Accounting Information for Management Practice Questions - 878 Verified Questions

Accounting Information for Management Practice Questions https://quizplus.com/study-set/3571 13 Chapters 878 Verified Questions

Accounting Information for Management Practice Questions Course Introduction This course examines the role of accounting information in managerial decision-making processes. It focuses on the identification, analysis, and interpretation of relevant financial and non-financial data to support strategic planning, performance evaluation, and operational control within organizations. Topics include cost behavior, budgeting, variance analysis, and performance measurement techniques. The course emphasizes how managers use accounting information to solve business problems, allocate resources efficiently, and achieve organizational objectives.

Recommended Textbook MANAGERIAL ACCOUNTING Version 1.0 by Kurt Heisinger and Joe Hoyle

Available Study Resources on Quizplus 13 Chapters 878 Verified Questions 878 Flashcards Source URL: https://quizplus.com/study-set/3571

Page 2

Chapter 1: What Is Managerial Accounting Available Study Resources on Quizplus for this Chatper 83 Verified Questions 83 Flashcards Source URL: https://quizplus.com/quiz/70918

Sample Questions Q1) Controller Answer: G Q2) According to the IMA Statement of Ethical Professional Practice,competence means that each member has a responsibility for all the following except: A)refrain from using confidential information for unethical or illegal advantage.

B)maintaining an appropriate level of professional expertise.

C)recognizing and communicating professional limitations.

D)performing professional duties in accordance with relevant laws,regulations and technical standards.

E)None of the above.

Answer: A Q3) Manufacturing overhead consists of all costs related to the production process other than direct materials and direct labor.

A)True B)False Answer: True Q4) Managerial accountant Answer: F To view all questions and flashcards with answers, click on the resource link above.

Page 3

Chapter 2: How Is Job Costing Used to Track Production Costs Available Study Resources on Quizplus for this Chatper 44 Verified Questions 44 Flashcards Source URL: https://quizplus.com/quiz/70917

Sample Questions Q1) All of the following are ways that a job costing system used by a service organization may differ from one used by a manufacturing company except: A)Costs in service organizations are typically tracked by customer rather than product.

B)Account names for service organizations are slightly different from those used by manufacturers.

C)Service organizations tend to use fewer materials.

D)The process of tracking labor for service organizations is completely different from the process used by manufacturers.

E)None of the answer choices is correct.

Answer: D Q2) Underapplied overhead occurs when actual overhead costs are lower than overhead costs applied to jobs.

A)True B)False Answer: False To view all questions and flashcards with answers, click on the resource link above.

Page 4

Chapter 3: How Does an Organization Use Activity-Based Costing to Allocate Overhead Costs Available Study Resources on Quizplus for this Chatper 71 Verified Questions 71 Flashcards Source URL: https://quizplus.com/quiz/70916

Sample Questions Q1) Refer to Exhibit 3-1.What is the total overhead cost applied to Thirst Quench using activity-based costing?

A)$52,868 B)$21,142 C)$34,322 D)$10,000 E)None of the answer choices is correct.

Answer: B Q2) Refer to Exhibit 3-2.What is the overhead rate for the processing activity?

A)$8.00 B)$3.60 C)$18.00 D)$6.00 E)None of the answer choices is correct.

Answer: B Q3) One important reason that managers allocate overhead costs to products is to promote the efficient use of resources.

A)True B)False Answer: True

Page 5

To view all questions and flashcards with answers, click on the resource link above.

Chapter 4: How Is Process Costing Used to Track Production Costs Available Study Resources on Quizplus for this Chatper 58 Verified Questions 58 Flashcards Source URL: https://quizplus.com/quiz/70915

Sample Questions Q1) The number of equivalent units for any input (direct materials,direct labor,or overhead)cannot be greater than: A)units completed.

B)units to account for.

C)units started.

D)total costs to account for.

E)None of the answer choices is correct.

Q2) Everlast Inc.had 12,000 units in WIP Inventory at December 1 that were 70% complete with respect to direct labor and overhead.During December,40,000 units were completed.On December 31,the 14,000 units in WIP Inventory were 30% complete as to direct labor and overhead.Direct materials are added at the beginning of the process.How many units were started during December?

