Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Principles of management midterm exam

18/11/2021 Client: muhammad11 Deadline: 2 Day

MIDTERM EXAM-Principles Of Managerial Accounting

Question

1. When comparing management accounting and financial accounting, which of the following statements is FALSE?
A) Management accounting has a future orientation whereas financial accounting has a past orientation.
B) Management accounting prepares detailed reports whereas financial accounting prepares summary reports.
C) Management accountants are constrained by the principles of reporting promulgated by the Institute of Management Accountants whereas financial accountants are constrained by Generally Accepted Accounting Principles.
D) Behavioral considerations are of primary importance in management accounting, but not in financial accounting.
2. As cost-driver level decreases in the relevant range, fixed costs per unit of cost driver _______, but total fixed costs ________.
A) increase; do not change
B) decrease: do not change
C) do not change; increase
D) do not change; decrease
3. Who provides assurance to external users about the reliability of a company's financial statements?
A) Certified Management Accountants and Certified Public Accountants
B) Chartered Management Accountants and Certified Management Accountants
C) Certified Public Accountants and Chartered Management Accountants
D) Certified Public Accountants and Chartered Accountants
4. An increase in total variable costs usually indicates that ________.
A) the cost-driver activity level is decreasing
B) the cost-driver activity level is increasing
C) variable costs per unit is decreasing
D) fixed costs per unit is increasing
5. The static budget is based on the ________ level of output and the flexible budget is based on the ________ level of output.
A) actual; expected
B) expected; actual
C) expected; planned
D) actual; projected
6. External users of financial reports need ________ measures of inventory and cost of goods sold.Internal users of financial reports need ________ cost information about products.
A) strategic; operational
B) operational; strategic
C) aggregate; detailed
D) detailed; aggregate
7. The ________ is the juncture in manufacturing where the joint products become individually
identifiable.
A) joint processing juncture
B) split-off point
C) common point
D) joint processing point
8. Which of the following statements about budgets and budgeting is FALSE?
A) Budgets help coordinate financial and operational activities.
B) The vast majority of managers use budgeting as an effective cost management tool.
C) Budgeting is the process of formulating an organization's plans.
D) Managers do not use budgets for performance evaluation.
9. A(n) ________ starts with the assumption that current activities in a company will not automatically continue in the next period.
A) activity-based budget
B) strategic budget
C) master budget
D) zero-base budget
10. Which of the following item is irrelevant to the decision whether to process joint products beyond the split-off point?
A) separable costs
B) additional costs from further processing beyond the split-off point
C) additional revenue from further processing beyond the split-off point
D) joint costs
11. On a cost-volume-profit graph, at the point where the Total Revenue line intersects the Total Cost line, ________.
A) net income is positive
B) net income is negative
C) net income is zero
D) not enough information is given
12. Which of the following statements is FALSE?
A) Flexible budgets are prepared for a range of activity.
B) Flexible budgets are matched to actual levels of activity.
C) A flexible budget is also called a variable budget.
D) Flexible budgets are based on different assumptions about cost behavior than those used for static budgets.
13. According to the Institute of Management Accountants, management accountants should follow several ethical principles that include ________.
A) honesty, fairness, respect and compassion
B) honesty, fairness, responsibility and objectivity
C) honesty, competence, confidentiality and integrity
D) competence, confidentiality, integrity and honesty
14. Relevant information refers to ________ that will differ among the alternative courses of action.
A) future costs only
B) future revenues only
C) past costs and revenues
D) future costs and revenues
15. Which of the following items is usually NOT important to special order decisions?
A) affect of special order on regular business
B) whether idle capacity is available
C) total fixed costs
D) increase in variable costs per unit due to special order
16. How do managers obtain the target cost for a new product under consideration? Assume the market price per unit is known and it cannot be influenced by management.
A) the sum of all production and nonproduction costs
B) the sum of all production costs
C) price per unit minus gross profit per unit
D) the sum of all variable costs
17. A major drawback of using historical results for judging current performance is that ________.
A) past results may be inaccurate
B) results may refer to a different manager
C) inefficiencies may be concealed in past results
D) managers may have cooked the books
18. The static budget variance is the difference between the ________ and the ________.
A) amounts for the flexible budget; amounts for the static budget
B) flexible budget variance; activity level variance
C) actual results; amounts for the static budget
D) actual results; amounts for the flexible budget
19. Ernie Company is considering replacing a machine that is currently used in the production process.The ________ is irrelevant to the replacement decision.
A) cost of the new machine
B) disposal value of old machine
C) book value of old machine
D) annual operating cost of old machine (2 years left)
20. Many managers set prices by cost plus pricing. What is cost plus pricing? Assume it is a long run decision.
A) average cost per unit plus markup per unit
B) average target cost plus markup per unit
C) average cost per unit minus markup per unit
D) average target cost minus markup per unit
21. Price elasticity measures the ________.
A) effect of sales volume changes on prices
B) effect of cost changes on prices
C) effect of price changes on sales volume
D) customers' attitudes toward price changes
22. The quantity variance for direct materials can be computed by multiplying the standard price by the difference between the ________.
A) standard inputs allowed and expected inputs allowed at actual output
B) quantity of inputs actually used and the quantity of inputs that should have been used for the expected output
C) standard inputs allowed and expected inputs allowed for expected output
D) quantity of inputs actually used and the quantity of inputs that should have been used for actual output
23. A cost management system provides ________.
A) measures of inventory value and cost of goods sold for financial reporting
B) cost information for strategic management decisions
C) cost information for operational control
D) all of the above
24. Herman Loebl Company, a producer of salsa, has the following information:
Income tax rate 30%

