1. Management accounting is used to _____.
provide information on the performance of the company as a whole
provide information to be used on the balance sheet
develop, communicate, and implement strategies
All of these answers are correct.
2. Management accounting is used to _____. (Points : 6)
provide information on the performance of the company as a whole
provide information to be used on the balance sheet
develop, communicate, and implement strategies
All of these answers are correct.
3. Which item is NOT an indication of competence under the Standards of Ethical Conduct?
Provide decision support information and recommendations that are accurate, clear, concise, and timely.
Perform professional duties in accordance with relevant laws, regulations, and technical standards.
Maintain an appropriate level of professional expertise by continually developing knowledge and skills.
Keep information confidential except when disclosure is authorized or legally required.
4. Within the relevant range for a Transportation Company, if there is an increase in the level of cars transported, then...
fixed costs per unit will increase and variable costs per unit will decrease
fixed costs per unit will decrease and variable costs per unit will increase
fixed costs per unit will decrease and variable costs per unit will remain the same.
fixed costs per unit will remain the same and variable costs per unit will increase
5. At break-even point
a firm's contribution margin exceeds total costs.
a firm's contribution margin equals total variable costs.
a firm's contribution margin equals fixed costs.
a firm's net operating profit exceeds total costs.
Question 6. Answer the following question using the information below.
Marcus intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for $150 per customer. The round-trip tickets will be sold for $200 each and the airline intends to reimburse Marcus for any unsold ticket packages. Fixed costs include $5,000 in advertising costs. For every $25,000 of ticket packages sold, operating income will increase by _____.
$12,500
an indeterminable amount
$6,250
$18,750
Question 7. Answer the following question using the information below.
Nortrika Company sells several products. Information of average revenue and costs is as follows:
Selling price per unit $34.00
Variable costs per unit:
Direct material $6.00
Direct manufacturing labor $2.40
Manufacturing overhead $0.60
Selling costs $2.00
Annual fixed costs $97,400
The contribution margin per unit is _____. (Points : 6)
$6
$7
$12
$16
Question 8. Which of the following manufactured products would use job-costing?
19-inch television sets
Laptop computers
Mattress manufacturer
Construction of an apartment buildi
Question 9. The weighted-average process-costing method calculates the equivalent units by _____.
The units started during the current period minus the units in ending inventory.
considering all work done to date
The equivalent units completed during the current period plus the equivalent units in ending inventory.
Both B and C above
Question 10. Which step does the FIFO process-costing method start with?
Compute costs per equivalent unit.
Computer output in terms of equivalent units
Assign total costs to units completed.
Summarize the flow of physical units of output.
Question 11. In process costing _____.
there is one Work in Process account for the entire process
there is one Work in Process account for each process
there are numerous Work in Process accounts for each process
None of the above
Question 12. Overcosting a product is MOST likely to result from _____.
misallocating indirect labor costs
undercosting another product
overpricing the product
understating total product costs
Question 13. ABC systems _____.
identify individual activities as the fundamental cost objects
limit cost drivers to units of output
allocate costs based on the overall level of activity
generally undercost complex products
Question 14. Companies use ABC system information to _____.
analyze costs
prepare budgets
evaluate performance
All of these answers are correct.
Question 15. Guidelines for refining a costing system include _____.
Tracing direct costs
increasing indirect costs
Identifying indirect-cost pools
A and C