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Contents
1 MANAGERIAL ACCOUNTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 MANAGERIAL ACCOUNTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1. MANAGERIAL ACCOUNTING
NARAYAN CHANGDER
1.1 MANAGERIAL ACCOUNTING
1. Manufacturing overhead is all of the di- D. Creating repetitive reports in shorter
rect cost that are incurred inside the manu- periods (monthly)
facturing facility or factory that cannot be
traced to each unit of product 4. Which is NOT part of the budget process?
A. True A. analyzing next year’s data
B. False B. locate budget information

C. setting goals for next year
2. What is the main purpose of financial
D. forecasting the effect of budget deci-
statements?
sions
A. To assist management in decision-
making 5. Factory building rental expenses are
B. To report on a business’s financial A. Direct Material (DM)
health to external parties B. Direct Labor (DL)
C. To create internal reports for man- C. Factory Overhead (FOH)
agers
D. Selling/ Administrative Expense
D. To allocate resources within a busi-
ness 6. Who is responsible for the budget?
A. Accountants
3. The following are characteristics that dif-
ferentiate cost accounting from financial B. Shareholders
accounting, except C. Investors
A. Standard rules regarding disclosure of D. Management
accounting information
7. Guannito Shop has a production capacity of
B. Expense recognition is carried out 2, 000 crepe rolls per month. Currently,
when an economic transaction occurs the shop is producing and selling 1, 800
C. Information orientation to the future units per month with a selling price of 20
1. B 2. B 3. B 4. A 5. C 6. D
1.1 MANAGERIAL ACCOUNTING 3
baht per unit, a variable cost of 10 baht A. Reporting information to people inside
per unit, and a cost of Fixed at 90, 000 the business to assist with good deci-
baht per month. The restaurant received sions.

a special order from Trang TAT for 200 B. Provides focused performance in spe-
pieces at a price of 12 baht each to be used cific areas
as snacks for the Trang Food Festival press
conference that will be held this year. Do C. Reports on past financial decisions of
you think Guannito should accept this spe- a company
cial order? Why? D. All of the above are correct
A. The order should be accepted. Be-
10. If sales volume increases and all other fac-
cause it will result in an additional profit
tors remain constant, then the:
of 400 baht.
A. contribution margin ratio will increase.
B. The order should be accepted. Be-
cause it will result in an additional profit B. break-even point will decrease.
of 1, 100 baht. C. margin of safety will increase.
C. Orders should be accepted even if D. net operating income will decrease.
there is a loss. Because you have to main-
tain a relationship with TAT Trang. 11. Supervisor salary is classified as
D. The order should not be accepted. Be- A. Variable cost
cause it will reduce profits by 1, 600 baht
B. Fixed cost
E. The order should not be accepted. Be-
C. Mixed cost
cause it will reduce profits by 500 baht
D. Relevant range
8. Look at the comparative income statement.
How do we calculate the percentage col- 12. Although financial and managerial account-
umn? ing differ in many ways, they are similar
in that both rely on the same underlying
financial data.
A. True
B. False
13. Happy Face Company has fixed cost of

P500, 000 per year, variable cost of P30
A. Take the 2013 values and divide by the per unit, and a selling price of P50 per unit.
2014 values At a production level of 30, 000 units, how
much is the operating income?
B. Take the amount value and divide by
the 2013 value A. P50, 000
C. Take the amount value and divide by B. P100, 000

the 2014 value C. P150, 000
D. none of above D. P200, 000
9. What is the purpose of Managerial Ac- 14. What is the difference between fixed as-
counting? sets and current assets?
7. A 8. B 9. A 9. B 10. C 11. B 12. A 13. B

A. Fixed assets are assets that are eas- D. none of above

ily convertible into cash, while current as-
sets are assets that are not easily convert- 18. Costs that remain constant regardless of
ible into cash. a business’s activity. A company’s rent or
mortgage payment is an example of it.
B. Fixed assets are assets that are not
expected to generate any revenue, while A. fixed costs
current assets are assets that are ex- B. variable costs
pected to generate revenue within one
C. premium costs
NARAYAN CHANGDER
year.
C. Fixed assets are long-term assets that D. monthly costs
are not expected to be converted into cash
19. Fixed or Variable?Office rent
within one year, while current assets are
short-term assets that are expected to be A. Fixed
converted into cash within one year. B. Variable
D. Fixed assets are assets that are used
in the day-to-day operations of a business, 20. What is considered a liability
while current assets are assets that are A. Notes payable
not used in the day-to-day operations of a
B. Light bill being brought to current
business.
C. Accounts Receivable
15. Which of the following are period costs?
D. none of above
A. Raw materials
B. Direct materials and direct labor 21. Which of the following describes absorp-
tion costing?
C. Direct labor and manufacturing over-
head A. Prepared for internal decision making
purposes
D. Selling expenses
B. Prepared generally for external report-
16. Which of the following would not be a pe- ing purposes
riod cost?
C. Contributional format and classified
A. research and development according to behaviour
B. direct materials D. Only Direct materials, Direct labour
C. advertising costs and variable manufacturing overhead
treated as product cost
D. office supplies
17. When is Net Income under Absorption 22. When Managerial Accounting report is
Costing less than Net Income under Vari- needed to be prepared?
able Costing? A. Once a time
A. Quantity Produced is equal to Quantity B. At the end of accounting period
Sold
C. Whenever required by manager
B. Quantity Produced is greater than
D. Every month
Quantity Sold
C. Quantity Produced is less than Quan- 23. Cost-volume-profit (CVP) analysis is the
tity Sold study of the relations among revenues,
14. C 15. D 16. B 17. C 18. A 19. A 20. A 21. B 22. C 23. A
costs, and volume and their effect on C. Reporting financial events.

profit. D. Increase the income of the company.

A. True
30. This budget shows both the quantity and
B. False cost of direct materials to be purchased.
24. A product sold that earns little or no net A. Production
income;is intended to attract customers to B. Direct materials
other more profitable products.
C. Indirect materials
A. Loss Leader
D. Materials
B. Freebies
C. Discounted products 31. A costs of goods manufactured schedule
shows beginning and ending inventories
D. none of above for:
25. Which one of the following is not an exter- A. raw materials and work in process
nal user of accounting information? B. work in process only
A. Investor C. raw materials only
B. Creditor D. raw materials, work in process and fin-
C. Manager ished product
D. Customer 32. It is a process where financial reports are
written
26. Financial data cannot be analysed and in-
terpreted by which of the following ac- A. Financial Statement
counting B. Financial Report
A. financial accounting C. Financial Problem
B. cost accounting D. Financial Accounting
C. Managerial accounting
33. What are the kinds of Financial Statement
D. human resources accounting
A. Balance Sheet
27. Fixed or variable expense:Groceries B. Cash Flow
A. Fixed C. Statement of Retained Earnings
B. Variable D. Income Statement
28. Managerial accounting is not needed in a E. Transaction Report
non-profit or governmental organization.
34. Which of the following statements de-
A. True scribes the goals or objectives of an or-
B. False ganisation? i. Profitability and growth.ii.
Cost minimization and product quality.iii.
29. Which of the following is NOT part of the Market diversification and community ser-
accounting process? vice.
A. Identifying financial matters. A. i
B. Recording financial transactions. B. i and ii
24. A 25. C 26. A 27. B 28. B 29. D 30. B 31. D 32. A 33. A 33. B 33. C
33. D 34. D
C. iii 40. Publication of reports is compulsory, in

D. i, ii and iii which type of accounting?
A. Financial accounting
35. Fasai Resort investment project Use an ini-
tial investment of 800, 000 baht with a B. Cost accounting
forecast of net cash receipts throughout C. Inflation accounting
the life of the project as follows:Net cash
D. Managerial accounting
flow Year 1 100, 000 Year 2 200, 000
NARAYAN CHANGDER
Year 3 200, 000 Year 4 300, 000 Year 5 41. The purpose of preparation of managerial
500, 000 Payback period of the project is accounting is to
how much?
A. Assist manager in planning and control
A. 3 years the business operation
B. 3 years 1 month B. Know their financial position during
C. 3 years 3 months the current year
D. 3 years 4 months C. Help investors in making investment
E. 4 years D. none of above
36. The projected inflow and outflow of money 42. A cost type classifies the purpose-driven
for a specific period of time. and rated consumption of production fac-
tors within a costing area
A. Cash Budget
A. True
B. Cash flow
B. False
37. The inventory accounts for a manufactur-
ing company would NOT include: 43. A type of asset management ratio that
A. Raw materials measures the number of times during a
year that a company replaces its inventory.
B. Finished goods It can be calculated by dividing the cost of
C. Work-in-process merchandise sold by the average value of
merchandise inventory.
D. Manufacturing overhead
A. Merchandise inventory turnover ratio
38. I’m Lecturer What
B. Merchandise inventory replenish ratio
A. Accountancy
C. Merchandise inventory replacement
B. Mathematics ratio
C. Religion D. none of above
D. Biology
44. From the Following which one of them re-
39. Cost of goods manufactured transferred to lates to tools and techniques of cost ac-
? counting
A. Statement of financial position A. Cash flow analysis
B. Revaluation account B. Budgetary control
C. Manufacturing statement C. Comparative statements
D. statement of profit and loss D. Ratio analysis
35. E 36. A 37. D 38. A 39. D 40. A 41. A 42. A 43. A 44. B 45. B
45. Identify whether the following statement A. Product Cost

are true or false.Managerial accounting B. Expenses
reports must follow the accounting stan-

dards and are independently audited. C. Managerial Accounting
A. True D. Period Cost
B. False 50. Management accounting differs from fi-
nancial accounting in that
46. Berapakah Cost of Goods Sold?
A. reporting method
B. contents of the report
C. report purpose
D. a, b, and c are true
51. Which of the following three graphics de-

scribes a cost center accounting process?
A. Graphic 4
B. Graphic 1
A. $ 4.000 C. Graphic 2
B. $ 6.000 D. Graphic 3
C. $ 8.000
52. HCM Process
D. $ 10.000
A. Graphic 2
47. What is the scope of financial accounting? B. Graphic 1
A. Narrow, focusing on specific depart-
ments and cost centers 53. Yes or No:If sales become equal to net in-
come, the company is at breakeven
B. Broad, consolidating results of all busi-
ness units A. Yes
C. Limited to financial information only B. No

D. No specific scope 54. Which is an example of fixed costs?
48. A plan that is created using budgeted rev- A. Cost of merchandise sold
enue and costs but is based on the actual B. Utilities
units of output is known as as:
C. Delivery
A. Static budget
D. Rent
B. Continuous budget
55. The following are the characteristics of
C. Flexible budget
managerial accounting EXCEPT ONE.
D. Master budget
A. does not follow GAAP
49. Are cost that associated with goods for B. Audited
sale until the time period during which the
products are sold, at which time the cost C. Decision Making is applied
become expenses. D. For internal users
46. A 47. B 48. C 49. D 50. D 51. B 52. A 53. B 54. D 55. B 56. A
56. Costs that possess characteristics of both 61. An asset management ratio that shows
fixed and variable cost are called the number of times a company’s accounts
A. Semi-variable cost receivable is collected annually. This ratio
can be calculated by dividing net sales on
B. Step cost account by the accounts receivable amount
C. variable cost A. Accounts Receivable Turnover Ratio
D. fixed cost B. Asset Management Ratio
NARAYAN CHANGDER
57. Which of the following is not a character- C. Accounts Receivable Efficency Ratio
istic of management accounting? D. Accounts Receivable Management Ra-
A. Management accounting provides in- tio
formation for management decisions. 62. What type of accounts are raw materials,
B. More useful for internal reporting pur- work in process and finished goods?
poses than external reporting purposes A. Expense
C. Not only historical information but also B. Retained Earnings
future information is used.
C. Inventory
D. It must be prepared in accordance
with generally accepted accounting princi- D. Account payable
ples. 63. Cost Accounting is
58. What section makes SOFP for a manufac-
turing business difference with merchan-
diser?
A. Non-Current Assets
B. Current Assets
C. Current Liabilities
A. the recording of all the costs incurred
D. Financed by:
in a business
59. The acronym for the primary benefits of B. the recording of all the expenses in-
budgeting is: curred in a business
A. PDECMM C. the recording of all the direct costs in-
B. PDCEMM curred in a business
C. PCDEMM D. the recording of all the revenue in-

curred in a business
D. SVCFN
64. What is the similarity of Financial Account-
60. There are no specific rules and procedures ing and Managerial Accounting?
to be followed in this type of accounting?
A. Record and report financial informa-
A. Financial accounting tion from business transactions
B. cost accounting B. Both follows GAAP
C. Managerial accounting C. Both are required by IRS and SEC
D. Inflation accounting D. Both do not have to be done
57. D 58. B 59. A 60. C 61. A 62. C 63. A 64. A 65. A

65. Costs of raw materials purchase will be A. Direct materials

recorded in the B. Direct labor

A. Statement of cost of good manufac- C. Manufacturing overhead
tured
D. Period costs
B. Statement of comprehensive income
70. What are direct costs?
C. Statement of financial position
A. it is taking place over a small period of
D. none of above time.
66. If the contribution margin per unit is the B. is assets minus liabilities.
total contribution margin divided by the C. is an expense that rises and falls with
number of units sold and shows how much the volume of production.
money per unit is left to pay a business’s
D. is the pattern of purchasing materials
fixed costs and provide net income. Calcu-
and using them to earn a profit.
late the contribution margin per unit if Con-
tribution margin is 14, 380 and the unit 71. Differentiation of cost centers occur only
sold were 1240 spatially
A. 11.59 A. True
B. 14.38 B. False
C. 11.60 72. What is GAAP?
D. 14.37 A. Generally Applied Accounting Princi-
ples
67. A financial document that shows a com-
pany’s revenues, expenses, and net in- B. Generally Accepted Accounting Princi-
come over a specific period of time. Also ples
referred to as a profit and loss statement, 73. This budget shows the units that must be
P&L, or statement of earnings. It repre- produced to meet anticipated sales.
sents whether a business is earning money
A. Direct materials
(net income) or losing money (net loss)
from its operations. B. Master
A. Income Statement C. Sales
B. Net Income Statement D. Production
C. Balance Sheet 74. Lacey Fontaine Company reports the fol-

lowing data for its first year of oper-
D. Journal
ation. Work in process inventory, be-
68. Which reports to people within the busi- ginning0Work in process inventory, end-
ness. Typically managers ing140, 000Direct materials used 110,
400Direct Labor134, 000Manufacturing
A. Managerial Accounting
overhead 185, 800Finished goods inven-
B. Financial Accounting tory, beginning0Finished goods inventory,
ending90, 500 What are the total manu-
69. Is the following direct labor, direct mate-
facturing costs to account for?
rials, manufacturing overhead, or period
costs?Direct materials used to manufac- A. $199, 700
ture a product B. $244, 400
66. C 67. A 68. A 69. A 70. C 71. B 72. B 73. D 74. C

