Question 1

The organization which administers the Certificate in Management Accounting program is the

Accepted Answer

A)  GAAP. 
B)  SCM. 
C)  CRM. 
D)  IMA. 
A)  GAAP. 
B)  SCM. 
C)  CRM. 
D)  IMA.

Question 2

Incremental analysis involves calculating the difference in revenue and difference in costs between alternatives.

Accepted Answer

A) True 
 B)False

Question 3

The goal of managerial accounting is to provide information for planning, controlling, and reporting information to shareholders.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is most likely to be a fixed cost?

Accepted Answer

A)  Cost of wheels for a lawn mower manufacturer 
B)  Rent on a factory building 
C)  Cost of labor for cashiers at a retail store 
D)  Supplies used by the housekeeping staff that cleans hotel rooms 
A)  Cost of wheels for a lawn mower manufacturer 
B)  Rent on a factory building 
C)  Cost of labor for cashiers at a retail store 
D)  Supplies used by the housekeeping staff that cleans hotel rooms

Question 5

Opportunity costs are

Accepted Answer

A)  considered to be fixed costs in the short-term. 
B)  another term for sunk costs. 
C)  costs that are controlled by most effective managers. 
D)  the value of benefits forgone when one decision alternative is selected over another. 
A)  considered to be fixed costs in the short-term. 
B)  another term for sunk costs. 
C)  costs that are controlled by most effective managers. 
D)  the value of benefits forgone when one decision alternative is selected over another.

Question 6

Hanover Binding plans to produce 40,000 books next year at a total cost of $1,640,000 with a selling price per book of $66.00. The fixed costs total $280,000. Management is considering lowering the price to $60.00 per book, and feels that this action will cause sales to climb to 50,000 books. What is the amount of incremental profit if 50,000 books are sold?

Accepted Answer

A)  $340,000 profit 
B)  $20,000 profit 
C)  $1,700,000 profit 
D)  $1,300,000 profit 
A)  $340,000 profit 
B)  $20,000 profit 
C)  $1,700,000 profit 
D)  $1,300,000 profit

Question 7

Good Buy Electronics has been offered $21,600 to produce 12,000 external hard drives for a customer. Good Buy has budgeted sales of 200,000 hard drives totaling $500,000, with fixed costs of $260,000 and total costs of $420,000. Assuming that Good Buy has the capacity to produce the additional units and that accepting this order will not affect any other orders, what effect will accepting the order have on Good Buy's profit?

Accepted Answer

A)  Incremental profit will increase by $21,600 
B)  Incremental profit will decrease by $9,600 
C)  Incremental profit will increase by $12,000 
D)  Incremental profit will decrease by $3,600 
A)  Incremental profit will increase by $21,600 
B)  Incremental profit will decrease by $9,600 
C)  Incremental profit will increase by $12,000 
D)  Incremental profit will decrease by $3,600

Question 8

Rincon Gifts had the following costs in May when 400 ceramic pots were produced: materials, $4,200; labor cost, $1,600; depreciation, $800; rent, $700; and other fixed costs, $500. If production changes to 500 units, which of the following costs will stay the same?

Accepted Answer

A)  Variable cost per unit 
B)  Fixed cost per unit 
C)  Total variable cost 
D)  Total cost per unit 
A)  Variable cost per unit 
B)  Fixed cost per unit 
C)  Total variable cost 
D)  Total cost per unit

Question 9

Enterprise resource planning systems (ERP) often support accounting, human resources, and e-commerce, in addition to production.

Accepted Answer

A) True 
 B)False

Question 10

Walmart and Procter & Gamble are two companies that collaborate in the use of Supply Chain Management (SCM).

Accepted Answer

A) True 
 B)False

Question 11

Managers that are able to recognize all ethical dilemmas have the most profitable businesses.

