1.

The main purpose of management accounting is to

8. “Budgets” and “performance reports” respectively correspond to these management
a) Assess past performance functions.
b) Project future transactions
c) Help managers make decisions a) Planning and controlling
d) Help investors & creditors make decisions b) Planning and organizing
c) Controlling and planning
2. Management accounting d) Organizing and controlling

a) Is primarily concerned with providing information to external users 9. The management control process contains the following four sequential steps,
b) Tends to summarize information more than financial accounting including:
c) Is more concerned with precision than timeliness
d) Is more future oriented than financial accounting A) Measuring actual performance
B) Establishing standards of performance
3. Management accounting is similar to financial accounting in that C) Implementing a program of corrective action
D) Comparing actual performance with standards
a) Both are concerned with monetary information only
b) Both classify reported information in the same way What is the proper sequence of these activities?
c) Both focus on business as a whole
d) Both deal with economic events a) A, B, C, D
b) A, B, D, C
4. Determine the TRUE statement about managerial accounting. c) B, A, C, D
d) B, A, D, C
a) It complies with external reportorial requirements
b) It is concerned with reporting to external users of accounting information 10. The controller primarily occupies a
c) Reports are often based on estimates and are seldom useful for everything other than
the purpose for which they are prepared a) Line position
d) It specifically covers various cost accumulation procedures such as job order b) Staff position
costing, process costing, standard costing, backflush costing and activity-based c) Non-supervisory rank-and-file position
costing (ABC) d) Position with very little influence in management decision-making

5. Which is the most accurate statement? 11. A staff position is

a) Financial accounting is a subset of cost accounting a) Not essential in a business organization

b) Management accounting is a subset of cost accounting b) Exercised through giving orders to subordinates
c) Cost accounting is a subset of both management & financial accounting c) Directly involved in achieving the basic objectives of the organization
d) Management accounting is a subset of both cost and financial accounting d) Supportive in nature since it provides assistance to other company segments

6. Decision-making is required in which of the following management function(s)? 12. Which of the following statements is false concerning line and staff functions?

a) Planning a) Both line and staff functions are depicted on the organizational chart.
b) Planning and control b) Line functions are directly related to the basic objectives of an organization.
c) Planning and organizing c) Staff managers always have authorities over persons occupying line functions.
d) Planning, organizing and control d) Line units or departments tend to have more employees than staff units or
departments.
7. “Directing and motivating” refers to
13. For a hospital, what type of position (line vs. staff) is each of the following?
a) The setting of objectives and the identification of methods to achieve those a) Emergency room manager (staff); Human resources manager (staff)
objectives b) Emergency room manager (staff); Human resources manager (line)
b) The function of management that compares planned results against actual results c) Emergency room manager (line); Human resources manager (staff)
c) The management function that involves overseeing day-to-day activities d) Emergency room manager (line); Human resources manager (line)
d) None of the choices
14. Which of the following is most likely a LINE position? 21. Which of the following costs is most likely a fixed cost?

a) VP for Research of a conglomerate firm a) P 4 per unit at 10 units; P 4 per unit at 20 units; P 4 per unit at 30 units
b) Store manager of a retail convenience outlet b) P 12 per unit at 10 units; P 6 per unit at 20 units; P 4 per unit at 30 units
c) Chief financial officer of a merchandising company c) P 3 per unit at 10 units; P 2.5 per unit at 20 units; P 2.33 per unit at 30 units
d) Human resources manager for an educational institution d) P 4 per unit at 10 units; P 3 per unit at 20 units; P 2.67 per unit at 30 units

15. CONTROLLERS are usually not concerned with 22. In cost analysis using the line equation Y = a + bX, "b" (unit variable cost) is
regarded as the
a) Government reporting
b) Tax administration a) Dependent variable
c) Investor relations b) Independent variable
d) FS Analysis c) Slope of the line
d) Y-axis intercept
16. TREASURERS are usually not concerned with
a) Tax planning 23. A company has developed a production cost function for its lone product: Y = 20 +
b) Short-term financing 3X, where X is based
c) Cash custody and banking on the number of labor hours. Based on a relevant range of 10 to 20 labor hours,
d) Credit extension and collection of bad debts what is the estimated
production cost at zero (0) labor hour?
17. Which of the following is not a function of financial management? a) P 20
b) P 50
a) Financing c) P 80
b) Internal control d) The exact amount cannot be determined without additional information
c) Capital budgeting
d) Risk management 24. When compared to the high-low method, the graphic approach to cost estimation is
usually
18. The primary goal of financial management is to:
a) Less accurate
a) To maximize profit b) Equally representative
b) To minimize the risk c) More representative
c) To maximize the return d) Less representative
d) To maximize shareholders' wealth 25. What is the appropriate range for the coefficient of determination (r2)?

19. Profit maximization does not take into consideration: a) 0 to +1

b) 0 to -1
a) Risk and EPS c) - 1 to 0
b) Risk and cash flow d) -1 to +1
c) EPS and stock price
d) Cash flow and stock price 26. Which of the following corresponds to (1) line of VISUAL FIT method and (2) line
of BEST FIT method?
20. The long-run objective of financial management is to:
a) (1) High-Low method (2) Scattergraph method
a) Maximize market share b) (1) Scattergraph method (2) Least-Squares regression method
b) Maximize earnings per share c) (1) High-Low method (2) Least-Squares regression method
c) Maximize return on investment d) (1) Least-Squares regression method (2) Scattergraph method
d) Maximize the value of the firm’s common stock
27. What cost segregation method gives the most mathematically precise cost estimate?

a) Scatter diagram method

b) Least-squares method
c) High-low method
d) Calendar method

28. Using statistical normal relationships, the least-squares method uses which of the
following equations?

a) y = na + bx
Σxy = aΣx + bΣx2
b) Σy = a + bx2
Σy = na + bΣx
c) y = na + bΣx
Σxy = ax + bΣx
d) Σy = na + bΣx
Σxy = aΣx + bΣx2

29. Multiple regression analysis involves the use of

a) One dependent variable and one independent variable

b) One dependent variable and many independent variables
c) Many dependent variables and one independent variable
d) Many dependent variables and many independent variables

30. Under Cost-Volume-Profit (CVP) analysis, a mixed cost should be:

a) Disregarded
b) Treated as a fixed cost
c) Treated as a variable cost
d) Separated into fixed & variable components