Managerial Accounting Final Mc Review

Front 1

Which type of accounting is the branch of accounting that develops information for external users?

Back 1

Financial Accounting

Front 2

The aspect of accounting that often involves a special study to assess possible courses of action and recommends the best course to follow is answered by which type of questions?

Back 2

Problem Solving Questions

Front 3

What are the policies to protect and make the most efficient use of an organization's assets?

Back 3

Internal Controls

Front 4

Weighing estimated costs against probable benefits is called:

Back 4

Cost Benefit Balance

Front 5

What types of decisions are part of the management decision making process?

Back 5

Planning and Controlling Decisions

Front 6

The quantitive expression of a plan of action is a:

Back 6

Budget

Front 7

Management by exception means:

Back 7

Concentrating on areas that deviate from the plan and ignoring areas running smoothly

Front 8

Which of the following is not a stage in the product life cycle?

Back 8

Customer Focus

-mature, development, phase-out

Front 9

Which of the following is not part of the value chain of business functions?

Back 9

Performance Reports

-marketing, distribution, R&D

Front 10

Those directly involved with making and selling the organization's goods or services are:

Back 10

Line Managers

Front 11

Initiatives that minimize costs by maximizing quality is:

Back 11

Total Quality Management

Front 12

Which of the following is not part of the Standards of Ethical Conduct?

Back 12

Independence

-competence, fonfidentiality, integrity

Front 13

Any output measure that causes costs is a:

Back 13

Cost Driver

Front 14

Which type of cost changes in direct proportion to the changes in cost driver levels?

Back 14

Variable Costs

Front 15

Which type of cost is variable per unit?

Back 15

Fixed Costs

Front 16

Which type of cost is fixed per unit?

Back 16

Variable Costs

Front 17

The study of the effects of output volume on revenue, expenses and net income is:

Back 17

CVP Analysis

Front 18

the level of sales at which revenue equals expenses and net income is zero is called:

Back 18

Break Even Point

Front 19

Sales - Variable Costs =

Back 19

Contribution Margin

Front 20

An organization's ratio of fixed to variable costs is called:

Back 20

Operating Leverage

Front 21

Which costs change at intervals of activity because the resources and costs become indivisible?

Back 21

Step Costs

Front 22

What type of costs have no obvious relationship to levels of capacity or output activity?

Back 22

Discretionary Fixed Costs

Front 23

The process of measuring and identifying appropriate cost drivers & their effect on making product.

Back 23

Activity Analysis

Front 24

Which method uses statistics to fit a cost function to all the data?

Back 24

Least Squares Regression

Front 25

Which method to approximate cost functions selects a plausible cost driver and classifies each account as fixed or variable costs?

Back 25

Account Analysis

Front 26

Tracing or allocating costs to one or more cost objectives such as activities or departments is called:

Back 26

Cost Assignment

Front 27

Costs for which we can identify no relationship to a cost objective are called:

Back 27

Unallocated Costs

Front 28

Costs identified with goods produced or purchased for resale are called:

Back 28

Product Costs

Front 29

A group of individual costs that a company allocates to cost objectives using a single cost driver:

Back 29

Cost Pool

Front 30

The continuous process of comparing products and services against industry standards is:

Back 30

Benchmarking

Front 31

Costs that a company can eliminate without affecting the product's value to a customer are:

Back 31

Non-Value Added costs

Front 32

Relevant information is:

Back 32

The prediced future costs and revenues that will differ among alternatives

Front 33

Avoidable costs are:

Back 33

Costs that will NOT continue if an ongoing operation is changed or deleted

Front 34

Costs of facilities and services shared by users are:

Back 34

Common Costs

Front 35

The item that restricts or constrains the production or sale of a product or service is:

Back 35

Limiting Factor

Front 36

Perfect Competition is:

Back 36

A market in which a firm can sell as much of a product as it can produce at a single market price.

Front 37

The effect of price changes on sales volume is:

Back 37

Price Elasticity

Front 38

Markup is the:

Back 38

Amount by which price exceeds cost

Front 39

The difference in total cost or revenue between two alternatives is:

Back 39

Differential Cost

Front 40

Opportunity costs is:

Back 40

The maximum available contribution to profit forgone by using limited resources for a purpose.

Front 41

Any costs beyond the split-off point are

Back 41

Separable Costs

Front 42

The juncture of manufacturing where joint products become separately identifiable is:

Back 42

Split-Off Point

Front 43

A cost that has already been incurred and is irrelevant to the decision-making process is a:

Back 43

Sunk Cost

Front 44

A costing approach that considers all indirect manufacturing costs to be product costs is the:

Back 44

Absorption Approach

Front 45

The method of internal reporting that emphasizes the distinction between variable and fixed costs:

Back 45

Contribution Approach

Front 46

A mathematical model of the master budget that can react to any set of assumptions is a:

Back 46

Financial Planning Model

Front 47

A variance that occurs when actual costs are less than budgeted costs is a:

Back 47

Favorable Variance

Front 48

The diferences between master budget amounts and the amounts in the flexible budget are:

Back 48

Activity Level Variances

Front 49

The degree to which a goal, objective or target is met is called:

Back 49

Effectiveness

Front 50

A carefully determined cost per unit that should be attained is called a:

Back 50

Standard Cost

Front 51

Levels of performance that managers can achieve by realiztic levels of effort are called:

Back 51

Currently Attainable Standards

Front 52

The difference between actual input prices and standard input prices times the actual quantity used:

Back 52

Price Variance

Front 53

The diference between the actual variable overhead and the amount budgeted for the actual level of cost driver activity:

Back 53

Variable-Overhead Spending Variance

Front 54

A responsibility center in which managers are responsible for costs only is a:

Back 54

Cost Center

Front 55

Attributes that managers must achieve in order to drive the organization toward its goals:

Back 55

Key Success Factors

Front 56

A condition where employees make decisions that help meet the organization's goals:

Back 56

Goal Congruence

Front 57

Any cost that management of a responsibility center cannot affect in a given time span:

Back 57

Uncontrollable Cost

Front 58

Measures that drive an organization to meet its goals are called:

Back 58

Key Performance Indicators

Front 59

The effort to ensure goods and services perform to customer expectations:

Back 59

Quality Control

Front 60

The delegation of freedom to make decisions is called:

Back 60

Decentralization

Front 61

A measure of income or profit divided by the investment required to obtain that profit:

Back 61

Return on Investment - ROI

Front 62

After tax opertaint income less a capital charge is called:

Back 62

Residual Income

Front 63

The original costs of an asset less accumulated depreciation is called:

Back 63

Net Book Value

Front 64

The price that one segment charges to another segment of the same organization for a product:

Back 64

Transfer Price

Front 65

The joint formualtion by a manager and his or her superior of a set of goals and plans for the forthcoming period:

Back 65

Management by Objectives