Managerial Accounting - Test 1

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1.  If variable costs are 60% of sales and fixed costs are $612,000, the break-even point in dollars is:
A.
B.
C.
D.
2.  What are the two ways  to calculate contribution margin ratio?
A.
B.
C.
3.  Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold.
Wings, breading, and sauce $4,900
Direct labor (Variable) 3,500
Rent 1,100
Depreciation 900
Other fixed costs 400
    Each wing sells for $0.80 each. How much is the budgeted variable cost per unit?
A.
B.
C.
D.
4.  How do you calculate overhead allocation rate?
A.
B.
C.
D.
5.  The cost of a machine purchased last year is an example of a(n):
A.
B.
C.
D.
6.  Which is Fixed Cost?
A.
B.
7.  Which are nonmanufacturing costs?
A.
B.
C.
D.
8.  Which of the following is added directly to work in process?
A.
B.
C.
D.
9.  What type of cost is rent?
A.
B.
C.
D.
10.  Which of the following is NOT a goal of managerial accounting?
A.
B.
C.
D.
11.  What is overapplied overhead and how is it eliminated?
A.
B.
C.
D.
12.   Management by exception is an example of:
A.
B.
C.
D.
13.  Which of the following is not a period cost?
A.
B.
C.
D.
14.  Which of the following is most likely to be a fixed cost?
A.
B.
C.
D.
15.  Incremental Analysis: -Differences in revenues and costs between alternatives are incremental. -Incremental revenue minus incremental cost equals incremental profit.
A.
B.
16.  A job-order costing system is most likely to be used by a
A.
B.
C.
D.
17.  Wilson Company’s managers investigate departures from the budget that appear to be significant. What principle is being followed?
A.
B.
C.
D.
18.  A material amount of overapplied overhead is debited to which of the following accounts?
A.
B.
C.
D.
19.  When a job is completed, the transaction is recorded with a
A.
B.
C.
D.
20.  Which is Selling Costs?
A.
B.
C.
D.
21.  Constraints §Due to shortages of space, equipment or labor there can be constraints on how many items can be produced §Utilize contribution margin per unit to analyze situations §Calculate contribution margin per unit of constraint §Produce product with highest contribution margin per unit of constraint §Linear programming can solve multiple constraints
A.
B.
22.  What type of cost is utilities? 
A.
B.
C.
D.
23.  Which are modern manufacturing practices?
A.
B.
C.
D.
24.  Manufacturing overhead is the cost of manufacturing activities other than direct materials and direct labor (all indirect costs).
A.
B.
25.  Which of the following will decrease the break-even point?
A.
B.
C.
D.
26.  Which of the following statements about the relevant range is true?
A.
B.
C.
D.
27.  Which of the following accounts does not appear on the balance sheet?
A.
B.
C.
D.
28.  Assume a company incurs $100,000 for total variable costs and $150,000 for total fixed costs to produce 10,000 units. What would the total cost be to produce 12,000 units?
A.
B.
C.
D.
29.  Operating Leverage: §Level of fixed versus variable costs in a company § A company with a high level of fixed costs has a high operating leverage § Companies with high operating leverage have large fluctuations in profit when sales increase or decrease §These companies are seen as more risky §High operating leverage is better when sales are expected to increase
A.
B.
30.  What is the cost-volume-profit equation?
A.
B.
C.
31.  Costs incurred in the past are:
A.
B.
C.
D.
32.  Which of the following is a manufacturing cost?
A.
B.
C.
D.
33.  Budgets for Planning: Which is Production Budget?
A.
B.
C.
34.  Which of the following is an example of a variable cost?
A.
B.
C.
D.
35.  Kevin’s Candies produced and sold 600 boxes of chocolate covered popcorn last month and had total variable costs of $2,100 that reflected the costs of chocolate and popcorn (ingredients). Each box of popcorn sells for $12.00. If production and sales are expected to increase by 15% next month, which of the following statements is true?
A.
B.
C.
