MANAGERIAL ACCOUNTING
QUESTIONS WITH CORRECT
VALIDATED ANSWERS.
budgets are ANS - used by individual, staffs, managers department
management accounting place more emphasis on which of the following ANS - future activities
a listing of line item that the organization will use to classify its accounting info is ANS - balance sheet
compute the fixed cost? DM 100,000 DL 150,000 Overhead 75,000 Sales 120,000 ANS - 75000, if not,
none of the above
the primary purpose for carrying on "cost accounting activity" is ANS - to plan operation
NPV and IRR are not true ANS - NPV alone can be used to compare investments of different sizes
company z (long question) what is the fixed cost? ANS - 20% of sales revenue
cost volume profit (VCP) analysis to answer which of the following ANS - all of the above
the amount of overhead applied to a product or service is normally calculated by ANS - divide estimate
overhead by estimated units of the cost driver
comparing actual outcomes with budget outcomes , then following up is an example of ANS - operating
activities
which of the following is typically a starting point for the budget process ANS - a sales budget
, tax accounting is generally most used by ANS - internal revenue service (irs)
the term "product cost" as used in cost and managerial accounting context means ANS - all
manufacturing or production cost of the product
which of the following organization would most likely adopt to a process costing system ANS - paper
manufacturer
the discount rate for use in capital budgeting is also referred to as ANS - the minimum required rate of
return
which of the following is referring to management accounting ANS - is not a subject to gaap
the main purpose of management accounting is to provide information to ANS - managers
the sum of direct materials plus direct labor is ANS - prime cost
zero based budget ANS - requires managers to build budgets from the ground up
which of the following pairs most accurately represents the ease of traceability cost? ANS - variable
costs and fixed costs
over and under over head occurs when ANS - either the overhead cost driver are estimated incorrectly
chief accounting officer in an organization is ANS - controller
financial accounting info is most generally useful to ANS - external parties
the cost of rent for manufacturing is generally considered to be ANS - prime cost: no / product cost: yes
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