Introduction to Management Accounting
Mock Exam
Course Introduction
Introduction to Management Accounting provides students with a foundational understanding of how accounting information is used by managers for decision-making, planning, and control within organizations. The course covers key topics such as cost behavior, budgeting, performance evaluation, variances, and the use of accounting data to support strategic management objectives. Through real-world examples and practical exercises, students learn to analyze financial and non-financial information to make informed business decisions, improve operational efficiency, and contribute to overall organizational success.
Recommended Textbook
Cornerstones of Managerial Accounting 3rd Canadian Edition by Maryanne Mowen
Available Study Resources on Quizplus
14 Chapters
2190 Verified Questions
2190 Flashcards
Source URL: https://quizplus.com/study-set/3791
Page 2
Chapter 1: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
66 Verified Questions
66 Flashcards
Source URL: https://quizplus.com/quiz/75703
Sample Questions
Q1) Virtually all management accounting practices were developed to assist managers in maximizing profits.
A)True
B)False
Answer: True
Q2) What does total quality management emphasize?
A)1% defects
B)a lack of improvement
C)the elimination of waste
D)the status quo
Answer: C
Q3) A cost accountant would normally occupy a staff position within an organization.
A)True
B)False
Answer: True
Q4) Only financial accounting is governed by IASB.
A)True
B)False Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Basic Managerial Accounting Concepts
Available Study Resources on Quizplus for this Chatper
222 Verified Questions
222 Flashcards
Source URL: https://quizplus.com/quiz/75702
Sample Questions
Q1) Salary of chief executive officer
A)Selling expense
B)Administrative expense
C)Direct materials
D)Direct labour
E)Overhead
Answer: B
Q2) Refer to the Figure.How many sets of portable speakers did Ballard sell during the year?
A)96,780
B)97,000
C)97,220
D)100,220
Answer: D
Q3) Refer to the Figure.What was the cost of goods sold for the year?
A)$40,000
B)$50,000
C)$60,000
D)$100,000
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Cost Behaviour
Available Study Resources on Quizplus for this Chatper
222 Verified Questions
222 Flashcards
Source URL: https://quizplus.com/quiz/75701
Sample Questions
Q1) "Outliers" are points that do NOT seem to fit the general pattern of behaviour.
A)True
B)False
Answer: True
Q2) Refer to the Figure.When using a linear regression program,what is the value of the X Variable 1 (rounded to the nearest penny)?
A)$0.99
B)$8.83
C)$195.35
D)$11,594.00
Answer: B
Q3) Will decrease on a per-unit basis as output increases
A)Variable
B)Fixed
C)Mixed
D)Step Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Costvolumeprofit Analysis: a Managerial Planning Tool
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/75700
Sample Questions
Q1) At the break-even point,revenue is equal to the contribution margin.
A)True
B)False
Q2) The Monterra Company provided the following information: \(\begin{array}{ll}
\text { Sales } & \$ 500,000 \\
\text { Variable costs } & \$ 100,000 \\
\text { Fixed costs } & \$ 200,000
\end{array}\) A. What is the contribution margin ratio?
B. What is the level of sales in doll ars necessary to generate a profit of \(\$ 40,000\) ?
C. What is the contribution margin ratio if the sal es price is increased by \(10 \%\) ?
D. Using the information in part \(\mathrm { C }\), what level of sales in doll ars is necessary to generate a profit of \(\$ 40,000\) ?
Q3) Refer to the Figure.What is the break-even point in sales dollars?
A)$21,670
B)$28,000
C)$58,330
D)$80,000
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Job-Order Costing
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/75699
Sample Questions
Q1) What schedule is used to ensure accuracy in computing product costs?
A)the schedule of the cost of goods manufactured
B)the schedule of the cost of goods sold
C)the schedule of the overhead
D)the schedule of raw materials used
Q2) The difference between actual overhead and applied overhead is the overhead variance.
A)True
B)False
Q3) Consider two costing systems,normal costing and actual costing.
A. Which costing system do most firms use to assign costs to units of product or service? What does this costing system include?
B. What is the other costing system? What does this costing system include?
Q4) From an operational perspective,which is not a decision that unit costs are used to make?
