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MS QUIZ No.1

MS QUIZ

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20 views

MS QUIZ No.1

MS QUIZ

Uploaded by

sheeshuwu439
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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MS: QUIZZER ON INTRODUCTION TO MANAGEMENT ACCOUNTING AND COST CONCEPT

THEORY QUESTIONS:

1. Which of the following is included in the day-to-day work of the management team?
A. decision making
B. planning
C. controlling
D. all of the given choices

2. Which of the following statements is true when comparing managerial accounting to financial
accounting?
A. Managerial accounting places more emphasis on precision than financial accounting.
B. Both are highly dependent on timely information.
C. Both rely on the same accounting information system.
D. Managerial accounting is concerned with external decision makers.

3. Which of the following is true of managerial accounting rather than financial?


A. The outputs of this accounting system are the basic financial statements.
B. The methods of this accounting system are established by an overseeing board.
C. The accounting methods are standardized to allow comparisons among
companies.
D. The accounting system would be unique to each company.

4. Which of the following statements about internal reports is not true?


A. The content of internal reports may extend beyond the double entry
accounting system
B. Internal reports may show all amounts at market Values.
C. Internal reports may discuss prospective events,
D. Most internal reports are summarized rather than detailed.

5. The informational needs of internal users/management:


A. are historical in nature
B. emphasize the company as a whole
C. emphasize accuracy over timeliness
D. may require more customized reports than external financial statements

6. Which of the following is most associated with managerial accounting?


A. Must follow generally accepted accounting principles.
B. May rely on estimates and forecasts.
C. Is prepared for users outside the organization.
D. Always reports on the entire entity.

7. Which statement about the extent of detail in a management accounting report is true?
A. It may depend on the frequency of the report.
B. It depends on the type of manager receiving the report.
C. It depends on the level of the manager receiving the report.
D. All of the given choices.

8. Which of the following characteristics is inherent to management accounting?


A. Reporting of historical information
B. Compliance to generally accepted accounting principles
C. Contribution approach income statement
D. External users of financial report

9. In order to be useful to managers, management accounting reports should


possess all of the following characteristics except:
A. Provide objective measures of past operations and subjective estimates
about future decisions.
B. Be prepared in accordance with generally accepted accounting principles.
C. Be provided at any time management needs information.
D. Be prepared to report information for any unit of the business to support decision making.

10. Management accountants generally exercise which type of authority?


A. Company.
B. Functional
C. Line
D. Staff

11. The treasurer function is usually not concerned with


A. investor relations
B. financial reports.
C. short-term financing
D. credit extension and collection of bad debts.

12. Which of the following duties is usually assigned to the controller?


A. directing the granting of credit to clients
B. investing the organization’s funds
C. tax planning
D. independently evaluating the firm's financial statements

13. Developing a company strategy for responding to anticipated new markets is


an example of
A. decision making
B. controlling
C. planning
D. motivating

14. Deciding whether to sell a product or process it further is an example of an


A. controlling activity
B. operating activity
C. planning activity
D. one of the given choices

15. Obtaining feedback is generally identified most directly with the management function of
A. Planning
B. Directing and motivating
C. Controlling
D. Decision making

16. A staff position


A. relates directly to the carrying out of the basic objectives of the organization.
B. is supportive in nature, providing service and assistance to other parts of the organization.
C. superior in authority to a line position.
D. none of the above

17. Which of the following methods may be used to estimate costs by using time-and-motion studies to
approximate labor time?
A. Least square regression analysis
B. Engineering method
C. Account analysis
D. High-low method
18. Weaknesses of the high-low method include all of the following except
A. the mathematical calculations are relatively complex.
B. only two observations are used to develop the cost function.
C. the high and low activity levels may not be representative.
D. the method does not detect if the cost behavior is nonlinear

19. Cost estimation is the process of


A. estimating the relationship between costs and the cost drivers that cause those costs
b. documenting costs in terms of direct and indirect costs.
C. summarizing past costs into fixed and variable components.
D. all of the above.

20. The primary objective of management accounting is


A. to provide stockholders and potential investors with useful information for decision making.
B. to provide banks and other creditors with information useful in making credit decisions
C. to provide management with information useful for planning and control of operations.
D. to provide supervising government agencies with information about the company's management
affairs.

PROBLEMS:

1. The management of Agapito Company has gathered the following information for the past two (2)
months of its operation.

MARCH APRIL Cost Behavior


(Fixed, Variable or
UNITS 1,000 1,200 Mixed)

Cost A 20,000 24,000

Cost B 40,000 40,000

Cost C 25,000 26,000

Cost D 5,000 6,000

Cost E 5,000 5,000

2.(High-Low Method) Amiel Corporation has incurred the following bus maintenance cost during the
recent tourist season.

Kilometers Traveled by Tour


Month Maintenance Cost
Buses
25,500
January 34,200

February 31,800 34,800

March 38,100 35,100


April 45,000 36,000

May 60,000 37,500

June 24,000 33,000

Questions:

A. Estimates the Variable Cost per Kilometer

B. Estimates the fixed Cost per month

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