Accepted Answer

A) True 
 B)False

Question 12

Performance reports often compare current performance with

Accepted Answer

A)  a competing company's performance. 
B)  shareholders' expected level of performance. 
C)  industry standards. 
D)  performance in a prior period or budgeted performance. 
A)  a competing company's performance. 
B)  shareholders' expected level of performance. 
C)  industry standards. 
D)  performance in a prior period or budgeted performance.

Question 13

Performance reports, like other managerial accounting reports, must follow GAAP.

Accepted Answer

A) True 
 B)False

Question 14

Triatt Resort has 200 rooms. Each room rents at $130 per night and variable costs total $42 per room per night of occupancy. The fixed costs total $18,700 per month. If Triatt is able to increase occupancy from 70% to 80%, by how much will total costs increase per day during June?

Accepted Answer

A)  $840 
B)  $2,710 
C)  $1,870 
D)  $1,760 
A)  $840 
B)  $2,710 
C)  $1,870 
D)  $1,760

Question 15

Below is a performance report that compares budgeted and actual profit of Atlanta Enterprises for the month of June:
$\begin{array}{lrrr}&\text { Budget } & \text { Actual } & \text { Difference } \
\hline
\text { Sales } & \$ 182,000 & \$ 180,000 & (\$ 2,000) \
\text { Less: } & & & \
\text { Cost of ingredients } & 145,000 & 141,000 & 4,000 \
\text { Salaries } & 24,000 & 23,000 & 1,000\
\text { Controllable profit }& \$ \overline{13,000} &\$ {16,000} &\$ {3,000}
\end{array}$
In evaluating the department in terms of its changes in sales and expenses, what will be most important to investigate?

Accepted Answer

A)  Sales 
B)  Cost of ingredients 
C)  Salaries 
D)  Debtors 
A)  Sales 
B)  Cost of ingredients 
C)  Salaries 
D)  Debtors

Question 16

"You get what you measure!" refers to the relationship between

Accepted Answer

A)  managerial accounting and financial accounting. 
B)  ethical and unethical behavior. 
C)  duties of the CEO and duties of the controller. 
D)  performance measures and actions of managers. 
A)  managerial accounting and financial accounting. 
B)  ethical and unethical behavior. 
C)  duties of the CEO and duties of the controller. 
D)  performance measures and actions of managers.

Question 17

Opportunity costs are the value of benefits forgone when one alternative is selected over another.

Accepted Answer

A) True 
 B)False

Question 18

The goal of managerial accounting is to provide information that managers need for

Accepted Answer

A)  planning, control, and financial reporting. 
B)  control, evaluation, and financial reporting. 
C)  planning, control, and decision making. 
D)  preparing reports for external users. 
A)  planning, control, and financial reporting. 
B)  control, evaluation, and financial reporting. 
C)  planning, control, and decision making. 
D)  preparing reports for external users.

Question 19

In a period when anticipated production is 20,000 units, budgeted variable costs are $85,000 and budgeted fixed costs are $45,000. If 15,000 units are actually produced, what is the expected total cost?

Accepted Answer

A)  $130,000 
B)  $97,500 
C)  $108,750 
D)  $118,750 
A)  $130,000 
B)  $97,500 
C)  $108,750 
D)  $118,750

Question 20

Leah Berry is entering her senior year as an accounting major and has a number of options for her summer break. Her options for the 3-month break follow:
(1) Work full time at a local accounting firm making $3,200 per month.
(2) Take a summer class which will cost $600 and work half time making $1,600 per month.
(3) Take two classes at a cost of $1,200 and not work at all during the summer.
Leah's incremental profit or loss if she chooses option 2 over option 1 would be

Accepted Answer

A)  ($2,200) per month. 
B)  ($1,600) per month. 
C)  ($1,000) per month. 
D)  $1,000 per month. 
A)  ($2,200) per month. 
B)  ($1,600) per month. 
C)  ($1,000) per month. 
D)  $1,000 per month.