A)hiring a new CEO
B)evaluating performance on an ongoing basis
C)establishing a price for a product or service
D)determining the long-term feasibility of a business strategy
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Process Costing
Available Study Resources on Quizplus for this Chatper
157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/75698
Sample Questions
Q1) Refer to the Figure.What would be Department ABC's cost of ending work in process when using the FIFO method?
A)$3,160
B)$3,500
C)$3,552
D)$3,960
Q2) Refer to the Figure.What would be Department ABC's cost of goods transferred out when using the FIFO method?
A)$40,250
B)$44,500
C)$45,540
D)$45,775
Q3) Costing system used by a manufacturer of custom kayaks
A)Process costing
B)Job order costing
Q4) The FIFO method is one of the methods used to calculate equivalent units in process costing.
A)True
B)False
Q5) List the five steps in preparing a production report.
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Activity-Based Costing and Management
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/75697
Sample Questions
Q1) Refer to the Figure.What is the cost for inspection?
A)$50,500
B)$52,000
C)$54,000
D)$56,000
Q2) What are non-value-added activities?
A)unnecessary inputs
B)valued outputs to internal users
C)valued outputs to external users
D)activities that meet the organization's needs, not the product's needs
Q3) What is the term for a list of activities accompanied by information that describes each activity?
A)an activity manifesto
B)an activity journal
C)an activity dictionary
D)an activity note
Q4) The consumption ratio is the amount of each activity consumed by all products.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Absorption and Variable Costing, and Inventory Management
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/75696
Sample Questions
Q1) Just-in-time
A)The costs of not having a product available when demanded by a customer
B)The costs of carrying inventory
C)Approach that maintains goods should be pulled through the system by present demand
D)The number of units in the order quantity that minimizes the total cost
E)The costs of placing and receiving an order
Q2) Refer to the Figure.What is the EOQ for Benton?
A)20
B)30
C)45
D)162
Q3) Which of the following is NOT a traditional reason for carrying inventory?
A)to satisfy customer demand
B)to avoid shutting down manufacturing facilities
C)to support a reliable production process
D)to hedge against future price increases
Q4) What is the difference between absorption-costing income and variable-costing income?
10
Q5) What are the traditional reasons for carrying inventory?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Budgeting, production, cash, and Master Budget
Available Study Resources on Quizplus for this Chatper
165 Verified Questions
165 Flashcards
Source URL: https://quizplus.com/quiz/75695
Sample Questions
Q1) BacSac Company makes backpacks.Its production budget for two months is:
BacSac uses two types of labour to make the backpacks: cutting labour and sewing labour.Each backpack requires 6 minutes,on average,of cutting labour.Each backpack requires 24 minutes of sewing labour.
BacSac has fixed overhead of $4,400 per month and variable overhead of $3 per direct labour hour.
\[\begin{array} { l l }
\text { Month } & \text { Budgeted production in units } \\
\text { June } & 35,000 \\
\text { July } & 50,000
\end{array}\] A. How many hours of cutting labour are budgeted for July?
B. How many hours of sewing labour are budgeted for July?
C. What is the total amount of budgeted direct labour hours for July?
D. What is the budgeted total overhead for the month of July?
Q2) Beginning inventory of materials
A)Production budget
B)Direct materials purchases budget
C)Sales budget
Q3) Describe some problems with participative budgeting.
Q4) What are the advantages of budgeting?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Standard Costing: a Managerial Control Tool
Available Study Resources on Quizplus for this Chatper
173 Verified Questions
173 Flashcards
Source URL: https://quizplus.com/quiz/75694
Sample Questions
Q1) Appliance Company inspects every steam iron it manufactures for safety issues.The standard labour cost is $12 per hour.The maintenance standard at the beginning of the first quarter is 20 minutes per iron.Appliance is implementing a new production process that will aid in reducing any potential electrical defects in the irons.This will decrease the inspection time to 15 minutes per iron.After the end of the first quarter,the new process had reduced the inspection time per iron from 20 minutes to 14 minutes.
A. Identify the kaizen and maintenance labour standards in place at the beginning of the first quarter. Express the standards in both physical and financial terms.
B. Calculate the expected cost reduction and actual cost reduction.
Q2) Refer to the Figure.What are the costs of leather and direct labour incurred for the production of 150 saddles?