C. $430, 200 79. Which is NOT a step in the budgeting pro-

D. $134, 000 cess?
Explanation:Calculations:$110, 400 + A. Analyze current years’ financial
$134, 000 + $185, 800 = $430, 200 records for trends
75. The contribution margin increase when B. Collecting budget information
sales volume remain the same and
C. Developing an operational plan
A. variable cost per unit decrease
NARAYAN CHANGDER
B. variable cost per unit increase D. Monitor, evaluate, and update the bud-
get during the fiscal year.
C. fixed cost decrease
D. fixed cost increase 80. Which of the following is a disadvantage
76. What is NOT one of the factors that is con- of participative budgeting?
sidered in sales forecasting? A. It decreases motivation
A. Industry trends
B. It decreases acceptance
B. Technological developments
C. It is more time consuming
C. Price changes
D. CEO’s input D. It is less accurate
77. A shop that tailors batik shirts to sell 81. The types of reports prepared in manage-
as souvenirs to tourists. Determine the rial accounting are often purpose re-
standard cost of producing 1 shirt as fol- ports prepared for a specific decision.
lows:the cost of 2 yards of batik fabric,
150 baht each, the labor cost of the tai- A. product
lor. It is set to take 1.5 hours/each,
B. special
paying labor costs of 300 baht per hour.
Other production expenses are set at 100 C. planning
baht/direct labor hour from the above in-
formation. What is the standard direct la- D. materials
bor cost?
82. Financial accounting information is re-
A. 100 baht
ported for the company as a whole.
B. 150 baht
A. T
C. 300 baht
D. 400 baht B. F
E. 450 baht
83. Indirect costs are
78. Used to compute changes in noncash ac-
A. Costs that do not change with output
counts from the beginning to the end of
the period. B. Costs directly involved with making the
A. Current Income Statement product
B. This is the wrong answer C. Costs that are essential but not di-
C. Comparative Balance Sheets rectly related to manufacturing
D. Additional Information D. money spent on a regular basis
75. A 76. D 77. E 78. C 79. A 80. C 81. B 82. A 83. C 84. B
84. What is the equation for the Break-Even B. For 122, 500
Point? C. P300, 000

A. Net Sales + Fixed Costs-Variable
D. P330, 000
Costs = Break even point
B. Net Sales-Fixed Costs-Variable Costs 88. Which industry buys raw materials and
= Break even point convert to finished products, and is a
heavy producer of goods?
C. Net Sales + Fixed Costs + Variable
Costs = Break even point A. Manufacturing industry
D. Net Sales + Variable costs-Fixed B. Merchandising industry
Costs = Break even point
89. Process costing is appropriate for prod-
85. Cost accounting information is needed ucts that are manufactured continuously.
by Which would be best considered process
A. management in manufacturing compa- costing?
nies, namely companies that process raw A. Coca-Cola Bottling facility
materials into finished products
B. Repair Shop
B. management in trading companies,
C. Printers
namely companies that buy goods for re-
sale D. Hospitals
C. management of service companies, 90. Cost categories facilitate work with pri-
namely companies that sell services such mary account types only
as airlines, architects and hairdressers
A. true
D. a, b, and c are true
B. False
86. Which of the following is not classified as
C. -
direct labor?
D. -
A. Bottlers of mineral water
B. Copy machine operators at a copy 91. Identify whether the item being described
shop by the statement is Competence, Confiden-
C. Wages of supervisors tiality, Credibility or Integrity:“Mitigate
actual conflicts of interest; regularly com-
D. Bakers in a bakery municate with business associates to
avoid apparent conflicts of interest.”
87. The Orange Company plans to sell a new
product. The selling price is expected to A. Competence
be P150 per unit. The company is able to B. Confidentiality,
produce 15, 000 units but the company’s
marketing manager feels that a more real- C. Credibility
istic level of sales would be 12, 000 units. D. Integrity
Variable cost is estimated at P70 per unit.
Total fixed costs will be P900, 000. How 92. Which of the following costing activities
much is the income/(loss) if the company is associated with the financial accounting
sells all the units it can produce? system?
A. (Badhah, 500) A. determining the cost of a department
85. D 86. C 87. C 88. A 89. A 90. B 91. D 92. B

B. determining the cost of goods sold for B. Both providing information for deci-
financial statements sion making purpose
C. preparing budgets C. Both reporting past financial events
D. determining the cost of customer D. Both using the same accounting stan-
dards of GAAP
93. The plant manager’s salary would be con-
sidered to the product. 99. A company has a standard cost system
in which fixed and variable manufacturing
A. indirect
NARAYAN CHANGDER
overhead costs are applied to products on
B. direct the basis of direct labor-hours. A fixed
overhead volume variance will NOT neces-
94. Which one is an example of manufacturing
sarily occur in a month in which production
overhead?
volume differs from sales volume.
A. Utilities
A. True
B. Direct expense
B. False
C. Screw
100. The difference between the net sales and
D. Direct labour the variable costs. shows the amount of
95. Financial Accounting can still be used to money a business has available to pay its
make internal business decisions fixed costs and contribute to net income.
A. True A. Contribution Margin
B. False B. Gross Profit

C. Net Income
96. What is not included in production costs is:
D. Take home pay
A. Helper costs
101. is anexample of managerial account-
B. Advertising costs
ing.
C. Labor costs
A. Purchase of asset
D. Overhead costs B. Cash payment to supplier
97. Management activities that “establish the C. Credit sales
framework within which activities are car- D. All of the above
ried out that bring together the many func-
tional units of an enterprise into a coordi- 102. Do you think the Family Law should be
nated structure and assign responsibility eliminated?
and authority to individuals” are called A. Yes
A. Planning B. No
B. Organizing
103. What are the variable expenses for the
C. Controlling Commercial segment?
D. Accountability A. $100, 000
98. What is a similarity between managerial B. $120, 000
accounting and financial accounting C. $220, 000
A. Both report to same accounting group D. $300, 000
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104. Under Absorption costing, fixed manufac- D. Manufacturing overhead increases as

turing overhead operating rate increases.

A. Remains on the income statement until
109. Depreciation for administrative office
sold
buildings is
B. Remains on the balance sheet until
sold A. Direct Material (DM)
C. Remains on the income statement B. Direct Labor (DL)

D. Remains on the balance sheet C. Factory Overhead (FOH)
105. Process costing is more appropriate in
what kind of business? 110. can be related to the production of a
A. Cornflakes factory particular product and vary directly with
B. Cruise shipbuilder the level of output
C. Law firm A. indirect costs
D. Dentist office B. cost centre
106. Which account types normally have a C. marginal cost
credit balance? D. direct costs
A. Revenues
111. Which of the following is NOT part of the
B. Liabilities accounting process?
C. Expenses
A. Identifying financial matters.
D. Both a and b
B. Recording financial transactions.
107. Managerial accounting places greater em- C. Reporting financial events.
phasis on the future than financial account-
ing, which is primarily concerned with the D. Generating income to the company.
past.
112. Rouse Manufacturing’s operating activi-
A. True ties for the year are listed below. Be-
B. False ginning inventory $1, 000, 400Ending
inventory $350, 800Purchases $750,
108. Which of the following statements re- 700Sales revenue $1, 500, 900Operating
lated to cost is incorrect? Select them all. expenses $700, 600 What is the cost of
A. Opportunity cost refers to the amount goods sold for the year?
of money that can be gained if resources A. $1, 400, 300
are used for alternative purposes other
than their current use. B. $750, 200
B. Sunk costs that have already occurred C. $50, 100
due to past decisions can be recovered D. $1, 751, 100
through future decisions, so they must be Explanation:Calculations:Beginning In-
considered when making decisions. ventory $1, 000, 400 + Purchases $750,
C. Avoidable costs are costs that are 700 = Goods Available $1, 751, 100-
saved or not incurred by choosing a spe- Ending Inventory $350, 800 = $1, 400,
cific alternative. 300

113. The wages of an hourly timekeeper in the 119. The rent expense for the shop building is
factory would be classified as
A. Direct Material (DM)
A. a period cost.
B. Direct Labor (DL)
B. direct labor.
C. Factory Overhead (FOH)
C. indirect labor.
D. compliance costs.
120. MASB is a body / organisation in
NARAYAN CHANGDER
114. Financial accounting is concerned with
Malaysia who are responsible to develop
A. determining profit and loss of the busi- local accounting standards. What is MASB
ness stand for?
B. financial position of the business
A. Malaysia Accounting Sdn Bhd
C. Communicating to the interested par-
ties B. Malaysia Accounting Setting Board
D. All of them C. Malaysia Accounting Standard Berhad

D. Malaysia Accounting Standard Board
115. As current technology changes manufac-
turing processes, it is likely that direct
121. The process of reviewing the break-even
A. labor will increase. point and the relationship between costs,
B. labor will decrease. volume, and profit to determine how many
units must be sold to make a net income.
C. materials will increase.
A. Break-Even Analysis
D. materials will decrease.
B. Break-Even Point
116. The sum of direct labour and manufactur-
ing overhead is C. Cost Benefit Analysis
A. product costs D. none of above
B. period costs
122. What is Management Accounting?
C. conversion costs
A. planning
D. direct costs
B. controlling
117. What is the main purpose of preparing
C. directing
Manufacturing Statement?
A. to determine Cost of goods manufac- D. All the above
tured.
123. The cost of products that have been com-
B. to determine prime cost. pleted and are waiting to be sold to cus-
C. to determine cost of inventory. tomers is called
D. to determine manufacturing overhead. A. Finished goods
118. Cash outflows are B. Work in process

A. Expenses C. Cost of goods sold
B. Income D. Raw materials

124. What are variable costs? 130. The activity base for a flexible budget
A. is an expense that rises and falls with should usually be expressed in units of ac-
tivity rather than in dollars.

the volume of productio
B. is a bribe. A. True
C. direct materials are the materials that B. False
are used to make products
131. Identify the correct characteristics of
D. A direct cost is an expense that rises management accounting information
and falls with the volume of production. that suitable to explain these state-
ment:”Accounting Information is ready at
125. What is the essential aspect of project ac-
the time it is needed”
counting?
A. accuracy
A. tracking invoices
B. identifying all resources involved B. flexible
C. documenting facility management C. relevant

costs D. timeliness
D. limiting the project duration
132. Budgeting is used to help companies:
126. Salary Expenses for Financial Managers A. plan to better satisfy customers
are
B. anticipate potential problems
C. focus on opportunities
D. All of these answers are correct.
C. Factory Overhead (FOH)
D. Selling/ Administrative Expense 133. As total volume decreases, total fixed
cost
127. What does the profit margin on sales ra-
A. Decreases
tio show?
B. Increases
A. Relationship between income from op-
erations and net sales C. Stays the same
B. Relationship between net income after D. none of above
taxes and and net sales
134. One of the relationships between cost
128. These activities include transactions and accounting and financial accounting is in
events that come from the purchase and terms of
sale of long-term assets. A. determining product selling prices
A. Operating Activities
B. determination of inventory value
B. Managerial Activities
C. determination of production costs
C. Investing Activities
D. determination of net profit
D. Financing Activities
135. How many inventory account that re-
129. Car Payment ported in financial position for managerial
A. Fixed Expense accounting
B. Variable Expense A. 1

B. 2 140. Which is not a characteristic of manage-

ment accounting?
C. 3
A. External focus
D. 4
B. Emphasis on the future
136. Assigning costs C. There are no binding rules
A. involves the way that a cost is linked to D. Useful information for internal man-
some cost object. agement
NARAYAN CHANGDER
B. tells the company why the money was 141. Examples of Fixed Expenses include:
spent.
A. Mortgage, loans, rent
C. to a cost object using a reasonable and
B. Cable, entertainment, food
convenient method is allocation.
C. Gas, food, phone
D. all of these.
D. Clothing, gas, food
137. A branch of accounting that provides ac-
142. Which reports to people inside AND out-
counting information to managers within
side of the business?
organizations, which allows them to make
informed business decisions and develop A. Managerial Accounting
overall business strategies B. Financial Accounting
A. managerial accounting 143. In the production of shirts, salaries of
B. financial accounting quality control officers are classified as
C. economic accounting
A. Direct materials
D. cost accounting
B. Direct labor
138. Inventories, cash and equivalents, and ac- C. Manufacturing overhead
counts receivables are listed as
D. Non-manufacturing cost
A. Earnings on Income Statement
144. DeArmond Corporation has budgeted
B. Payments on Income Statement sales of 18, 000 units, target ending fin-
C. Assets on the Balance Sheet ished goods inventory of 3, 000 units, and
beginning finished goods inventory of 900
D. Liabilities on the Balance Sheet units. How many units should be produced
next year?
139. in the process of keeping the activ-
ities on track. Management determines A. 21, 900 units
whether goals are being met and what B. 20, 100 units
changes are necessary when there are de-
C. 15, 900 units
viation.
D. 18, 000 units
A. Planning
145. Which ratio shows the relationship be-
B. Controlling
tween net income after taxes and net
C. Decision Making sales?
D. none of above A. Return on sales

B. Profit margin on sales 150. Low production volume; Little standard-

C. return on total assess ization:One of a kind products

D. return on equity A. Assembly
B. Job Shop
146. Statement of profit and loss for a retailer
is same except? C. Batch
A. sales D. Continuous Flow
B. purchases 151. Which of the following is calculated by
C. inventory subtracting the actual amount from the
budgeted amount?
D. revenue
A. Linear regression
147. What is a similarity between Managerial
Accounting and Financial Accounting? B. Cost-profit value
A. Both report to the same group of ac- C. Variance analysis

counting users. D. Cost
B. Both reporting past financial events.
152. Northern Pacific Furniture Company sells
C. Both providing information for deci- a single product for P28 per unit. If vari-
sion making purposes. able expenses are 65% of sales and fixed
D. Both using the same accounting stan- expenses total P9, 800, the break-even
dards of MASB. point will be:
A. P15, 077
148. What is the problem with segment-
ing managerial accounting operations into. B. P18, 200
technical and conceptual activities? C. Look, 800
A. It leads to a disconnect in decision- D. P28, 000
making between data and assump-
tions.aste in the project process. 153. Company A assigns manufacturing over-
B. It promotes disputes over responsibil- head to WIP inventory using direct la-
ities between the two areas. bor cost. Actual labor cost:200 000Es-
timated labor cost:180 000Estimated
C. It leads to inefficiencies in data keep- overhead:75 000Actual overhead:72
ing and data modeling. 000Whats is the predetermined overhead
D. It leads to inefficiencies in data collec- rate?
tion and decision-making A. 0.375
149. The costs that go into creating the prod- B. 0.417
ucts that a company sells. Only costs di-
C. 0.4
rectly related to the production of the prod-
ucts are included. D. 0.36
A. Cost of Merchandise Sold 154. Costs that vary according to production
B. Total Costs volume are called:
C. Direct Costs A. Variable costs
D. none of above B. Fixed cost

C. Production cost 160. Accounts that continuing existing even

after the end of the accounting year are
D. Semi variable costs
known as:
155. Managerial accounting applies to each of A. Nominal accounts
the following types of businesses except B. Real accounts
A. service firms. C. Permanent accounts
B. merchandising firms. D. Revenue accounts
NARAYAN CHANGDER
C. manufacturing firms. 161. Who is the mayor of GCS
D. Managerial accounting applies to all A. WHOLESALE
types of firms.
B. Lorelie
156. Direct labor and overhead costs are called C. Constantino
costs?
D. Acharon
A. Still
162. What is MSRP
B. Variable
A. Manufacturer’s suggested retail price
C. Production
B. Manufacturer’s supposed retail price
D. Conversion
163. Fixed or Variable?Salaries
157. Who is the target audience of financial ac- A. Fixed
counting?
B. Variable
A. All employees of the business
164. BOBS Corporation began operations on
B. Regulators and the public
January 1st. During the year, it started
C. Existing and potential investors, and completed 2, 700 units of prod-
lenders, and creditors uct. The company incurred the following
costs:Raw materials purchased and used-
D. Internal managers
$5, 600Wages of production workers-
$6, 890.Salaries of administrative and
158. Managerial accounting reports are done
sales personnel-$2, 450.Depreciation on
after an audit every month
manufacturing equipment-$4, 280.Depre-
A. False ciation on administrative equipment-$7,
B. True 010.BOBS corporation sold 2, 100 units
of product.Determine cost of ending inven-
159. If the Market value of closing Inventory tory
is less than its cost price, inventory willhe A. $3, 726
shown at B. $4, 794
A. Marketable value C. $2, 484
B. Fair Market value D. $3, 196
C. Both
165. Which of the following would likely NOT
D. none be included in manufacturing overhead

A. The factory utilities of the department 170. The primary objective of management ac-
in which production takes place counting is

