Financial Management for Managers
Solved Exam Questions
Course Introduction
Financial Management for Managers provides a comprehensive overview of the essential financial concepts and tools that managers need to make informed business decisions. The course covers key topics such as financial statement analysis, budgeting, financial planning, cost of capital, capital budgeting, working capital management, and risk assessment. Emphasis is placed on interpreting financial data, forecasting cash flows, and evaluating investment opportunities to maximize shareholder value. Through real-world case studies and practical exercises, students will develop the analytical skills required to navigate complex financial situations and effectively contribute to their organizations financial strategic planning and execution.
Recommended Textbook
Horngren's Accounting The Managerial Chapters 10th Edition by Tracie L. Miller Nobles
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9 Chapters
1348 Verified Questions
1348 Flashcards
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Chapter 1: Introduction to Managerial Accounting
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179 Verified Questions
179 Flashcards
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Sample Questions
Q1) All costs incurred in the manufacture of final products are product costs.
A)True
B)False
Answer: True
Q2) In a manufacturing firm, accounting, legal, and administrative costs are typical examples of product costs.
A)True
B)False
Answer: False
Q3) What is the cost of goods sold for March?
A) $83,420
B) $73,150
C) $76,850
D) $82,150
Answer: C
Q4) Manufacturing businesses have inventory accounts, but merchandising businesses do not.
A)True
B)False
Answer: False
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Chapter 2: Job Order Costing
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152 Verified Questions
152 Flashcards
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Sample Questions
Q1) Manufacturing overhead is allocated by debiting the Work-in-Process Inventory account and crediting the Manufacturing Overhead account.
A)True
B)False
Answer: True
Q2) The journal entry for adjustment of underallocated manufacturing overhead includes a:
A) credit to Finished Goods Inventory.
B) credit to Manufacturing Overhead.
C) debit to Work-in-Process Inventory.
D) credit to Cost of Goods Sold.
Answer: B
Q3) Manufacturing overhead is allocated by debiting the Finished Goods Inventory account.
A)True
B)False
Answer: False
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Chapter 3: Process Costing
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144 Verified Questions
144 Flashcards
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Sample Questions
Q1) Which of the following is used to calculate the number of units accounted for under first-in, first-out (FIFO) method of inventory valuation of process costing?
A) Accounted for = Beginning balance + Started and completed + In process
B) Accounted for = Beginning balance + Started and completed
C) Accounted for = Beginning balance + In process
D) Accounted for = Beginning balance + Amount transferred in Answer: A
Q2) Which of the following businesses is most likely to use a process costing system?
A) an accounting firm
B) a law firm
C) a soda manufacturer
D) a construction company
Answer: C
Q3) When indirect materials are issued to production, the Manufacturing Overhead account is credited.
A)True
B)False
Answer: False
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Chapter 4: Cost-Volume-Profit Analysis
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172 Verified Questions
172 Flashcards
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Sample Questions
Q1) Pluto Company sells a product for $80 per unit. Variable costs are $25 per unit and fixed costs are $4,000 per month. Pluto sold 2,000 units in October, 2014. Prepare an income statement for October using the contribution margin format.
Q2) From the above information, calculate First Buy's total fixed costs.
A) $311,600
B) $52,800
C) $71,600
D) $76,800
Q3) Under variable costing, the fixed manufacturing overhead costs are classified as period costs and are expensed in the period in which they are incurred.
A)True
B)False
Q4) Within the relevant range, the total fixed costs and the variable cost per unit remain the same.
A)True
B)False
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Chapter 5: Master Budgets
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) A budget represents the plans that a company has in place to achieve its goals.
A)True
B)False
Q2) Junk Fries has budgeted sales for June and July at $680,000 and $720,000, respectively. Sales are 80% credit, of which 70% is collected in the month of sale and 30% is collected in the following month. What is the accounts receivable balance on July 31?
A) $200,500
B) $172,800
C) $158,200
D) $225,320
Q3) A strategic budget is a long-term financial plan used to coordinate the activities needed to achieve the long-term goals of the company.
A)True
B)False
Q4) Calculate the final projected cash balance at the end of September.
A) $6,000
B) $5,254
C) $6,133
D) $7,200
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Chapter 6: Flexible Budgets and Standard Cost Systems
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174 Flashcards
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Sample Questions
Q1) Emerald Marine Stores Company manufactures decorative fittings for luxury yachts that require highly skilled labor, and special metallic materials. Emerald uses standard costs to prepare its flexible budget. For the first quarter of 2015, direct material and direct labor standards for one of their popular products were as follows: Direct materials: 1 pound per unit; $4 per pound
Direct labor: 4 hours per unit; $15 per hour
Emerald produced 5,000 units during the quarter. At the end of the quarter, an examination of the materials records showed that the company used 7,000 pounds of materials and actual total material costs were $98,000.
Calculate the direct materials efficiency variance.
A) $2,000 U
B) $8,000 U
C) $2,000 F
D) $8,000 F
Q2) Calculate the variable overhead cost variance.
A) $13,500 U
B) $15,000 F
C) $35,000 U
D) $4,200 F
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Page 8
Chapter 7: Cost Allocation and Responsibility Accounting
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) Which of the following is the correct formula for profit margin ratio?
A) Net profit ÷ Sales
B) Net sales ÷ Average total assets
C) Net profit × Capital invested
D) Operating income ÷ Net sales
Q2) In many cases, the amount of the transfer price does not affect the overall company profits.
A)True
B)False
Q3) WAX-D Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company wants to purchase the component. Fixed cost per unit of component is $25. What is the minimum transfer price if the division is operating at capacity?
A) $150
B) $45
C) $55
D) $140
Q4) Performance report of a profit center includes both revenues and expenses.
A)True
B)False
Page 9
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Chapter 8: Short-Term Business Decisions
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161 Verified Questions
161 Flashcards
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Sample Questions
Q1) When a company is considering the possibility of processing their product further to achieve higher sales revenues, the rule is as follows: if incremental revenues exceed incremental costs, then further processing will enhance operational profits.
A)True
B)False
Q2) Calculate the contribution margin per direct labor hour for the small table.
A) $29 per direct labor hour
B) $32 per direct labor hour
C) $34 per direct labor hour
D) $36 per direct labor hour
Q3) Assuming the Football Helmet line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the Football Helmet line is used to double the production of Baseball Helmets, operating income will be:
A) $250,000.
B) $180,000.
C) $320,000.
D) $410,000.
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Chapter 9: Capital Investment Decisions
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) What is the accounting rate of return for Project B?
A) 15.08%
B) 10.214%
C) 15.45%
D) 14.54%
Q2) Cash flows used in NPV and IRR analysis ignore:
A) future increased sales.
B) future cost savings.
C) depreciation expense.
D) residual value.
Q3) All else being equal, investments with longer payback periods are preferable. A)True
B)False
Q4) The only difference between present value and future value is the amount of interest that is earned in the intervening time span. A)True
B)False
Q5) The payback method uses discounted cash flows to make investment decisions. A)True
B)False
11
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