1: INTRO TO MANAGERIAL ACCOUNTING

Question 1

It is the practical science of value
creation within organizations in both the
private and public sectors

Answer 1

Managerial Accounting

Question 2

It combines accounting, finance and
management with the leading-edge
techniques needed to drive successful
businesses.

Answer 2

Managerial Accounting

Question 3

Financial Accounting produces outputs for ____ users.

Answer 3

External

Question 4

Managerial Accounting produces outputs for ____ users.

Answer 4

Internal

Question 5

It’s the position that has direct responsibility for the objectives of the organization

Answer 5

Line position

Question 6

Position that is supportive in nature and
have only indirect responsibility for an
organization’s basic objectives

Answer 6

Staff position

Question 7

Highest position in terms of the accounting department.

Answer 7

Controller

Question 8

Highest position in terms of the finance department.

Answer 8

Treasurer

Question 9

Highest position in both accounting and financing

Answer 9

CFO

Question 10

They operate in financial and non-financial roles
throughout organizations and carry out all their
training and experience requirements within business
itself, providing them with a unique insight into how
their organizations operate

Answer 10

Management Accountants

Question 11

These are the IMA standards of ethical conduct for management accountants

Answer 11

C - Competence
C - Confidentiality
I - Integrity
C - Credibility

Question 12

Monetary measure of a resource given up to achieve a particular objective.

Answer 12

Cost

Question 13

What are the Product Costs?

Answer 13

DM + DL + MOH

Question 14

What are the Period Costs?

Answer 14

Selling or distribution costs
+
Administrative expenses

Question 15

What are the costs as to traceability to cost object?

Answer 15

Direct and Indirect Costs

Question 16

How do you solve for Direct Materials used?

Answer 16

Raw materials, beg
Add: Net purchases of raw materials
—————————–
Raw Materials Available for Use
Less: Raw Materials, end
—————————
Raw Materials Used
Less: Indirect Materials Used
—————————-
Direct Materials Used

Question 17

How to find total manufacturing costs?

Answer 17

DM used + DL + MOH applied

Question 18

How do you solve for COGSm?

Answer 18

Manufacturing Costs
WIP, beg
——————-
COGs placed in process
Less: WIP, end
——————
COGS manufactured

Question 19

How do you solve for COGS available for sale?

Answer 19

COGS manufactured
Add: Finished Goods, beg
———————-
COGS available for sale

Question 20

How do you solve for COGS - adjusted?

Answer 20

COGS available for sale
Less: Finished Goods, end
————————–
COGS - unadjusted
Under(over)applied MOH
————————–
COGS - adjusted

Question 21

IN TOTAL:

Does not vary with regards to
changes in activity level
within the relevant range

Answer 21

Fixed Cost

Question 22

PER UNIT:

Varies inversely with changes in activity level

Answer 22

Fixed Cost

Question 23

IN TOTAL

Varies directly with regards to changes in activity level

Answer 23

Variable Cost

Question 24

PER UNIT

Does not vary with changes in activity level

Answer 24

Variable Cost

Question 25

Also known as semi-variable cost. Has both fixed and variable elements.

Answer 25

Mixed Cost

Question 26

May be step-fixed or step-variable cost Reacts to changes in activity levels within shorter intervals.

Answer 26

Step Cost

Question 27

It is used to describe whether a cost changes when the level of output changes.

Answer 27

Cost Behavior

Question 28

What kind of data are typically used in financial accounting? Financial or non-financial?

Answer 28

Financial only? | Financial = with peso sign

Question 29

What kind of data are typically used in managerial accounting? Financial or non-financial?

Answer 29

Both financial and non-financial

Question 30

What is the main indicator that distinguishes financial from non-financial?

Answer 30

Peso sign from financial

Question 31

The data included in reports are typically for how long in financial accounting? a. Less than one day b. One year c. More than one year

Answer 31

b. One year

Question 32

The data included in reports are typically for how long in managerial accounting? a. Less than one day b. One year c. More than one year

Answer 32

a. Less than one day b. One year c. More than one year | All answers

Question 33

Sustainability reports are under financial accounting or managerial accounting?

Answer 33

Financial Accounting | (Because this is for external users)

Question 34

If I need information about a particular product or department, I can find this in reports generated in a. Managerial Accounting b. Financial Accounting c. Both financial accounting and managerial accounting

Answer 34

Managerial accounting

Question 35

When do product costs become part of P/L?

Answer 35

When it is sold

Question 36

What is typically under direct costs if silent?

Answer 36

Direct Materials and Direct Labor

Question 37

What is typically under indirect costs if silent?

Answer 37

MOH

Question 38

How to solve for net income in contribution form?

Answer 38

Sales Less: Variable Costs —--------------------- Contribution Margin Less: Fixed Costs —--------------------- Net Operating Income

Question 39

# TRUE OR FALSE: In the long run, cost becomes fixed.

Answer 39

False. *(It becomes variable.)*

Question 40

If the cost of rent is 10,000 per month for the year. Then next year it becomes 12,000 for the year, what kind of cost is this?

Answer 40

Still fixed cost.

Question 41

What are the different types of cost as to cost behavior?

Answer 41

1. Fixed Cost 2. Variable Cost 3. Mixed Cost 4. Step Cost (Fixed + Variable)

Question 42

How do you find total costs?

Answer 42

Total Fixed Costs + Total Variable Costs = Total Costs

Question 43

How do you solve for linear cost?

Answer 43

Y = a + bx Y = Total Cost (Mixed Cost) a = Total Fixed Cost b = Variable Cost per Unit x = Activity level/cost driver

Question 44

This method of cost estimation uses historical data to classify costs as fixed or variable

Answer 44

Account Analysis

Question 45

How do you solve in High Low Method for Cost Estimation?

Answer 45

(Cost of highest activity - Cost of lowest activity) / Highest Activity - Lowest Activity

Question 46

In the High Low Method for Cost Estimation, how do you solve for the total fixed cost?

Answer 46

TFC = TC *(at highest)* - (VC per Unit * No. of units)