Managerial Accounting Final exam |82
Questions with Answers
Similarity between financial and managerial accounting? - -Both draw upon
data from an organization's basic accounting system.
- Objective of managerial accounting:Assisting in controlling and evaluating
operations. Yes or no - -Yes
- Objective of managerial accounting:Providing info for decision making and
planning. Yes or no - -Yes
- Objective of managerial accounting:Measuring the performance of
managers and sub-units. Yes or No - -Yes
- Objective of managerial accounting:Motivating managers towards the
organization's goals. Yes or no - -Yes
- Who is responsible for raising capital and safeguarding the organization's
assets? - -Treasurer
- Managerial accounting focuses primarily on? - -The needs of managers
internal to the organization.
- Variable costs are those costs that: - -In total vary directly with changes in
activity level.
- Total costs are $140,000 when a company produces 10,000 units. Of this
amount, variable costs are $4 per unit. What are the total costs when 8,000
units are produced? - -132,000
- As a company begins to operate outside the relevant range, the accuracy
of cost estimates for fixed and variable costs: - -Fixed Decrease and Variable
Decrease
- Fixed costs are those costs that - -Increase on a per unit basis as activity
decreases
- What method of cost estimation fits a cost line using exactly two data
points? - -High-low method
- In regression analysis, the fixed cost component is represented by what
variable on the regression analysis output? - -Intercept coefficient
, - The break-even point in sales dollars can be calculated by dividing - -Fixed
expenses by the contribution margin ratio
- Cost-volume-profit analysis general assumptions: Expenses can be
categorized as fixed, variable,or semi-variable(mixed). T or F - -True
- Cost-volume-profit analysis general assumptions: The selling price per unit
of product will remain constant as volume varies within the relevant range. T
or F - -True
- Cost-volume-profit analysis general assumptions: Total fixed expenses
remain constant as activity changes. T or F - -True
- Cost-volume-profit analysis general assumptions: The efficiency and
productivity of the production process and workers remain constant. T or F -
-True
- The difference between the current sales revenue and the break-even
sales revenue is the - -Margin of saftey
- Assume that selling price is greater than variable cost. Now suppose both
the selling price and the variable cost per unit decrease by $5.00. What
effect would these changes have on the total contribution margin in dollars
and on the contribution margin ratio? - -Total contribution margin($)- No
change
Contribution margin ratio- Increase
- Inventoriable costs that have become expenses can be found on the
Income Statement in: - -Cost of Goods Sold. (Remember, we hold these
expenses on the Balance Sheet until the product is sold, and then we match
the expense with the Sales Revenue.)
- Example of an Indirect Product Cost? - -Property taxes on plant facilities
- Which of the following Redondo Beach T-Shirt Makers costs is a period
cost? - -Salary of owner's secretary
- Process costing is used when - -large numbers of nearly identical products
are manufactured.
- When under-applied or over-applied manufacturing is prorated, accounts to
which the difference may be allocated include: - -Work in Process Inventory,
Finished Goods Inventory, and Cost of Goods Sold
Questions with Answers
Similarity between financial and managerial accounting? - -Both draw upon
data from an organization's basic accounting system.
- Objective of managerial accounting:Assisting in controlling and evaluating
operations. Yes or no - -Yes
- Objective of managerial accounting:Providing info for decision making and
planning. Yes or no - -Yes
- Objective of managerial accounting:Measuring the performance of
managers and sub-units. Yes or No - -Yes
- Objective of managerial accounting:Motivating managers towards the
organization's goals. Yes or no - -Yes
- Who is responsible for raising capital and safeguarding the organization's
assets? - -Treasurer
- Managerial accounting focuses primarily on? - -The needs of managers
internal to the organization.
- Variable costs are those costs that: - -In total vary directly with changes in
activity level.
- Total costs are $140,000 when a company produces 10,000 units. Of this
amount, variable costs are $4 per unit. What are the total costs when 8,000
units are produced? - -132,000
- As a company begins to operate outside the relevant range, the accuracy
of cost estimates for fixed and variable costs: - -Fixed Decrease and Variable
Decrease
- Fixed costs are those costs that - -Increase on a per unit basis as activity
decreases
- What method of cost estimation fits a cost line using exactly two data
points? - -High-low method
- In regression analysis, the fixed cost component is represented by what
variable on the regression analysis output? - -Intercept coefficient
, - The break-even point in sales dollars can be calculated by dividing - -Fixed
expenses by the contribution margin ratio
- Cost-volume-profit analysis general assumptions: Expenses can be
categorized as fixed, variable,or semi-variable(mixed). T or F - -True
- Cost-volume-profit analysis general assumptions: The selling price per unit
of product will remain constant as volume varies within the relevant range. T
or F - -True
- Cost-volume-profit analysis general assumptions: Total fixed expenses
remain constant as activity changes. T or F - -True
- Cost-volume-profit analysis general assumptions: The efficiency and
productivity of the production process and workers remain constant. T or F -
-True
- The difference between the current sales revenue and the break-even
sales revenue is the - -Margin of saftey
- Assume that selling price is greater than variable cost. Now suppose both
the selling price and the variable cost per unit decrease by $5.00. What
effect would these changes have on the total contribution margin in dollars
and on the contribution margin ratio? - -Total contribution margin($)- No
change
Contribution margin ratio- Increase
- Inventoriable costs that have become expenses can be found on the
Income Statement in: - -Cost of Goods Sold. (Remember, we hold these
expenses on the Balance Sheet until the product is sold, and then we match
the expense with the Sales Revenue.)
- Example of an Indirect Product Cost? - -Property taxes on plant facilities
- Which of the following Redondo Beach T-Shirt Makers costs is a period
cost? - -Salary of owner's secretary
- Process costing is used when - -large numbers of nearly identical products
are manufactured.
- When under-applied or over-applied manufacturing is prorated, accounts to
which the difference may be allocated include: - -Work in Process Inventory,
Finished Goods Inventory, and Cost of Goods Sold
