Managerial accounting exam Verified Exam Questions and Answers
Latest update 2026/2027
Question:
A sunk cost one that is
Answer:
Not relevant to the present decision.
Question:
Variable Costs
Answer:
vary in a linear fashion with sales revenue.
Question:
Standard Costs
Answer:
Are what the costs should be for a particular level of sales revenue.
Question:
One can sell below cost when the sales revenue
Answer:
is below total cost but covers variable costs and contributes towards fixed costs.
Question:
In making a decision about when piece of equipment to buy, two types of costs are considered. They
are relevant and
Answer:
irrelevant.
Question:
Total annual sales revenue is 754,000 lunch turnover is 2.25 and there are 60 seats. Lunch is served 5
days a week and is 30% of goal annual sales revenue. Lunch average check will be
Answer:
6.44
30% X 754,000/2.25 X 60 X(5X52) = 226,200/35100=6.44.
, Question:
An objective of internal control is to
Answer:
safeguard the assets
Question:
Collusion is when
Answer:
two or more employees are working together fraudulently.
Question:
Internal control should generally be instituted only a
Answer:
The cost of control is less than the resultant savings.
Question:
All other things being equal, an increased seat turnover will
Answer:
Increase total sales revenue.
Question:
An operation should close during the off season when
Answer:
The net loss to eliminated is greater than the remaining fixed cost.
Question:
Lapping is a method of fraud that can occur when
Answer:
the same employee is in control of both accounts receivable records and cash received in payment of
those accounts.
Question:
Machines should be used whenever possible in internal control to
Answer:
reduce the possibility of fraud and or theft.
Latest update 2026/2027
Question:
A sunk cost one that is
Answer:
Not relevant to the present decision.
Question:
Variable Costs
Answer:
vary in a linear fashion with sales revenue.
Question:
Standard Costs
Answer:
Are what the costs should be for a particular level of sales revenue.
Question:
One can sell below cost when the sales revenue
Answer:
is below total cost but covers variable costs and contributes towards fixed costs.
Question:
In making a decision about when piece of equipment to buy, two types of costs are considered. They
are relevant and
Answer:
irrelevant.
Question:
Total annual sales revenue is 754,000 lunch turnover is 2.25 and there are 60 seats. Lunch is served 5
days a week and is 30% of goal annual sales revenue. Lunch average check will be
Answer:
6.44
30% X 754,000/2.25 X 60 X(5X52) = 226,200/35100=6.44.
, Question:
An objective of internal control is to
Answer:
safeguard the assets
Question:
Collusion is when
Answer:
two or more employees are working together fraudulently.
Question:
Internal control should generally be instituted only a
Answer:
The cost of control is less than the resultant savings.
Question:
All other things being equal, an increased seat turnover will
Answer:
Increase total sales revenue.
Question:
An operation should close during the off season when
Answer:
The net loss to eliminated is greater than the remaining fixed cost.
Question:
Lapping is a method of fraud that can occur when
Answer:
the same employee is in control of both accounts receivable records and cash received in payment of
those accounts.
Question:
Machines should be used whenever possible in internal control to
Answer:
reduce the possibility of fraud and or theft.