B. The workman’s compensation insur- A. to provide shareholders and potential
ance of the supervisor who oversees pro- investors with useful information for deci-
duction sionmaking.
C. The amount paid to the individual who B. to provide banks and other creditors
stains chairs with information useful in making credit
decisions.
D. The cost of the glue in the chair
C. to provide management with informa-
tion useful for planning and control of op-
166. All of the costs required to manufacture a
erations.
finished product that are not related to the
direct materials or direct labor costs. Ex- D. to provide the relevant taxation author-
amples include maintenance of the factory ities with information about taxable in-
and utilities. come.
A. Factory Overhead 171. The statement of cash flows reports cash
receipts and cash payments for a period of
B. Indirect Materials
time.
C. Indirect Costs A. True
D. none of above B. False
167. Are management accountants required by 172. A comparison of a budgeted income state-
law? ment to actual results. Managers use this
to create more accurate future budgets as
A. Yes, they are legally required for all
well as to make operational corrections
businesses
midyear, if necessary, to improve the re-
B. No, they are not legally required sults for the remainder of the year.
C. Yes, but only for large businesses A. Budget Variance Report
D. No, but they are highly recommended B. Budget Schedule

C. Budget Income Statement
168. Designed to collect transactional data D. Budget Performance Report
that provides a foundation for prepar-
ing internal exports that support decision 173. Management accounting is concerned
making within the enterprise with both information and events from the
past and in the future. Management ac-
A. Reconciliation Account
count attempts to focus more on future
B. Managerial Accounting (Controlling) events.
A. True
169. Planning is what oriented?
B. False
A. Past oriented
174. Operating profit increases by the unit con-
B. Future oriented tribution margin for each unit sold.
C. Present oriented A. True

175. Which includes factory overhead costs 181. Looking back, determining what actually
(BOP), namely happened and comparing it with previ-
A. Labor labor costs ously planned outcomes is the meaning of?
B. raw material costs A. Budget
C. Electricity and water costs B. Planning
D. machine depreciation costs
C. Long-term plan
176. Which alternative will most likely see a
NARAYAN CHANGDER
increase in net income due to an increased D. Control
contribution margin? E. Short-term plan
A. Sales price reduction and sales volume
increase 182. Which outside parties would be inter-
B. Decreasing variable costs ested in reviewing financial reports?
C. Decreasing fixed costs A. SEC/IRS
D. none of above
B. Managers
177. What is the formula to calculate net
profit? 183. The combination of direct labor and fac-
A. Total revenue * Total expenses tory overhead costs used in process cost-
ing.
B. Total revenue-Total expenses
C. Total revenue / Total expenses A. Conversion Costs
D. Total revenue + Total expenses B. Opportunity costs
178. Career planning consists of all positions. C. Total Costs
A. True
D. none of above
B. False
179. The contribution margin ratio always in- 184. Rent expense incurred on a factory build-
crease when the ing would be treated as a/an
A. break-even point increases A. Period cost
B. break-even point decreases
B. Both product cost and indirect cost
C. variable cost as a percentage of net
sales decrease C. Product cost
D. variable cost as a percentage of net D. Indirect cost
sales increase
180. Used to help compute cash flows from op- 185. Which of the following is incorrect?
erating activities. A. Good will intangible asset
A. Current Income Statement
B. Sundry debtors-current asset
B. Additional Information
C. Comparative Balance Sheets C. Loose tools tangible fixed asset
D. This is the wrong answer D. Outstanding expenses-current asset.

186. BOBS Corporation began operations on 190. Which is considered a variable cost (hint
January 1st. During the year, it started does not stay the same)
and completed 2, 700 units of prod-

A. Utilities
uct. The company incurred the following
costs:Raw materials purchased and used- B. Rent
$5, 600Wages of production workers- C. Salaries
$6, 890.Salaries of administrative and
D. Insurance
manufacturing equipment-$4, 280.Depre- 191. Are the consumption of assets for the pur-
ciation on administrative equipment-$7, pose of generating revenue.
010.BOBS corporation sold 2, 100 units of
A. Period Cost
product.Determine the total product cost
for the year. B. Cost
A. $19, 500 C. Expenses
B. $23, 780 D. Product Cost
C. $16, 770 192. The theory and system of setting up,

maintaining, and auditing the financial
D. $13, 740
books of a firm; art of analyzing the fi-
187. Which of the following best describes the nancial position and operating results of a
production budget? business house from a study of its sales,
purchases, overhead, and so forth.
A. It is calculated from the desired end-
A. Accounting
ing inventory and the sales forecast
B. Financial Accounting
B. It includes required direct labor hours
C. Managerial Accounting
C. It includes required material pur-
chases D. Economic Accounting
D. It aggregates the monetary details of 193. Which of the following are relevant for
the operating budget decision making?
A. Opportunity Costs
188. Which of the following is not an internal
user? B. Differential Revenue
A. Creditor C. Differential Cost
B. Department manager D. Sunk Cost
C. Controller 194. The two classes of budgets are:

D. Treasurer A. Operating & Financial
B. Variable & Fixed
189. Contribution margin goes toward
C. Sales & Product
A. Fixed and variable costs
D. Direct materials & Direct labor
B. Variable costs
195. The Avengers Company is trying to
C. Only profit
do cost-volume-profit analysis with the
D. Fixed cost and profit following information for the month of

August:Sales-P1, 100, 000; Total Fixed 200. Controlling is a process where the man-
costs-P280, 000; Total Variable costs- agers need to and to ensure that
P660, 000; Unit price-P40.00. The oper- the organizational goal is achieved.
ating income of the Avengers Company is: A. motivate employees, influence their
A. P160, 000 behaviour
B. P190, 000 B. evaluate the execution of the plan,
make adjustment
C. P240, 000
NARAYAN CHANGDER
C. perform tasks, manage deadlines
D. P440, 000
D. establish organizational goals, create
196. Prime costs is the sum of a course of action
A. Direct material 201. Financial accounting provides the primary
B. Direct Labor source of information for:
C. Manufacturing overhead A. decision making in the finishing depart-
ment
D. Period costs
B. improving customer service
197. What activities and responsibilities are
C. preparing the income statement for
not associated with management’s func-
shareholders
tions?
D. planning next year’s operating budget
A. Planning
B. Accountability 202. A business selling sago palm seeds is
considering using the sago palm seeds to
C. Controlling produce sweets in order to get a higher
D. Directing selling price. Normally, if you sell sago
palm seeds, you will get a price of 100
198. Budgeting can help the company in the fol- baht/kilogram. If you use them to pro-
lowing areas? duce desserts, you will sell them for 300
A. Contributing to profitability and elimi- baht/kilogram. But there must be addi-
nate wasteful spending tional costs in producing desserts, equal
to 160 baht. Ask students to help think
B. Keeping alignment with goals about how this business should decide.
C. Provides benchmarks for comparison A. Sold as sweets Because it will increase
D. All of these can help the company profits by 40 baht/kg.
B. Sold as sweets Because it will increase
199. A company that buys raw materials and
profits by 200 baht/kg.
converts them into a finished product to be
sold either to a merchandiser, an end user, C. Sold as sweets Because it will in-
or another manufacturer for use in another crease profits by 140 baht/kg.
product. D. Sold as sago pellets as usual. Because
A. Manufacturing business there will be a profit of more than 40
baht/kg.
B. Merchandising business
E. Sold as sago pellets as usual. Because
C. Service Business there will be a profit of more than 140
D. none of above baht/kg.

203. The goal of management accounting is 209. Prime cost is referred to as

to provide the information that managers
A. Manufacturing overhead
need for all of the following EXCEPT:

A. Planning B. Direct materials
B. Control C. Total of direct material and direct

labour costs
C. Decision Making
D. Direct labour
D. Review
204. Which of the following does NOT describe 210. The cost accounting method that charges
management accounting? direct materials, direct labor, and factory
overhead costs to a specific job. Most ap-
A. evaluation of segments or products
propriate for manufactured products that
within the firm
are not identical or are custom made
B. emphasis on the future
A. Job-Order Costing
C. externally focused
B. Process Costing
D. detailed information
C. Batch Costing
205. Cost accounting is concerned with
D. Individual Costing
A. Ascertainment of cost
B. Reduction of cost 211. calculation of the cost function by taking
C. Control of cost into account the highest activity costs and
the lowest activity costs is called
D. All of the above
A. High-Low analysis
206. Payments on account come how many
days after the transaction? B. Engineering analysis
A. 30 days C. account analysis

B. 60 days D. simple least-squares regression
C. 90 days
212. A decrease in the margin of safety would
D. all of these are correct be caused by:
207. Long-term plans are called plans. A. an increase in total fixed cost.
A. strategic B. an increase in total actual sales.
B. operational C. a decrease in variable cost per unit.
C. mission
D. a decrease in the selling price per unit.
D. corporate
213. The commission for sales employees is
208. What is Cash Budget?
A. fore cast
B. cash in flow B. Direct Labor (DL)
C. cash out flow C. Factory Overhead (FOH)
D. estimate receipts and payments D. Selling/ Administrative Expense

214. Which of the following is NOT a goal of B. All cost calculation

managerial accounting
C. Activity-based costing
A. Provide information needed for deci-
sion making D. JIT costing
B. Provide information needed for credi-
219. Who is the user of managerial accounting
tors
information?
C. Provide information needed for plan-
A. Investors
NARAYAN CHANGDER
ning
D. Provide information needed for con- B. Managers
trol
C. Creditors
215. Which document is considered the founda- D. Business competitors
tion of budgeting?
A. Income Statement 220. Direct materials costs combined with di-
B. Statement of changes in owner’s eq- rect labor costs are called (prime, conver-
uity sion) costs.
C. Balance Sheet A. conversion costs
D. Dividend Statement B. prime costs
216. Cost of goods manufactured equals: C. direct material costs
A. Total cost of WIP plus Total manufac- D. expenses
turing costs less the cost of the ending
WIP inventory 221. A shop that tailors batik shirts to sell
B. Total cost of WIP less the cost of the as souvenirs to tourists. Determine the
ending WIP inventory standard cost of producing 1 shirt as fol-
C. Total cost of WIP plus Total manufac- lows:the cost of 2 yards of batik fabric,
turing costs 150 baht each, the labor cost of the tailor.
It is scheduled to take 1.5 hours/piece,
D. None of the above paying 300 baht per hour for labor. Other
217. What is the priority in financial account- production expenses are set to be 100
ing? baht/direct labor hour. Last May, the
shop produced 500 shirts, using all the fab-
A. Using estimates and shortcuts ric. 1, 050 yards has a total cost of pur-
B. Being relevant and timely chasing fabric of 154, 350 baht. I would
C. Following a strict framework like to know what the difference in the
amount of raw materials is.
D. Being objective and precise
A. 7, 500 baht (U)
218. As the proportion of manufacturing over-
head increases due to the rapid develop- B. 7, 500 baht (F)
ment of manufacturing technology, what C. 7, 350 baht (U)
is the cost accounting method created in
an attempt to accurately calculate costs? D. 7, 350 baht (F)
A. Absorption costing E. 4, 350 baht (U)

222. Both direct materials and indirect materi- 227. Fahsai Tour Company organizes a One
als are Day Trip to Krabi, 4 islands, price 500 baht
per person (including car, boat fees, and

A. raw materials.
lunch and snacks). Costs for organizing
B. manufacturing overhead. the tour include bus rental 3, 000 baht,
C. merchandise inventory. guide and management fees 2, 000 baht.
D. sold directly to customers by a manu- The boat is 100 baht per head, lunch is
facturing company. 100 baht per head, snacks are 50 baht per
head. This tour has a total of 40 seats.
223. Identify whether the item being de- Fahsai Tour Company How many minimum
scribed by the statement is Compe- seats should be sold to break even?
tence, Confidentiality, Credibility or In- A. 10 people
tegrity:“Provide decision support informa-
tion and recommendations that are accu- B. 20 people
rate, clear, concise and timely “ C. 25 people
A. Competence D. 30 people
B. Confidentiality, E. 40 people
C. Credibility 228. How does managerial accounting differ
D. Integrity from financial accounting?
A. Financial accounting involves more un-
224. Managerial accounting:
knowns and uncertainties than manage-
A. is governed by generally accepted ac- rial accounting.
counting principles.
B. Financial accounting is more con-
B. places emphasis on special-purpose cerned with interest rates than manage-
information. rial accounting.
C. pertains to the entity as a whole and is C. Managerial accounting deals primarily
highly aggregated. with summary data and explicit formulas.
D. is limited to cost data. D. Managerial accounting informs
decision-making through documented as-
225. The following is a classification of costs
sumptions.
based on Behavior
A. Fixed Cost dan Variable Cost 229. Direct costs are those which
B. Product Cost dan Period Cost A. can be accurately traced to a product
C. Direct Cost dan Indirect Cost B. are significant in the production pro-
cess
D. Sunk Cost dan Opportunity Cost
C. are incurred in a specific period
226. refers to the calculation of production D. include only purchase of materials
cost of goods and services.
A. Internal rate of return 230. Which of the following is not correct re-
garding the manufacturing overhead bud-
B. Break even analysis get?
C. Product costing and valuation A. Total budgeted cash disbursements
D. none of above for manufacturing overhead is equal to

the total of budgeted variable and fixed 235. Dining Out

manufacturing overhead. A. Fixed Expense
B. Manufacturing overhead costs should B. Variable Expense
be broken down by cost behavior.
C. The manufacturing overhead budget 236. The following is a classification of costs
should provide a schedule of all costs based on function
of production other than direct materials A. Fixed Cost dan Variable Cost
and direct labor.
NARAYAN CHANGDER
B. Direct Cost dan Indirect Cost
D. A schedule showing budgeted cash dis- C. Product Cost dan Period Cost
bursements for manufacturing overhead
D. Sunk Cost dan Opportunity Cost
should be prepared for use in developing
the cash budge 237. Cost classification can be done in
231. A statement of the financial position of a A. two ways
business on a specified date or for a period B. three ways.
of time.
C. four ways.
A. Financial Statement
D. several ways.
B. Balance Sheet
238. Which are characteristics of financial ac-
C. Statement of Cash Flows counting?
D. Statement of Owner’s Equity A. Is mandatory, Follows GAAP, and re-
porting on past decisions
232. The salary for Assembly employees is:
B. Is not mandatory, Follows GAAP, re-
porting on future decisions
C. Is mandatory but does not follow
C. Factory Overhead (FOH) GAAP, reports on past decisions
D. Selling/ Administrative Expense D. none of above
233. is the employees who convert materi- 239. Absorption costing treats all fixed costs
als into the company’s product and can be as product costs
traced directly to the finished product. A. True
A. Direct material B. False
B. Manufacturing overhead
240. If Quantity Produced is greater than
C. Direct labour Quantity sold, what can account for the dif-
D. Direct Material ference in the Net Incomes under the two
costing methods.
234. What is a transition cost? A. The difference in Net Incomes can be
A. a one-off cost to account for changes accounted for by the differences in Ending
Inventory
B. the liability for old facilities
B. The difference in Net Incomes can be
C. the cost of moving facilities accounted for by the differences in Begin-
D. a projected interest rate ning Inventory

C. The difference in Net Incomes can be 246. Advertising costs are usually viewed as
accounted for by the differences in Selling (period, product) costs.
Expenses

