An Advanced Level Managerial Accounting Test!
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Below is an advanced level Test on Managerial Accounting! Managerial Accounting helps managers to pursue the organization's various goals. It's a general practice that includes identifying, measuring, analyzing, interpreting, and communicating financial information to managers of an organization in their daily duties. The purpose of this quiz is to test your knowledge on the same, so you could practice and prepare well.
- 1.The goal of managerial accounting is to provide the information that managers need for all of the following EXCEPT:
- A.
Planning
- B.
Control
- C.
Decision Making
- D.
Review
- 2.Managerial accounting is designed for use by:
- A.
Internal users
- B.
Stockbrokers
- C.
External users
- D.
Clients
- 3.Which of the following are associated with Planning?
- A.
Specifies the resources needed to achieve the company goals
- B.
Communicate's a company's goals to employees
- C.
Evaluating managers to determine how their performance should be rewarded or punished
- D.
Evaluating operations to provide information as to whether they should be changed or not
- 4.Which of the following are associated with Control?
- A.
Specifies the resources needed to achieve the company goals
- B.
Communicate's a company's goals to employees
- C.
Evaluating managers to determine how their performance should be rewarded or punished
- D.
Evaluating operations to provide information as to whether they should be changed or not
- 5.Budgets for Planning: Which is Profit Budget?
- A.
Indicates planned income
- B.
Indicates planned cash inflows and outflows
- C.
Indicates the planned quantity of production and expected costs
- 6.Budgets for Planning: Which is Cash Flow Budget?
- A.
Indicates planned income
- B.
Indicates planned cash inflows and outflows
- C.
Indicates the planned quantity of production and expected costs
- 7.Budgets for Planning: Which is Production Budget?
- A.
Indicates planned income
- B.
Indicates planned cash inflows and outflows
- C.
Indicates the planned quantity of production and expected costs
- 8.Which are true about Managerial Accounting?
- A.
Is directed at internal users
- B.
Must comply with GAAP standards
- C.
Presents very detailed information
- D.
Presents only monetary information
- E.
Places emphasis on future
- 9.Which is Variable Cost?
- A.
Changes in proportion to changes in volume or activity (no change per unit)
- B.
Changes per unit (no changes in proportion to changes in volume or activity)
- 10.Which is Fixed Cost?
- A.
Changes in proportion to changes in volume or activity (no change per unit)
- B.
Changes per unit (no changes in proportion to changes in volume or activity)
- 11.Which of the following is most likely to be a variable cost?
- A.
Depreciation
- B.
Cost of Materials
- C.
Rent
- D.
Advertising
- 12.Which of the following is most likely to be a fixed cost?
- A.
Cost of Materials
- B.
Rent
- C.
Assembly Labor Cost
- D.
Commissions
- 13.Sunks Costs are costs to be incurred in near future that are impossible to avoid.
- A.
True
- B.
False
- 14.Opportunity Costs are the values of benefits foregone when selecting one alternative over another.
- A.
True
- B.
False
- 15.Costs incurred in the past are:
- A.
Opportunity Costs
- B.
Sunk Costs
- C.
Direct Costs
- D.
Variable Costs
- 16.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.
True
- B.
False
- 17.Incremental Analysis: -Differences in revenues and costs between alternatives are incremental. -Incremental revenue minus incremental cost equals incremental profit.
- A.
True
- B.
False
- 18.Which of the following is NOT a goal of managerial accounting?
- A.
Provide information needed for decision making
- B.
Provide information needed for creditors
- C.
Provide information needed for planning
- D.
Provide information needed for control
- 19.Which of the following is part of planning?
- A.
Departmental performance report.
- B.
Incremental analysis
- C.
Cash-flow budget.
- D.
Management by exception.
- 20.Comparing actual results to expected results is an example of:
- A.
Decision making.
- B.
Planning
- C.
Incremental analysis.
- D.
Control.
- 21.Which of the following is not part of the planning and control process?
- A.
Preparing financial statements.
- B.
Deciding whether to reward or punish managers.
- C.
Implementing the plan.
- D.
Comparing actual results to planned results.
- 22.Management by exception is an example of:
- A.
Decision making.
- B.
Incremental analysis.
- C.
Planning
- D.
Control.
- 23.Which of the following is a characteristic of managerial accounting?
- A.
Must comply with GAAP
- B.
Generates reports primarily for internal users
- C.
Contains monetary information only
- D.
Emphasizes historical transactions
- 24.Which of the following is not a reason that current period performance results may differ from the company’s budget for that period?
- A.
The plan may not have been followed properly.
- B.
The plan may not have been well thought-out.
- C.
Changing circumstances may have made the plan out of date.
- D.
All of the above are reasons that actual results may differ from the company’s plan.
- 25.Which of the following is an example of a variable cost?
- A.
Direct labor (labor cost that are directly traceable to a product)
- B.
Depreciation
- C.
Rent
- D.
Salaries
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