Page 1 of 55
2025/2026 MANAGERIAL ACCOUNTING EXAM WITH
CURRENTLTY COMPLETE TESTING QUESTIONS AND
DETAILED CORRECT ANSWERS/GUARANTEED
PASS/TOP-RATED A+.
ACCOUNTING
Ace your Managerial Accounting exam with this comprehensive
guide, designed to master cost analysis, budgeting, and
performance evaluation for strategic decision-making. This
resource delivers practical, scenario-based questions covering
variance analysis, CVP relationships, and capital budgeting.
Management accounting is subject to the rules formulated
by standard setters such as the Financial Accounting
Standards Board (FASB). ...... ANSWER ....... False
Management accounting information is primarily oriented to
external stakeholders, such as investors, creditors,
regulators, and tax authorities. ...... ANSWER .......
False
The International Accounting Standards Board sets the
guidelines used for management accounting. ......
ANSWER ....... False
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A good management accounting system can become a
source of competitive advantage for a company. ......
ANSWER ....... True
Management accounting information is sometimes
predictive and forward looking. ...... ANSWER .......
True
Management accounting has no prescribed rules about its
content, how the content is to be developed, and how the
content is to be presented. ...... ANSWER ....... True
The Federal Accounting Standards Advisory Board sets cost
accounting standards for all federal government activities.
...... ANSWER ....... True
Management accounting measures can provide advance
warnings of problems ...... ANSWER ....... True
Information about customer satisfaction is an example of
financial information. ...... ANSWER ....... False
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Management accounting information can be used for all of
the following EXCEPT:
a. Calculate the cost of a product or service.
b. Evaluate the performance of a company.
c. Project materials needs.
d. Evaluate the market price of the stock. ...... ANSWER
....... D
Which of the following types of information are used in
management accounting?
a. Financial information
b. Nonfinancial information
c. Information focused on the long term
d. All of the above are correct. ...... ANSWER ....... D
Management accounting:
a. Is both retrospective, providing feedback about past
operations, and also prospective, incorporating forecasts
and estimates about future events.
b. Is primarily oriented to external stakeholders.
c. Must be consistent with rules formulated by the Financial
Accounting Standards Board (FASB).
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d. Provides information that is generally available only on a
quarterly or annual basis. ...... ANSWER ....... A
Which one of the following items is typically an example of
an indirect cost of a wood furniture product line?
1) courier charges for shipment delivery.
2) manufacturing plant electricity.
3) wood used for furniture manufacture.
4) direct manufacturing labour. ...... ANSWER ....... 2)
manufacturing plant electricity.
If each furnace required a component that costs $20, and
2,000 furnaces are produced for the month, the $40,000
total cost for components:
1) is considered to be a direct variable cost.
2) is considered to be an indirect variable cost.
3) is considered to be an indirect fixed cost.
4) is considered to be a direct fixed cost. ...... ANSWER
....... 1) is considered to be a direct variable cost.
2025/2026 MANAGERIAL ACCOUNTING EXAM WITH
CURRENTLTY COMPLETE TESTING QUESTIONS AND
DETAILED CORRECT ANSWERS/GUARANTEED
PASS/TOP-RATED A+.
ACCOUNTING
Ace your Managerial Accounting exam with this comprehensive
guide, designed to master cost analysis, budgeting, and
performance evaluation for strategic decision-making. This
resource delivers practical, scenario-based questions covering
variance analysis, CVP relationships, and capital budgeting.
Management accounting is subject to the rules formulated
by standard setters such as the Financial Accounting
Standards Board (FASB). ...... ANSWER ....... False
Management accounting information is primarily oriented to
external stakeholders, such as investors, creditors,
regulators, and tax authorities. ...... ANSWER .......
False
The International Accounting Standards Board sets the
guidelines used for management accounting. ......
ANSWER ....... False
, Page 2 of 55
A good management accounting system can become a
source of competitive advantage for a company. ......
ANSWER ....... True
Management accounting information is sometimes
predictive and forward looking. ...... ANSWER .......
True
Management accounting has no prescribed rules about its
content, how the content is to be developed, and how the
content is to be presented. ...... ANSWER ....... True
The Federal Accounting Standards Advisory Board sets cost
accounting standards for all federal government activities.
...... ANSWER ....... True
Management accounting measures can provide advance
warnings of problems ...... ANSWER ....... True
Information about customer satisfaction is an example of
financial information. ...... ANSWER ....... False
, Page 3 of 55
Management accounting information can be used for all of
the following EXCEPT:
a. Calculate the cost of a product or service.
b. Evaluate the performance of a company.
c. Project materials needs.
d. Evaluate the market price of the stock. ...... ANSWER
....... D
Which of the following types of information are used in
management accounting?
a. Financial information
b. Nonfinancial information
c. Information focused on the long term
d. All of the above are correct. ...... ANSWER ....... D
Management accounting:
a. Is both retrospective, providing feedback about past
operations, and also prospective, incorporating forecasts
and estimates about future events.
b. Is primarily oriented to external stakeholders.
c. Must be consistent with rules formulated by the Financial
Accounting Standards Board (FASB).
, Page 4 of 55
d. Provides information that is generally available only on a
quarterly or annual basis. ...... ANSWER ....... A
Which one of the following items is typically an example of
an indirect cost of a wood furniture product line?
1) courier charges for shipment delivery.
2) manufacturing plant electricity.
3) wood used for furniture manufacture.
4) direct manufacturing labour. ...... ANSWER ....... 2)
manufacturing plant electricity.
If each furnace required a component that costs $20, and
2,000 furnaces are produced for the month, the $40,000
total cost for components:
1) is considered to be a direct variable cost.
2) is considered to be an indirect variable cost.
3) is considered to be an indirect fixed cost.
4) is considered to be a direct fixed cost. ...... ANSWER
....... 1) is considered to be a direct variable cost.
