ACC 406 - TEST 1 | QUESTIONS WITH CORRECT
ANSWERS 2025/2026 RATED A+
1. Managerial Accounting:: -CORRECT ANSWERS- Providing accounting information for a company's
internal users. Any tool or technique that helps the organization improve.
2. Objectives of Managerial Accounting:: -CORRECT ANSWERS- (1) Planning; (2) Controlling; and
(3) Decision Making.
3. Planning:: -CORRECT ANSWERS- Detailed formulation of action to achieve a particular end, from
setting objectives to identifying methods to achieve those objectives.
4. Controlling:: -CORRECT ANSWERS- Monitoring a plan's implementation and taking corrective action,
comparing between expected performance and actual performance.
5. Decision Making:: -CORRECT ANSWERS- Process of choosing among competitive alternatives.
6. Financial Accounting has and : -CORRECT ANSWERS- external users; follows externally
imposed guidelines.
7. Managerial Account has and : -CORRECT ANSWERS- internal users; does not follow an
guidelines.
8. Management Accounting (Type of Information):: -CORRECT ANSWERS- Includes historical
events, but focuses on future events.
9. Management Accounting (Degree of Aggregation):: -CORRECT ANSWERS- Performance of
entities, product lines, departments, and managers.
10. Management Accounting (Breadth):: -CORRECT ANSWERS- Multiple disciplines; managerial
economics, industrial en- gineering, management studies, etc.
11. Management Accounting (Time Orientation):: -CORRECT ANSWERS- Includes historical
events, but focuses on future events.
12. Ethical Behaviour:: -CORRECT ANSWERS- Choosing actions that are right, proper, and just.
13. Prime Cost =:-CORRECT ANSWERS- Direct Materials + Direct Labour
14. Conversion Cost =:-CORRECT ANSWERS- Direct Labour + Manufacturing Overhead
15. Accumulating Costs:: -CORRECT ANSWERS- The way that costs are measured and recorded.
16. Assigning Costs:: -CORRECT ANSWERS- The way that a cost is linked to some cost object.
17. Fixed Cost:: -CORRECT ANSWERS- Total cost remains fixed with activity level.
18. Variable Cost:: -CORRECT ANSWERS- Total cost varies with activity level.
19. Mixed Cost:: -CORRECT ANSWERS- Part fixed and part variable.
20. Product Costs:: -CORRECT ANSWERS- Inventoriable costs (i.e., direct materials, direct labour, and
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ANSWERS 2025/2026 RATED A+
1. Managerial Accounting:: -CORRECT ANSWERS- Providing accounting information for a company's
internal users. Any tool or technique that helps the organization improve.
2. Objectives of Managerial Accounting:: -CORRECT ANSWERS- (1) Planning; (2) Controlling; and
(3) Decision Making.
3. Planning:: -CORRECT ANSWERS- Detailed formulation of action to achieve a particular end, from
setting objectives to identifying methods to achieve those objectives.
4. Controlling:: -CORRECT ANSWERS- Monitoring a plan's implementation and taking corrective action,
comparing between expected performance and actual performance.
5. Decision Making:: -CORRECT ANSWERS- Process of choosing among competitive alternatives.
6. Financial Accounting has and : -CORRECT ANSWERS- external users; follows externally
imposed guidelines.
7. Managerial Account has and : -CORRECT ANSWERS- internal users; does not follow an
guidelines.
8. Management Accounting (Type of Information):: -CORRECT ANSWERS- Includes historical
events, but focuses on future events.
9. Management Accounting (Degree of Aggregation):: -CORRECT ANSWERS- Performance of
entities, product lines, departments, and managers.
10. Management Accounting (Breadth):: -CORRECT ANSWERS- Multiple disciplines; managerial
economics, industrial en- gineering, management studies, etc.
11. Management Accounting (Time Orientation):: -CORRECT ANSWERS- Includes historical
events, but focuses on future events.
12. Ethical Behaviour:: -CORRECT ANSWERS- Choosing actions that are right, proper, and just.
13. Prime Cost =:-CORRECT ANSWERS- Direct Materials + Direct Labour
14. Conversion Cost =:-CORRECT ANSWERS- Direct Labour + Manufacturing Overhead
15. Accumulating Costs:: -CORRECT ANSWERS- The way that costs are measured and recorded.
16. Assigning Costs:: -CORRECT ANSWERS- The way that a cost is linked to some cost object.
17. Fixed Cost:: -CORRECT ANSWERS- Total cost remains fixed with activity level.
18. Variable Cost:: -CORRECT ANSWERS- Total cost varies with activity level.
19. Mixed Cost:: -CORRECT ANSWERS- Part fixed and part variable.
20. Product Costs:: -CORRECT ANSWERS- Inventoriable costs (i.e., direct materials, direct labour, and
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