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Managerial Term
Managerial Accounting
FINAL EXAMINATION
Please complete the following by typing your answer letter next to "ANS" (example "ANS: c) and return to your Instructor via Blackboard by midnight, August 1, 2012:
A (n) ____ is a review to determine whether the policies and procedures specified by top management have been implemented.
A) management audit
B) internal audit
C) internal control
D) internal accounting control
2) Variances
A) are quantitative expressions of plans of action
B) ignore areas that are problem areas
C) are deviations from a plan
D) ignore areas that are presumed to be running smoothly
3) Which of the following costs is a variable cost?
A) rental expense for factory building for manufacturer of electronics
B) lease cost for factory machine for manufacturer of electronics
C) fuel for airplane for airline
D) depreciation expense of airplane for airline
ANS: C
4) On Fire Company, a producer of electronic devices, has the following information:
Selling price per unit $5.00
Variable cost per unit $3.00
Total fixed costs $90,000.00
The contribution-margin ratio is
A) 30%
B) 40%
C) 60%
D) 100%
ANS: B
5) In a small construction firm, a crew supervisor is added for every ten workers employed. The salaries of the crew supervisors are a
A) variable cost
B) mixed cost
C) step cost
D) fixed cost
ANS: A
6) Salaries of the telemarketers are set at $10,000 per month. The telemarketers also receive a commission for each donation they receive. They receive $5 per donation. The telemarketers salaries' and commission is a ____ cost.
A) fixed
B) variable
C) mixed
D) step
ANS: B
7) Accountants can specifically and exclusively identify indirect costs with a given cost object in an economically feasible way.
True or False?
ANS: True
8) When determining the product cost of a manufactured product,
A) direct material costs include minor items such as tacks or glue
B) direct labor costs may not include employee benefits
C) indirect production costs may include selling costs
D) there may be no direct labor costs
ANS: A
9) A company is trying to decide which product to manufacture. The following information is available:
Costs Product A Product B
Direct Materials 1 $2.00 per unit $2.00 per unit
Direct Materials 2 $1.25...
Actual operating income was $6.4 million. What is the static-budget variance of operating income?
A) $2.2 million Favorable
B) $2.2 million Unfavorable
C) $6.4 million Favorable
D) $8.6 million Unfavorable
ANS: B
16) Tomorrow Company has the following information available:
Budgeted cost of direct materials at 900,000 units $900,000
Budgeted cost of direct materials at 820,000 units $820,000
Actual cost of direct materials at 820,000 units $840,000
Actual level of output (units) 820,000
Planned level of output (units) 900,000
The cost driver of product costs is units of output. What is the static budget variance for direct material costs?
A) $20,000 Unfavorable
B) $20,000 Favorable
C) $60,000 Favorable
D) $60,000 Unfavorable
ANS: D
17) The following information is available for Half Price Books Inc. And its two divisions, Books and Periodicals:
Whole Books Periodicals
Company Division
Net Sales $100,000 $50,000 $50,000
Fixed Costs Controllable
By Division Manager 26,500 22,500 4,000
Fixed Costs Not Controlled
By Division Manager 18,000…
Managerial Accounting Managerial accountants are charged with all financial matters that do not pertain to the financial accounting statements. Within their company, they ensure that the company has good financial security, they perform analysis on costs and revenues, they perform budgeting, handle taxes, and their work is frequently used in strategic planning, whereby they provide the financial analysis to management to help make better decisions (No author, 2012). Some of the
Managerial Accounting Accounting Managerial accounting is different from financial accounting because it is used primarily by companies and organization to generate weekly, daily and monthly reports to help them forecast future financial events (Birnberg, 1992). The profession of managerial accounting looks at the many ways managers can help facilitate increased revenues over defined times, and the future in general. It is not concerned with investments as much as it is concerned with
Managerial Accounting Elkay is a manufacturer of sinks. The company has three plants, serving different markets. The Ogden plant is high-volume, low-margin production. The company has new technology that makes it an innovator in efficiency. The Lumberton plant focuses on high margin items. Broadview is for commercial, institutional and specialty products. The company's information provides feedback about profits that indicates one customer type provides all of the profits, and the other
That we do not find out about cost overruns until the project is completed creates a climate where managers are motivated to overlook past transgressions yet are powerless to address future ones. Lastly, I would tie performance-based bonuses either to non-financial measures or to ones based on financial accounting, subject to GAAP and other defined rules and procedures. In general, financial incentives are only necessary when there are competing
Managerial Accounting E-Company Income Statement Contribution Margin For Period Ended Dec 31, 20XX Revenue less V Mfg Cost less V Op/Selling Cost Gross Profit (Contribution Margin) Fixed Mfg Overhead Fixed S&A Exp Total Fixed Costs Net Income $4,765,000 E-Company Income Statement Absorption Method For Period ended Dec 31, 20XX Revenue Less Mfg Cost Less Op/Selling Cost Less S&A Exp Net Income $5,485,500 The gross profit margin is 75.6%. This is calculated as the (revenue -- cogs) / revenue (Investopedia, 2011). The contribution margin is similar, but does not include costs associated with goods
2. Research the answers to management tax or auditing questions- once an accountant understands their job, they must be prepared to answer very specific questions concerning the accounting information that is provided (Johnstone & Biggs, 1998). While most CEO's and people in various departments have some understanding of accounting, there are some very intricate financial details that only accountants fully understand (Johnstone & Biggs, 1998). With this understood, successful accountants