A306 FINAL EXAM Questions With Verified Answers.

A306 FINAL EXAM Questions With Verified Answers. An effective performance evaluation will do what? - answerReward behavior that benefits the company and will include multiple performance measures A company provides the following info:Material price variance: 800F, Material spending variance: 250FBudgeted material/unit: 1.5 ft, Budgeted material price: $6/ftActual units produced: 100, Budgeted units produced: 120 What is the material quantity variance? - answer$550 U SQA: 100units*1.5ft = 150ft*$6=$900Mat Spending Var = Mat Qty Var + Mat Price Var250F = X + 800FMat Qty Var = 550U Disadvantage of NPV method. - answerCan not compare projects with different initial investments. If fixed costs are $15,000 and variable costs are $4/unit, what are the break even units if each unit sells for $10? - answer2500 units What is a disadvantage of using residual income as a performance indicator? - answerIt favors large divisions Who uses management accounting and analysis? - answerALL business students, ALL managers Managers use data to: - answerPlan, control, and make decisions How is management accounting more than just numbers? (6) - answer-Ethics -strategy: game plan -risk management -social responsibility: balance needs of all -process management: value chain - leadership Management accounting - answerthe process of analyzing business costs and operations to prepare internal financial report, records, and account to aid managers' decision making process in achieving business goals Who are the decision makers outside the company (3) - answer1. Investors 2. Banks/lenders/creditors 3. Govt agencies/regulators 4 audited stmts in financial accounting - answer1. Balance sheet 2. Income statement 3. Stmt cash flows 4. Retained earnings Who are the decision makers inside the company: (3) - answer1. Executives 2. Dept managers 3. Employees Purpose of management accounting: - answer1. Planning - set goals, how to achieve 2. Control - feedback 3. Decision making Which of the following statements is false: a. Creditors would be a user of financial accounting information b. Management accounting information is used to develop budgets c. Financial accounting information emphasizes decisions for the future d. Reports based on management accounting information are created when required - answerC - that's managerial accounting Which best describes management accounting? A. Management accounting is mainly focused on past results b. Management accounting reports are rules based using GAAP c. The main users of mgmt acc info are outside the firm d. Management accounting reports are prepared following the National management accounting standards E. Management account is primarily used for decision making - answerE Planning (2) - answer- involves developing goals and - preparing various budgets to achieve those goals