Managerial Accounting Exam 2025
Questions and Answers
Managerial Accounting and Financial Accounting differ in the following way: -
✔✔Financial Accounting summarizes information for the company as a whole.
Common users of managerial accounting reports include the following: - ✔✔A. Chief
financial officer and operations manager
The management function of controlling is carried out through the use of - ✔✔A. A
performance report that compares budgeted to actual results.
Management accounting is used by - ✔✔A. All of the above.
The CMA certification requires - ✔✔A. A rigorous professional exam and experience in
financial management only.
Guidelines for ethical behavior for management accountants require - ✔✔Management
accountants maintain professional competence.
Institute of Management Accountants supports ethical practices by - ✔✔Staffing an
ethics hotline for its members
The wages of factory maintenance personnel would usually be considered to be a -
✔✔A. Manufacturing overhead cost
Conversion costs include - ✔✔Manufacturing overhead costs
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,Which of the following costs is an example of a period rather than a product cost? -
✔✔A. Salaries of salespersons
Last month 10,000 units of a product were manufactured, and the total cost per unit was
$60. At this level of production the variable cost is $30 per unit and the fixed cost is $30
per unit. If 10,500 units are manufactured the next month, and the costs remain within
the same relevant range, - ✔✔Total cost per unit will decrease
Numerically the unchanging fixed cost is $30 * 10,000 = $300,000. The cost for 10,500
units = 10,500 units * $30 variable cost + fixed cost of $300,000 = $315,000 + $300,000 =
$615,000. The total cost per unit is $615,,500 units = $58.57. Alternatively, when
production increases, fixed costs PER UNIT decrease because the same fixed cost is
spread over more units, so total cost per unit will decrease.
The following costs were incurred in September:
Direct materials $39,000
Direct labor 23,000
Manufacturing overhead 17,000
Selling expenses 14,000
Administrative expenses 27,000
Prime costs during the month totaled - ✔✔A. $62,000
Prime costs ae direct labor and direct material costs
ABC Corporation sells its product for $195.70 per unit. In 2015 the company had total
sales in units of 6,000. The total costs were the following:
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,Variable cost of sales $457,800
Fixed cost of sales 100,000
Variable selling & administrative costs 108,500
Fixed selling & administrative costs 512,400
What is the best estimate of the total contribution margin? - ✔✔A. $607,900
Total Contribution Margin = Total Sales - Total Variable Costs; Total Sales = 195.70 *
6000 = 1174200. Total Variable Costs = 457,800 + 108,500 = 566,300. Contribution Margin
= 1171200-566300 = 607,900
Chaffee Corporation staffs a helpline to answer questions from customers. The costs of
operating the helpline are variable with respect to the number of calls in a month. At a
volume of 33,000 calls in a month, the costs of operating the helpline total $742,500.
7. To the nearest whole dollar, what should be the total cost of operating the helpline
costs at a volume of 34,800 calls in a month? (Assume that this call volume is within the
relevant range.) - ✔✔A. $783,000
From the initial data, the cost per call is $742,500/33,000 = $22.48; Therefore the cost at
34,800 calls would be $22.48*34,800=78472
Chaffee Corporation staffs a helpline to answer questions from customers. The costs of
operating the helpline are variable with respect to the number of calls in a month. At a
volume of 33,000 calls in a month, the costs of operating the helpline total $742,500.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 3
, 7. To the nearest whole dollar, what should be the total cost of operating the helpline
costs at a volume of 34,800 calls in a month? (Assume that this call volume is within the
relevant range.) - ✔✔A. $22.50
From the initial data, the cost per call is $742,500/33,000 = $22.48; Therefore the cost at
34,800 calls would be $22.48*34,800=78472
In computing its predetermined overhead rate, Marple Company inadvertently left its
indirect labor costs out of the computation. This oversight will cause: - ✔✔A. The Cost
of Goods Manufactured to be understated.
In a job-order costing system, the use of direct materials that have been previously
purchased is recorded as a debit to: - ✔✔A. Work in Process inventory.
In a job-order costing system, indirect materials that have been previously purchased
and that are used in production are recorded as a debit to: - ✔✔A. Manufacturing
Overhead.
Overapplied manufacturing overhead occurs when: - ✔✔A. applied overhead exceeds
actual overhead.
Wert Corporation uses a predetermined overhead rate based on direct labor cost to
apply manufacturing overhead to jobs. Last year, the company's estimated
manufacturing overhead was $1,200,000 and its estimated level of activity was 50,000
direct labor-hours. The company's direct labor wage rate is $12 per hour. Actual
manufacturing overhead amounted to $1,240,000, with actual direct labor cost of
$650,000. For the year, manufacturing overhead was: - ✔✔A. overapplied by $60,000
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 4
Questions and Answers
Managerial Accounting and Financial Accounting differ in the following way: -
✔✔Financial Accounting summarizes information for the company as a whole.
