Management Financial Accounting Exam Questions and Answers
The planning, directing and motivating, and control activities of a manager are kept separate from the
manager's decision-making responsibilities. - Answers False
Work in process inventories consists of units that are only partially complete and will require further
work before they are ready for sale to a customer. - Answers True
Managerial Accounting places considerable weight on which of the following? - Answers Detailed
segment reports about departments, products, and customers
Just-in-time is a production system in which units are produced and materials are purchased only as
need to meet actual customer demand. - Answers True
If the activity level drops by 10%, one would expect the variable costs to: - Answers Drop in total by 10%
The schedule of cost of goods manufactured of the Mayberry Company shows the following balances for
the year ended December 31, 2000: Raw materials used in production $900,000; Direct labor 560,000;
Total overhead costs 750,000; Ending work in process inventory 460,000; Cost of goods manufactured
2,250,000; The beginning work in process inventory was: - Answers Cost of goods sold = beginning
merchandise inventory + purchases - ending merchandise inventory
2,250,000 = B + (900,000 + 560,000 + 750,000) - 460,000
B = $40,000
Within the relevant range, the difference between variable costs and fixed costs is: - Answers Variable
costs per unit are constant and fixed costs per unit fluctuate.
Sunk costs are costs that have already been incurred and that cannot be changed by any decision made
now or in the future. - Answers True
An opportunity cost is: - Answers The benefit forgone by selecting one alternative instead of another.
The beginning balance of the Raw Materials inventory account for May was $27,500. The ending balance
for May was $28,750 and $128,900 of raw materials were used during the month. The materials
purchased during the month cost: - Answers Cost of goods sold = beginning merchandise inventory +
purchases - ending merchandise inventory
128,900 = 27,500 + P - 28,750
The planning, directing and motivating, and control activities of a manager are kept separate from the
manager's decision-making responsibilities. - Answers False
Work in process inventories consists of units that are only partially complete and will require further
work before they are ready for sale to a customer. - Answers True
Managerial Accounting places considerable weight on which of the following? - Answers Detailed
segment reports about departments, products, and customers
Just-in-time is a production system in which units are produced and materials are purchased only as
need to meet actual customer demand. - Answers True
If the activity level drops by 10%, one would expect the variable costs to: - Answers Drop in total by 10%
The schedule of cost of goods manufactured of the Mayberry Company shows the following balances for
the year ended December 31, 2000: Raw materials used in production $900,000; Direct labor 560,000;
Total overhead costs 750,000; Ending work in process inventory 460,000; Cost of goods manufactured
2,250,000; The beginning work in process inventory was: - Answers Cost of goods sold = beginning
merchandise inventory + purchases - ending merchandise inventory
2,250,000 = B + (900,000 + 560,000 + 750,000) - 460,000
B = $40,000
Within the relevant range, the difference between variable costs and fixed costs is: - Answers Variable
costs per unit are constant and fixed costs per unit fluctuate.
Sunk costs are costs that have already been incurred and that cannot be changed by any decision made
now or in the future. - Answers True
An opportunity cost is: - Answers The benefit forgone by selecting one alternative instead of another.
The beginning balance of the Raw Materials inventory account for May was $27,500. The ending balance
for May was $28,750 and $128,900 of raw materials were used during the month. The materials
purchased during the month cost: - Answers Cost of goods sold = beginning merchandise inventory +
purchases - ending merchandise inventory
128,900 = 27,500 + P - 28,750