A)$36,000 and $36,000
B)$37,200 and $40,000
C)$45,000 and $33,750
D)$46,500 and $37,500
Q3) How are standards developed?
Q4) Explain the kaizen approach to costing.
To view all questions and flashcards with answers, click on the resource link above.
12
Chapter 11: Flexible Budgets and Overhead Analysis
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/75693
Sample Questions
Q1) CarParts Company is planning to produce 3,200,000 carburetors for the coming year.Each carburetor requires 0.375 standard hours of labour for completion.The company uses direct labour hours to assign overhead to products.The total fixed overhead budgeted for the coming year is $1,980,000.Total budgeted overhead is $4,050,000.Predetermined overhead rates are calculated using expected production,measured in direct labour hours.Actual results for the year follow: Required:
\[\begin{array} { l r }
\text { Actual production (units) } & 3,540,000 \\
\text { Actual direct labour hours } & 1,190,000 \\
\text { Actual fixed overhead } & \$ 1,920,000 \\
\text { Actual variable overhead } & 2,150,000
\end{array}\] A. Compute the applied fixed overhead.
B. Compute the fixed overhead spending and volume vari ances.
C. Compute the applied variable overhead.
D. Compute the variable overhead spending and efficiency variances. Carry per hour computations out to three decimal places.
Q2) What is a performance report?
Q3) Define static budget and flexible budget.What is each type used for?
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Performance Evaluation and Decentralization
Available Study Resources on Quizplus for this Chatper
145 Verified Questions
145 Flashcards
Source URL: https://quizplus.com/quiz/75692
Sample Questions
Q1) The ratio of operating income to sales.
A)Turnover
B)Margin
C)ROI
D)Residual income
Q2) Suppose the margin of 0.2 stayed the same and the turnover ratio of 4.0 increased by 10%.What would be the effect on the ROI?
A)It would decrease by 10%.
B)It would remain the same.
C)It would increase by 10%.
D)It would increase by 15%.
Q3) Refer to the Figure.What is the residual income for Gamma Division without the additional investment?
A)$4,200
B)$6,000
C)$6,600
D)$24,000
Q4) Decreasing inventories leads to a reduction in return on investment (ROI).
A)True
B)False
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Short-Run Decision Making: Relevant Costing
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/75691
Sample Questions
Q1) At split-off,the joint costs of production for joint products are NOT relevant to the sell-or-process-further decision.
A)True
B)False
Q2) Refer to the Figure.Assume that the cost of logs falls by half.Should Donder sell the sawdust at split-off or process it further,and what is the effect on income?
A)Process further; the reduction in the cost of logs makes that option more profitable than it was before.
B)Sell at split-off; the decrease in the cost of the logs makes that option more profitable than it was before.
C)Sell at split-off; the reduction in the cost of the logs is irrelevant.
D)Process further; the reduction in the cost of the logs will lower further processing costs.
Q3) Irrelevant costs are costs that vary across alternatives.
A)True
B)False
Q4) Why does a special-order decision frequently ignore fixed factory overhead?
Q5) What are the six steps of the decision-making model?
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Capital Investment Decisions
Available Study Resources on Quizplus for this Chatper
153 Verified Questions
153 Flashcards
Source URL: https://quizplus.com/quiz/75690
Sample Questions
Q1) Which of the following is NOT an advantage of the payback period?
A)It is sometimes used as a crude measure of risk.
B)It encourages managers to choose projects with quick payback to maximize short-term criteria.
C)It cannot be used for investments with unequal cash inflows.
D)It cannot be used if the entire cost of the investment does not occur immediately.
Q2) Who should usually perform a postaudit of a firm's capital investment?
A)the manager of that investment
B)the CEO
C)the board of directors
D)the internal audit staff
Q3) What is a postaudit? What are the advantages and disadvantages of the postaudit?
Q4) The process of planning,setting goals and priorities,arranging financing,and using certain criteria to select long-term assets is called tactical decision making.
A)True
B)False
Q5) Which model of capital investment decision making is most widely used? Why?
Q6) What are the limitations of Accounting Rate of Return?
To view all questions and flashcards with answers, click on the resource link above. Page 16