Common users of managerial accounting reports include the following: - ✔✔A. Chief
financial officer and operations manager
The management function of controlling is carried out through the use of - ✔✔A. A
performance report that compares budgeted to actual results.
Management accounting is used by - ✔✔A. All of the above.
The CMA certification requires - ✔✔A. A rigorous professional exam and experience in
financial management only.
Guidelines for ethical behavior for management accountants require - ✔✔Management
accountants maintain professional competence.
Institute of Management Accountants supports ethical practices by - ✔✔Staffing an
ethics hotline for its members
The wages of factory maintenance personnel would usually be considered to be a -
✔✔A. Manufacturing overhead cost
Conversion costs include - ✔✔Manufacturing overhead costs
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 1
,Which of the following costs is an example of a period rather than a product cost? -
✔✔A. Salaries of salespersons
Last month 10,000 units of a product were manufactured, and the total cost per unit was
$60. At this level of production the variable cost is $30 per unit and the fixed cost is $30
per unit. If 10,500 units are manufactured the next month, and the costs remain within
the same relevant range, - ✔✔Total cost per unit will decrease
Numerically the unchanging fixed cost is $30 * 10,000 = $300,000. The cost for 10,500
units = 10,500 units * $30 variable cost + fixed cost of $300,000 = $315,000 + $300,000 =
$615,000. The total cost per unit is $615,,500 units = $58.57. Alternatively, when
production increases, fixed costs PER UNIT decrease because the same fixed cost is
spread over more units, so total cost per unit will decrease.
The following costs were incurred in September:
Direct materials $39,000
Direct labor 23,000
Manufacturing overhead 17,000
Selling expenses 14,000
Administrative expenses 27,000
Prime costs during the month totaled - ✔✔A. $62,000
Prime costs ae direct labor and direct material costs
ABC Corporation sells its product for $195.70 per unit. In 2015 the company had total
sales in units of 6,000. The total costs were the following:
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 2
,Variable cost of sales $457,800
Fixed cost of sales 100,000
Variable selling & administrative costs 108,500
Fixed selling & administrative costs 512,400
What is the best estimate of the total contribution margin? - ✔✔A. $607,900
Total Contribution Margin = Total Sales - Total Variable Costs; Total Sales = 195.70 *
6000 = 1174200. Total Variable Costs = 457,800 + 108,500 = 566,300. Contribution Margin
= 1171200-566300 = 607,900
Chaffee Corporation staffs a helpline to answer questions from customers. The costs of
operating the helpline are variable with respect to the number of calls in a month. At a
volume of 33,000 calls in a month, the costs of operating the helpline total $742,500.
7. To the nearest whole dollar, what should be the total cost of operating the helpline
costs at a volume of 34,800 calls in a month? (Assume that this call volume is within the
relevant range.) - ✔✔A. $783,000
From the initial data, the cost per call is $742,500/33,000 = $22.48; Therefore the cost at
34,800 calls would be $22.48*34,800=78472
Chaffee Corporation staffs a helpline to answer questions from customers. The costs of
operating the helpline are variable with respect to the number of calls in a month. At a
volume of 33,000 calls in a month, the costs of operating the helpline total $742,500.
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 3
, 7. To the nearest whole dollar, what should be the total cost of operating the helpline
costs at a volume of 34,800 calls in a month? (Assume that this call volume is within the
relevant range.) - ✔✔A. $22.50
From the initial data, the cost per call is $742,500/33,000 = $22.48; Therefore the cost at
34,800 calls would be $22.48*34,800=78472
In computing its predetermined overhead rate, Marple Company inadvertently left its
indirect labor costs out of the computation. This oversight will cause: - ✔✔A. The Cost
of Goods Manufactured to be understated.
In a job-order costing system, the use of direct materials that have been previously
purchased is recorded as a debit to: - ✔✔A. Work in Process inventory.
In a job-order costing system, indirect materials that have been previously purchased
and that are used in production are recorded as a debit to: - ✔✔A. Manufacturing
Overhead.
Overapplied manufacturing overhead occurs when: - ✔✔A. applied overhead exceeds
actual overhead.
Wert Corporation uses a predetermined overhead rate based on direct labor cost to
apply manufacturing overhead to jobs. Last year, the company's estimated
manufacturing overhead was $1,200,000 and its estimated level of activity was 50,000
direct labor-hours. The company's direct labor wage rate is $12 per hour. Actual
manufacturing overhead amounted to $1,240,000, with actual direct labor cost of
$650,000. For the year, manufacturing overhead was: - ✔✔A. overapplied by $60,000
COPYRIGHT © 2025 BY OLIVIA WEST, ALL RIGHTS RESERVED 4
