Managerial Accounting Final Exam

Question 1

A strategy helps a company distinguish itself from its stockholders

Accepted Answer

False

Question 2

Product costs ... (select all that apply)

Accepted Answer

are also called inventoriable costs, "attach" to units of product as they are produced or purchased for resale

Question 3

Management's detailed plans for the future are often expressed formally in a: budget

Accepted Answer

True

Question 4

Period costs are expensed when incurred

Accepted Answer

True

Question 5

Which of the following statements is true?

Accepted Answer

Management accountants need strong financial accounting skills.

Question 6

Which of the following statements is true?

Accepted Answer

MACC provides financial data for internal use

Question 7

Martin Industries had unadjusted cost of goods sold of $450,000. Overhead was underapplied by $30k Adjusted COGS is

Accepted Answer

$480K

Question 8

Report comparing actual results to budgeted amounts used to reward and evaluate employees is called a _____ report

Accepted Answer

performance

Question 9

Inventoriable costs are expensed in the period which they are incurred

Accepted Answer

False

Question 10

Manufacturing costs include: (select all that apply)

Accepted Answer

manufacturing overhead, direct materials and direct labor

Question 11

Which one is not one of the basic decision making questions in Managerial Accounting?

Accepted Answer

When should we be selling?

Question 12

The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find

Accepted Answer

overhead applied to the job

Question 13

Customers, employees, suppliers, and other advocates are all stakeholders which a company might have a

Accepted Answer

Corporate Social Responsibility

Question 14

All manufacturing costs are assigned to units of product and all nonmanufacturing costs are treated as period cost under

Accepted Answer

absorption costing

Question 15

Contribution margin is sales revenue minus cost of goods sold

Accepted Answer

False

Question 16

Actual overhead costs may not be proportional to the actual amount of the allocation base used because

Accepted Answer

many actual overhead costs are fixed, overhead spending may not be under control

Question 17

The accrual concept that costs incurred to generate a revenue are expensed in the same period the revenue is recognized:

Accepted Answer

Matching principle

Question 18

How individual costs react to changes in activity level is referred to as cost behavior

Accepted Answer

True

Question 19

Firms should provide ____ with competent and rapid delivery of products and services and easy-to-use information systems

Accepted Answer

Customers

Question 20

Period costs do not flow through the inventory accounts.

Accepted Answer

True

Question 21

A performance report compares budgeted data to actual data in an effort to identify and learn from excellent performance

Accepted Answer

True

Question 22

Which of the following are most likely fixed costs?

Accepted Answer

Administrative salaries, Factory insurance, Factory rent

Question 23

An income statement focusing on product and period costs has been prepared using a ____ format

Accepted Answer

traditional

Question 24

Add underapplied overhead to or subtract overapplied overhead from unadjusted cost of goods sold

Accepted Answer

To calculate the adjusted cost of goods sold

Question 25

Which of the following is not a COST CLASSIFICATION associated with decision making?

Accepted Answer

Indirect costs

Question 26

Differential costs, opportunity costs and incremental costs are all cost classifications used in ...

Accepted Answer

decision making

Question 27

A ______ format income statement makes a distinction between fixed and variable costs.

Accepted Answer

contribution

Question 28

Within the relevant range of activity...

Accepted Answer

the assumption that cost behavior is strictly linear is reasonably valid, fixed costs remain constant in total and vary per unit

Question 29

Cost objects include

Accepted Answer

Customers, Anything for which cost data is desired, Organizational subunits and deparments

Question 30

Direct materials, direct labor, and manufacturing overhead are all ______ costs.

Accepted Answer

product

Question 31

A likely result of abandoning ethical standards is _______.

Accepted Answer

a less efficient economy

Question 32

The assumption that cost behavior is strictly linear is reasonably valid within the relevant range of activity

Accepted Answer

True

Question 33

Average manufacturing overhead cost per unit usually varies from one period to the next because...

Accepted Answer

fixed manufacturing oh stays constant in total even when production changes

Question 34

1- Firm A makes custom order sofa. The material used to make them is a ____ cost of the customer placing the order.

Accepted Answer

direct

Question 35

Opportunity costs are benefits lost when choosing one option over another and SHOULDN'T be considered in decision making

Accepted Answer

False

Question 36

Period costs... (select all that apply)

Accepted Answer

are expensed in the period incurred, include all costs that are not product costs

Question 37

A performance report ______

Accepted Answer

can be used to help evaluate and reward employees, helps identify and eliminate sources of unsatisfactory performance

Question 38

Variable cost changes in total, in direct proportion to changes in activity level?

Accepted Answer

True

Question 39

Major business functions that add value to a company's products and service comprise a company's value _____

Accepted Answer

chain

Question 40

A change in revenues between two alternatives is known as _____ revenue or incremental revenue

Accepted Answer

differential

Question 41

Undesirable events that have already happened are uncovered by

Accepted Answer

Detective controls

Question 42

Costs that can be easily and conveniently traced to a specific product are called ______ costs.

Accepted Answer

direct

Question 43

Costs assigned to units of product in absorption costing include _____ manufacturing costs.

Accepted Answer

both V and F

Question 44

Underapplied or overapplied OH occurs because OH is applied to jobs using predetermine rate based on estimates of costs

Accepted Answer

True

Question 45

Within the relevant range of activity...

Accepted Answer

The assumption that cost behavior is strictly linear is reasonably valid, fixed costs remain constant in total and vary per unit

Question 46

Non-manufacturing costs include (select all that apply):

Accepted Answer

sales commissions, company's president's salary

Question 47

All costs in a merchandising company are period costs

Accepted Answer

False

Question 48

Product costs are also called _____ costs

Accepted Answer

inventoriable, manufacturing

Question 49

The average manufacturing overhead cost per unit tends to

Accepted Answer

vary from one period to the next

Question 50

Which of the following would not be a good allocation base for manufacturing overhead?

Accepted Answer

Accounting Hours

Question 51

Perhaps the most basic managerial skill is the ability to ______.

Accepted Answer

make intelligent decisions

Question 52

Managerial Accounting skills are useful in a variety of careers and industries

Accepted Answer

True

Question 53

A cost that contains both variable and fixed costs elements is called a _____ cost

Accepted Answer

mixed, semivariable

Question 54

The formula for applying overhead to a specific job is:

Accepted Answer

predetermined oh rate * amount of allocation based incurred by job

Question 55

Period costs are always expensed on the income statement in the period in which they are incurred

Accepted Answer

True

Question 56

Which of the following statements are true?

Accepted Answer

Period costs are expensed when incurred., Period costs do not flow through the inventory accounts.

Managerial Accounting Final Exam

Questions 56

Managerial Accounting Final Exam

Questions 56