A306 FINAL EXAM | 259 QUESTIONS AND ANSWERS |
WITH COMPLETE SOLUTION!!
An effective performance evaluation will do what? Answer - Reward 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. Answer - Can 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? Answer - 2500 units
What is a disadvantage of using residual income as a performance indicator?
Answer - It favors large divisions
Who uses management accounting and analysis? Answer - ALL business
students, ALL managers
,Managers use data to: Answer - Plan, 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 Answer - the 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) Answer - 1. Investors
2. Banks/lenders/creditors
3. Govt agencies/regulators
4 audited stmts in financial accounting Answer - 1. Balance sheet
2. Income statement
3. Stmt cash flows
4. Retained earnings
Who are the decision makers inside the company: (3) Answer - 1. Executives
2. Dept managers
3. Employees
,Purpose of management accounting: Answer - 1. 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 Answer - C - 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 Answer - E
Planning (2) Answer - - involves developing goals and
- preparing various budgets to achieve those goals
Control (3) Answer - - involves gathering feedback to ensure the plan is
working
- making changes as needed
- verifying all parts of the organization are working together toward the goals
, Make decisions Answer - Have a competitive advantage
NOI = Answer - REV - COSTS
Names for indirect costs Answer - Shared, allocated, common costs
If he cost in the smallest circle is D... Answer - It stays direct as you get bigger
If cost in smallest circle is indirect... Answer - It flips to direct and will stay
direct
Are mfg and non mfg costs only direct? Answer - Can be direct or indirect!
Depends on cost object
What does the cost object determine Answer - If a cost is direct or indirect
What is the purpose of prime and conversion costs? Answer - To gauge
efficiency!
Conversion costs Answer - Gauge efficiency of production process (DL+MOH)
Prime costs Answer - Helps set selling price to achieve required profits (DM
+DL)
To be a prime or conversion cost, it must be a... Answer - MANUFACTURING
COST
WITH COMPLETE SOLUTION!!
An effective performance evaluation will do what? Answer - Reward 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. Answer - Can 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? Answer - 2500 units
What is a disadvantage of using residual income as a performance indicator?
Answer - It favors large divisions
Who uses management accounting and analysis? Answer - ALL business
students, ALL managers
,Managers use data to: Answer - Plan, 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 Answer - the 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) Answer - 1. Investors
2. Banks/lenders/creditors
3. Govt agencies/regulators
4 audited stmts in financial accounting Answer - 1. Balance sheet
2. Income statement
3. Stmt cash flows
4. Retained earnings
Who are the decision makers inside the company: (3) Answer - 1. Executives
2. Dept managers
3. Employees
,Purpose of management accounting: Answer - 1. 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 Answer - C - 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 Answer - E
Planning (2) Answer - - involves developing goals and
- preparing various budgets to achieve those goals
Control (3) Answer - - involves gathering feedback to ensure the plan is
working
- making changes as needed
- verifying all parts of the organization are working together toward the goals
, Make decisions Answer - Have a competitive advantage
NOI = Answer - REV - COSTS
Names for indirect costs Answer - Shared, allocated, common costs
If he cost in the smallest circle is D... Answer - It stays direct as you get bigger
If cost in smallest circle is indirect... Answer - It flips to direct and will stay
direct
Are mfg and non mfg costs only direct? Answer - Can be direct or indirect!
Depends on cost object
What does the cost object determine Answer - If a cost is direct or indirect
What is the purpose of prime and conversion costs? Answer - To gauge
efficiency!
Conversion costs Answer - Gauge efficiency of production process (DL+MOH)
Prime costs Answer - Helps set selling price to achieve required profits (DM
+DL)
To be a prime or conversion cost, it must be a... Answer - MANUFACTURING
COST