Selling price per unit $8.00
Variable cost per unit $3.00
Total fixed costs $90,000.00

The contribution margin per unit is ________.
A) $2.00
B) $3.00
C) $5.00
D) $8.00
25. One way to reduce negative attitudes of managers toward budgets is by ________.
A) zero-based budgeting
B) activities-based budgeting
C) long range planning
D) participative budgeting

26. In the long run, the selling price of a product should cover ________.
A) all variable costs only
B) all variable costs and some fixed costs
C) all fixed costs only
D) all variable costs and all fixed costs

27. In perfect competition, additional sales will be profitable if ________.
A) the marginal cost is less than marginal revenue
B) sales price exceeds the variable product cost
C) total variable cost is less than sales price
D) the fixed cost equals the contribution margin
28. The financial budget is used by managers to ________.
A) manage financial affairs
B) manage employee hiring patterns
C) manage the cash balance
D) plan for future stock dividends
29. What is Six Sigma?
A) a process improvement to eliminate waste from the entire enterprise
B) a process improvement to reduce the time products spend in the production process
C) a process improvement to reduce the time products spend in activities that do not add value
D) a data-driven approach to eliminate defects in any process
30. When allocating indirect production costs to cost objects, which of the following is/are a costallocation base(s)?
A) some measure of input or output that determines the amount of cost to be allocated to a cost object
B) a measure used to assign indirect costs to cost objects
C) a measure used to assign direct costs to cost objects
D) A and B

31. When assigning indirect costs to a cost object, an ideal cost-allocation base measures ________.
A) the proportion of indirect costs to direct costs
B) the extent a particular cost is caused by a cost object
C) multiple cost drivers
D) the proportion of direct costs to indirect costs

32. The ________ budget focuses on the budgeted income statement and the supporting schedules.
A) financial
B) operating
C) operating expense
D) purchases and cost of goods sold
33. Kaprelian Company sells desks at $480 per desk. The variable costs are $300 per desk. Total fixed costs for the period are $400,000. The contribution margin ratio is ________.
A) 22.5%
B) 37.5%
C) 40.6%
D) 62.5%

