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