D.
36.  Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold.
Wings, breading, and sauce $4,900
Direct labor (Variable) 3,500
Rent 1,100
Depreciation 900
Other fixed costs 400
    Each wing sells for $0.80 each. What is the budgeted total fixed cost?
A.
B.
C.
D.
37.  What is the order of the Value Chain?
A. 1
A.
B. 2
B.
C. 3
C.
D. 4
D.
E. 5
E.
38.  Which of the following is a selling cost?
A.
B.
C.
D.
39.  What is the relevant range?
A.
B.
C.
40.  Assumptions in CVP Analysis: Which are true?
A.
B.
C.
D.
41.  Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold.
Wings, breading, and sauce $4,900
Direct labor (Variable) 3,500
Rent 1,100
Depreciation 900
Other fixed costs 400
                          Each wing sells for $0.80 each. What is the budgeted fixed cost per unit?
A.
B.
C.
D.
42.   Which of the following is a characteristic of managerial accounting?
A.
B.
C.
D.
43.  Budgets for Planning: Which is Profit Budget?
A.
B.
C.
44.  What is underapplied overhead?
A.
B.
C.
D.
45.  Which of the following companies would use a job-order costing system?
A.
B.
C.
D.
46.  Cost of Goods Manufactured is $200,000, beginning Finished Goods is $50,000, ending Finished Goods is $100,000, and ending Work In Process is $10,000.  What is the Cost of Goods Sold?
A.
B.
C.
D.
47.  Work in Process Inventory includes the cost of
A.
B.
C.
D.
48.  Cost of Goods Available for Sale = Beginning Finished Goods + Cost of Goods Manufactured
A.
B.
49.  A form used to accumulate the cost of producing products is called a(n)
A.
B.
C.
D.
50.  Match
A. Account analysis
A.
B. Scattergraph
B.
C. High-low method
C.
D. Regression analysis
D.
51.  A factor that limits the level of production is called a:
A.
B.
C.
D.
52.  Cost of Goods Manufactured = Beginning Work In Progress + Current Manufacturing Cost - Ending Work In Progress
A.
B.
53.  Which of the following is not a reason that current period performance results may differ from the company’s budget for that period?
A.
B.
C.
D.
54.  Comparing actual results to expected results is an example of:
A.
B.
C.
D.
55.  What is the margin of safety ratio?
A.
B.
C.
56.  Multiproduct Analysis: Contribution Margin Approach vs. Contribution Margin Ratio Approach Which are associated with Contribution Margin Approach?
A.
B.
C.
D.
E.
F.
G.
H.
57.  Which of the following is the method that visually fits a line through the sample data to develop a cost equation for a mixed cost?
A.
B.
58.  Which of the following is not a product cost?
A.
B.
C.
D.
59.  Which of the following is part of planning?
A.
B.
C.
D.
60.  Cost of Goods Sold = Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods
A.
B.
61.  Applied overhead is debited to which account?
A.
B.
C.
D.
62.  An immaterial amount of underapplied overhead is debited to which of the following accounts?
A.
B.
C.
D.
63.  Which costs can be variable or fixed?
A.
B.
C.
D.
E.
64.  The goal of managerial accounting is to provide the information that managers need for all of the following EXCEPT:
A.
B.
C.
D.
65.  How is underapplied overhead eliminated?
A.
B.
C.
D.
66.  Which of the following is a direct cost in relation to the cost of teaching the managerial accounting course in a college?
A.
B.
C.
D.
67.  What is the margin of safety?
A.
B.
C.
68.  Sunks Costs are costs to be incurred in near future that are impossible to avoid.
A.
B.
69.  Which of the following is most likely to be a variable cost?
A.
B.
C.
D.
70.  Which is Product Costs?
A.
B.
C.
D.
71.  A cost which is directly traceable to a product, activity, or department is a(n)
A.
B.
C.
D.
72.  Which are production of goods costs?
A.
B.
C.
D.
73.  What are mixed costs?
A.
