698 Flashcards
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Chapter 1: Introduction to Managerial Accounting
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Sample Questions
Q1) In most companies,managerial accountants no longer perform routine mechanical accounting tasks.
A)True
B)False
Answer: True
Q2) What is the name given to software systems that can integrate all departments?
A)TQM
B)ERP
C)Total Integrated Software
D)JIT
Answer: B
Q3) What is the purpose of supply chain management?
A)To improve the quality of products
B)To reduce costs
C)To speed delivery of goods and services
D)All of the above
Answer: D
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Page 3
Chapter 2: Building Blocks of Managerial Accounting
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Sample Questions
Q1) Which of the following is NOT a period cost?
A)Direct labor expenses
B)Distribution expenses
C)Marketing expenses
D)Research and development expenses
Answer: A
Q2) H & R Block,an income tax preparation service,is what type of company?
A)Manufacturer
B)Service company
C)Retailer
D)Wholesaler
Answer: B
Q3) Period costs are:
A)always considered part of the inventory.
B)always recorded as an expense.
C)expensed only when the inventory is sold.
D)none of the above.
Answer: B
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4
Chapter 3: Job Costing
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Sample Questions
Q1) Overallocated manufacturing overhead results when:
A)production is less than last year.
B)actual overhead is less than allocated overhead.
C)estimated overhead is less than actual overhead.
D)actual overhead is less than expected.
Answer: B
Q2) The predetermined manufacturing overhead rate per direct labor hour is closest to:
A)$13.33.
B)$10.67.
C)$11.67.
D)$14.58.
Answer: A
Q3) Management can use job cost information for each of the following EXCEPT:
A)assessing and comparing the profitability of each product type.
B)using the cost information in determining the bid price for custom orders.
C)determining the balance in raw materials inventory.
D)preparing the financial statements.
Answer: C
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Chapter 4: Activity-Based Costing, lean Production, and the Costs of Quality
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Sample Questions
Q1) Costs incurred to detect poor quality goods and services refer to:
A)appraisal costs.
B)activity-based costing.
C)value engineering.
D)prevention costs.
Q2) What is the last step in developing an ABC system?
A)Identify the primary activities and estimate a total cost pool for each.
B)Allocate the costs to the cost object using the activity cost allocation rates.
C)Select an allocation base for each activity.
D)Calculate an activity cost allocation rate for each activity.
Q3) Using departmental overhead rates is generally more accurate than using a single plantwide overhead rate.
A)True
B)False
Q4) The plantwide overhead cost allocation rate is computed by dividing the estimated total manufacturing overhead costs of the department by the estimated total quantity of the department's cost allocation base.
A)True
B)False
6
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Chapter 5: Process Costing
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Sample Questions
Q1) If all direct materials are added at the end of the production process,and the units have made it 50% of the way through the production process,then the percentage completion for direct materials is 0%.
A)True
B)False
Q2) The cost per equivalent unit must be computed for transferred-in costs,as well as direct materials and conversions costs,in a subsequent department.
A)True
B)False
Q3) The total cost of units in ending WIP inventory-Shaping would be closest to:
A)$ 38,730.
B)$110,433.
C)$153,779.
D)$202,460.
Q4) In process costing,the manufacturing costs assigned to the product must always follow the physical movement of the product.
A)True
B)False
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Chapter 6: Cost Behavior
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Sample Questions
Q1) In the equation y = $9.90x + $120,014:
A)$120,014 are the total variable costs.
B)$120,014 are the total fixed costs.
C)$120,014 are the total costs.
D)$120,014 are the total overhead costs.
Q2) In the equation: y = vx + f,what term represents the total cost?
A)f
B)v
C)y
D)vx
Q3) Which of the following equations represents the total mixed cost?
A)y = vx + f
B)y = vx
C)y = f
D)y = v + f
Q4) If a regression analysis shows an R factor of 0.13,it is safe to assume:
A)a strong positive relationship between cost and volume.
B)a strong negative relationship between cost and volume.
C)a very weak relationship between cost and volume.
D)a perfect positive relationship between cost and volume
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Chapter 7: Cost-Volume-Profit Analysis
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Sample Questions
Q1) Assume the following amounts: \[\begin{array} { | l | r | }
\hline \text { Tatal fixed costs } & \$ 20,000 \\
\hline \text { Sale price per unit } & \$ 24 \\
\hline \text { Variable costs per urit } & \$ 15 \\
\hline
\end{array}\] If sales revenue per unit decreases to $22 and 10,000 units are sold,what is the operating income?
A)$ 50,000
B)$ 90,000
C)$220,000
D)$ 70,000
Q2) The Burr Mystery Dinner Theater sells tickets for dinner and a show for $50 each.The cost of providing dinner is $30 per ticket,and the fixed cost of operating the theater is $100,000 per month.The company can accommodate 15,000 patrons each month.What is the contribution margin per passenger?
A)$ 0.40
B)$ 2.50
C)$30.00
D)$20.00
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Page 9
Chapter 8: Short Term Business Decisions
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Sample Questions
Q1) Sierra has the following information to evaluate-her current salary of $45,000 versus total revenues of $62,000 and expenses of $57,000 from starting a new business.How much is the opportunity cost associated with starting the new business?