A)42,000 B)66,000 C)38,000 D)32,000 E)None of the answer choices is correct.

To view all questions and flashcards with answers, click on the resource link above.

Page 6

Chapter 5: How Do Organizations Identify Cost Behavior Patterns Available Study Resources on Quizplus for this Chatper 69 Verified Questions 69 Flashcards Source URL: https://quizplus.com/quiz/70914

Sample Questions Q1) When 85,000 units are produced,the fixed cost is $10 per unit.Assuming our company is within the relevant range and we produce 120,000 units,our fixed costs will not remain at $10 per unit.

A)True B)False Q2) Refer to Exhibit 5-7.Which of the following amounts represents total operating profit?

A)$424,000 B)$600,000 C)$386,000 D)$404,000 E)None of the answer choices is correct.

Q3) All of the following are steps for using the scattergraph method except: A)estimating the total fixed costs.

B)visually fitting a line to the data points,with at least one data point touching the line.

C)identifying the high and low activity data points.

D)plotting the data points for each period on a graph.

E)None of the answer choices is correct.

To view all questions and flashcards with answers, click on the resource link above.

Page 7

Chapter 6: How Is Cost-Volume-Profit Analysis Used for Decision Making Available Study Resources on Quizplus for this Chatper 79 Verified Questions 79 Flashcards Source URL: https://quizplus.com/quiz/70913

Sample Questions Q1) The break-even point in sales dollars is the total sales dollars minus the total contribution margin.

A)True B)False Q2) Absorption costing treats fixed manufacturing overhead costs as product costs.

A)True B)False Q3) Refer to Exhibit 6-5.What would be the operating profit if the Charcoal Barbecue sales volume increases 100 units with a corresponding decrease of 100 units in Gas Barbecue sales?

A)$24,000 B)$75,000 C)$9,000 D)$105,000 E)None of the answer choices is correct.

Q4) A change in the sales mix will always decrease the break-even point.

A)True B)False Page 8 To view all questions and flashcards with answers, click on the resource link above.

Chapter 7: How Are Relevant Revenues and Costs Used to Make Decisions Available Study Resources on Quizplus for this Chatper 76 Verified Questions 76 Flashcards Source URL: https://quizplus.com/quiz/70912

Sample Questions Q1) Individual product profitability will vary depending on which allocation method is chosen to allocate joint costs.

A)True B)False Q2) Refer to Exhibit 7-5.What is the amount of allocated fixed costs to be assigned to Customer Z? A)$580,000 B)$420,000 C)$400,000 D)$600,000 E)None of the answer choices is correct.

Q3) Refer to Exhibit 7-7.What is the contribution margin per unit of constrained resource for the Light product?

A)$65 B)$100 C)$260 D)$17 E)None of the answer choices is correct.

To view all questions and flashcards with Page answers, 9 click on the resource link above.

Chapter 8: How Is Capital Budgeting Used to Make Decisions Available Study Resources on Quizplus for this Chatper 71 Verified Questions 71 Flashcards Source URL: https://quizplus.com/quiz/70911

Sample Questions Q1) Landscaping Inc.would like to purchase a tractor for $425,000.The tractor is expected to have a life of five years,and no salvage value.Annual maintenance costs will total $12,500.Annual labor and material savings are predicted to be $118,750.The company's required rate of return is 8 percent.

What is the payback period for this investment (round to the nearest month)?

A)3 years.

B)4 years.

C)5 years.

D)4 years,11 months.

E)None of the answer choices is correct.

Q2) A firm would never choose to accept a long-term investment proposal if the net present value is below zero.

A)True B)False Q3) Managers often rank investment opportunities by internal rate of return.

A)True B)False To view all questions and flashcards with answers, click on the resource link above.

Page 10

Chapter 9: How Are Operating Budgets Created Available Study Resources on Quizplus for this Chatper 68 Verified Questions 68 Flashcards Source URL: https://quizplus.com/quiz/70910

Sample Questions Q1) Refer to Exhibit 9-1.What will accounts receivable be at the end of February?

A)$600,000 B)$900,000 C)$1,500,000 D)$405,000 E)None of the answer choices is correct.

Q2) An operating budget is used to communicate plans to: A)Customers.

