MANAGERIAL ACCOUNTING EXAMINATION QUESTIONS AND CORRECT ANSWER WITH RATIONALE GRADED A+STUDY GUIDE

MANAGERIAL ACCOUNTING EXAMINATION QUESTIONS
AND CORRECT ANSWER WITH RATIONALE GRADED
A+STUDY GUIDE SOUTHERN NEW HAMPSHIRE
UNIVERSITY
1. Managerial accounting is concerned with:
A. External reporting
B. Providing information for internal decision-making
C. Court reporting
D. Tax filing only
Answer: B
Rationale: It focuses on internal management decisions.

2. Financial accounting mainly serves:
A. Managers
B. External users
C. Employees
D. Police
Answer: B
Rationale: External stakeholders use financial reports.

3. Cost refers to:
A. Revenue
B. Sacrifice of resources to obtain goods/services
C. Crime cost
D. Court cost
Answer: B
Rationale: Cost is resource sacrifice.

4. Expense is:
A. Asset
B. Cost used up in generating revenue
C. Crime expense
D. Court expense
Answer: B
Rationale: Expense reduces income.

,5. Fixed costs are:
A. Change with production
B. Constant regardless of output
C. Crime costs
D. Court costs
Answer: B
Rationale: Do not vary with activity.

6. Variable costs:
A. Remain constant
B. Change with output
C. Crime variable
D. Court variable
Answer: B
Rationale: Depend on production.

7. Mixed cost is:
A. Only fixed
B. Both fixed and variable components
C. No cost
D. Crime cost
Answer: B
Rationale: Combination of cost types.

8. Direct materials are:
A. Indirect expenses
B. Materials directly used in production
C. Crime materials
D. Court materials
Answer: B
Rationale: Traceable to product.

9. Direct labor is:
A. Indirect cost
B. Labor directly involved in production
C. Crime labor
D. Court labor
Answer: B
Rationale: Production workers.

, 10. Manufacturing overhead includes:
A. Direct materials
B. Indirect production costs
C. Sales revenue
D. Crime costs
Answer: B
Rationale: Indirect factory costs.

11. Cost behavior refers to:
A. Crime behavior
B. How costs change with activity
C. Court behavior
D. HR behavior
Answer: B
Rationale: Cost response to activity.

12. Contribution margin is:
A. Revenue - fixed cost
B. Revenue - variable cost
C. Crime margin
D. Court margin
Answer: B
Rationale: Covers fixed costs.

13. Break-even point occurs when:
A. Profit is maximum
B. Revenue = total cost
C. Crime equals court
D. HR equals cost
Answer: B
Rationale: No profit no loss.

14. Margin of safety is:
A. Loss zone
B. Sales above break-even
C. Crime margin
D. Court margin
Answer: B
Rationale: Risk buffer.