A. prime
D. The difference in Net Incomes can be
B. conversion
accounted for by the differences in Admin-
istrative Expenses C. product
241. is devoted to providing information D. period

for external users.
247. The work of factory employees that can
A. Management accounting be directly associated with converting raw
B. Financial accounting materials into finished goods is
C. Internal accounting A. manufacturing overhead.
D. Cost accounting B. indirect materials.
242. What are the component of management C. indirect labor.
functions?
D. direct labor.
A. planning
B. controlling 248. Which of the following are true about
breakeven point
C. decision making
A. Contribution margin equals fixed costs
D. All the above
B. The level of sales at which profit is zero
243. Which branch of accounting is more valu-
able for making decisions about the fu- C. Contribution margin equals variable
ture? costs
A. Tax accounting D. The amount of expense at which profit

is zero
B. Financial accounting
C. Audit 249. A branch of accounting that provides fi-
D. Managerial accounting nancial information about a business to
help managers make decisions.
244. What is Managment Accounting? A. Cost Accounting
A. Planning
B. Managerial Accounting
B. Controlling
C. Management Accounting
C. Decision making
D. Financial Accounting
D. All the above
250. Which one describe product cost?
245. The cost of products that are partially
complete A. Non-Manufacturing cost
A. Direct materials B. Direct Material, Direct Labour, Manu-
B. Manufacturing overhead facturing overhead
C. Work in process inventory C. Operating cost
D. Period costs D. Identified with specific time interval

251. The financial statement that reports the A. $50, 000

revenues and expenses for a period of B. $935, 897
time such as a year or a month is the:
C. $110, 000
A. Balance Sheet
D. $120, 000
B. Income Statement
256. Compute the break-even point in dollar
C. Statement of Cash Flows
sales for the Commercial Law.
D. None of These
A. 487, 500
NARAYAN CHANGDER
252. What is the purpose of a balance sheet? B. $0
A. The purpose of a balance sheet is to C. $500, 000
track the daily expenses of a company. D. $10 million
B. The purpose of a balance sheet is to
forecast future financial performance of a 257. Which of the following best explains
company. what is meant by ‘Capital Expenditure’?
Capital Expenditure is expenditure:
C. The purpose of a balance sheet is to
A. On non-current assets, including re-
measure the market value of a company’s
pairs and maintenance.
assets.
B. On expensive items over $10, 000.
D. The purpose of a balance sheet is to
provide a snapshot of a company’s finan- C. On the acquisition of non-current as-
cial position at a specific point in time. sets, or improvement in their earning ca-
pacity
253. Which of the three scenarios shows Net
D. On items relating to owners’ capital.
Income under Full Costing to be greater
than the Net Income under Variable Cost- 258. When used together, Financial Accounting
ing and Managerial Accounting can provide a
A. Quantity Produced is equal to Quantity complete picture of a company’s overall fi-
Sold nancial health
B. Quantity Produced is greater than A. False

Quantity Sold B. True
C. Quantity Produced is less than Quan- 259. A shop that tailors batik shirts to sell
tity Sold as souvenirs to tourists. Determine the
D. none of above standard cost of producing 1 shirt as fol-
254. Which one is not part of managment func- 150 baht each, the labor cost of the tailor.
tion? It is scheduled to take 1.5 hours/piece,
A. planning paying 300 baht per hour for labor. Other
production expenses are set to be 100
B. controlling
baht/direct labor hour. Last May, the
C. decision making shop produced 500 shirts, using all the fab-
D. throwing rubbish bins ric. 1, 050 yards has a total fabric pur-
chase cost of 154, 350 baht. I would like
255. Compute the companywide break-even to know how much the difference in raw
point in dollar sales. material prices is.

A. 3, 150 baht (F) 263. “Business transaction derived from busi-

ness documents”, this describe which pro-
B. 3, 150 baht (U)
cess of accounting?

C. 3, 000 baht (F)
A. Decision making
D. 3, 000 baht (U)
B. Identifying
E. 4, 350 baht (F) C. Reporting
260. BOBS Corporation began operations on D. Auditing
January 1st. During the year, it started
and completed 2, 700 units of prod- 264. Which accounting reports mainly to the
uct. The company incurred the following people outside of the business?
costs:Raw materials purchased and used- A. Managerial Accounting
$5, 600Wages of production workers-
$6, 890.Salaries of administrative and B. Financial Accounting
265. Budgeting can assist with companies in
manufacturing equipment-$4, 280.Depre-
the following areas:Communication, Coor-
ciation on administrative equipment-$7,
dination, Planning and what?
010.BOBS corporation sold 2, 100 units
of product.Determine cost of inventory per A. Evaluation
unit
B. Controlling
A. $7.99
266. At the beginning of the year, Ventra ex-
B. $6.21 pected to produce 10, 000 jewelry boxes
C. $5.85 and estimated overhead costs of $40, 000.
Actual overhead costs ended up being $45,
D. $8.14 000 and Ventra only produced 9, 000
jewelry boxes. Based on the information
261. Positions are filled by given, what is the predetermined over-
A. Employees head rate?
B. Tender number is always assigned A. $4.00
manually B. $4.50
C. Career planning consists of all posi- C. $4.44
tions
D. $5.00
D. none of above
267. A jewelry manufacturer makes charm
262. Flour-1, 000.00Salt-200.00Sugar- necklaces. Staff attaches a necklace to a
240.00Oil-100.00This is an example of preprinted card and slips it into cellophane
envelopes. This will create inventory.
A. Internal rate of return A. Materials
B. Break even analysis B. Finished goods
C. Product costing and valuation C. Packing
D. none of above D. Work in process

268. A portion of the accounts receivable that C. Cost of goods manufactured

proves to be uncollectible is termed:
D. Cost of goods sold
A. Bad debts
B. Doubtful debts 273. Management accountants would not
C. Provision for bad debts A. assist in budget planning.
D. All of the above B. prepare reports primarily for external

users.
NARAYAN CHANGDER
269. The current market price of land that a
C. determine cost behavior.
company purchased for 100 million won
three years ago is 200 million won. It is D. be concerned with the impact of cost
said that this land was decided as a park and volume on profits.
site due to urban planning, and the com-
pensation price is 80 million. If this com- 274. Managerial accounting guides users.
pany decides to donate for free without A. Internal
receiving compensation, what is the oppor-
tunity cost? B. External
A. Purchase cost 100 million won 3 years 275. The benefits of management accounting
ago information include:
B. The current market price is 200 million A. Improved decisions.
won.
B. Providing a means of motivating work-
C. The government’s compensation price ers and rewarding performance.
is 80 million won.
C. More effective planning.
D. none of above
D. All of the above
270. Used to show profitability trends and cal-
culated by dividing the gross profit by the 276. Position is vacant if it is occupied
total sales.
A. False
A. Gross Profit Margin
B. True
B. Net Profit Margin
C. Contribution Margin 277. Managerial accountants should, but have
no obligation to, maintain their profes-
D. Required Contribution Margin sional skills.
271. Which one reports on the past? A. TRUE
A. Managerial Accounting B. FALSE
278. Depreciation expense is what type of Ex-
272. Which of the following describes the cost pense?
of direct materials, direct labor and man- A. Administrative
ufacturing overhead incurred in producing
the goods. B. Selling
A. Manufacturing costs C. Tax
B. Manufacturing overhead D. none of above

279. What is the characteristics of managerial B. using whatever methods the company
accounting information? finds beneficial.

A. Accuracy C. for shareholders.
B. Timeliness D. to summarize the whole company with
C. Relevance little detail.
D. All of above
285. Published financial statements show
280. Abnormal cost is the cost: costs classified by behavior.
A. Cost normally incurred at a given level A. TRUE
of output
B. FALSE
B. Cost not normally incurred at a given
level of output 286. Cost of goods sold is beginning finished
C. Cost which is charged to customer goods inventory plus minus ending fin-
ished goods inventory.
D. Cost which is included in the cost of the
product A. costs of goods available for sales
281. Which are true about Management ac- B. costs of goods purchased
counting? C. costs of goods manufactured
A. Places emphasis on future D. costs of direct material purchased
B. Must comply with GAAP standards
C. Presents very detailed information 287. Yes or No:If current assets is higher than
current liabilities, it is a favorable net
D. Presents only monetary information working capital
282. An example of variable cost would be A. Yes
A. depreciation of factory machinery B. No
B. shop rent
288. Gross profit is calculated as
C. sales staff commission
D. factory manager’s salary A. Cost-depreciation
B. Revenue-total costs
283. The percentage by which a retailer in-
creases wholesale price; also called gross C. Revenue-cost of goods sold
profit.
D. none of above
A. markup
B. markdown 289. Who is the target audience of managerial
accounting?
C. MSRP
A. All employees of the business
D. none of above
B. Internal managers
284. Management accounting and financial ac-
counting differ in that management ac- C. Existing and potential investors,
counting information is prepared lenders, and creditors
A. following prescribed rules. D. Regulators and the public

290. The wages of factory maintenance per- 295. Management accounting is subject to
sonnel would usually be considered to be statutory requirements ie Company Act
a 1965 where all registered companies are
required to publish financial statements
A. Direct labor cost
annually.
B. Manufacturing overhead cost
A. True
C. Administrative cost B. False
D. Selling cost
NARAYAN CHANGDER
296. Out-of-pocket costs involve an actual
291. Identify whether the item being de- outlay of cash.
scribed by the statement is Compe- A. T
tence, Confidentiality, Credibility or In- B. F
tegrity:“Perform professional duties in ac-
cordance with relevant laws, regulations 297. Basic objectives of cost accounting is
and technical standards.”
A. tax compliance.
A. Competence B. financial audit
B. Confidentiality, C. cost ascertainment.
C. Credibility D. profit analysis
D. Integrity 298. A shop that tailors batik shirts to sell
as souvenirs to tourists. Determine the
292. Predicting the sales of goods or services
standard cost of producing 1 shirt as fol-
based on historical data gathered from fi-
nancial statements.
150 baht each, the labor cost of the tai-
A. forecasting lor. It is set to take 1.5 hours/each,
paying labor costs of 300 baht per hour.
B. budgeting
Other production expenses are set at 100
C. process analysis baht/direct labor hour from the above in-
D. none of above formation. What is the standard cost of
producing 1 shirt?
293. The indirect method of reporting reports A. 550 baht
net income and then adjusts it for items
B. 700 baht
that do not affect cash.
C. 850 baht
A. True
D. 900 baht
B. False
E. 1, 050 baht
294. Expenses-4, 000Income-10, 000This is 299. Management accounting is the branch of
simple example of accounting concerned with reporting to
A. Cash flow analysis A. internal managers.
B. Break even analysis B. shareholders.
C. Product costing and valuation C. the government.
D. none of above D. bankers.

300. What is the frequency of report of man- B. Helps in finding out cost of products
agerial accounting? and control costs

A. Once at the end of accounting period C. Helps in identifying the financial posi-
B. As frequently as needed tion of the business
D. Process of determining and accumulat-
301. Selling and administrative expenses are ing the cost of products or activity
A. product costs
307. Identify whether the following state-
B. period costs ment are true or false.Financial accounting
C. prime costs focuses on providing information to inter-
D. direct costs nal users
A. True
302. A costs that are matched with the rev-
enue of a specific time period rather than B. False
included as part of the cost of a salable 308. What does the cash budget project?
product. These are non manufacturing
costs which includes selling and adminis- A. The inflow and outflow of money for a
trative expenses. specific time period
A. Period Cost B. The outflow of cash for a specific time

period
B. Product Cost
C. The inflow of cash for a specific time
C. Fixed Cost period
D. Variable Cost D. None of these.
303. Fixed or Variable?Raw materials 309. In managerial accounting the data pro-
A. Fixed vided can be
B. Variable A. Quantitative
304. Which is future oriented? B. Qualitative
A. Managerial Accounting C. Both Qualitative & Quantitative
B. Financial Accounting D. Only Quantitative
305. Managerial accounting is designed for 310. Obligations (amounts owed) are re-
use by: ported on the balance sheet and are re-
ferred to as
A. Internal users
A. Assets
B. Stockbrokers
B. Liabilities
C. External users
C. Debt
D. Clients
D. Owner Equity
306. Which of the following does not repre-
sents the characteristics of Management 311. Under absorption costing, the company
Accounting? calculates gross margin
A. Helps in finding out cost of products A. True

and control costs B. False

312. The costs associated with the production B. Total Labor

of goods.
C. Indirect Labor
A. Manufacturing costs
D. none of above
B. Fixed costs
318. Which of the following would not be an
C. Variable costs
example of a value-added activity?
D. Service costs
A. timely delivery of products
NARAYAN CHANGDER
313. What kind of expenses are paid from B. offering the customer a variety of prod-
Gross Profit? ucts
A. Selling Expenses C. storage of finished products
B. Financial Expenses D. excellent customer service
C. General Expenses
319. Includes details that help explain cash
D. All of the above
flows and noncash activities.
314. Are the cost that are expensed during the A. This is the wrong answer
time period in which they are incurred.
B. Comparative Balance Sheets
A. Cost
C. Current Income Statement
B. Expenses
D. Additional Information
C. Period Cost
D. Product Cost 320. Red Manufacturing produces a product at
$25 per unit price, sells 1, 000 units and
315. The setting of objectives and the identifi- accrues $10, 500 in variable cost. Which
cation of methods to achieve those objec- of the following is the contribution margin
tives is called per unit?
A. planning A. $11.50
B. controlling B. $13.50
C. performance evaluation C. $12.50
D. decision making D. $14.50
316. Which reports the information needed to 321. Management Accounting guides on
run the day to day operations of the busi- decision making.
ness?
A. Accountant
B. Managers
C. Teachers
317. The labor costs directly required to pro-
D. Employee
duce a product. For example, the salary
and benefits of those employees who are 322. Analyzing previous years’ data; locating
working directly on producing a product budget information; setting goals for the
are considered it. next fiscal year; developing a plan to meet
A. Direct Labor the goals; forecasting the effects of the

budget decisions; and monitoring, evaluat- 328. What is the scope of managerial account-
ing, and updating the budget as needed are ing?
all part of what?

