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IVY SOFTWARE MBA PREPWORKS
MANAGERIAL ACCOUNTING EXAM 2025-2026
UPDATED ACTUAL EXAM WITH CORRECT
SOLUTIONS.
If Elli Inc sells 20,000 units of x and 60,000 units of y, the
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composite unit consists of .25x and .75y (T/F) - correct answer-
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True. Adding 20,000 and 60,000 we get 80,000 units. Splitting
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this up into proportions we have 20,000/80,000=25%x and
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60,000/80,000=75%y.
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If the quantity sold is greater than the quantity produced there has
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to be: - correct answer- Finished goods beginning inventory. If
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you sell more than you produce, you must obtain the units
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somewhere. You obtain them from the finished goods beginning
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inventory.
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Contribution margin and contribution margin per unit are the | | | | | | | |
same. - correct answer- False
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Breakeven indicates that the sales dollars cover all fixed and | | | | | | | | |
variable costs of manufacturing - correct answer- True
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,2 | Page
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Inventoriable costs using variable costing is appropriate for | | | | | | |
external reporting - correct answer- False
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Essex company sells two products- A and B. Product A sales are
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two times that of product B. The contribution per unit for A is
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$4 and B is $1. What is the weighted average contribution margin
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per unit? - correct answer- $3
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Absorption costing clearly separates fixed costs from variable | | | | | | |
costs - correct answer- false
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Converse company has two products- A and B. The weighted | | | | | | | | |
average contribution margin per unit is $4. Converse sells twice
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as many As as Bs. The contribution margin per unit for B is $2.
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What is it for A? - correct answer- $5
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If the breakeven is 5000 units and fixed costs are $50,000, what
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is the contribution margin per unit? - correct answer- $10
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Which of the following will be found on an absorption costing
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income statement but not on a variable costing income
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statement? - correct answer- Gross Margin and Cost of Goods
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Sold
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,3 | Page
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If units produced are less than units sold, net income using
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absorption costing is - correct answer- Less than variable costing
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If the selling price is $5 per unit the variable cost is $1 per unit and
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the fixed cost is $20,000, what is the breakeven in units? - correct
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answer- $5,000 (5x - 1x - 20000 = 0, 4x - 20,000=0, 4x=20000, x =
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5000)
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The total of ALL the right-hand sides of the T-accounts must
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equal the total of ALL the left-hand sides of the T-Accounts (T/F) -
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correct answer- True. The double-entry system of accounting
| | | | | | | |
means that for each transaction recorded, there is a left-hand
| | | | | | | | | |
(debit) entry offset by a right-hand (credit) entry.
| | | | | | | |
Since the total of all the R sides of accounts equals the total of L
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sides, then the total amount of increases entered in the general
| | | | | | | | | | |
ledger must equal the total amount of decreases (T/F) - correct
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answer- False. Cash (Asset) and Common Stock (Owners'
| | | | | | | |
Equity) is used to record the sale of company stock.
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While the R side equals the L side, they both increase, thus, the
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total amount of increases does not equal the decreases.
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, 4 | Page
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Almost all the data necessary to prepare an income statement is
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contained in the retained earnings account. - correct answer-
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False. not Almost all. ALL.
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A transaction is an event that affects the financial position of a
| | | | | | | | | | |
company. - correct answer- True.
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Credits are generally good and debits are generally bad. - correct
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answer- False. credit means nothing more than the R side while a
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debit means the L side. Neither is good or bad.
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Bookkeeping accounts are a method of accumulating financial | | | | | | |
transactions and summarizing their effects on balance sheet
| | | | | | | |
items. - correct answer- True. Bookkeeping accounts provide an
| | | | | | | | |
easy means for recording, collecting, and reporting financial
| | | | | | | |
transactions of a firm.
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Liabilities normally have a L balance - correct answer- False.
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Liabilities and OE usually have R balances while assets have L
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balances
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It is possible to have the books in balance but with mistakes. -
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correct answer- Having the books in balance simply means that
| | | | | | | | | |
each time you entered a transaction you placed equal amounts
| | | | | | | | | |
| | | | | |
IVY SOFTWARE MBA PREPWORKS
MANAGERIAL ACCOUNTING EXAM 2025-2026
UPDATED ACTUAL EXAM WITH CORRECT
SOLUTIONS.
