Managerial Accounting Exam Materials
Course Introduction
Managerial Accounting provides students with an understanding of how accounting information is used within organizations to support planning, controlling, and decision-making processes. The course covers key topics such as cost classification, cost behavior, budgeting, variance analysis, performance evaluation, and decision-making techniques. Students will learn to analyze financial and non-financial data, prepare and interpret management reports, and apply accounting principles to real-world business scenarios. Emphasis is placed on the use of accounting information for internal management rather than external reporting, equipping students with the analytical tools necessary for effective management and strategic planning.
Recommended Textbook
Managerial Accounting The Cornerstone of Business Decision Making 7th Edition by Maryanne M.
Available Study Resources on Quizplus
15 Chapters
2443 Verified Questions
2443 Flashcards
Source URL: https://quizplus.com/study-set/3719 Page 2
Chapter 1: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/74163
Sample Questions
Q1) The primary objective of managerial accounting is:
A) to produce information for external users, including investors, creditors, customers, suppliers, and government agencies.
B) to produce financial information that must comply with various accounting standards.
C) to provide management with financial and nonfinancial information useful in planning, controlling, and decision making.
D) to provide the Internal Revenue Service with financial and nonfinancial information about the taxable income of an organization.
Answer: C
Q2) The belief that each member of a group bears no responsibility for the well-being of other members is a common principle underlying all ethical systems.
A)True
B)False
Answer: False
Q3) ________________________ involves choosing actions that are right, proper, and just.
Answer: Ethical behavior
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Basic Managerial Accounting Concepts
Available Study Resources on Quizplus for this Chatper
216 Verified Questions
216 Flashcards
Source URL: https://quizplus.com/quiz/74156
Sample Questions
Q1) The cost of units unfinished at the end of the current period
A)Work in process inventory
B)Finished goods inventory
C)Cost of goods sold
D)Cost of goods manufactured
E)Total manufacturing costs
Answer: A
Q2) Prime cost is the sum of direct materials cost and direct labor cost.
A)True
B)False
Answer: True
Q3) gross margin selling and administrative expenses
A)gross margin
B)selling expenses
C)sales revenue
D)cost of goods sold
E)operating income
Answer: E
Q4) _____________________ is the way that a cost is linked to some cost object.
Answer: Assigning costs
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Cost Behavior, Cost Forecasting, and Segmented Income Statements
Available Study Resources on Quizplus for this Chatper
261 Verified Questions
261 Flashcards
Source URL: https://quizplus.com/quiz/74155
Sample Questions
Q1) Direct materials for units sold
A)Variable costing income statement
B)Absorption costing income statement
C)Both types of income statements
Answer: C
Q2) it measures output and explains changes in cost
A)dependent variable
B)independent variable
C)intercept
D)slope
Answer: B
Q3) The salary of the college president is a _____ for a college.
A) fixed cost
B) variable cost
C) cost driver
D) sunk cost
Answer: A
Q4) Rental expense for a warehouse is an example of a ___________ cost.
Answer: fixed
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Job-Order Costing and Normal Cost Overhead Application
Available Study Resources on Quizplus for this Chatper
175 Verified Questions
175 Flashcards
Source URL: https://quizplus.com/quiz/74154
Sample Questions
Q1) the costs of job are transferred from the work-in-process account to finished goods account
A)completion of job
B)end of each accounting period
C)materials are moved from storage into production
D)product is sold
E)end of year
Q2) The unit cost of a job consists of the total costs of
A) materials used on the job.
B) labor worked on the job.
C) applied overhead.
D) All of these are correct.
E) None of these are correct.
Q3) ________________________ are directly responsible for creating the products or services sold to customers.
Q4) This form is filled out by each employee every day.
A)Job-order cost sheet
B)Time ticket
C)Materials requisition form
Q5) Applied overhead costs are charged to ________________.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Activity-Based Costing and Management
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/74153
Sample Questions
Q1) Which of the following is not one of the three conditions necessary to be classified as a discretionary activity?
A) the activity produces a change of state
B) the change of state was not achievable by preceding activities
C) the activity enables other activities to be performed
D) the activity increases efficiency
Q2) Each unit of a product requires 5 components.The average number of components is 5.50 due to component failure.Purchasing higher quality components can reduce the average number of components to 5 per unit.The cost per component is $450.Calculate the reduction in failure costs per unit due to purchasing higher quality components.