A. Narrow, focusing on specific depart-
A. Budget Process ments and cost centers
B. Financial Accounting B. No specific scope
C. Managerial Accounting C. Broad, consolidating results of all busi-
D. none of above ness units
323. Prime cost includes D. Limited to financial information only

A. direct materials, direct wages and in- 329. Which of the following listings correctly
direct expenses describes the order in which the four types
B. indirect materials and indirect labour of budgets must be prepared?
and indirect expenses. A. Production, direct materials, sales,
C. direct materials, direct wages and di- cash disbursements
rect expenses.
B. Sales, production, direct materials pur-
D. direct materials, indirect wages and in- chases, cash disbursements
direct expenses.
C. Cash disbursements, direct materials
324. Capital + Liabilities =? purchases, production, sales
A. Revenue D. Sales, direct materials purchases, pro-
B. Assets duction, cash disbursements
C. Unearned Income 330. What is the characteristics of managerial
D. Voucher accounting information?
325. How many inventory in SOFP for a man- A. Accuracy

ufacturing business? B. Relevance
A. 5 C. Timeliness
B. 3 D. All of the above
C. 4
331. Which of the following are associated
D. 1
with Control?
326. Managerial accounting is A. Specifies the resources needed to
A. Used for internal users achieve the company goals
B. In conformity with GAAP B. Communicate’s a company’s goals to
C. Used for external users employees
D. Backwards looking C. Evaluating managers to determine
how their performance should be re-
327. The form and content of reports can influ- warded or punished
ence decisions made by managers.
D. Evaluating operations to provide in-
A. TRUE formation as to whether they should be
B. FALSE changed or not

332. How do you find direct materials D. Generally Accounting Accepted Princi-
A. Beg raw materials + Purchases + ples
End raw materials 336. The Orange Company plans to sell a new
B. Beg raw materials + Purchases-End product. The selling price is expected to
raw materials be P150 per unit. The company is able to
C. Beg raw materials-Purchases + End produce 15, 000 units but the company’s
raw materials marketing manager feels that a more real-
istic level of sales would be 12, 000 units.
NARAYAN CHANGDER
D. Beg WIP + Total manufacturing cost Variable cost is estimated at P70 per unit.
for the period-End WIP Total fixed costs will be P900, 000. The
break-even point in units:
333. Berapakah Cost of Goods Manufactured?
A. 10, 000 units
B. 11, 250 units
C. 16, 000 units
D. 18, 000
337. The management function that requires
managers to look ahead and establish ob-
jectives is
A. controlling.
B. directing.
A. $ 4.000
C. planning.
B. $ 6.000
D. constraining.
C. $ 8.000
D. $ 10.000 338. When Managerial Accounting report is
needed to be prepared?
334. Which of the following is a type of G/L A. Once a year
Account
B. Every month
A. Non-operating profit and expenses
C. Whenever cost accountant has free
B. Fixed assets, balance sheet accounts time
and material accounts
D. Whenever required by manager
C. Activity types are organizational units
within the controlling area, which classify 339. Adjustments for Changes in Current As-
the performance of const center sets (2 Answers)
D. none of above A. Decreases in current assets are added
to net income.
335. What does GAAP mean? B. Decreases in current liabilities are
A. Generally Accepted Accounting Princi- subtracted from net income.
pal C. Increases in current liabilities are
B. Generally Accepted Accounting Princi- added to net income.
ples D. Increases in current assets are sub-
C. Generally Accepted Accounting Price tracted from net income

340. Once a company hits the breakeven point, 344. What are the total product costs for
net operating income will increase by the Amelia’s bakery if they sold 2, 000 cakes
amount of BLANK for each additional unit this year?A. Labor costs of constructing

each cake is $15 per cake.B. Material costs
A. Variable costs
(flour, eggs, frosting) is $12 per cake.C.
B. Contribution margin per unit Cost of delivering cakes to customers is
C. Fixed costs $9 per cake.D. Depreciation on the factory
building used to make cakes is $20, 000 a
D. Sales dollars year.E. Salaries for the factory employees
is $160, 000 a year.F. Advertising costs
341. What are the traceable fixed expenses $75, 000 a year.H. Property taxes on the
for the Family segment? factory building is $8, 000 a year.I. Sales
A. $180, 000 employees get a $5 commission for each
cake sale they make.
B. $390, 000
A. $260, 000
C. $280, 000
B. $242, 000
D. $780, 000
C. $268, 000
342. Fahsai Tour Company organizes a One D. $234, 000
Day Trip activity in Krabi, priced at 300
baht per person (including transportation 345. Contribution margin is the amount re-
and lunch and snacks), with the cost of or- maining after:
ganizing the tour. Including the bus rental A. variable expenses have been deducted
fee of 4, 000 baht, the guide and manage- from sales revenue.
ment fee of 2, 000 baht, the lunch fee of
B. fixed expenses have been deducted
100 baht per head. This tour has a to-
from sales revenue.
tal of 40 seats and currently 35 people
have applied. Therefore, on the last day of C. fixed expenses have been deducted
application Fasai Tour Company So we de- from variable expenses.
cided to set up a fire promotion. To find 40 D. cost of goods sold has been deducted
tour members, Fahsai Tour Company What from sales revenues.
is the acceptable price for the fire promo-
tion? 346. In an effort to protect the public inter-
est, Congress established the and gave
A. Not less than 50 baht
it authorityto regulate public financial re-
B. Not less than 100 baht porting practices.
C. Not less than 150 baht A. Financial accounting standards board
D. Not less than 200 baht B. securities and exchange commission
E. Not less than 250 baht C. generally accepted accounting princi-
ples
343. Which accounting that reports to people D. none of above
within the business organizations?
347. What is a written financial plan for a busi-
ness over a specific period of time, usually
B. Financial Accounting a year.

A. Budget 353. The cost which is changed in proportion

B. Business plan to level the total volume is
C. Statement of Income A. Fixed Cost
D. Statement of Owner’s Equity B. Variable Cost
348. The beginning cash balance was $3, 000. C. Total Cost
At the end of the period, the balance was
$2, 000. If total cash paid out during the D. infeasible cost
NARAYAN CHANGDER
period was 27, 000, the number of cash
receipts was: 354. Identify whether the item being de-
A. 22000 scribed by the statement is Compe-
tence, Confidentiality, Credibility or In-
B. 28000 tegrity:“Refrain from engaging in any con-
C. 32000 duct that would prejudice carrying out du-
D. 26000 ties ethically.”
349. Managerial accounting reports are A. Competence

special-purpose and issued as frequently B. Confidentiality,
as needed. TRUE OR FALSE?
C. Credibility
A. True
B. False D. Integrity
350. Which branch of accounting is less regu- 355. Fixed costs should not be included in a
lated? flexible budget since such costs are not
A. Audit likely to be controllable by managers.
B. Tax accounting A. True
C. Managerial accounting
B. False
D. Financial accounting
351. Which of the following statements are 356. What is the formula for net income
true? A. Revenues-Expenses = Net Income
A. In product cost controlling the produc-
tion costs and the prime costs per unit are B. Revenue + Expenses = Net Income
calculated C. Assets = Liabilities + Owner’s Equity
B. Using price updating the result of the
product costing is transferred to the ma-
D. none of above
terial master record
352. Which one is NOT one of the five factors 357. Budgeting includes only the financial as-
of Cost Volume Profit? pects of the plan and not any non finan-
A. Selling prices cial aspects such as the number of physical
units manufactured
B. Unit variable costs
C. Total variable costs A. True
D. Total fixed costs B. False

358. Purser, Inc. sells lawn furniture. Selected 362. The Avengers Company is trying to
financial information for the most recent do cost-volume-profit analysis with the
year follows. Beginning merchandise in- following information for the month of

ventory on January 1 was $33, 700.End- August:Sales-P1, 100, 000; Total Fixed
ing merchandise inventory on December costs-P280, 000; Total Variable costs-
31 was $35, 700.Purchases during the P660, 000; Unit price-P40.00. The mar-
year were $92, 900.Selling and adminis- gin of safety is:
trative expenses were $75, 500.Sales for A. P100, 000
year were $262, 200. What was cost of
goods sold? B. P200, 000
C. P300, 000
A. $162, 300
D. P400, 000
B. $93, 800
C. $94, 900 363. Which of the following processes takes
place at the beginning of a recruitment pro-
D. $90, 900 cess
Explanation:Calculations:$92, 900 + $33,
700 = $126, 600-$35, 700 = $90, 900 A. Create position
B. Positions are filled by
359. The following is not a planning
C. Position is vacant if it is occupies
activity
D. none of above
A. formulate company goals and objec-
tives 364. Which of the following items is not used
B. create a budget for the procurement of when calculating the cost of goods manu-
additional facilities factured?
A. Direct materials used
C. Compare actual production costs and
standard production costs B. Direct labor
D. create a schedule for procurement of C. Salesperson salaries
materials for production activities D. Manufacturing overhead
360. A debt ratio that shows how much of 365. Which of the following is not a manage-
a company’s assets have been financed ment function?
through debt. It can be calculated by di- A. Constraining
viding the total liabilities by total assets.
B. Planning
A. Debt to total assets ratio
C. Controlling
B. Total Assets to debt ratio
D. Directing
361. The measure of how sensitive operating 366. Reports that follow GAAP and provide a
income is to a given percentage change in financial summary of an organization’s ac-
sales is called tivities.
A. operating leverage A. Managerial Accounting
B. risk leverage B. Cost Accounting
C. financial leverage C. Financial Accounting
D. none of above D. Tax Accounting

367. Variable Costing does not include the fol- 372. At a sales volume of 39, 500 units,
lowing Choice Corporation’s sales commissions (a
A. Direct materials cost that is variable with respect to sales
volume) total $505, 600. To the nearest
B. Variable manufacturing overhead whole cent, what should be the average
C. Direct Labour sales commission per unit at a sales vol-
ume of 41, 900 units? (Assume that this
D. Fixed manufacturing overhead
sales volume is within the relevant range.)
NARAYAN CHANGDER
368. Contribution Margin Ratio is calculated A. $12.80
A. (Sales-Variable costs)/Fixed costs B. $13.07
B. Contribution margin/Fixed costs C. $13.59
C. (Sales-Variable costs)/Sales revenue D. $12.07
Explanation:Sales commission per unit =
D. Contribution margin/Variable costs
total sales commission/unit sales$505,
369. Financial accounting: 600/39500 = $12.80
A. focuses on the future and includes ac- 373. What are the inventory accounts shown
tivities such as preparing next year’s op- in SOFP for manufacturing business?
erating budget A. raw materials
B. must comply with GAAP (generally ac- B. cost of goods manufactured
cepted accounting principles)
C. direct labour
C. reports include detailed information
on the various operating segments of the D. work in process
business such asproduct lines or depart- E. finished goods
ments
374. The role of cost accounting in controlling
D. is prepared for the use of department costs and activities can be found in the fol-
heads and other employees lowing efforts
370. A detailed financial statement of one seg- A. Create a written, quantified statement
ment of a business over a period of time. of the management plan
A. Budget Schedule B. Identify non-value-added activities
and reduce them
B. Budget Income Statement
C. Set the selling price
C. Budget Variance Report
D. Make business decisions such as leas-
D. none of above ing or purchasing equipment.
371. These activities include transactions and 375. In planning, managers use past produc-
events that affect long-term liabilities and tion cost information to
equity.
A. assess the performance of the person
A. Managerial Activities in charge of production
B. Financing Activities B. planning future production costs
C. Operating Activities C. assess production efficiency
D. Investing Activities D. planning future selling prices

376. The term that describes whether costs 381. In hierarchy, management accountant is
change as output changes, is the meaning placed at
of?

A. Lower level
A. Cost Behavior B. Middle level
B. Budget C. Bottom level
C. Cost D. Higher level
D. Income 382. Part of your job as a managerial accoun-
tant is to “sell” stakeholders on your find-
377. What is the priority in managerial ac- ings and recommendations. Which skills
counting? must you develop to do this effectively?
A. Being objective and precise A. delivery skills
B. Following a strict framework B. presentation skills
C. Being relevant and timely C. project management skills
D. Using estimates and shortcuts D. communication skills
378. Costs that are directly and physically re- 383. Common users of managerial accounting
lated to a cost object, such as raw material reports include the following:
costs, auxiliary material costs and direct A. Operations manager and loan officer
labor costs, will use the cost assignment B. Chief financial officer and public share-
method holder
A. Direct Tracing C. Public shareholder and loan officer
B. Driver Tracing D. Chief financial officer and operations
C. Indirect Tracing manager
D. All true 384. Which of the following is a G/L account

type?
379. Consider a S’mores manufacturing busi- A. Reconcilation accounts
ness. Which would be an example of a
direct material? B. Non-operating profit and expenses
C. Fixed assets, balance sheet accounts
A. Graham crackers
and material accounts
B. S’mores assemblers
D. none of above
C. Electricity
385. A widely accepted set of rules, conven-
D. Supervisor Salary tions, standards, and procedures for re-
porting financial information, established
380. Financial Accounting does not follow
by the Financial Accounting Standards
GAAP
Board.
A. True A. GAAP
B. False B. GAP
C. Maybe C. Gaap
D. none of above D. you sing

386. The following comparison of both ac- C. Assist departments in achieving the or-
counting information systems refers to im- ganization objectives
posing restrictions? D. All of above
A. Target Users
391. Reports that follow GAAP and provide a
B. Degree of Aggregation financial summary of an organization’s ac-
C. Breadth tivities.
D. Type of Information A. Financial Accounting
NARAYAN CHANGDER
387. Direct material and direct labour are clas- B. Managerial Accounting
sified as
392. Net Sales (on account) ÷
A. Period costs and expensed when in-
A. Merchandise Inventory Turnover Ratio
curred
B. Accounts Receivable Turnover ratio
B. period costs and expensed when the
goods are sold 393. Part of the planning process involves
C. product costs and expensed when in- A. The formulation of details of opera-
curred tions and finances for the next financial
D. product costs and expensed when the year.
goods are sold B. Comparing actual performance
against targets.
388. The work of factory employees that
can be physically and directly associated C. Motivating managers towards achiev-
with converting raw materials into fin- ing organisational goals.
ished goods is D. Making a choice between available al-
A. manufacturing overhead. ternatives.
B. indirect materials. 394. Budgeted manufacturing overhead costs
C. indirect labor. include all types of factory expenses EX-
CEPT:
D. direct labor.
A. fixed items such as depreciation of
389. Which of the following is any cost which manufacturing machinery
cannot be capitalized into a prepaid ex-
pense, inventory, or fixed asset? B. variable items such as plant supplies
A. Period cost C. indirect labor such as the salary of the

plant supervisor
B. Product cost
D. direct labor and direct materials
C. Paradox cost
D. Premium cost 395. Calculate the prime cost from the fol-
lowing information:Direct material pur-
390. What is the roles of management accoun- chased:Rs. 1, 00, 000 Direct material con-
tant? sumed:Rs. 90, 000 Direct labour:Rs. 60,
A. Provide information and accounting re- 000 Direct expenses:Rs. 20, 000 Manu-
ports facturing overheads:Rs. 30, 000
B. Responsible for carrying out the task A. Rs. 1, 80, 000

of helping the management B. Rs. 2, 00, 000

C. Rs. 1, 70, 000 A. Cash Flow Statement

D. Rs. 2, 10, 000 B. Retained Earnings Statement

396. A shop that tailors batik shirts to sell C. Revenue Statement
as souvenirs to tourists. Determine the D. none of above
standard cost of producing 1 shirt as fol-
lows:cost of batik fabric, 2 yards, 150 401. What are variable expenses?
baht each, labor cost of sewing workers. A. Irregular expenses that change from
It is set to take 1.5 hours/piece, paying week to week or month to month
labor costs of 300 baht per hour. Other B. The amount of money in your bank ac-
production expenses are set to be 100 count
baht/direct labor hour. From the above in-
formation What is the standard direct ma- C. Costs that do not fluctuate from week
terial cost? to week or month to month
A. 100 baht D. The amount of cash in your

purse/wallet
B. 150 baht
402. Cost-10, 000Sales-10, 000This is an ex-
C. 300 baht
ample of
D. 400 baht
A. Cash flow analysis
E. 450 baht
B. Break even analysis
397. Financial accounting information is gener- C. Product costing and valuation
ally used exclusively by internal parties
D. none of above
such as managers.
A. T 403. What is the example of information that
a managerial accountant will share to the
B. F
decision makers to help them making deci-
398. If the gross profit margin is used to show sion?
profitability trends and calculated by divid- A. The past financial performance
ing the gross profit by the total sales. Cal-
B. The anticipated profits or losses from
culate the GPM if gross profit is 34, 000
a decision to be made
and total sales is 50, 000. Please note on
the exam, it may be calculated as a per- C. The company’s profits reported sev-
centage. eral years ago
A. 0.68 D. The name of the company
B. 1.47 404. Which of the following does not repre-
sents the characteristics of Management
399. Contribution Margin is calculated sales Accounting?
minus variable costs
A. Helps in finding out cost of products
A. True and control costs
B. False B. Measures the operating efficiency of
400. A financial statement that provides data the enterprise
about all sources of cash inflows as well C. Helps in identifying the financial posi-
as what a company spends its money on tion of the business

