Managerial Accounting Quiz: Practice Test

50 Questions | Total Attempts: 445

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Managerial Accounting Quiz: Practice Test

Do you know anything about managerial accounting? Do you imagine you will be capable of passing this quiz? In management accounting, managers use accounting information provisions to inform themselves better before they decide issues within their organization, which helps with their management and performance of control functions. Take this quiz and set your knowledge of managerial accounting to the test.


Questions and Answers
  • 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. 
    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

  • 3. 
    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

  • 4. 
    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

  • 5. 
    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)

  • 6. 
    Which of the following is most likely to be a variable cost?
    • A. 

      Depreciation

    • B. 

      Cost of Materials

    • C. 

      Rent

    • D. 

      Advertising

  • 7. 
    Which of the following is most likely to be a fixed cost?
    • A. 

      Cost of Materials

    • B. 

      Rent

    • C. 

      Assembly Labor Cost

    • D. 

      Commissions

  • 8. 
    Costs incurred in the past are:
    • A. 

      Opportunity Costs

    • B. 

      Sunk Costs

    • C. 

      Direct Costs

    • D. 

      Variable Costs

  • 9. 
    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

  • 10. 
    Which of the following is part of planning?
    • A. 

      Departmental performance report.

    • B. 

      Incremental analysis

    • C. 

      Cash-flow budget.

    • D. 

      Management by exception.

  • 11. 
    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.

  • 12. 
     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

  • 13. 
    Which of the following is an example of a fixed cost?
    • A. 

      Materials

    • B. 

      Commissions

    • C. 

      Depreciation

    • D. 

      Direct Labor

  • 14. 
    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. 

      $270,000

    • B. 

      $300,000

    • C. 

      $250,000

    • D. 

      $280,000

  • 15. 
    Manufacturing overhead is the cost of manufacturing activities other than direct materials and direct labor (all indirect costs).
    • A. 

      True

    • B. 

      False

  • 16. 
    Which are nonmanufacturing costs?
    • A. 

      Selling Costs

    • B. 

      General and Administrative Costs

    • C. 

      Product Costs

    • D. 

      Period Costs

  • 17. 
    Which is Selling Costs?
    • A. 

      Costs associated with securing and filling customer orders ex. advertising, sales salaries, depreciation of sales equipment

    • B. 

      Costs associated with the firm's general management ex. HR, accounting, corporate headquarters, and other support costs

    • C. 

      Costs assigned to goods produced ex direct materials, direct labor, and manufacturing overhead

    • D. 

      Costs expensed in period incurred identified with accounting periods ex. selling and administrative expenses

  • 18. 
    Which is General and Administrative Costs?
    • A. 

      Costs associated with securing and filling customer orders ex. advertising, sales salaries, depreciation of sales equipment

    • B. 

      Costs associated with the firm's general management ex. HR, accounting, corporate headquarters, and other support costs

    • C. 

      Costs assigned to goods produced ex direct materials, direct labor, and manufacturing overhead

    • D. 

      Costs expensed in period incurred identified with accounting periods ex. selling and administrative expenses

  • 19. 
    Which costs are the only variable?
    • A. 

      Direct Material

    • B. 

      Direct Labor

    • C. 

      Manufacturing Overhead

    • D. 

      Selling Cost

    • E. 

      General and Administrative Cost

  • 20. 
    Which costs are only fixed?
    • A. 

      Direct Material

    • B. 

      Direct Labor

    • C. 

      Manufacturing Overhead

    • D. 

      Selling Cost

    • E. 

      General and Administrative Cost

  • 21. 
    Which costs can be variable or fixed?
    • A. 

      Direct Material

    • B. 

      Direct Labor

    • C. 

      Manufacturing Overhead

    • D. 

      Selling Cost

    • E. 

      General and Administrative Cost

  • 22. 
    Cost of Goods Manufactured = Beginning Work In Progress + Current Manufacturing Cost - Ending Work In Progress
    • A. 

      True

    • B. 

      False

  • 23. 
    Cost of Goods Sold = Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods.
    • A. 

      True

    • B. 

      False

  • 24. 
    Cost of Goods Available for Sale = Beginning Finished Goods + Cost of Goods Manufactured.
    • A. 

      True

    • B. 

      False

  • 25. 
    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. 

      $100,000

    • B. 

      $250,000

    • C. 

      $50,000

    • D. 

      $150,000

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