B.
C.
D.
74.  Which are associated with Process Costing?
A.
B.
C.
D.
E.
75.  Which of the following is not part of the planning and control process?
A.
B.
C.
D.
76.  What are discretionary fixed costs? committed fixed costs?
A.
B.
C.
77.  Managerial accounting is designed for use by:
A.
B.
C.
D.
78.  The schedule of cost of goods manufactured is an analysis of which account?
A.
B.
C.
D.
79.  What is the contribution margin?
A.
B.
C.
80.  Which of the following costs is expensed as incurred?
A.
B.
C.
D.
81.  Which are true about Managerial Accounting?
A.
B.
C.
D.
E.
82.  Westerhouse manufactures refrigerators. Which of the following items is most likely considered an indirect material cost for Westerhouse?
A.
B.
C.
D.
83.  What are step costs?
A.
B.
C.
84.  The cost of goods manufactured is credited to which of the following accounts?
A.
B.
C.
D.
85.  Which is Period Costs?
A.
B.
C.
D.
86.  Which are associated with Job Order Costing?
A.
B.
C.
D.
E.
87.  Decision making relies on incremental analysis - an analysis of the revenues that increase (decrease) and the costs that increase (decrease) if a decision alternative is selected.
A.
B.
88.  Which are practices in Just in Time production (JIT)?
A.
B.
C.
D.
E.
F.
89.  Multiproduct Analysis: Contribution Margin Approach vs. Contribution Margin Ratio Approach Which are associated with Contribution Margin Ratio Approach?
A.
B.
C.
D.
E.
F.
G.
H.
90.  Which costs are only fixed?
A.
B.
C.
D.
E.
91.  Which costs are only variable?
A.
B.
C.
D.
E.
92.  Which of the following are associated with Planning?
A.
B.
C.
D.
93.  Which is General and Administrative Costs?
A.
B.
C.
D.
94.  Opportunity Costs are the values of benefits foregone when selecting one alternative over another.
A.
B.
95.  Which is Variable Cost?
A.
B.
96.  Which of the following documents would serve as a subsidiary ledger to the work in process account?
A.
B.
C.
D.
97.  Variable cost per unit is budgeted to be $8.00 and fixed cost per unit is budgeted to be $5.00 in a period when 4,000 units are produced. If production is actually 5,100 units, what is the expected total cost of the units produced?
A.
B.
C.
D.
98.  Budgets for Planning: Which is Cash Flow Budget?
A.
B.
C.
99.  What is the break even point?
A.
B.
100.  Multiproduct Analysis Break-Even Sales in units: (Profit+Total Fixed Costs)/(Weighted average contribution margin per unit)
A.
B.
101.  What type of cost is indirect materials?
A.
B.
C.
D.
102.  Product costs
A.
B.
C.
D.
103.  National Production Company applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows:                                      Estimated                       Actual Overhead cost            $174,000                      $171,100 Direct labor hours           5,800                           5,900 Direct labor cost          $87,000                        $89,975               How much is the predetermined overhead rate? 
A.
B.
C.
D.
104.  A company purchases machinery costing $60,000 in October of 2014. Five years later, management discovers better, more efficient machine that could be purchased for $80,000 to replace the existing machine. Management has determined that they are able to sell the original machine for $15,000. In making the decision about buying the new machine, how much are total sunk costs?
A.
B.
C.
D.
105.  "What If" Analysis examines what will happen if an action is foregone
A.
B.
106.  GAAP requires that inventories and cost of goods sold be reported at full cost. Which of the following is defined as full cost?
A.
B.
C.
D.
107.  Which of the following is an example of a fixed cost?
A.
B.
C.
D.
108.  Which of the following are associated with Control?
A.
B.
C.
D.
109.  Direct costs are directly traceable to a product, activity, or department, while indirect costs are not.
A.
B.
110.  The wages lost when you give up your job to attend school full-time is an example of a(n):
A.
B.
C.
D.
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