D. Process of determining and accumulat- D. Direct materials units required for

ing the cost of products or activity production-Desired ending direct materi-
als units-Beginning direct materials units
405. Which one of the following represents a = Required direct materials units to be
period cost? purchased.
A. The VP of Sales’ salary and benefits.
B. Overhead allocated to the manufactur- 409. The Avengers Company is trying to
ing operations. do cost-volume-profit analysis with the
following information for the month of
NARAYAN CHANGDER
C. Labor costs associated with quality August:Sales-P1, 100, 000; Total Fixed
control. costs-P280, 000; Total Variable costs-
D. Fringe benefits associated with fac- P660, 000; Unit price-P40.00. If the com-
tory workers. pany desires a profit of P80, 000, how
many units must be sold?
406. Managerial Accounting can use financial
and nonfinancial data? A. 30, 000
A. True B. 35, 000
B. False C. 36, 000
407. Depicts the relationship between each D. 22, 500
item on a financial statement to one major
item. The calculation process is referred to 410. At California Pizza Kitchen, indirect costs
as vertical analysis. include items such as depreciation on the
ovens used to bake the pizzas as well as
A. Component Percentage the costs of utilities, advertising, and plant
B. Relation Percentage supervision.
C. Upward Percentage A. True
408. The formula for direct materials quantity
411. If initial budgets prove unacceptable,
is:
planners achieve the MOST benefit from:
A. Direct materials units required for pro-
duction + Desired ending direct materials A. planning again in light of feedback and
units-Beginning direct materials units = current conditions
Required direct materials units to be pur- B. deciding not to budget this year
chased.
C. accepting an unbalanced budget
B. Direct materials units required for
D. using last year’s budget
production-Desired ending direct materi-
als units-Beginning direct materials units
412. Information users for financial accounting
= Required direct materials units to be
comprise of both internal (management,
purchased.
shareholders, employees etc) and external
C. Direct materials units required for pro- (creditors, suppliers, banks, tax authori-
duction + Desired ending direct materials ties).
units + Beginning direct materials units
A. True
= Required direct materials units to be
purchased. B. False

413. Beginning inventory in units 1, 200Sales C. Rp. 800

budgeted for the quarter 426, 000Capac- D. Rp. 150
ity in units of production facility 472, 000

How many finished goods units should be 419. A sacrifice made to obtain some benefit
produced during the quarter if the company is a(n)
desires 3, 200 units available to start the
A. profit
next quarter?
B. price
A. 428, 000
C. cost
B. 424, 000
D. expense
C. 474, 000
D. 429, 200 420. The difference between the cost of prod-
ucts sold and the net sales is what?
414. Investors, creditors and regulators are A. Income
the primary users of managerial account-
ing information. B. Gross Profit
A. T C. Take home pay
B. F D. Gross Profit Margin
415. The cost center represents an organiza- 421. Management Accounting is useful for
tional unit within a costing area and spec- helping management to carry out its main
ifies a set of locations for cost incurrence functions, namely:
A. False A. Planning and operations functions
B. True B. Organizing and investment function

C. Funding and investment function
416. The form used in job-order costing to
D. Planning and control functions
record the amount of labor hours con-
tributed to a production of a particular job 422. Cost is classified into:
A. job-time record
B. employee-time record
C. process-time record
D. none of above
417. Total costs is calculated as

A. Fixed costs-variable costs
A. Cost and expense
B. Fixed costs + Variable costs
B. Expense and revenue
418. It is known that BBB Rp. 500BTKL Rp. C. Indirect expense and Overheads
300BOP Rp. 200B. Marketing Rp. 100B.
ADM Rp. 50What are the production D. Direct cost and Indirect cost
costs? 423. Raw materials costs are usually viewed
A. Rp. 1.000 as costs.
B. Rp. 1.150 A. Product cost

B. Period Cost B. indirect cost

C. Direct Labor C. direct cost
D. Factory Overhead Cost D. period cost
424. Why is budgeting important? 429. Which of the following cost accounting
A. Allocates the amount of money that a systems assigns manufacturing costs to a
company plans to spend on a particular ac- product or batches of products and is ideal
tivity or resource. for companies which produce unique prod-
NARAYAN CHANGDER
ucts?
B. It is the plan the business works to fol-
low to achieve financial goals and success A. Activity-based costing
C. Allows managers to check how effec- B. Project costing

tive their plans and processes are as well C. Job-order costing
as what resources they will need in the fu- D. Process costing
ture.
D. All of the choices outlined indicates 430. Sales commissions are classified as
why budgeting are important. A. overhead costs.
425. Which one of the following is not a cost B. period costs.
element in manufacturing a product? C. product costs.
A. Manufacturing overhead D. indirect labor.
B. Direct materials
431. Preparing a budget includes
C. Office salaries
A. Income, Expenses, Saving
D. Direct labor
B. Only listing your expenses
426. Indirect costs cannot easily be traced to C. Only listing your debts
the cost object
D. Only listing your income
A. True
432. These activities include transactions and
B. False
events that affect net income.
427. The production budget shows expected A. Operating Activities
unit sales of 32, 000. Beginning finished
goods units are 3, 600. Required produc- B. Investing Activities
tion units are 33, 600. What are the de- C. Financing Activities
sired ending finished goods units? D. Managerial Activities
A. 2, 000
433. Costs are considered an circumstance;
B. 3, 600 whereas economic conditions and degree
C. 6, 400 of competition are circumstances
D. 5, 200 A. external; external
428. Any cost that cannot be traced back to a B. internal; internal

product C. external; internal
A. standard cost D. internal; external

434. Identify whether the item being de- B. Costs directly involved with making the
scribed by the statement is Compe- product

C. Costs that are essential but not di-
tegrity:“Refrain from using information
rectly related to manufacturing
for unethical or illegal advantage.”
D. money spent on a regular basis
A. Competence
B. Confidentiality, 440. Managerial accounting is a branch of fi-
C. Credibility nancial accounting and serves essentially
the same purposes as financial accounting.
D. Integrity
A. True
435. As total volume increases, unit fixed cost
B. False
A. Stays the same
B. Decreases 441. The volume variance for fixed overhead
is an activity-related variance based on
C. Increases the difference between the denominator
D. none of above level of activity and the standard level of
activity allowed for the output of a period.
436. The number of completed units in a spe-
cific period of time in process accounting. A. True
A. Equivalent units B. False
B. Proportional units 442. Is the following direct labor, direct ma-

terials, manufacturing overhead, or period
437. What differentiates management ac-
costs?$210, 000 in advertising costs.
counting from financial accounting is
A. Direct labor
A. Management accounting information
is used by internal company parties B. Direct materials
B. Management accounting information C. Manufacturing overhead
is used by parties external to the company
D. Period costs
C. Management accounting information
is created according to user needs 443. The type or branch of accounting that
D. Management accounting information generates reports for the use of external
is created every year users such as creditors, investors and gov-
ernment agencies is known as:
438. The roles of managerial accountant in-
A. Financial Accounting
cludes:
A. Supervising low level accountants
B. Analyzing and managing financial risks C. Tax Accounting
C. Recording and analyzing costs D. Forensic Accounting
D. All of the above 444. Formula for debt ratio

439. Direct costs are A. Total assets/Total liabilities
A. Costs that do not change with output B. Total Liabilities/Total assets

445. cash inflow and outflows for produc- 450. The main Purpose of Financial Accounting
tion. is?
A. Cash flow analysis A. To Provide financial information to
shareholders
B. To maintain balance sheet
C. Product costing and valuation
C. To minimize taxes.
D. none of above
D. To keep track of liabilities
NARAYAN CHANGDER
446. Few businesses plan to fail, but many 451. This type of accounting fulfills the needs
of those that don’t succeed have failed to of external users of a business such as in-
plan vestors and creditors
A. True A. managerial
B. False B. financial
447. Which of the following describes process 452. The three different inventory will be
costing? shown as section of statements of fi-
nancial position.
A. Low cost per unit & Consume different
resources A. liabilities
B. non-current
B. Low cost per unit & Consume same re-
sources C. current
C. High cost per unit & Consume different D. non-liabilities
resources 453. costs stays the same; costs
D. High cost per unit & Consume same re- changes
sources A. Fixed; Variable
448. Expenses relating to sale of goods are B. Recurring; Infrequent

shown in: C. Variable; Fixed
A. Proft and Loss Account D. Infrequent; Recurring
B. Trading Account 454. Total Liabilities ÷
C. Trading and Profit & Loss a/c A. Debt to total assets ratio
D. Balance Sheet B. Debt to Equity Ratio
455. The percentage of costs other than direct
449. Management accountant plays a key role
material and direct labor costs allocated to
by
production of an item. It is determined by
A. Analysing the accounting information dividing the estimated factory overhead
B. Interpreting the accounting informa- costs by the direct labor costs.
tion A. Factory Overhead Rate
C. Serving the informational needs of the B. Debt ratio
management C. Merchandise Inventory Ratio
D. All the above D. none of above

456. If more overhead has been applied than A. Shareholders

was actually incurred, the ending Manu- B. CEO
facturing Overhead account balance repre-

sents the amount of [blank ] overhead. C. Manager
A. Underapplied D. Creditor
B. Overapplied 461. Happy Face Company has fixed cost of
P500, 000 per year, variable cost of P30
457. The following is information about invest-
per unit, and a selling price of P50 per unit.
ing in the Trang sea tour boat project. Ini-
The number of units the company must sell
tial investment 12, 000, 000 baht, project
to earn an income of P100, 000?
life 12 years, net annual cash receipts 3,
000, 000 baht, depreciation (straight line) A. 10, 000 units
1, 000, 000 baht. Calculate the accounting B. 25, 000 units
rate of return. (ARR)
C. 27, 500 units
A. 12.5%
D. 30, 000 units
B. 20%
C. 16.67% 462. A variable cost in total
D. 13.33% A. increases as output increases and de-

creases as output decreases
E. 12%
B. increases as output increases and/or
458. The following is true about contribution decreases
margin, namely C. remains constant no matter the level
A. remaining usable income covers fixed of output
costs D. increases as output decreases and de-
B. is always directly proportional to total creases as output increases
costs
463. Selling price-Variable Cost per unit is the
C. directly proportional to income formula for
D. is constant A. Total contribution
459. Which of the following are considered as B. Contribution per unit
prime costs?
464. The Avengers Company is trying to
A. Raw materials costs + Direct labour do cost-volume-profit analysis with the
costs following information for the month of
B. Direct labour costs + Indirect labour August:Sales-P1, 100, 000; Total Fixed
costs costs-P280, 000; Total Variable costs-
P660, 000; Unit price-P40.00. What is
C. Manufacturing overhead + Adminis-
the break-even point in units?
trative costs
D. Selling and distribution costs + Admin- A. 14, 000 units
istrative costs B. 17, 500
460. Who is an external user of financial state- C. 28, 000

ments? D. 35, 000

465. Yes or No:If dividend per share grows company desires to earn P400, 000 be-
while market price per share remains con- fore tax at full capacity, what is the selling
stant, it indicates positive effect to pre- price must be charged?
ferred stockholders A. P80.00
A. Yes B. P90.00
B. No C. P95.00
466. Happy Face Company has fixed cost of D. P156.67
NARAYAN CHANGDER
P500, 000 per year, variable cost of P30 470. In the key business processes of process-
per unit, and a selling price of P50 per unit. ing raw materials to the cost of goods sold,
The break-even point in units: what will be recorded in the “raw material
A. 10, 000 units use” transaction:
B. 25, 000 units A. Dr:Inventory Raw Materials.
Cr:Account Payable / Cash
C. 27, 500 units
B. Dr:Work in Progress. Cr:Inventory
D. 30, 000 units Raw Materials
467. A field of accounting that provides eco- C. Dr:Inventory Finished Goods. Cr:Work
nomic and financial information for man- ini Progress.
agers and other internal user is called: D. Dr:Cost of Goods Sold. Cr:Inventory
A. Managerial Accounting Finished Goods
B. Financial Accounting 471. What is NOT a corrective measure when

C. Cost Accounting analyzing performance report?
A. reducing future months expenses
D. Auditing
B. taking out a loan
468. The branch of accounting that generates C. revising the annual budget
reports and information for the use of in-
ternal management is known as: D. standing pat because the holiday sea-
son is coming up that will possibly reverse
A. Tax accounting sales trends.
B. Managerial or management account-
ing 472. It’s the process of Identifying, measur-
ing analyzing, interpreting and communi-
C. Auditing cating information in pursuit of an organi-
D. International accounting zational’s goal.
A. Financial Accounting
469. The Orange Company plans to sell a new
B. Accounting
product. The selling price is expected to
be P150 per unit. The company is able to C. Managerial Accounting
produce 15, 000 units but the company’s D. Cost Accounting System
marketing manager feels that a more real-
istic level of sales would be 12, 000 units. 473. If Quantity Produced is less than Quan-
Variable cost is estimated at P70 per unit. tity Sold, which of the following state-
Total fixed costs will be P900, 000. If the ments must be true?

A. There must have been some Beginning A. True

Inventory at the start of the period B. False

B. There must have been some amount
478. Producing raw goods into finished goods
remaining in Ending Inventory at the end
is a characteristic of the company:
of the period
A. Trade
C. The company cannot have had any Be-
ginning Inventory for this period B. Service
D. The difference between Net Incomes C. Banking
under Absorption and Variable Costing is D. Manufacture
fully accounted for by the difference in
479. The price that a manufacturer recom-
Ending Inventory
mends retailers sell the product.
474. The form used in job-order costing to A. MSRP
record the amount and cost of materials B. MRSP
used for a particular job.
C. MDRP
A. materials requisition form
D. MASP
B. materials documentation form
480. Cost of products being processed and not
C. materials journalization form
yet completed at the end of the period is
D. none of above called
475. A retailer is considering outsourcing its A. Finished goods
customer service function. Before building B. Work in process
a financial model, what is it imperative for C. Raw materials
them to keep in mind?
D. Manufacturing overhead
A. Data
481. What is the example of information that
B. financial return
a managerial accountant will share to the
C. the bigger picture decision makers to help them making deci-
D. risk transfer sion?
A. The past financial performance
476. What is the main objective of managerial
accounting? B. The company’s profits reported sev-
eral years ago
A. To create internal reports for man-
agers C. The anticipated profits or losses from
a decision to be made
B. To assist management in decision-
making D. The name of the company
C. To allocate resources within a busi- 482. Is the following direct labor, direct ma-
ness terials, manufacturing overhead, or period
costs?Salaries for factory employees
D. To report on a business’s financial
health to external parties A. Direct materials
B. Direct labor
477. Some managerial accounting reports con-
tain costs not incorporated in the basic ac- C. Manufacturing overhead
counting system. D. Period costs

483. The following are management functions, D. Assisting Shareholders in decision

except making
A. Controlling 488. Identify whether the following state-
B. Organizing ment are true or false.Preparation of bud-
C. Actuating get is part of Managerial accounting.
D. Planning A. True
E. Activity B. False
NARAYAN CHANGDER
484. A plan or procedure to follow in case an 489. Which of the following is an example of
existing plan or procedure fails. manufacturing overhead expense in a fac-
tory?
A. Contingency Plan
A. Wages of machine operators
B. Backup Plan
B. Wages of administrators in the corpo-
485. The goal of managerial accounting is to rate office
provide the information that managers C. Wages of factory maintenance person-
need for all of the following except: nel
A. Planning D. Salaries of salespersons
B. Control
490. Budgeted financial statements are also
C. Decision Making referred to as pro forma statements.
D. Review A. True
486. Calculate what the Total Product Cost is? B. False
491. The budget schedule that projects the in-

flow of money from cash sales and money
received on account, and any other receipt
of cash.
A. Cash receipts budget schedule
B. Cash Flow Statement
C. Cash Inflow Statement
D. none of above
A. $ 5.000 492. Performance report does:
B. $ 6.500 A. Analyze the difference between bud-
C. $ 3.000 geted and actual sales, costs, and ex-
D. $ 4.500 penses
B. Are prepared frequently for constant
487. Which of these is not an objective of Cost monitoring
Accounting?
C. Identify significant and/or unfavor-
A. Ascertainment of Cost able differences needing corrective ac-
B. Determination of Selling Price tions
C. Cost Control and Cost reduction D. All of the above