If Elli Inc sells 20,000 units of x and 60,000 units of y, the
| | | | | | | | | | | | |
composite unit consists of .25x and .75y (T/F) - correct answer-
| | | | | | | | | | |
True. Adding 20,000 and 60,000 we get 80,000 units. Splitting
| | | | | | | | | |
this up into proportions we have 20,000/80,000=25%x and
| | | | | | | |
60,000/80,000=75%y.
|
If the quantity sold is greater than the quantity produced there has
| | | | | | | | | | |
to be: - correct answer- Finished goods beginning inventory. If
| | | | | | | | | |
you sell more than you produce, you must obtain the units
| | | | | | | | | | |
somewhere. You obtain them from the finished goods beginning
| | | | | | | | |
inventory.
|
Contribution margin and contribution margin per unit are the | | | | | | | |
same. - correct answer- False
| | | | |
Breakeven indicates that the sales dollars cover all fixed and | | | | | | | | |
variable costs of manufacturing - correct answer- True
| | | | | | | |
,2 | Page
| | | | | |
Inventoriable costs using variable costing is appropriate for | | | | | | |
external reporting - correct answer- False
| | | | | |
Essex company sells two products- A and B. Product A sales are
| | | | | | | | | | |
two times that of product B. The contribution per unit for A is
| | | | | | | | | | | | |
$4 and B is $1. What is the weighted average contribution margin
| | | | | | | | | | |
per unit? - correct answer- $3
| | | | | |
Absorption costing clearly separates fixed costs from variable | | | | | | |
costs - correct answer- false
| | | | |
Converse company has two products- A and B. The weighted | | | | | | | | |
average contribution margin per unit is $4. Converse sells twice
| | | | | | | | | |
as many As as Bs. The contribution margin per unit for B is $2.
| | | | | | | | | | | | | |
What is it for A? - correct answer- $5
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If the breakeven is 5000 units and fixed costs are $50,000, what
| | | | | | | | | | |
is the contribution margin per unit? - correct answer- $10
| | | | | | | | | |
Which of the following will be found on an absorption costing
| | | | | | | | | |
income statement but not on a variable costing income
| | | | | | | | |
statement? - correct answer- Gross Margin and Cost of Goods
| | | | | | | | | |
Sold
|
,3 | Page
| | | | | |
If units produced are less than units sold, net income using
| | | | | | | | | |
absorption costing is - correct answer- Less than variable costing
| | | | | | | | | |
If the selling price is $5 per unit the variable cost is $1 per unit and
| | | | | | | | | | | | | | |
the fixed cost is $20,000, what is the breakeven in units? - correct
| | | | | | | | | | | | |
answer- $5,000 (5x - 1x - 20000 = 0, 4x - 20,000=0, 4x=20000, x =
| | | | | | | | | | | | | | |
5000)
|
The total of ALL the right-hand sides of the T-accounts must
| | | | | | | | | |
equal the total of ALL the left-hand sides of the T-Accounts (T/F) -
| | | | | | | | | | | | |
correct answer- True. The double-entry system of accounting
| | | | | | | |
means that for each transaction recorded, there is a left-hand
| | | | | | | | | |
(debit) entry offset by a right-hand (credit) entry.
| | | | | | | |
Since the total of all the R sides of accounts equals the total of L
| | | | | | | | | | | | | |
sides, then the total amount of increases entered in the general
| | | | | | | | | | |
ledger must equal the total amount of decreases (T/F) - correct
| | | | | | | | | | |
answer- False. Cash (Asset) and Common Stock (Owners'
| | | | | | | |
Equity) is used to record the sale of company stock.
| | | | | | | | | |
While the R side equals the L side, they both increase, thus, the
| | | | | | | | | | | |
total amount of increases does not equal the decreases.
| | | | | | | | |
, 4 | Page
| | | | | |
Almost all the data necessary to prepare an income statement is
| | | | | | | | | |
contained in the retained earnings account. - correct answer-
| | | | | | | | |
False. not Almost all. ALL.
| | | | |
A transaction is an event that affects the financial position of a
| | | | | | | | | | |
company. - correct answer- True.
| | | | |
Credits are generally good and debits are generally bad. - correct
| | | | | | | | | |
answer- False. credit means nothing more than the R side while a
| | | | | | | | | | | |
debit means the L side. Neither is good or bad.
| | | | | | | | | |
Bookkeeping accounts are a method of accumulating financial | | | | | | |
transactions and summarizing their effects on balance sheet
| | | | | | | |
items. - correct answer- True. Bookkeeping accounts provide an
| | | | | | | | |
easy means for recording, collecting, and reporting financial
| | | | | | | |
transactions of a firm.
| | | |
Liabilities normally have a L balance - correct answer- False.
| | | | | | | | |
Liabilities and OE usually have R balances while assets have L
| | | | | | | | | | |
balances
|
It is possible to have the books in balance but with mistakes. -
| | | | | | | | | | | |
correct answer- Having the books in balance simply means that
| | | | | | | | | |
each time you entered a transaction you placed equal amounts
| | | | | | | | | |
