Accounting 202: Management Accounting! Quiz

28 Questions | By Jc173 | Updated: Mar 21, 2022 | Attempts: 822

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Accounting 202: Management Accounting! Quiz - Quiz

Are you familiar with management accounting? Would you like to try this quiz? In managerial accounting, managers utilize accounting information to better inform themselves before making decisions about their organizations, which helps them manage and implement control functions. It delivers financial information for the organization’s internal management, its employees, managers, and executives. If you want to learn more about management accounting, this is the quiz for you.

Questions and Answers

1.

Which of the following statements is TRUE with respect to variable costs per unit?
- A.
  
  They will decrease as production increases within the relevant range
- B.
  
  They will increase as production decreases within the relevant range
- C.
  
  They will remain the same as production levels change within the relevant range
- D.
  
  They will decrease as production decreases within the relevant range
2.

Which of the following statements is TRUE with respect to total variable costs?
- A.
  
  They will remain the same as production levels change within the relevant range.
- B.
  
  They will decrease as production increases within the relevant range.
- C.
  
  They will decrease as production decreases within the relevant range.
- D.
  
  They will increase as production decreases within the relevant range.
3.

Which of the following statements is TRUE with respect to total fixed costs?
- A.
  
  They will increase as production decreases within the relevant range.
- B.
  
  They will remain the same as production levels change within the relevant range.
- C.
  
  They will decrease as production increases within the relevant range.
- D.
  
  They will decrease as production decreases within the relevant range.
4.

Within the relevant range, which of the following statements is TRUE with respect to fixed costs per unit?
- A.
  
  They will increase as production increases.
- B.
  
  They will decrease as production decreases.
- C.
  
  They will increase as production decreases.
- D.
  
  They will remain the same as production levels change.
5.

Which of the following is a fixed cost?
- A.
  
  Direct materials cost
- B.
  
  Direct labor cost
- C.
  
  Sales commissions expense
- D.
  
  Straight-line depreciation expense
6.

Which of the following statements describes variable costs?
- A.
  
  They are fixed per unit and vary in total.
- B.
  
  They are fixed in total.
- C.
  
  They vary per unit of output.
- D.
  
  They decrease per unit as production volume increases.
7.

Renting a car and paying $15 per day plus $.03 per mile driven is an example of what type of cost?
- A.
  
  Conversion cost
- B.
  
  Fixed cost
- C.
  
  Mixed cost
- D.
  
  Variable cost
8.

For most businesses, annual straight line depreciation expense on the company’s building is what type of cost?
- A.
  
  Variable
- B.
  
  Fixed
- C.
  
  Mixed
- D.
  
  Step
9.

Which of the following would be considered a discretionary fixed cost?
- A.
  
  Property taxes and insurance
- B.
  
  Depreciation
- C.
  
  Employees wages
- D.
  
  Advertising
10.

Which of the following would be considered a committed fixed cost?
- A.
  
  Research and Development
- B.
  
  Depreciation
- C.
  
  Office holiday party
- D.
  
  Advertising
11.

Management has little or no control over:
- A.
  
  Committed fixed costs.
- B.
  
  Discretionary fixed costs.
- C.
  
  All fixed costs.
- D.
  
  Any of the above.
12.

Which of the following cost behaviors cannot be accurately represented by a single straight line?
- A.
  
  Step costs
- B.
  
  Mixed costs
- C.
  
  Fixed costs
- D.
  
  Variable costs
13.

When predicting costs at different volumes, managers should consider which of the following?
- A.
  
  The relevant range of the cost
- B.
  
  The type of cost behavior
- C.
  
  Neither of the above
- D.
  
  Both of the above
14.

Using account analysis, what type of cost is utilities if you are charged $40 for the first 200 kilowatts hours, $85 for 201- 400 kilowatt hours, and $135 + or - for 401-600 kilowatt hours?
- A.
  
  Fixed
- B.
  
  Mixed
- C.
  
  Step
- D.
  
  Variable
15.

Using account analysis, what type of cost is the local phone service which charges a flat fee for unlimited local calls?
- A.
  
  Fixed
- B.
  
  Mixed
- C.
  
  Step
- D.
  
  Variable
16.

Using account analysis, what type of cost is Satellite TV when the charge is $30.00 per month plus $3.99 for pay-per-view movies?
- A.
  
  Fixed
- B.
  
  Mixed
- C.
  
  Step
- D.
  
  Variable
17.

Manufacturing overhead is usually what type of cost?
- A.
  
  Variable
- B.
  
  Fixed
- C.
  
  Mixed
- D.
  
  Step
18.

When managers use their judgment to classify costs as variable, fixed, or mixed, which method are they using?
- A.
  
  Account analysis
- B.
  
  High-low method
- C.
  
  Regression analysis
- D.
  
  Low-high method
19.

The data points with the________ and the ________ should be selected for use in the high-low method.
- A.
  
  Highest volume; the lowest volume
- B.
  
  Highest cost; the lowest cost
- C.
  
  Highest volume; the lowest cost
- D.
  
  Highest cost; the lowest volume
20.

A regression equation’s fixed cost component is represented by the__________ on the regression analysis output.
- A.
  
  Intercept coefficient
- B.
  
  X variable 1 coefficient
- C.
  
  R-square
- D.
  
  Residual
21.

When predicting costs at other volumes using a cost equation derived from either the high-low method or regression analysis, managers should consider:
- A.
  
  Outliers
- B.
  
  General inflation
- C.
  
  Seasonality
- D.
  
  All of the above
22.

On a traditional income statement, sales revenue less cost of goods sold equals:
- A.
  
  Contribution margin
- B.
  
  Gross profit
- C.
  
  Operating income
- D.
  
  Operating expenses
23.

Traditional income statements organize costs by:
- A.
  
  Function
- B.
  
  Behavior
- C.
  
  Discretionary vs. committed
- D.
  
  No particular manner. Costs are listed in any order
24.

The contribution margin is equal to:
- A.
  
  Sales minus cost of goods sold
- B.
  
  Sales minus variable expenses
- C.
  
  Sales minus fixed expenses
- D.
  
  Sales minus operating expenses
25.

On a contribution margin income statement, all fixed costs are listed:
- A.
  
  Above the contribution margin line
- B.
  
  Above the gross profit line
- C.
  
  Below the contribution margin line
- D.
  
  Below the gross profit line