MANAGERIAL ACCOUNTING (OFFICIAL PART 2) Flashcards
Budgets are used by?
individual, staffs, managers department.
Ethics’ is true.
(b) Ethical issues frequently arise in the course of a management accountant’s work.
(b) Ethical issues frequently arise in the course of a management accountant’s work.
In theory, what is a sacrifice made when we give up a resource to obtain a resource that will benefit the firm?
(b) A cost
Cost information:
ON THE EXAM
(c) Is used by managers across an organization.
A predetermined overhead rate is equal to
(a) Estimated overhead/estimated units of the cost driver
(a) Estimated overhead/estimated units of the cost driver
The primary purpose(s) for carrying on “Cost Accounting” activities is/are
(D) To control operation.
Which pricing equation is correct for “Target pricing”?
Target pricing (per unit) = Target cost per unit + Target operating income
Target pricing (per unit) = Target cost per unit + Target operating income
Total Contribution margin Equation?
Sales revenue – Variable expense
Period cost Equation?
Variable cost + Manufacturing overhead.
As operating cost expected in period
Budget is a financial plan and helps budgeted sales and cost data help managers.
Budget: Revenue - expenses
Manager should use budget for which:
(a) Control operations.
(a) Control operations.
Break-even sales in units:
The number of units you need to sales in break-even.
The number of units you need to sales in break-even.
what is Break-even Point?
Sales level income is 0.
Total Rev = Total expenses
Sales level income is 0.
Total Rev = Total expenses
The going concern assumption assures that the loss:
d. Will remain in operation for the foreseeable future
An increase in the discount rate:
c) Will decrease the future value of the cash flow (if this answer is not given) Then, None of the above
Which of the following does not appear in financial statement service?
e. Capital Accounts
Cost info:
a. Is important for manufacture companies.
Which of the following is not a capital budgeting method?
e. Excess present value index.
Period Cost
c. Depreciation on assembly equipment.
Tax account information is used by
b. Managers
Which one of the following regarding ethics is true?
d. Most managers with in an organization are likely to agree on ethical issues.
A cost that is not a “Product Cost”?
d. Computer depreciation
NPV and IRR not TRUE
(c) NPV alone can be used to compare investments of different sizes
What is the formula used to calculate the payback period of an investment
Payback period = cost/ annual cash flow
