Accounting Information Systems
Final Test Solutions
Course Introduction
Accounting Information Systems explores the integration of accounting principles and information technology to effectively collect, process, and communicate financial information within an organization. The course covers core topics such as system design and documentation, internal controls, database management, transaction processing cycles, and the role of information systems in supporting management decision-making. Students will analyze case studies, work with accounting software, and assess the risks and security challenges associated with computerized accounting environments, preparing them to implement and evaluate accounting systems in real-world business settings.
Recommended Textbook
Managerial Accounting 2nd Canadian Edition by Karen W. Braun
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12 Chapters
2681 Verified Questions
2681 Flashcards
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Page 2
Chapter 1: Introduction to Managerial Accounting
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191 Verified Questions
191 Flashcards
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Sample Questions
Q1) The Society of Management Accountants ethical principles include: responsibility, loyalty,honour and independence.
A)True
B)False
Answer: True
Q2) The primary purpose of managerial accounting information is to help external users make investing and lending decisions.
A)True
B)False
Answer: False
Q3) Production loss caused by downtime is an example of what type of cost?
A)External failure cost
B)Internal failure cost
C)Prevention cost
D)Appraisal cost
Answer: B
Q4) Determining how to achieve company goals.
Answer: C
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Page 3
Chapter 2: Building Blocks of Managerial Accounting
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214 Flashcards
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Sample Questions
Q1) The costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered which part of the value chain?
A)Customer service
B)Marketing
C)Design
D)Research and development
Answer: C
Q2) What was cost of goods sold at Sunnydale Manufacturing?
A)$680
B)$1,570
C)$1,510
D)$1,610
Answer: D
Q3) Which of the following describes the way fixed costs per unit behave?
A)They will remain the same as production levels change.
B)They will decrease as production decreases.
C)They will increase as production increases.
D)They will increase as production decreases.
Answer: D
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Page 4
Chapter 3: Job Costing
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296 Verified Questions
296 Flashcards
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Sample Questions
Q1) For Wharton Company the journal entry to record the cost of direct materials placed into production involves a
A)debit to overhead for $41,000.
B)debit to work in process inventory for $43,000.
C)debit to work in process inventory for $41,000.
D)credit to manufacturing overhead for $2,000.
Answer: C
Q2) What is the company's predetermined manufacturing overhead rate at Buckley Corporation?
A)$13.50 per direct labour hour
B)$12.02 per direct labour hour
C)$12.79 per direct labour hour
D)$12.69 per direct labour hour
Answer: A
Q3) The amount of overallocation or underallocation is found by taking the difference between the amount of overhead allocated during the year and the amount of overhead incurred during the year.
A)True
B)False
Answer: True
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Chapter 4: Activity Based Costing
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163 Flashcards
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Sample Questions
Q1) One condition that favours using a plant-wide overhead rate,rather than departmental overhead rates,is that different departments incur different amounts and types of manufacturing overhead.
A)True
B)False
Q2) The cost allocation rate for each activity is equal to the estimated total manufacturing overhead costs of the activity multiplied by the estimated total quantity of the cost allocation base.
A)True
B)False
Q3) ABC costing might lead to
A)cutting back on high-volume products that appear unprofitable.
B)expanding low-volume products that appear profitable.
C)raising the sale price of high-volume products.
D)raising the sale price of low-volume products.
Q4) The estimated total manufacturing overhead costs that will be incurred in each department in the coming year are often referred to as activity cost pools.
A)True
B)False
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Chapter 5: Process Costing
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258 Verified Questions
258 Flashcards
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Sample Questions
Q1) A measure of the amount of work done,expressed in complete units of output is
A)job costing
B)process costing
C)equivalent units
D)conversion costs
Q2) Costs of ending WIP inventory are not included in the cost per equivalent unit computation.
A)True
B)False
Q3) In process costing a separate work in process inventory account is maintained for each process.
A)True
B)False
Q4) ABC produces ping-pong balls using a three-step process that includes molding,colouring and finishing.Which of the following accounts is debited for manufacturing overhead expenses incurred?
A)Finished goods inventory
B)WIP inventory-finishing
C)Raw materials inventory
D)Manufacturing overhead
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Chapter 6: Cost Behaviour
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319 Flashcards
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Sample Questions
Q1) A manager can increase income under absorption costing by increasing A)variable costs.
B)production.
C)fixed costs.
D)leased assets.
Q2) The equation for total fixed costs is
A)y = vx - f
B)y = vx + f
C)y = f
D)f = vx + y
Q3) When using the high-low method,what data point can be used to solve for the fixed cost component?
A)The "high" month
B)The "low" month
C)Either the "high" or the "low" month
D)Any month in the data set
Q4) If inventory has grown,operating income will be higher under variable costing than it is under absorption costing.
