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.
Planning
Control
Decision Making
Review
Internal users
Stockbrokers
External users
Clients
Specifies the resources needed to achieve the company goals
Communicate's a company's goals to employees
Evaluating managers to determine how their performance should be rewarded or punished
Evaluating operations to provide information as to whether they should be changed or not
Specifies the resources needed to achieve the company goals
Communicate's a company's goals to employees
Evaluating managers to determine how their performance should be rewarded or punished
Evaluating operations to provide information as to whether they should be changed or not
Indicates planned income
Indicates planned cash inflows and outflows
Indicates the planned quantity of production and expected costs
Indicates planned income
Indicates planned cash inflows and outflows
Indicates the planned quantity of production and expected costs
Indicates planned income
Indicates planned cash inflows and outflows
Indicates the planned quantity of production and expected costs
Is directed at internal users
Must comply with GAAP standards
Presents very detailed information
Presents only monetary information
Places emphasis on future
Changes in proportion to changes in volume or activity (no change per unit)
Changes per unit (no changes in proportion to changes in volume or activity)
Changes in proportion to changes in volume or activity (no change per unit)
Changes per unit (no changes in proportion to changes in volume or activity)
Depreciation
Cost of Materials
Rent
Advertising
Cost of Materials
Rent
Assembly Labor Cost
Commissions
True
False
True
False
Opportunity Costs
Sunk Costs
Direct Costs
Variable Costs
True
False
True
False
Provide information needed for decision making
Provide information needed for creditors
Provide information needed for planning
Provide information needed for control
Departmental performance report.
Incremental analysis
Cash-flow budget.
Management by exception.
Decision making.
Planning
Incremental analysis.
Control.
Preparing financial statements.
Deciding whether to reward or punish managers.
Implementing the plan.
Comparing actual results to planned results.
Decision making.
Incremental analysis.
Planning
Control.
Must comply with GAAP
Generates reports primarily for internal users
Contains monetary information only
Emphasizes historical transactions
The plan may not have been followed properly.
The plan may not have been well thought-out.
Changing circumstances may have made the plan out of date.
All of the above are reasons that actual results may differ from the company’s plan.
Direct labor (labor cost that are directly traceable to a product)
Depreciation
Rent
Salaries
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