493. Fixed or Variable?Transport costs B. $520

A. Fixed C. $500

B. Variable D. $420
Explanation:Calculations:$220 + $500 =
494. Identify whether the item being de- $720-$200 = 520
scribed by the statement is Compe-
tence, Confidentiality, Credibility or In- 497. What are indirect costs?
tegrity:“Disclose all information that A. direct labor is the wages of employees
would reasonably be expected to influence who make a company’s products.
an intended user’s understanding of the re-
ports, analyses, or recommendation.” B. to finance something is to borrow
money in order to purchase it.
A. Competence
C. are costs such as rents and insurance
B. Confidentiality, premiums that stay the same regardless
C. Credibility of the volume of production.
D. Integrity D. is an expense that stays the same re-
gardless of the volume of production.
495. Calculate the selling price variance for the
following scenario. Karen’s Office Supply 498. A statement of the financial position of a
sells a calculator for $50. A new business business on a specified date or for a period
began selling the same calculator which of time.
forces Karen’s to sell the calculator for A. Financial Statement
$44 a piece. Karen’s sold 4, 000 calcu-
B. Balance Sheet
lators during the accounting period at this
price. C. Income Statement
A. $20, 000 D. none of above
B. $16, 000 499. A static budget contains which of the fol-
C. $12, 000 lowing amounts?
D. $8, 000 A. Actual costs for actual output
B. Budgeted costs for budgeted output
496. Selected financial information for Dier
Manufacturing is presented in the fol- C. Actual costs for budgeted output
lowing table (000s omitted). Sales rev- D. Budgeted costs for actual output
enue $4300Purchases of direct materi-
als $500Direct labor $460Manufactur- 500. A loan payment is a fixed expense.
ing overhead $710Operating expenses A. True
$690Beginning raw materials inventory B. False
$220Ending raw materials inventory
$200Beginning work in process inven- 501. Which branch of accounting is heavily reg-
tory $390Ending work in process inven- ulated?
tory $420Beginning finished goods inven- A. Tax accounting
tory $280Ending finished goods inventory
$250 What was the cost of direct materi- B. Managerial accounting
als used? C. Audit
A. $720 D. Financial accounting

502. Decision maker for managerial accounting 507. What are Outstanding Expenses?
A. Investors A. Expenses which are not paid off in the
current balance sheet.
B. External
B. The necessary purchases that keep a
C. Managers
business going from day-to-day.
D. Creditors
C. Type of expense that is due but has not
503. Operating budgets and financial budgets: been paid.
NARAYAN CHANGDER
A. combined form the master budget D. None of the above.
B. are prepared before the master bud- 508. requires the management to look a
get head and establish objectives. A key ob-
jective of management is to add value to
C. are prepared after the master budget
the business.
D. have nothing to do with the master
A. Planning
budget
B. Controlling
504. Which of the following statements rep- C. Decision Making
resents a similarity between financial and
management accounting? D. none of above
A. Both are useful in providing informa- 509. A shop that tailors batik shirts to sell
tion for external users. as souvenirs to tourists. Determine the
B. Both draw upon data from an organi- standard cost of producing 1 shirt as fol-
sation’s basic accounting system. lows:the cost of 2 yards of batik fabric,
150 baht each, the labor cost of the tai-
C. Reporting of financial statements is lor. It is set to take 1.5 hours/each,
similar. paying labor costs of 300 baht per hour.
D. Both must comply with Australian ac- Other production expenses are set at 100
counting standards. baht/direct labor hour from the above in-
formation. What is the standard cost of
505. An example of factory overhead is production overhead?
A. CEO salary A. 100 baht
B. electricity used to run assembly line B. 150 baht
C. raw materials used for product C. 300 baht
D. wage of workers in assembly line D. 400 baht
E. 450 baht
506. gathers, summarizes, and reports on
the financial impact of changes to business 510. The process of recording financial data
operations. upto trial balance is
A. Managerial Accounting A. Book keeping
B. Planning B. Classifying
C. Directing C. Summarising
D. Controlling D. Analyzing

511. Budgets can play both planning and con- A. Direct materials
trol roles for management. B. Managerial accounting

A. True C. Financial accounting
B. False
D. Value chain
512. Jake’s Jump Ropes has a total indirect
517. Which scenario results in the Net Income
cost of $500, 000 and incurs a direct cost
under Full Costing to be equal to the Net
of $100, 000. Which of the following is
Income under Variable Costing?
the overhead rate ratio?
A. Quantity Produced is equal to Quantity
A. 5:1
Sold
B. 1:5
B. Quantity Produced is greater than
C. 2:1 Quantity Sold
D. 1:2 C. Quantity Produced is less than Quan-
tity Sold
513. What type of plan is it when managers
are ready to set goals and create a plan to D. none of above
meet those goals after they have analyzed
the comparative income statement. 518. The amount of sales required to cover all
costs at which net income is zero.
A. Operational Planning
A. Break-Even Point
B. Financial Planning
B. Neutrality Point
C. Business Planning
C. Zero income point
D. Corporate Planning
D. Margin of Safety
514. If average variable cost is £10, and aver-
age selling price is £25, then what is con- 519. The theory and system of setting up,
tribution? maintaining, and auditing the financial
books of a firm
A. £35
A. Accounting
B. £15
C. £-15
C. Financial Accounting
D. £40
D. Economics
515. Managerial accounting reports generally
pertain to of a business and may be 520. Parham Bridges Recreation’s operating
very detailed. activities for the year are listed be-
A. product low. Purchases$174, 000Operating ex-
penses62, 200Beginning inventory 27,
B. planning 900Ending inventory 38, 000Sales rev-
C. special enue 333, 400 What is the cost of goods
sold for the year?
D. subunits
A. $163, 900
516. Primarily concerned with external users
and reports pertain to the entity as a B. $201, 900
whole. C. $174, 000

D. $97, 200 D. Total Fixed Costs/Variable Cost Per

Explanation:Calculations:$27, 900 + Item
$174, 000 = $201, 900-$38, 000 = $163,
900 526. The difference between the cost of the
products sold and the net sales.
521. When Sales is S, Variable Cost is 70% of
A. Gross Profit
Sales, and Fixed Cost is FC, what is the tar-
get Sales to achieve the target net profit B. Net Profit
set at 20% of Sales? C. Cost of Goods Sold
NARAYAN CHANGDER
A. 0.2/FC D. none of above
B. FC/0.2
527. Total Liabilities ÷
C. FC/0.7
A. Debt to Total Assets Ratio
D. FC/0.1
B. Debt to Equity Ratio
522. The following is not the role of cost ac-
C. Net Loss Ratio
counting information for management
D. Debt liquidity ratio
A. evaluate the performance of produc-
tion managers 528. Is the measure of resources given up to
B. evaluate purchasing manager perfor- achieve a particular purpose.
mance A. Job Shop
C. evaluate the performance of the com- B. Cost
pany’s director managers by shareholders
C. Financial Accounting
D. control operations
D. Cost of good sold
523. What is NOT one of the benefits of bud-
geting 529. Based on cost classification based on vol-
ume, sales commissions are classified as
A. Planning ahead
B. Knowing the future will always be cor-
A. Variable cost
rect
B. Fixed cost
C. Creating early warning system
D. Motivating personnel C. Mixed cost
D. Relevant range
524. Expenses and losses with no cash out-
flows are added back to net income. 530. Financial accounting reports are general-
A. True purpose and intended for external users.
TRUE OR FALSE?
B. False
A. True
525. Which of the following calculations would
B. False
you use to find total costs?
A. Fixed Costs + Variable Costs 531. Opening inventory + purchases-closing
B. Selling Price-Fixed Costs inventory is the formula for
C. Total Fixed Costs / Selling Price- A. Cost of goods sold

Variable Cost B. Inventory turnover

532. Managerial accounting reports can be de- 537. In financial accounting, reports are pub-
scribed as lished daily, weekly, or monthly depend-
ing on managerial requirements.

A. general-purpose.
B. macro-reports. A. True
C. special-purpose. B. False
D. classified financial statements. 538. Adjustments that may be made by the

managers:
533. Fixed assets are held by business for
A. Staffing
A. Converting into cash
B. Coaching
B. Generating revenue
C. Budgeting
C. Resale
D. Supporting
D. None of the above
534. Take a look at the performance report pic- 539. Based on the reaction to production vol-
ture. What is the ACTUAL gross profit on ume, cost classifications are divided into:
operations? A. fixed cost
B. operating costs
C. variable costs
D. production cost
540. What is the meaning of management ac-

counting?
A. measuring, describing, or providing
A. $30, 785 certainty regarding information that will
help managers, investors, tax authori-
B. $24, 500 ties and other decision makers make re-
C. $75, 500 source allocation decisions within compa-
D. $94, 909 nies, non-profit organizations, and gov-
ernment agencies
535. True or False:Within the relevant range, B. An accounting system that is related to
the price behavior is valid the use of accounting information by the
A. True managerial level of an organization
B. False C. a procedure for recording and report-
ing measurement results of the costs of
536. Any object for which costs or measures producing goods or services. Its main
are assigned function is to accumulate costs for inven-
A. cost object tory valuation and revenue determination
B. period object D. an art or principle related to organiz-
ing, such as planning, building an orga-
C. product object nization and its organization, movement,
D. standard cost and control or supervision.

541. Also known as Non-Manufacturing Cost C. Actual hours allowed is lower than
A. Product Cost standard hours allowed
D. Actual hours allowed is higher than
B. Period Cost
standard hours allowed
C. Inventoriable Cost
547. A statement that lists the assets, liabili-
D. Manufacturing Cost ties, and stockholders’ equity. It displays
542. Compute the break-even point in dollar a company’s collateral, liquidity, and net
worth.
NARAYAN CHANGDER
sales for the Family Law Segment.
A. Balance Sheet
A. $333, 333
B. Income Statement
B. $278, 300
C. Statement of Company Earnings
C. N/A
D. none of above
D. 373, 333
548. The contents of the report produced by
543. An opportunity cost is the foregone ben- cost accounting are
efit (or lost opportunity) of the path not
A. covers the company as a whole
taken. Anytime you choose to do one thing
instead of another because of a limit on B. covers certain parts of the company
your time or money, you incur an opportu- C. in the form of historical information
nity cost. (past)
A. True D. according to the standards set by the
Indonesian Institute of Accountants
B. False
549. If an expense can NOT be removed from
544. Managerial Accounting best reports to your budget to save money, it is consid-
WHOM? ered a
A. Financial investor A. Income
B. Managers B. Want
C. Creditors C. Need
D. The IRS D. Savings
545. The static budget should be used primar- 550. Decision Making is part of accounting.
ily to determine whether cost control is be- A. Management
ing maintained.
B. Manager
A. True C. Financial
B. False D. Business
546. What does a favorable fixed overhead 551. Primary costs types are used to establish
budget variance indicate? links between FI and CO and enable the
A. Actual fixed overhead is lower than exchange of information between financial
budgeted fixed overhead accounting and controlling
B. Actual fixed overhead is higher than A. False
budgeted fixed overhead B. True

552. Budgeting is crucial to your financial suc- 559. True or False:The direct cost is the cost
cess. that is matched against revenue in the
time it is incurred.

A. True
B. False A. True
B. False
553. A company’s break-even point would be
increased by the following statements, ex- 560. Consider an ice cream manufacturing busi-
cept: ness. What would best be considered an
A. an increase in fixed costs. factory overhead?
B. a decrease in contribution margin ra- A. Milk
tio. B. Sugar
C. a decrease in selling price. C. Electricity
D. a decrease in variable cost per unit. D. Ice cream assemblers
554. Building a financial model is about
561. Which type of accounting deals with the
A. historical data total cost of owning an asset?
B. strategy A. project accounting
C. planning B. lifecycle costing
D. bringing everything together C. activity-based costing
555. The tatue of management accountant de- D. lean accounting
pends on
562. Which of the following management ac-
A. Scope of his work tivities involves the process of deciding
B. responsibilities which option is the best?
C. both scope of his work snd reponsibili- A. Controlling
ties
B. Directing
D. none
C. Decision Making
556. A noncash account records cash receipts D. Financial Management
and cash payments.
A. True 563. Decision-making is an integral part of the
planning, directing, and controlling func-
B. False tions.
557. Internal reports must be communicated A. True
A. daily. B. False
B. monthly.
564. Which of the following formulas is used
C. annually. to calculate the contribution margin ratio?
D. as needed. A. (Sales-Fixed expenses)/Sales
558. Utilities B. (Sales-Cost of goods sold)/Sales
A. Fixed Expenses C. (Sales-Variable expenses)/Sales
B. Variable Expenses D. (Sales-Total expenses)/Sales

565. If conversion costs are $70, 000, man- C. $610, 000

ufacturing overhead costs are $22, 500, D. $210, 000
and direct materials costs are $39, 000,
then the prime costs must be 569. Accounting is broadly divided into how
A. $47, 500 many branches?
B. $86, 500 A. 1
C. $31, 000 B. 2
NARAYAN CHANGDER
D. $8, 500 C. 3
Explanation:Direct labor cost = conver- D. 4
sion costs-manufacturing overhead$70,
000 less $22, 500 = $47, 500Total prime 570. The following is wrong about cost ac-
cost = direct materials + direct la- counting and financial accounting
bor$39, 000 +$47, 500 = $86, 500 A. Cost accounting produces information
566. Calculate how much Direct Material that focuses more on the needs of the
Used? company’s external users
B. Cost accounting information is more
oriented to internal company users
C. Financial accounting information is
more oriented to external users of the
company
D. Accounting information criteria are
usually limited by the usefulness of the in-
formation, while financial accounting cri-
teria are limited by generally accepted fi-
nancial accounting standards
A. $ 3.000
B. $ 4.000 571. Alfred and kiera ran an auto detailing
business. They made $50, 000 in rev-
C. $ 5.000 enues last month due to the number of Pen-
D. $ 6.000 sacola residents who came in to have them
detail Corvettes. They paid $30, 000 in
567. Profit= expenses to run their business that same
A. Sales-Variable Expenses month. Did they make a profit?
B. Sales-Variable Expenses-Fixed Ex- A. Yes
penses B. No
568. BOBS Corporation has a beginning in- 572. Coordinating various business activities
ventory of $240, 000 for raw materials. is possible with
They have purchased $370, 000 of raw
materials during the year. The total raw A. Financial accounting
materials available for use is: B. cost accounting
A. $520, 000 C. Managerial accounting
B. $130, 000 D. Inflation accounting

573. The primary focus of lean accounting is 579. Which one of the following is not a direct
A. removing redundant record keeping material?