A) $43
B) $350
C) $175
D) $225
E) $372
Q3) The consumption ratio is the amount of each activity consumed by a product.
A)True
B)False
Q4) Activities necessary to remain in business are known as
7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Process Costing
Available Study Resources on Quizplus for this Chatper
150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/74152
Sample Questions
Q1) Direct materials used in production, direct labor, and applied overhead are charged to the _______________ account.
Q2) All materials are added at the beginning of the process.Using the first-in, first-out method, the equivalent units of production for materials would be calculated as:
A) 105,000.
B) 93,500.
C) 90,000.
D) 110,500.
Q3) Which of the following is the unit cost of materials calculated using the weighted average method? (Note: Round answer to two decimal places.)
A) $4.50
B) $5.49
C) $5.00
D) $5.46
Q4) Firms that have adopted a __________ approach try to reduce WIP inventories to very low levels.
Q5) ___________ costs are a type of raw material cost.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/74151
Sample Questions
Q1) Most firms would like to earn operating income equal to the break-even point.
A)True
B)False
Q2) Common fixed expenses are the fixed costs that are traceable to the segments and would be avoided if the segment did not exist.
A)True
B)False
Q3) The units sold or expected to be sold or sales revenue earned or expected to be earned above the break-even volume.
A)break-even point
B)Common fixed expenses
C)Contribution margin
D)Direct fixed expenses
E)Margin of safety
F)Operating leverage
G)Degree of operating leverage
H)Sales mix
Q4) The "what-if" process of altering certain key variables to assess the effect on the original outcome is also called a __________________.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Tactical Decision-Making and Relevant Costing
Available Study Resources on Quizplus for this Chatper
164 Verified Questions
164 Flashcards
Source URL: https://quizplus.com/quiz/74150
Sample Questions
Q1) The benefit sacrificed when one alternative is chosen over another is called sunk cost.
A)True
B)False
Q2) What is the contribution margin per hour of machine time for Test B?
A) $20.50
B) $33
C) $16.25
D) $16.50
E) $18
Q3) StarZinc Company produced 200 defective units last month at a unit manufacturing cost of $50.The defective units were discovered before leaving the plant.StarZinc can sell them as is for $35 or can rework them at a cost of $25 and sell them at the regular price of $100.The total relevant cost of reworking the defective units is:
A) $8,500.
B) $7,800.
C) $2,000.
D) $3,600.
E) $5,000.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Profit Planning and Flexible Budgets
Available Study Resources on Quizplus for this Chatper
194 Verified Questions
194 Flashcards
Source URL: https://quizplus.com/quiz/74149
Sample Questions
Q1) Assume that the expectations on the static budget were met.We can conclude that
A) the static budget was ill conceived.
B) the effectiveness of the manager is not in question.
C) the manager is very efficient.
D) there is no need for a flexible budget.
E) None of these.
Q2) How much of June's credit sales is expected to be collected in the month of July?
A) $30,000
B) $60,000
C) $36,000
D) $67,500
E) $80,000
Q3) The ________________ plots a direction for an organization's future activities and operations; it generally covers at least five years.
Q4) __________________ is looking ahead to see what actions should be taken to realize particular goals.
Q5) There are as many direct materials purchases budgets as there are products. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Standard Costing and Variance Analysis
Available Study Resources on Quizplus for this Chatper
216 Verified Questions
216 Flashcards
Source URL: https://quizplus.com/quiz/74162
Sample Questions
Q1) The predetermined fixed overhead rate is
A) $3.35 per direct labor hour.
B) $1.02 per direct labor hour.
C) $5.50 per direct labor hour.
D) $4.00 per direct labor hour.
E) None of these.
Q2) Standards of perfection that require absolute efficiency.
A)Quantity Standards
B)Ideal Standards
C)Price Standards
D)Standard Cost Sheet
E)Upper Control Limit
F)Currently Attainable Standards
G)Kaizen Standards
Q3) Favorable variances are credits and unfavorable variances are debits.
A)True
B)False
Q4) ______________________ is a prerequisite for assigning responsibility.