A)True
B)False
Page 8
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Chapter 7: Cost-Volume-Profit Analysis
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225 Flashcards
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Sample Questions
Q1) Holding all other factors constant,if fixed expenses increase by 25%,the break-even point will always double.
A)True
B)False
Q2) Jackson Company currently sells its products for $1,000 per unit.Management is contemplating a 10% increase in the selling price for the next year.Variable costs are currently 40% of sales revenue and are not expected to change on a dollar per unit basis for next year (the company will pay the same amount for variable costs next year).Fixed expenses are $140,000 per year.
What is the break-even point in units at the anticipated selling price per unit next year?
A)93 units
B)200 units
C)467 units
D)280 units
Q3) A hotel would be an example of a company with low operating leverage.
A)True
B)False
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Chapter 8: Short-Term Business Decisions
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231 Flashcards
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Sample Questions
Q1) Special orders increase income if the revenue from the order exceeds the incremental variable and fixed costs incurred to fill the order.
A)True
B)False
Q2) Managers only need to consider inventoriable product costs when setting prices.
A)True
B)False
Q3) Which of the following is irrelevant when making a decision?
A)The cost of an asset that the company is considering replacing
B)Fixed overhead costs that differ among alternatives
C)The cost of further processing a product that could be sold as is
D)The expected increase in contribution margin of one product line as a result of a decision to drop a separate unprofitable product line
Q4) Which of the following would not be a constraint for selling a product?
A)Having excess capacity on the shelves
B)Available labour hours for employees
C)Store hours
D)Machine time
Q5) The internal financial statements of Pierce
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Chapter 9: The Master Budget and Responsibility Accounting
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Sample Questions
Q1) There are four types of responsibility centers used to evaluate a company's performance.
A)True
B)False
Q2) Which of the following budgets is part of the operating budgets?
A)Production budget
B)Budgeted balance sheet
C)Capital expenditure budget
D)Cash budget
Q3) Budgets are used for all of the following EXCEPT
A)planning for the future.
B)controlling operations.
C)directing operations.
D)recording actual results.
Q4) Which of the following is a benefit of budgeting?
A)Focuses management's attention on the future
B)Improved decision-making processes
C)Improved motivation by employees
D)All of the above
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Chapter 10: Flexible Budgets and Standard Costs
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Sample Questions
Q1) Cassandra Designs makes chair cushions.The standard direct materials quantity is 1 kilogram per cushion at a cost of $2.50 per kilogram.The actual results for the production of 20,000 cushions was the purchase and use of 1.25 kilograms per cushion,at a cost of $2.40 per kilogram.Calculate the direct materials price variance and the direct materials efficiency variance.
Q2) An unfavourable direct labour price variance and a favourable direct labour efficiency variance might indicate which of the following?
A)Unskilled workers using more actual hours than standard,paid at a higher rate per hour than the standard rate.
B)Unskilled workers using less actual hours than standard,paid a lesser rate per hour than the standard rate.
C)Skilled workers using more actual hours than standard,paid at a higher rate per hour than the standard rate.
D)Skilled workers using less actual hours than standard,paid at a higher rate per hour than the standard rate.
Q3) A static budget is a budget prepared for multiple volume levels.
A)True
B)False
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Page 12
Chapter 11: Performance Evaluation and the Balanced Scorecard
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Sample Questions
Q1) The convenience store owned by a national chain is likely to be classified as a(n)
A)cost centre.
B)investment centre.
C)profit centre.
D)revenue centre.
Q2) Discuss two potential problems associated with decentralization.
Q3) Which of the following aspects of a performance evaluation system best describes when the company's actual results are compared to industry standards?
A)Benchmarking
B)Motivating unit managers
C)Promoting goal congruence
D)Providing feedback
Q4) What will happen to return on investment (ROI)if a company must decrease its selling price while all of the company's expenses remain constant?
A)ROI will increase.
B)ROI will decrease.
C)ROI will not be affected.
D)We cannot determine the effect from the information provided.
Page 13
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Chapter 12: Capital Investment Decisions and the Time
Value of Money
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175 Flashcards
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Sample Questions
Q1) After a company invests in capital assets,which of the following will it perform in order to compare the actual to the projected net cash inflows?
A)Cash flow analysis
B)Post-audit
C)Pre and post analysis
D)Post-cash flow
Q2) Your best friend just received a gift of $12,000 from his favourite aunt.He wants to save the money to open his own business after school.He can (1)invest it risk-free at 3%, (2)take on moderate risk at 8%,or (3)take on high risk at 16%.Help your friend project the investment's worth at the end of four years under each investment strategy and explain the results to him.
Q3) The accounting rate of return method of analyzing capital budgeting decisions measures the average annual rate of return from using the asset over its entire life.
A)True
B)False
Q4) The residual value is not considered in a NPV computation.
A)True
B)False
Page 14
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