Q.1 Which of the following best describes the function of managerial accounting within an organization?

a) It has its primary emphasis on the future.

b) It is required by regulatory bodies such as the Ontario Securities Commission.

c) It focuses on the organization as a whole, rather than on the organization's segments.

d) It places more emphasis on precision of data than financial accounting does.

Q 2. Budgeting is part of which of the following activities managers perform in organizations?

a) Controlling.

b) Directing.

c) Planning.

d) Motivating.

Q-3

SHOW ALL CALCULATIONS Side Hustle Inc. operates a fleet of delivery trucks in Toronto. Analysis shows that if a truck is driven 115,000 kilometres during a year, the average operating cost is 12.4 cents ($0.124) per kilometre. If a truck is driven only 75,000 kilometres during a year, the average operating cost increases to 14.4 cents ($0.144) per kilometre.

Required:

A) Using the high-low method, estimate the variable and fixed cost elements of the annual cost of

truck operation

B) If a truck was driven 87,000 kilometres during a year, what total cost would you expect to be

incurred'!

Q 4.

Obtaining feedback is generally identified most directly with which of these functions of management?

a) Planning.

b) Directing and motivating.

c) Controlling.

d) Decision making.

Q.5

Which of the following best defines an opportunity cost?

a) The difference in total costs from selecting one alternative instead of another.

b) The benefit forgone by selecting one alternative instead of another.

c) A cost that may be saved by NOT adopting an alternative.

d) A cost that may be shifted to the future with little or no effect on current operations.

Q6

What does conversion cost consist of?

a) Manufacturing overhead cost.

b) Direct materials and direct labour cost.

c) Direct labour cost.

d) Direct labour and manufacturing overhead cost.