Managerial Accounting Exam Study Guide | 100 Practice Questions
and Problems with Worked Solutions & Rationales 2026/2027
Practice case 1
Classifying manufacturing costs
For a furniture maker, classify the following costs using standard introductory
manufacturing definitions. Assume wood and assembly labor are economically
traceable to individual tables.
1. Classify wood incorporated into a table.
Working or response
2. Classify assembly labor.
Working or response
3. Classify factory rent.
Working or response
4. Classify sales commissions.
Working or response
5. Classify headquarters accounting salaries.
Working or response
,Practice case 2
Cost behavior in a relevant range
Variable cost is $8 per unit and monthly fixed cost is $3,000. The relevant range
includes 500 to 1,000 units.
6. Find total cost at 500 units.
Working or response
7. Find total cost at 1,000 units.
Working or response
8. Find average total cost per unit at 500 units.
Working or response
9. Find average total cost per unit at 1,000 units.
Working or response
10. Find incremental total cost of increasing output from 500 to 1,000.
Working or response
,Practice case 3
High low cost estimate
Maintenance cost is $9,000 at 2,000 machine-hours and $15,000 at 5,000 machine-
hours. Assume a linear relationship for the relevant range.
11. Estimate variable cost per machine-hour.
Working or response
12. Estimate monthly fixed cost.
Working or response
13. Predict cost at 4,000 hours.
Working or response
14. Predict cost at 3,500 hours.
Working or response
15. Name a limitation of the estimate.
Working or response
, Practice case 4
Single product break even
Price is $50 per unit, variable cost $30 per unit, and fixed cost $40,000. Assume one
product, constant unit economics, and no inventory change.
16. Find unit contribution margin.
Working or response
17. Find contribution-margin ratio.
Working or response
18. Find break-even units.
Working or response
19. Find break-even sales dollars.
Working or response
20. Find operating income at 3,000 units.
Working or response
and Problems with Worked Solutions & Rationales 2026/2027
Practice case 1
Classifying manufacturing costs
For a furniture maker, classify the following costs using standard introductory
manufacturing definitions. Assume wood and assembly labor are economically
traceable to individual tables.
1. Classify wood incorporated into a table.
Working or response
2. Classify assembly labor.
Working or response
3. Classify factory rent.
Working or response
4. Classify sales commissions.
Working or response
5. Classify headquarters accounting salaries.
Working or response
,Practice case 2
Cost behavior in a relevant range
Variable cost is $8 per unit and monthly fixed cost is $3,000. The relevant range
includes 500 to 1,000 units.
6. Find total cost at 500 units.
Working or response
7. Find total cost at 1,000 units.
Working or response
8. Find average total cost per unit at 500 units.
Working or response
9. Find average total cost per unit at 1,000 units.
Working or response
10. Find incremental total cost of increasing output from 500 to 1,000.
Working or response
,Practice case 3
High low cost estimate
Maintenance cost is $9,000 at 2,000 machine-hours and $15,000 at 5,000 machine-
hours. Assume a linear relationship for the relevant range.
11. Estimate variable cost per machine-hour.
Working or response
12. Estimate monthly fixed cost.
Working or response
13. Predict cost at 4,000 hours.
Working or response
14. Predict cost at 3,500 hours.
Working or response
15. Name a limitation of the estimate.
Working or response
, Practice case 4
Single product break even
Price is $50 per unit, variable cost $30 per unit, and fixed cost $40,000. Assume one
product, constant unit economics, and no inventory change.
16. Find unit contribution margin.
Working or response
17. Find contribution-margin ratio.
Working or response
18. Find break-even units.
Working or response
19. Find break-even sales dollars.
Working or response
20. Find operating income at 3,000 units.
Working or response
