Managerial Accounting - Test 1

110 Questions | Total Attempts: 682

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Managerial Accounting Quizzes & Trivia

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. 
    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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