34. Key Company has a targeted sales volume of 62,300 units. Total fixed costs are $31,200. The
contribution margin per unit is $1.20. What is targeted net income?
A) $31,200
B) $37,440
C) $43,560
D) $74,760
35. If the direct labor price variance is $800 Favorable and the direct labor usage variance is $700 Unfavorable, then ________.
A) the flexible budget variance for direct labor is $100 Favorable
B) actual total wages paid were $800 more than expected
C) actual labor hours were less than expected
D) actual material prices were less than expected
36. ________ is the relative proportions or combinations of quantities of different products that comprise total sales.
A) Sales mix
B) Constant mix
C) Fluctuating mix
D) Variable cost ratio

37. The Todd Dolhun Company has the following information available:
Targeted after-tax net income $120,000
Total fixed costs $300,000
Contribution margin per unit $2
Tax rate 40%

How many units should be sold to achieve the targeted after-tax net income?
A) 180,000
B) 210,000
C) 250,000
D) 300,000
38. In a manufacturing area of a firm, poor product design and problems with the quality of materials will, more than likely, result in a(n) ________ variance or ________ variance.
A) unfavorable material efficiency; unfavorable labor usage
B) favorable material efficiency; unfavorable labor price
C) unfavorable material price; unfavorable labor rate
D) unfavorable material price; unfavorable labor usage
39. Joint products should be processed beyond the split-off point if ________.
A) sale of the products are guaranteed
B) additional revenue from further processing exceeds additional expenses from further processing
C) additional revenue from further processing exceeds the joint costs
D) the marginal revenue of the joint products before the split-off point exceeds the marginal cost of the joint products
40. Activity-based costing systems should be adopted when ________.
A) indirect costs represent a small proportion of a product's total costs
B) indirect costs represent a large proportion of a product's total costs
C) a company makes one simple product
D) a company has a simple manufacturing process
Answer: True / False Questions
41. The essence of the just-in-time philosophy is to eliminate waste.
A) TRUE
B) FALSE
42. An equipment's book value is the original cost plus accumulated depreciation.
A) TRUE
B) FALSE
43. The contribution margin per unit of a given product guides managers when deciding which product to emphasize in a sales mix.
A) TRUE
B) FALSE
44. Budgetary slack helps buffer managers from budget cuts imposed by higher-level management.
A) TRUE
B) FALSE
Answer:
45. The wages of the janitor in the factory are direct costs for a manufactured product.
A) TRUE
B) FALSE
46. The Sarbanes-Oxley Act requires companies to disclose whether the company has adopted a code of ethics for senior financial officers.
A) TRUE
B) FALSE
47. The direct materials price variance is based on the standard quantity of inputs allowed for the actual output.
A) TRUE
B) FALSE

48. Activity-based budgets are an example of functional budgeting.
A) TRUE
B) FALSE
49. The break-even point is when enough units are sold that total contribution margin equals total variable costs.
A) TRUE
B) FALSE

50. In companies with high operating leverage, small changes in sales volume result in large changes in net income.
A) TRUE
B) FALSE

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Assignment Helper
George M.
Peter O.
Professor Smith
Instant Assignments
Study Master
Writer Writer Name Offer Chat
Assignment Helper

ONLINE

Assignment Helper

I am an experienced researcher here with master education. After reading your posting, I feel, you need an expert research writer to complete your project.Thank You

$24 Chat With Writer
George M.

ONLINE

George M.

I have read your project description carefully and you will get plagiarism free writing according to your requirements. Thank You

$30 Chat With Writer
Peter O.

ONLINE

Peter O.

I reckon that I can perfectly carry this project for you! I am a research writer and have been writing academic papers, business reports, plans, literature review, reports and others for the past 1 decade.

$47 Chat With Writer
Professor Smith

ONLINE

Professor Smith

I have read your project description carefully and you will get plagiarism free writing according to your requirements. Thank You

$50 Chat With Writer
Instant Assignments

ONLINE

Instant Assignments

I will provide you with the well organized and well research papers from different primary and secondary sources will write the content that will support your points.