The organization which administers the Certificate in Management Accounting program is the

Incremental analysis involves calculating the difference in revenue and difference in costs between alternatives.

The goal of managerial accounting is to provide information for planning, controlling, and reporting information to shareholders.

Which of the following is most likely to be a fixed cost?

Opportunity costs are

Rincon Gifts had the following costs in May when 400 ceramic pots were produced: materials, $4,200; labor cost, $1,600; depreciation, $800; rent, $700; and other fixed costs, $500. If production changes to 500 units, which of the following costs will stay the same?

Enterprise resource planning systems (ERP) often support accounting, human resources, and e-commerce, in addition to production.

Walmart and Procter & Gamble are two companies that collaborate in the use of Supply Chain Management (SCM).

Managers that are able to recognize all ethical dilemmas have the most profitable businesses.

Performance reports often compare current performance with

Performance reports, like other managerial accounting reports, must follow GAAP.

Triatt Resort has 200 rooms. Each room rents at $130 per night and variable costs total $42 per room per night of occupancy. The fixed costs total $18,700 per month. If Triatt is able to increase occupancy from 70% to 80%, by how much will total costs increase per day during June?

"You get what you measure!" refers to the relationship between

Opportunity costs are the value of benefits forgone when one alternative is selected over another.

The goal of managerial accounting is to provide information that managers need for

In a period when anticipated production is 20,000 units, budgeted variable costs are $85,000 and budgeted fixed costs are $45,000. If 15,000 units are actually produced, what is the expected total cost?

Job-Order Costing for Manufacturing and Service Companies

Process Costing

Cost-Volume-Profit Analysis

Variable Costing

Cost Allocation and Activity-Based Costing

The Use of Cost Information in Management Decision Making

Pricing Decisions

Capital Budgeting Decisions

Budgetary Planning and Control

Standard Costs and Variance Analysis

Decentralization and Performance Evaluation

Statement of Cash Flows

Filters

Exam 1: Managerial Accounting in the Information Age

The organization which administers the Certificate in Management Accounting program is the

Incremental analysis involves calculating the difference in revenue and difference in costs between alternatives.

The goal of managerial accounting is to provide information for planning, controlling, and reporting information to shareholders.

Which of the following is most likely to be a fixed cost?

Opportunity costs are

Rincon Gifts had the following costs in May when 400 ceramic pots were produced: materials, $4,200; labor cost, $1,600; depreciation, $800; rent, $700; and other fixed costs, $500. If production changes to 500 units, which of the following costs will stay the same?

Enterprise resource planning systems (ERP) often support accounting, human resources, and e-commerce, in addition to production.

Walmart and Procter & Gamble are two companies that collaborate in the use of Supply Chain Management (SCM).

Managers that are able to recognize all ethical dilemmas have the most profitable businesses.

Performance reports often compare current performance with

Performance reports, like other managerial accounting reports, must follow GAAP.

Triatt Resort has 200 rooms. Each room rents at $130 per night and variable costs total $42 per room per night of occupancy. The fixed costs total $18,700 per month. If Triatt is able to increase occupancy from 70% to 80%, by how much will total costs increase per day during June?

"You get what you measure!" refers to the relationship between

Opportunity costs are the value of benefits forgone when one alternative is selected over another.

The goal of managerial accounting is to provide information that managers need for

In a period when anticipated production is 20,000 units, budgeted variable costs are $85,000 and budgeted fixed costs are $45,000. If 15,000 units are actually produced, what is the expected total cost?

Job-Order Costing for Manufacturing and Service Companies

Process Costing

Cost-Volume-Profit Analysis

Variable Costing

Cost Allocation and Activity-Based Costing

The Use of Cost Information in Management Decision Making

Pricing Decisions

Capital Budgeting Decisions

Budgetary Planning and Control

Standard Costs and Variance Analysis

Decentralization and Performance Evaluation

Statement of Cash Flows

Filters