CBAD MANAGERIAL ACCT EXAM 1
(chapters 1+2) questions with complete
solutions
Manager's Responsibilities - correct answer ✔✔planning, directing, controlling
Planning - correct answer ✔✔setting goals and objectives for the company and determining how to
achieve them
Planning example - correct answer ✔✔-generating more sales via opening new stores
-reduce labor costs by reducing store hours
-implementing a budget
Directing - correct answer ✔✔overseeing the company's day-to-day operations
Directing example - correct answer ✔✔-using daily/weekly sales reports to adjust marketing strategies
-using product cost reports to adjust raw materials usage
Controlling - correct answer ✔✔Evaluating results of operations against plans and making adjustments
as needed
Controlling example - correct answer ✔✔comparing budgeted sales with actual sales to take corrective
actions, along w/ a budget for products
Managerial Accounting - correct answer ✔✔-Internal (managers)
-freedom of reporting w/o following format or guidelines
-provide information on both internal and external transactions
-focuses on the future, using only relevant data
, -creates reports on units such as products, customers, geographical regions, divisions and departments
-reports may come out daily depending on management needs
-no independent audits; company internal audit function may examine reports
-no authoritative body needs reports
-considers employees behavior b/c reports
Financial Accounting - correct answer ✔✔-external users such as creditors, stockholders, and
government regulators
-helps users make investing and lending decisions
-financial statements
-GAAP (generally accepted accounting principals) determine the content and format
-based on historical transactions
-data must be reliable + objective
-reports made annually + quarterly
-CPAs verify F.A annual financial statements and express opinions on the fairness of financial info
-SEC or Securities and Exchange requires publicly traded companies to issue annual audited financial
statements
-reports concern the adequacy of discourse, behavioral implications are secondary
marginal cost - correct answer ✔✔a ___ is the cost of making one more unit
Variable costs - correct answer ✔✔Gasoline is one of many ____ in the operation of a motor vehicle
fixed cost; variable costs; average cost - correct answer ✔✔A products ___ and ___, not the products
____ should be used to forecast total costs at different production volumes
fixed costs - correct answer ✔✔within relevant range, ___ do not change in total with changes in
production
average cost - correct answer ✔✔the __ per unit declines as a production facility produces more units
(chapters 1+2) questions with complete
solutions
Manager's Responsibilities - correct answer ✔✔planning, directing, controlling
Planning - correct answer ✔✔setting goals and objectives for the company and determining how to
achieve them
Planning example - correct answer ✔✔-generating more sales via opening new stores
-reduce labor costs by reducing store hours
-implementing a budget
Directing - correct answer ✔✔overseeing the company's day-to-day operations
Directing example - correct answer ✔✔-using daily/weekly sales reports to adjust marketing strategies
-using product cost reports to adjust raw materials usage
Controlling - correct answer ✔✔Evaluating results of operations against plans and making adjustments
as needed
Controlling example - correct answer ✔✔comparing budgeted sales with actual sales to take corrective
actions, along w/ a budget for products
Managerial Accounting - correct answer ✔✔-Internal (managers)
-freedom of reporting w/o following format or guidelines
-provide information on both internal and external transactions
-focuses on the future, using only relevant data
, -creates reports on units such as products, customers, geographical regions, divisions and departments
-reports may come out daily depending on management needs
-no independent audits; company internal audit function may examine reports
-no authoritative body needs reports
-considers employees behavior b/c reports
Financial Accounting - correct answer ✔✔-external users such as creditors, stockholders, and
government regulators
-helps users make investing and lending decisions
-financial statements
-GAAP (generally accepted accounting principals) determine the content and format
-based on historical transactions
-data must be reliable + objective
-reports made annually + quarterly
-CPAs verify F.A annual financial statements and express opinions on the fairness of financial info
-SEC or Securities and Exchange requires publicly traded companies to issue annual audited financial
statements
-reports concern the adequacy of discourse, behavioral implications are secondary
marginal cost - correct answer ✔✔a ___ is the cost of making one more unit
Variable costs - correct answer ✔✔Gasoline is one of many ____ in the operation of a motor vehicle
fixed cost; variable costs; average cost - correct answer ✔✔A products ___ and ___, not the products
____ should be used to forecast total costs at different production volumes
fixed costs - correct answer ✔✔within relevant range, ___ do not change in total with changes in
production
average cost - correct answer ✔✔the __ per unit declines as a production facility produces more units
