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| 1 | |
Managerial accounting, as opposed to financial accounting, is primarily concerned with: |
| | A) | The financial condition of the organization as a whole. |
| | B) | Meeting the requirements of generally accepted accounting principles. |
| | C) | Emphasizing the future. |
| | D) | Providing data for investors and creditors. |
| | E) | Determining exact results. |
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| 2 | |
Activities included in a generally accepted definition of the management process include: |
| | A) | Planning, organizing, controlling. |
| | B) | Planning, operating, reporting. |
| | C) | Preparing, operating, creating. |
| | D) | Preparing, organizing, converting. |
| | E) | None of the above. |
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| 3 | |
Contribution margin can be expressed as: |
| | A) | Sales minus variable expenses. |
| | B) | Sales minus cost of goods sold. |
| | C) | Sales minus fixed expenses. |
| | D) | The level of sales required to cover variable expenses. |
| | E) | The level of sales required to cover fixed and variable expenses. |
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| 4 | |
The contribution margin income statement: |
| | A) | Reports expenses based upon cost behavior pattern rather than cost function. |
| | B) | Unitizes fixed costs. |
| | C) | Shows contribution margin rather than operating income as the bottom line. |
| | D) | Is sometimes used for financial reporting purposes. |
| | E) | None of the above. |
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| 5 | |
The relevant range concept refers to: |
| | A) | A firm's range of profitability. |
| | B) | A firm's range of sales. |
| | C) | A firm's range of rates of return. |
| | D) | A firm's range of activity. |
| | E) | A firm's range of expenses. |
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| 6 | |
Cost behavior refers to: |
| | A) | Costs that are both good and bad. |
| | B) | Costs that are variable or fixed. |
| | C) | Costs that decrease at a quicker rate than others. |
| | D) | Costs that increase at a quicker rate than others. |
| | E) | None of the above. |
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| 7 | |
Which of the following is the correct calculation for the contribution margin ratio? |
| | A) | Revenue divided by variable costs. |
| | B) | Revenue divided by contribution margin. |
| | C) | Contribution margin divided by variable costs. |
| | D) | Contribution margin divided by fixed costs. |
| | E) | Contribution margin divided by revenue. |
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| 8 | |
Cost-volume-profit analysis assumes fixed costs: |
| | A) | Remains constant on a per unit basis as activity changes. |
| | B) | Remains constant from one period to the next. |
| | C) | Increases in total as activity increases. |
| | D) | Remains constant as activity changes. |
| | E) | None of the above. |
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| 9 | |
At the break-even point: |
| | A) | Fixed cost is always less than the contribution margin. |
| | B) | Fixed cost is always equal to the contribution margin. |
| | C) | Fixed cost is always more than the contribution margin. |
| | D) | Fixed cost is always more than variable cost. |
| | E) | Fixed cost is always equal to variable cost. |
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| 10 | |
Which of the following will increase a company's break-even point? |
| | A) | Increasing variable cost per unit. |
| | B) | Decreasing variable cost per unit. |
| | C) | Reducing total fixed costs. |
| | D) | Increasing selling price per unit. |
| | E) | Increasing contribution margin per unit. |
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