Management Accounting: Questions, Problems, and Answers
Exam Chapter 1-5
Name
1) Managers usemanagement accounting information to
A) implement
C) communicate
strategy.
B) choose
D) All of these answers are correct.
2) Place the four business functions in the order they appear along the value chain:
Customer service
Design
Marketing
Production
A) Design, Production, Marketing, Customer Service
B) Customer Service, Design, Production, Marketing
C) Design, Customer Service, Production, Marketing
D) Customer Service, Marketing, Production, Design
3) Place the five steps inthe decision-making process inthe correct order:
A = Obtain information
B = Make decisions by choosing among alternatives
C = Identify the problem and uncertainties
D = Implement the decision
E = Make predictions about the future
A)EDABC
B)CDBEA
QCAEBD
D)AEBDC
4) The general term used to identify both the tracing and the allocation of accumulated costs to acost object is:
A) cost accumulation
C) cost assignment
B) cost tracing
D) conversion costing
5) Within the relevant range, ifthere is achange inthe level of the cost driver, then:
A) total fixed costs will change and total variable costs will remain the same
B) total fixed costs will remain the same and total variable costs will change
C) total fixed costs and total variable costs will remain thesame
D) total fixed costs and total variable costs willchange
Answer the following questions usingthe information below:
The Singer Company manufactures several different products. Unit costs associated with Product ICTlOl are as follows:
Direct materials
Direct manufacturing labor
Variable manufacturing overhead
Fixed manufacturing overhead
Sales commissions (2% of sales)
Administrative salaries
Total
$ 60
10
18
32
4
16
§140
6) What are the variable costs perunit associated with Product ICTlOl?
A) $22
B)$88
Q$92
D) $18
7) What are the fixed costs per unit associated with Product ICTlOl?
A) $32
Name
1) Managers usemanagement accounting information to
A) implement
C) communicate
strategy.
B) choose
D) All of these answers are correct.
2) Place the four business functions in the order they appear along the value chain:
Customer service
Design
Marketing
Production
A) Design, Production, Marketing, Customer Service
B) Customer Service, Design, Production, Marketing
C) Design, Customer Service, Production, Marketing
D) Customer Service, Marketing, Production, Design
3) Place the five steps inthe decision-making process inthe correct order:
A = Obtain information
B = Make decisions by choosing among alternatives
C = Identify the problem and uncertainties
D = Implement the decision
E = Make predictions about the future
A)EDABC
B)CDBEA
QCAEBD
D)AEBDC
4) The general term used to identify both the tracing and the allocation of accumulated costs to acost object is:
A) cost accumulation
C) cost assignment
B) cost tracing
D) conversion costing
5) Within the relevant range, ifthere is achange inthe level of the cost driver, then:
A) total fixed costs will change and total variable costs will remain the same
B) total fixed costs will remain the same and total variable costs will change
C) total fixed costs and total variable costs will remain thesame
D) total fixed costs and total variable costs willchange
Answer the following questions usingthe information below:
The Singer Company manufactures several different products. Unit costs associated with Product ICTlOl are as follows:
Direct materials
Direct manufacturing labor
Variable manufacturing overhead
Fixed manufacturing overhead
Sales commissions (2% of sales)
Administrative salaries
Total
$ 60
10
18
32
4
16
§140
6) What are the variable costs perunit associated with Product ICTlOl?
A) $22
B)$88
Q$92
D) $18
7) What are the fixed costs per unit associated with Product ICTlOl?
A) $32