$42 Chat With Writer
Study Master

ONLINE

Study Master

I have written research reports, assignments, thesis, research proposals, and dissertations for different level students and on different subjects.

$18 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Tarnishing of silver chemical reaction - Complex report (part of it is in excel) - Art Discussion Question - Jenna douros ninja warrior - Character of mr woodifield in the fly - Ocean carriers case study solution - Their eyes were watching god narrator - Bennett trim tab pump troubleshooting - Analyzing and Visualizing data - Cisco telepresence mcu 4500 series - Atomic dating game answer key pdf - Persuasive Speak and self review - Week 6 - Assignment 2: Research Big Data Analytics for Decision Making - Aluminium window infill panels - Collaboration diagram for student registration system - 3 questions to three readings:USING THE ATTACHED READINGS AND DOCS, briefly respond to each of these questions in three or four sentences. - After completing the reading this week, we reflect on a few key concepts this week - Why we crave horror movies questions for study and discussion - Jeff nippard upper lower program pdf free - How do you turn improper fractions into mixed numbers - Richard L.Daft Management 13 edition Chapter-11 , Managing Change and Innovation - Convert ppmv to mg/m3 - Ten live group coatbridge - For phd Isaac Newton - How much yen per dollar - Dr kaoru ishikawa biography - Snow roof home depot - EVIDENCE BASED PROJECT PROPOSAL - Managerial Finance - Explain any three internal users of accounting information - JUSTIFICATIONS AS DEFENSES - Yogurt fermentation process ppt - Evidence of seafloor spreading - The term defensive programming refers to which of the following - PMP Certification in Hyderabad - How to create aon diagram in excel - Rewrite paper - Food for the ancestors video answers - Federal safeguards for financial managers - The ultimate anabolic cookbook 2.0 free - What is the best translation for the word fiur - Unnatural balance accounting - Accounting Case - How many centimeters correspond to 15.68 kilometers - Sylvia plath johnny panic and the bible of dreams pdf - Assignment: Advocating for the Nursing Role in Program Design and Implementation - How can steve add 48 34 by making a ten - Fit out cost per square metre dubai - Form 9 entry notice - On a second thought trevor noah - Writing Project: Discourse Community - Uta hagen 9 questions - Qub ac uk qol - Shaping psych - Genesis 9 20 27 - Https www microsoft com en us digitalliteracy curriculum4 aspx - Opportunity management process flow - Biomolecules and cells past exams - ESSAY - The adjusted trial balance columns - Marketing - Homework AA - Homeland Security - Global Health Topic Discussion - In a state's pick lottery game you pay - Oracle e business suite support timelines - Information technology interview questions answers - Discussion DQ2 - Strategic human resource manage - Red bull wall to wall production - THE TOP FIVE MOST ABUSED DRUGS - Directed writing igcse examples - Jessica chambers burns photos reddit - Pls classes wilkes university - In the monohybrid cross in experiment 1, which phenotypic characteristic did you evaluate? - Finding limits algebraically worksheet - Kwh to watts conversion calculator - Message passing in ada - Chicago style referencing monash - Water cycle poster assignment - Spss correlation table apa format - The CFO Project - The product of two rational number is always - Dan patrick celebrity bracket challenge - Avon products inc annual report 2016 - Answer qustion - Irony as a principle of structure - Vocab level e unit 5 - Mad catz strike 7 gaming keyboard review - Prepare an incremental analysis for cisco - Shark tank season 9 episode 22 - Assessment Plan - Class 2 amalgam preparation - What does an over the shoulder shot represent - Thin client applications can seldom run within a computer browser - Range rule of thumb standard deviation - C1 lecture theatre monash - Big w loyalty card - My mistress eyes are nothing like the sun poem - Newton heath sure start family planning contact number