Q5) The ___________________ measures the difference between the labor hours that were actually used and the labor hours that should have been used.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Performance Evaluation and Decentralization
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/74161
Sample Questions
Q1) JetSky Airways has three divisions, the Western Division, the Eastern Division, and the Northern Division.The manager of the Western Division had wanted to purchase replacement airplanes for the division.However, he decided against it because, although revenues would increase and the new planes would be less expensive to operate, the initial cost of the planes was quite large.The Western Division is most probably accounted for as a(n)
A) cost center.
B) investment center.
C) profit center.
D) revenue center.
E) None of these.
Q2) If there is a competitive outside market for the transferred product, then the best transfer price is the _____________.
Q3) Basically, EVA is residual income with the cost of capital equal to the actual cost of capital for the firm (as opposed to some minimum rate of return desired by the company for other reasons).
A)True
B)False
Q4) _________________ is found by dividing sales by average operating assets.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Capital Investment Decisions
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/74160
Sample Questions
Q1) The two types of capital budgeting projects are ________________ and _______________.
Q2) For independent projects, net present value analysis and internal rate of return analysis yield the same decision.
A)True
B)False
Q3) earning of interest on interest
A)Payback period
B)Accounting rate of return
C)Net present value
D)Internal rate of return
E)Discount rate
F)Annuity
G)Post-audit
H)Compounding of interest
Q4) The minimum acceptable rate of return for a project is the required rate of return.
A)True
B)False
Q5) _______________________ ignore the time value of money.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter
Issues, Enterprise Risk Management, the Managerial
Accountant in Forensicfraud Accounting
Available Study Resources on Quizplus for this Chatper
128 Verified Questions
128 Flashcards
Source URL: https://quizplus.com/quiz/74159
Sample Questions
Q1) Which of the following statements is true of the risk appetite determination step within the enterprise risk management (ERM) process of an organization?
A) Determining an organization's risk appetite involves identifying the top risks and assessing risks at the inherent level.
B) Determining an organization's risk appetite involves determining the organization's desired overall level of risk taking.
C) Determining an organization's risk appetite is the final step in the iterative enterprise risk management process.
D) Determining an organization's risk appetite requires input from a cross-functional team to capture all the threats-or risks-to the organization.
Q2) _________ can be defined as the difference between the inherent risk and the residual risk produced by the particular risk response.
Q3) Which of the following is an external failure cost?
A) Rework
B) Reinspection
C) Prototype inspection
D) Warranties
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
153 Verified Questions
153 Flashcards
Source URL: https://quizplus.com/quiz/74158
Sample Questions
Q1) Redemption of bonds for cash.
A)Added to net income
B)Deducted from net income
C)Cash outflow--investing activity
D)Cash inflow--investing activity
E)Cash outflow--financing activity
F)Cash inflow--financing activity
G)significant noncash investing and financing activity
Q2) Last year, Amethyst Company's cash account decreased by $20,000.Net cash flow from investing activities were $23,000.Net cash flow from financing activities were ($12,000).On the statement of cash flows, net cash flow from operating activities were:
A) ($31,000).
B) ($23,000).
C) ($18,000).
D) ($47,000).
Q3) Income statements are prepared on a (n) ______________.
Q4) The two approaches to calculating operating cash flows are the _______________ and the _____________.
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
163 Verified Questions
163 Flashcards
Source URL: https://quizplus.com/quiz/74157
Sample Questions
Q1) Which of the following ratios is used by short-term creditors to assess the debt-paying ability of a company?
A) Return on sales ratio
B) Current ratio
C) Inventory turnover ratio
D) Equity ratio
Q2) The ________________ is a measure of the ability of a company to pay its short-term liabilities out of short-term assets.
Q3) The quick ratio differs from the current ratio in that it
A) represents the amount of cash on hand instead of the amount of working capital. B) is a stricter test of a company's ability to pay its current debts as they are due. C) excludes inventories and accounts receivable from the numerator of the fraction because of obsolescence and possible default on payment. D) is more difficult to calculate.
Q4) The _________________ is a measure of liquidity that compares only the most liquid assets with current liabilities.
To view all questions and flashcards with answers, click on the resource link above. Page 17