A)$62,000
B)$5,000
C)$57,000
D)$45,000
Q2) Qualitative factors play an important part in make or buy decisions.
A)True
B)False
Q3) All of the following are relevant to the decision to replace equipment EXCEPT the: A)cost of new equipment.
B)selling price of old equipment.
C)future maintenance costs of old equipment.
D)cost of old equipment.
Q4) Cost-plus pricing is essentially the opposite of target-costing.
A)True
B)False
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Chapter 9: The Master Budget and Responsibility Accounting
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Sample Questions
Q1) McCloud Company has budgeted the following credit sales during the last four months of the year: September,$16,000; October,$22,000; November $21,000; December,$24,000.Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale,60% in the first month after sale,20% in the second month after sale,and 5% uncollectible.How much cash can McCloud Company expect to collect in November as a result of credit sales?
A)$16,400
B)$19,800
C)$16,350
D)$19,550
Q2) The total operating expenses budgeted for July are:
A)$13,000.
B)$13,600.
C)$22,500.
D)$24,100.
Q3) The cash budget is prepared after the operating budget.
A)True
B)False
Q4) List and describe three reasons why a company and its managers could benefit from the use of budgeting.
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Chapter 10: Flexible Budgets and Standard Costs
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Sample Questions
Q1) The Payne Corporation's actual output for a period was assigned the standard labor cost of $25,500.If the company had an unfavorable direct labor price variance of $1,800 and a favorable direct labor efficiency variance of $750,what was the total actual cost of direct labor incurred during the period?
Q2) A standard cost income statement shows cost of goods sold at standard and actual cost.
A)True
B)False
Q3) How is the standard quantity of direct materials calculated?
A)The standard quantity of input per unit times the number of units actually made
B)The standard quantity of input per unit times the number of units budgeted
C)The number of units actually made times the direct materials price standard
D)The budgeted quantity of units less the standard quantity of units
Q4) If a company recognizes variances at the earliest point possible,raw materials inventory will be debited for the actual quantity of raw materials purchased and costed at the actual price paid per unit.
A)True
B)False
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Page 12
Chapter 11: Performance Evaluation and the Balanced Scorecard
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Sample Questions
Q1) Decentralization helps keep a company's costs down since each business unit may have its own purchasing department.
A)True
B)False
Q2) Return on investment and revenue growth would be examples of:
A)financial perspective.
B)customer perspective.
C)internal business perspective.
D)learning and growth perspective.
Q3) What is the Toy Division's Residual Income (RI)?
A)$(640,000)
B)$196,000
C)$200,000
D)$280,000
Q4) Performance evaluation systems are a way for management to control the organization.
A)True
B)False
Page 13
Q5) Discuss potential problems associated with decentralization.
Q6) List and describe reasons why a company might choose to decentralize.
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Page 14
Chapter 12: Capital Investment Decisions and the Time
Value of Money
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Sample Questions
Q1) In computing the IRR of an investment,a company would consider all of the following EXCEPT:
A)predicted cash inflows over the life of the project.
B)the cost of the project.
C)present value factors.
D)depreciation on the assets of the project.
Q2) All else being equal,a company would choose to invest in a capital asset if which of the following is TRUE?
A)If the payback period equals the amount invested
B)If the expected accounting rate of return is less than the required rate of return
C)If the average amount invested is equal to the net cash inflows
D)If the expected accounting rate of return is greater than the required rate of return
Q3) Capital budgeting techniques such as payback method and net present value are based upon Generally Accepted Accounting Principles (GAAP)and accrual accounting.
A)True
B)False
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Chapter 13: Statement of Cash Flows
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Sample Questions
Q1) For purposes of the statement of cash flows,"cash" includes cash on hand,cash in the bank and cash equivalents.
A)True
B)False
Q2) Creditor and stockholder transactions are considered ___________ activities.
A)planning
B)financing
C)operating
D)investing
Q3) Which of the following sections from the statement of cash flows includes activities that increase and decrease long-term liabilities and owners' equity?
A)Financing section
B)Operating section
C)Investing section
D)None of the above
Q4) Calculate the cash paid for merchandise for the year.
Q5) Compute the cash received from receivables customers during the year.
Q6) Calculate the cost of merchandise purchased during the year.
Q7) List three ways that owners and investors use the statement of cash flows.
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Chapter 14: Financial Statement Analysis
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Sample Questions
Q1) Which ratio measures the ability of a company to collect receivables?
A)Inventory turnover ratio
B)Current ratio
C)Day's sales in receivables
D)Acid-test ratio
Q2) Which of the following is the formula to compute the current ratio?
A)(Cash + short-term investments + net current liabilities)/current liabilities
B)(Current liabilities +short-term investments + net current receivables)divided by current assets
C)Current assets/current liabilities
D)Current liabilities/current assets
Q3) What is the debt ratio for the current year?
A).54
B)1.96
C)4.63%
D).45
Q4) The inventory ratio is the ratio of cost of goods sold to average inventory.
A)True
B)False
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