B)Employees.

C)Shareholders.

D)Suppliers.

E)All of the answer choices are correct.

Q3) For most nonprofit organizations,the approved budget serves as the legal authority for expenditures.

A)True B)False Q4) Depreciation is deducted at the bottom of a manufacturing overhead budget to determine cash payments for overhead.

A)True B)False Page 11 To view all questions and flashcards with answers, click on the resource link above.

Chapter 10: How Do Managers Evaluate Performance Using Cost Variance Analysis Available Study Resources on Quizplus for this Chatper 69 Verified Questions 69 Flashcards Source URL: https://quizplus.com/quiz/70909

Sample Questions Q1) Which of the following is true about managers who adhere to the concept of "management by exception"?

A)Managers will investigate only favorable variances.

B)Managers will investigate only variances that are significant.

C)Managers will investigate all favorable and unfavorable variances.

D)Managers will investigate only unfavorable variances.

E)None of the answer choices is correct.

Q2) Refer to Exhibit 10-5.What is the variable overhead efficiency variance for the product testing activity?

A)$8,000 favorable B)$8,000 unfavorable C)$3,800 unfavorable D)$3,800 favorable E)None of the answer choices is correct.

Q3) There is no efficiency variance for fixed manufacturing overhead since,by definition,fixed costs do not change with changes in the activity base.

A)True B)False To view all questions and flashcards withPage answers, 12 click on the resource link above.

Chapter 11: How Do Managers Evaluate Performance in Decentralized Organizations Available Study Resources on Quizplus for this Chatper 63 Verified Questions 63 Flashcards Source URL: https://quizplus.com/quiz/70908

Sample Questions Q1) Segments of an organization are often referred to as divisions.

A)True B)False Q2) Refer to Exhibit 11-2.Using the segmented income statements,what is the profit margin ratio for the Dish Washer Division (to the nearest hundredth of a percent)?

A)30.37% B)50.74% C)16.70% D)49.26% E)None of the answer choices is correct.

Q3) Refer to Exhibit 11-4.What is the ROI for the Chair Division (rounded to the nearest tenth of a percent)?

A)66.7% B)14.0% C)33.3% D)9.3% E)None of the answer choices is correct.

To view all questions and flashcards with answers, click on the resource link above.

Page 13

Chapter 12: How Is the Statement of Cash Flows Prepared and Used Available Study Resources on Quizplus for this Chatper 65 Verified Questions 65 Flashcards Source URL: https://quizplus.com/quiz/70907

Sample Questions Q1) Refer to Exhibit 12-3.Which of these would be deducted as part of the cash flows from financing activities A)1,2,8,9,10,& 11 B)8,9,& 10 C)8 & 10 D)2,8,9,& 10 E)None of the answer choices is correct.

Q2) Where would cash payments for insurance appear in the statement of cash flows?

A)Operating activities B)Financing activities C)Investing activities D)Capital activities E)None of the answer choices is correct.

Q3) Refer to Exhibit 12-5.How will the change in accounts payable be reported in the operating activities A)The decrease of $40,000 will be subtracted from net income.

B)The decrease of $40,000 will be subtracted from sales revenue.

C)The decrease of $40,000 will be added to sales revenue.

D)The decrease of $40,000 will be added to net income.

E)None of the answer choices is correct. Page 14 To view all questions and flashcards with answers, click on the resource link above.

Chapter 13: How Do Managers Use Financial and Nonfinancial Performance Measures Available Study Resources on Quizplus for this Chatper 62 Verified Questions 62 Flashcards Source URL: https://quizplus.com/quiz/70906

Sample Questions Q1) A relatively high price-earnings ratio indicates investors expect favorable future earnings.

A)True B)False Q2) In general,managers prefer the profit margin ratio to decrease over time.

A)True B)False Q3) Albany Company has net income before taxes of $90,000,interest expense of $36,000 and an income tax rate of 20%.Based on this information,the company's times interest earned ratio is: A)12.5 times B)2.5 times C)3.5 times D)4.0 times E)None of the answer choices is correct.

Q4) The debt to assets ratio is calculated as total assets divided by total liabilities.

A)True B)False Page 15 To view all questions and flashcards with answers, click on the resource link above.