aunton 5 Management and financial accounting differ in that management accounting is prepared O a to summarize the whole company with little detail O busing whatever methods the company linds beneficial cfollowing prescribed standards and legislation d for shareholders and creditors Clearw choice Do 11 When all other factors remain constant, which of the following is true? 4. An increase in fixed costs leads to a decrease in units needed to break even b. A decrease in the variable cost rate leads to an increase in the units needed to break even An inorgase in variable costs leads to an increase in units needed to break even d. An increase in sales price leads to an increase in units needed to break even Clear my choice Otto 9 Which of the followings statements is TRUE of the CVP graph? Not yet Murked out of 1.00 Flag question O a. An increase in unit variable costs would decrease the slope of the total cost line O b. The total revenue line crosses the horizontal axis at the breakeven point c. Beyond the breakeven sales volume, profits are maximized at the sales volume where total revenues equat total costs d. An increase in the unit selling price would hit the breakeven point to the left Clear my choice 15 Why is it important for management accountants to conform to the provisions of the CIMA Code of Ethics for Management Accounting? og quo O a a loss of trust in managerial accounting could cause a company to lose shareholders Ob managers make key business decisions based on the information they provide c. poor ethics could result in faulty income tax reporting d company could lose rivestors due to poor accounting practices Clear my choice 14 LOO The most recent income statement for the Strongsville Branch of the July Company is presented below: Sales $57,000 Variable costs $31.500 Contribution margin. $25,500 Fixed costs Avoidable $13,500 Unavoidable. $20,000 Operating income..... S(8.000) The July Company is thinking of eliminating the strongsville Branch because it is showing a loss. If the Strongsville Branch is eliminated, what effect (if any) will there be on July's operating income? 3. Net Income would not be affected b. decrease $31,500 olc decrise 512,000 di increase $8,000 Clear my choice Why is it important for management accountants to conform to the provisions of the CIMA Code of Ethics for Management ccounting? a. managers make key business decisions based on the information they provide Ob poor ethics could result in faulty income tax reporting Caloss of trust in managerial accounting could cause a company to lose shareholders id company could lose investors due to poor accounting practices The manager of Harmony Solutions is considering the implementation of a computerized accounting system. Which of these would be a possible drawback of this plan? a. The firm would have to implement security measures to protect dat b. It would be difficult took different elements of the system It would be necessary to expand the accounting department, resulting in higher staffing costs The firm would be able to generate detailed reports quickly and easily Wistes lomailem provided the budget for the next year
