Management accounting

Question 1 options:

	helps managers make decisions.
	is useful for external and internal users.
	creates technical reports that require external audit for verification.
	is the same as cost accounting.

Question 2 (0.25 points)

Which of the following is an underlying assumption of the cost-volume-profit graph?

Question 2 options:

	Total fixed expenses will change during the accounting period.
	The sales mix of products is constantly changing.
	Inventory levels are constantly changing.
	Volume is the only cost driver.

Question 3 (0.25 points)

When deciding to buy a new computer, the irrelevant cost is the

Question 3 options:

	cost of the new computer.
	cost of the old computer.
	games that come with the new computer.
	warranty on the new computer.

Question 4 (0.25 points)

If the sale price per unit is $12, the unit contribution margin is $5, and total fixed expenses are $21,000, what are the break-even sales in units?

Question 4 options:

	105,000
	252,000
	4,200
	1,750

Question 5 (0.25 points)

Which of the following represents the excess of the selling price per unit of a product over the variable cost of obtaining and selling each unit?

Question 5 options:

	Gross margin
	Unit contribution margin
	Net income
	Operating income

Question 6 (0.25 points)

Using hourly sales reports to determine the level of staffing needed to service customers fulfills which of management's four primary responsibilities?

Question 6 options:

	Directing, planning, and decision-making
	Directing, controlling, and planning
	Controlling, planning, and decision-making
	Analyzing, directing, and planning

Question 7 (0.25 points)

Given break-even sales in units of 56,000 and a unit contribution margin of $6, how many units must be sold to reach a target operating income of $24,000?

Question 7 options:

	4,000
	60,000
	52,000
	144,000

Question 8 (0.25 points)

Gibbs Company has a product which sells for $100 and has a unit contribution margin of $45. It has fixed costs of $30/unit at the current production volume. Gibbs Company's contribution margin ratio is

Question 8 options:

	45%
	30%
	85%
	75%

Question 9 (0.25 points)

CVP analysis assumes all of the following except that

Question 9 options:

	a change in volume is the only factor that affect costs.
	inventory levels will increase.
	revenues are linear throughout the relevant range.
	the mix of products will not change.

Question 10 (0.25 points)

Which of the following management responsibilities are being fulfilled when management uses feedback to take corrective action on the budgets?

Question 10 options:

	Directing and planning
	Planning and decision-making
	Controlling and decision-making
	Planning and controlling

Question 11 (0.25 points)

On a contribution margin income statement, to what is contribution margin equal?

Question 11 options:

	Fixed expenses plus variable expenses
	Sales revenues minus variable expenses
	Fixed expenses minus variable expenses
	Sales revenues minus fixed expenses

Question 12 (0.25 points)

A restaurant is facing a decision about whether it should bake its own dinner rolls or whether it should continue to purchase the dinner rolls from a local bakery. Which of the following costs would be relevant to its decision?

Question 12 options:

	The salary of the restaurant manager
	The purchase price of the dinner rolls purchased from the local bakery
	The price the restaurant sells the dinner rolls for
	The original purchase price of the current machinery

Question 13 (0.25 points)

If the sale price per unit is $75, the variable expense per unit is $45, and total fixed expenses are $1,155,000, what will the break-even sales in units be?

Question 13 options:

	15,400
	25,667
	38,500
	9,625

Question 14 (0.25 points)

When management compares the budget to actual results, which of the following is being fulfilled?

Question 14 options:

	Directing
	Controlling
	Decision-making
	Planning

Question 15 (0.25 points)

Preparing budgets is an example of the management function of

Question 15 options:

	controlling.
	decision-making.
	directing.
	planning.

Question 16 (0.25 points)

Using product cost information to determine sales prices is an example of

Question 16 options:

	controlling, planning, and decision-making.
	directing, controlling, and planning.
	directing, planning, and decision-making.
	controlling, directing, and planning.

Question 17 (0.25 points)

Which one of the following manager responsibilities encompasses the other three?

Question 17 options:

	Decision-making
	Feedback
	Planning
	Controlling

Question 18 (0.25 points)

Evaluating results against the plan is an example of the management function of

Question 18 options:

	controlling.
	decision-making.
	directing.
	planning.

Question 19 (0.25 points)

Budgets are the way that managers can express their

Question 19 options:

	plans.
	decision-making.
	control.
	hiring practices.

Question 20 (0.25 points)

Managers can quickly forecast the total contribution margin by multiplying the projected

	sales revenue by the contribution margin ratio.
	sales units by the contribution margin ratio.
	sales revenue by the unit contribution margin.
	sales units by the variable cost ratio.