B. assigning financial responsibility A. A tire used for a lawn mower.
C. modeling accuracy B. Plastic used in the covered case for a

home PC.
D. reducing waste
C. Steel used in the manufacturing of
574. Controlling is the process of determining steel-radialtires.
whether planned goals are being met.
D. Lubricant for a ball-bearing joint for a
A. True large crane.
B. False
580. Which of the following is the cost of
575. Transportation costs when purchasing goods sold for Stan’s Floral if they be-
materials are gan the month with $500 inventory, pur-
chased $1, 000 of inventory during the
A. Direct Material (DM) month, and ended the month with $200
B. Direct Labor (DL) of inventory?
C. Factory Overhead (FOH) A. $1, 200
D. Selling/ Administrative Expense B. $1, 300
576. A company’s sales after subtracting re- C. $1, 400
turns, damaged and missing goods, and D. $1, 500
any sales discounts.
A. Net Sales 581. accounting is restricted only by the
value-addedprinciple
B. Gross Sales
A. Financial
C. Total Sales
B. Management
D. none of above
582. In a standard cost system, overhead is
577. Product costs consist of
applied on the basis of the actual level of
A. direct materials and direct labor only. activity rather than the standard level of
B. direct materials, direct labor and man- activity allowed for the output of a period.
ufacturing overhead. A. True
C. selling and administrative expenses. B. False
D. period costs.
583. The management function of organizing
578. A diagram that represents the order de- and directing is mainly concerned with set-
cisions and actions that are made in a pro- ting goals and objectives for the entity.
cess. A. True
A. flowchart B. False
B. trendline
584. Identify whether the following state-
C. journal ment are true or false.Management ac-
D. none of above counting provides economic and financial

information primarily to investors and 589. A company that buys finished goods to
other external users. be resold for a profit.
A. True A. manufacturing business
B. False B. Merchandising business
C. service business
585. Is the following direct labor, direct ma-
terials, manufacturing overhead, or period D. none of above
costs?Property taxes on the production
NARAYAN CHANGDER
factory. 590. The subtotal, “Cost of goods manufac-
tured” appears on
A. Direct material
A. a merchandising company’s income
B. Direct labor
statement.
C. Manufacturing overhead
B. a manufacturing company’s income
D. Period costs statement.
586. Allocate common fixed costs based on C. both a manufacturing and a merchan-
revenues from clients. dising company’s income statement.
A. Family segment = $36, 000.Commer- D. neither a merchandising nor a manu-

cial segment = $24, 000 facturing company’s income statement.
B. Family segment = $0.Commercial seg- 591. Which of the following costs is an exam-
ment = $60, 000. ple of a period rather than a product cost?
C. Family segment = $14, 000.Commer- A. Depreciation on production equipment
cial segment = $46, 000
B. Salaries of salespersons
D. Family segment = $24, 000.Commer-
C. Wages of production machine opera-
cial segment = $36, 000
tors
587. A company that wants to report both D. Insurance on production equipment
spending and efficiency variances for over-
head must compute budget allowances for 592. True or False:The cost driver is the inter-
both the actual amount of activity that oc- mediate and final disposition of cost pools.
curred and the standard level of activity
A. True
allowed for the level of output achieved.
B. False
A. True
B. False 593. Which is considered as the “act” function
of management?
588. Direct material used = Beginning material
A. Creating goals and budgets
inventory + net purchases ?
B. Carry out plans, hiring people, manag-
A. Ending work in process inventory
ing the daily business
B. Prime cost
C. Looking at results to see if goals were
C. Ending material inventory met and plans need adjusting
D. Beginning work in process inventory D. none of above

594. Direct materials and direct labor are clas- 599. When carrying out their planning activ-
sified as ities, managers select a course of action
and specify how the action will be imple-

A. Product costs and expensed when the
goods are sold mented.
B. Period costs and expensed when the A. True
goods are sold
B. False
C. Product costs and expensed when in-
curred 600. Cash inflows are
D. Period costs and expensed when in-
curred A. Expenses
595. Managerial accounting reports must com- B. Income

ply with generally accepted accounting
principles (GAAP). 601. Resources owned by a company (such as
cash, accounts receivable, vehicles) are re-
A. True
ported on the balance sheet and are re-
B. False ferred to as
596. The type or branch of accounting that gen- A. Assets
erates reports for the use of external par-
ties such as creditors, investors and gov- B. Liabilities
ernment agencies is known as: C. Owner Equity
A. Financial accounting
D. Equity
B. Managerial accounting
C. Tax accounting 602. Responsibility for the overhead efficiency
D. Forensic accounting variance should be assigned to whoever is
responsible for control of the activity base
597. Are costs that vary in total directly and underlying the flexible budget.
proportionately with changes in the activ-
ity level. A. True
A. Fixed Cost B. False
B. Variable Cost
603. Contribution margin / sales =?
C. Mixed Cost
D. Irrelevant Cost A. Gross margin
598. What are fixed expenses? B. Gross margin percentage

A. Irregular expenses that change from C. Unit contribution margin
week to week or month to month
D. Contribution margin ratio
B. The amount of money in your bank ac-
count
604. Merchandise bought can be considered
C. The amount of cash in your purse or a(n):
wallet
A. Cash inflow
D. Expenses that stay the same from
week to week or month to month B. Cash outflow

605. Process whereby cost items are charged 610. This budget is always the first one to be
direct to a cost unit or cost center is known prepared.
as
A. Production
A. Cost accounting
B. Sales
B. Cost allocation
C. Direct materials
C. Cost apportionment
D. Direct labor
D. Cost absorption
NARAYAN CHANGDER
611. What is the key difference between Full
606. Managerial accounting information is (Absorption) and Variable Costing?
generally prepared for
A. Full Costing treats Manufacturing
A. stockholders.
Overhead as a period cost
B. creditors.
B. Variable Costing treats Fixed Manufac-
C. managers. turing Overhead as a period cost
D. regulatory agencies. C. Absorption Costing only considers vari-
able costs to calculate net income
607. Identify whether the item being de-
scribed by the statement is Compe- D. Variable Costing only considers vari-
tence, Confidentiality, Credibility or In- able costs to calculate net income
tegrity:“Inform all relevant parties re-
garding appropriate use of information. .” 612. The direct materials budget shows:Desired
ending direct materials 48, 000 poundsTo-
A. Competence tal materials required 69, 000 poundsDi-
B. Confidentiality, rect materials purchases 63, 200 pounds-
The total direct materials needed for pro-
C. Credibility
duction is
D. Integrity
A. 21, 000 pounds
608. Factory overhead costs combined with di- B. 5, 800 pounds
rect labor costs are called costs.
C. 15, 200 pounds
A. factory overhead costs
D. 132, 200 pounds
B. direct material costs
C. prime costs 613. An opportunity cost is:
D. conversion costs A. the benefit given up or sacrificed when
one alternative is chosen over another.
609. What is the different item that need to
be transferred to Manufacturer Statement B. the cost to market, distribute, and ser-
of Profit and Loss? vice a product or service.
A. Net purchase C. the total product cost of goods com-

pleted during the current period and trans-
B. Direct labour ferred to finished goods inventory.
C. Prime cost
D. the difference between sales revenue
D. Cost of Goods Manufactured and cost of goods sold.

614. Is the use of accounting information for 619. Classification of these cost for an automo-
the reporting to parties outside the orga- bile manufacturer:Wages of assembly line
nization. workers

A. Accounting System A. Factory Overhead Costs
B. Managerial Accounting B. Direct Materials Costs
C. Financial Accounting C. Direct Labor Costs
D. Cost Accounting System
D. Indirect Labor Costs
615. Management accounting is used by
620. Both financial and management account-
A. Human resource employees who need ing:
to plan hiring
A. Must be performed by all accountants.
B. Marketing employees who make deci-
sions on profit achievable through an ad- B. Achieve the same objective.
vertising campaign C. Must conform to rules issued by gov-
C. Accounting employees who make bud- ernment departments.
get recommendations
D. Use the same information system.
D. All of the above.
621. In a vertical analysis, which number is
616. What is the total revenue from clients for ALWAYS the denominator, or divided by?
the Family segment? Hint, every other numbers value for the
A. $400, 000 column will be divided by this number.
B. $600, 000 A. Total Selling expenses
C. $1, 000, 000 B. Total Administrative Expenses
D. $220, 000 C. Net Income
617. A good budgeting system forces man- D. Net Sales
agers to examine the business as they
plan, so they can: 622. Financial accounting is primarily con-
cerned with providing financial reports to
A. detect inaccurate historical records
all of the following EXCEPT
B. set specific expectations against
which actual results can be compared A. creditors such as banks and other fi-
nancial institutions.
C. complete the budgeting task on time
B. creditors such as suppliers.
D. get promoted for doing a good job
C. shareholders of the
618. Conversion Cost (Conversion Cost) is ob-
D. management of the firm.
tained from:
A. DM + DL 623. Which industry buys finished goods to be
B. DL + FOH resold for a profit?
C. DM + FOH A. Merchandising industry
D. DM + DL + FOH B. Manufacturing industry

624. Calculate the purchase price variance for 629. The written financial plan for a business,
the following scenario. Otto’s Auto Re- including estimated income and expenses
pair purchased a car for $10 a part if they for a given period of time, usually span-
purchased 1, 000 parts during the year. ning a year.
Otto’s only purchased 900 parts and they A. Budget
were charged $12 per part.
B. Income Statement
A. $1, 200
C. Forecast Statement
B. $1, 400
NARAYAN CHANGDER
D. Mission Statement
C. $1, 600
D. $1, 800 630. Production requirements formula is:
A. Budgeted sales units-Desired ending
625. The total contribution margin divided by finished goods units-Beginning finished
the number of units sold. It shows how goods units = Required production untis
much money per unit is left to pay a busi-
ness’s fixed costs and provide net income B. Budgeted sales units-Desired ending
finished goods units-Beginning finished
A. Contribution Margin Per Unit goods units = Required production units
B. Gross Margin Per Unit C. Budgeted sales units + Desired end-
C. Net Margin Per Unit ing finished good units-Beginning finished
goods units = Required production units
D. none of above
D. Budgeted sales units + Desired end-
626. 2 abroad functions will be performed by ing finished goods units + Beginning fin-
managers are ished goods units = Required production
A. planning and controlling units
B. planning and leading 631. The number of days it takes for a com-
C. controlling and organizing pany to receive payment. It is calculated
by dividing the number of days in a year
D. leading and organizing
(365) by the accounts receivable turnover
627. The two equity transactions include the ratio
issuance of common stock for cash and A. Days Sales Outstanding
the declaration and payment of cash div-
B. Accounts Recievable Days Outstand-
idends.
ing
A. True
632. A manufacturing inventory account that
B. False records products that are fully completed.
628. Investors who will invest their funds It includes the direct materials, direct la-
in companies need information produced bor, and factory overhead specific to that
by product.
A. financial accounting system A. finished good
B. cost accounting system B. cost of merchandise
C. management accounting system 633. Product cost includes

D. standard cost system A. Direct material

B. Direct labor C. 12, 000

C. Selling and administrative costs D. Cannot be determined from the data

D. Manufacturing overhead provided.
634. which includes examples of semi-variable 639. Lourain Dee is an owner-operated com-
costs, namely pany that details (thoroughly cleans-inside
and out) automobiles, Lourain Dee’s is
A. raw material costs
which of the following?
B. direct labor costs
A. Wholesaler
C. electricity cost
B. Manufacturing Firm
D. water costs
C. Service Firm
635. Managerial and Financial Accounting are D. Retailer
the same
A. True 640. The function of setting goals and objec-
tives
B. False
A. Planning
636. The labor costs associated with those em-
ployees who are a part of the company B. Directing
but are not necessarily working directly C. Financial accounting
with the actual production of the product. D. Controlling
Examples include a maintenance manager
and janitorial staff. 641. What is the type of users of managerial
A. Indirect Labor accounting?
B. Direct Labor A. Internal users ( managers, employees,
partners )
C. Offsite Labor
D. Nonproduct Labor B. Internal and external user ( Owners of
stockholders, lenders, customers )
637. Both direct labor and manufacturing over-
head are called because they are ex- 642. A percentage reduction from the list price
penditures incurred in the process of con- of merchandise allowed to retailers by
verting the raw materials into finished whole sellers is called:
A. Conversion costs A. Commission
B. Prime cost B. Cash discount
C. Product cost C. Trade Discount
D. Cost of goods manufactured D. Allowance
638. The production budget shows that ex- 643. Conversion costs are the sum of
pected unit sales are 48, 000. The total
A. Manufacturing overhead
required units are 54, 000. What are the
required production units? B. Indirect costs
A. 6, 000 C. Direct Labor
B. 9, 000 D. Product costs

644. Planning is a function that involves 648. The form used in job-order costing to
record and calculate direct materials costs,
A. hiring the right people for a particular
direct labor costs, and factory overhead
job.
costs in order to determine per unit cost.
B. coordinating the accounting informa-
A. Cost Sheet
tion system.
B. Expense Sheet
C. setting goals and objectives for an en-
tity. 649. What is prime cost?
NARAYAN CHANGDER
D. analyzing financial statements. A. Direct material + Direct labour
645. Which of the following is a sunk cost? B. Direct expense-Manufacturing over-

head
A. Money spent on materials currently in
C. Direct material + Manufacturing over-
production
head
B. Manufacturing overhead
D. Direct labour-Direct Expense
C. Money spent on an unfinished storage
building 650. An income statement that shows sales,
costs, and expenses for two consecutive
D. Money spent paying employees years
646. If sales are $100, 000, fixed expenses A. Performance report
are $34, 500, and the contribution margin B. Comparative income statement
is $40, 000, then the net operating income
C. trend income statement
must be:
D. none of above
A. $74, 500
B. $5, 500 651. Economic events are the raw data for
both financial and managerial accounting.
C. $60, 000
A. TRUE
D. $34, 500
Explanation:contribution margin of $40, B. FALSE
000 less fixed expenses of $34, 500 = net 652. Which of the following statements about
operating income of $5, 500 management accounting are true?i. It is a
part of an organisation’s management in-
647. For next year, Galliart, Inc., has bud-
formation system.ii. It is relied upon by
geted sales of 60, 000 units, target ending
managers to plan and control an organisa-
finished goods inventory of 3, 000 units,
tion’s operations.iii. It is relied upon by ex-
and beginning finished goods inventory of
ternal users to make investment decisions.
1, 800 units. All other inventories are
zero. How many units should be produced A. i and ii
next year? B. i, ii and iii
A. 58, 800 units C. ii and iii
B. 60, 000 units D. iii
C. 61, 200 units
653. The following are not users of cost ac-
D. 64, 800 units counting information

A. marketing Manager 658. The following information pertains to

B. personnel manager Ellery Company:Budgeted sales-P1, 000,
000; Break-even Sales-P700, 000; Bud-

C. production manager geted Contribution Margin-P600, 000.
D. tax office The margin of safety for Ellery Company
is:
654. Managerial accounting information in-
cludes such items as budgets, performance A. P300, 000
evaluations, and cost reports. B. P400, 000
A. T C. P500, 000
B. F D. P600, 000
655. For which scenario does the difference be-
tween the Beginning Inventory under Full 659. Ratios that measure a company’s effi-
Costing and the Beginning Inventory un- ciency in managing its assets
der Variable Costing account for the dif- A. Asset Management Ratios
ferences in Net Incomes under these meth-
ods? B. Asset Capitalization Ratios
A. Quantity Sold is equal to Quantity Pro- C. Asset Effeciency Ratios

duced D. none of above
B. Quantity Sold is greater than Quantity
Produced 660. Identify whether the following state-
C. Quantity Sold is less than Quantity Pro- ment are true or false.Managerial account-
duced ing reports are prepared only quarterly
and annually.
D. none of above
A. True
656. What is the margin of safety?
B. False
A. The difference between units sold and
the break-even amount 661. What is a cost?
B. The margin between units and sales A. Something the company receives
C. The margin between each break-even
B. The price of a product
point
D. The margin between profit and loss C. Something the company must pay
D. Something the company sells
657. Manufacturing costs include
A. direct materials and direct labor only 662. The kind of debts which are needed to be
B. direct materials and manufacturing repaid in a short term is known as?
overhead only. A. Fixed Liabilities
C. direct labor and manufacturing over- B. Current Liabilities
head only.
C. Depreciating Assets
D. direct materials, direct labor and man-
ufacturing overhead. D. Intangible Assets

663. What is the advantage of performing D. Lifecycle costing projects ahead for a
activity-based costing over other meth- ten-year period, rather than the one-year
ods? period for activity-based costing.
A. improved record keeping.
667. The dollar amount of net income a com-
B. It assigns costs to specific time peri- pany earns beyond the break-even point.
ods.
A. margin of safety
C. It appropriately allocates overhead
B. gross margin
NARAYAN CHANGDER
costs.
D. It reduces waste in the project pro- C. net of safety
cess. D. point of safety
664. The materials that are used in the produc- 668. Street Company’s fixed expenses total
tion of the product but are not as impor- P150, 000, its variable expense ratio is
tant as the direct materials. Glue, stain, 60% and its variable expenses are P4.50
and varnish are examples of indirect ma- per unit. Based on this information, the
terials break-even point in units is:
A. Indirect Materials
A. 50, 000
B. Direct Materials
B. 37, 500
C. Nonproduct materials
C. 33, 333
D. Unnecessary Materials
D. 100, 000
665. Identify the correct characteristics of
management accounting information that 669. What is the main objective of financial ac-
suitable to explain these statement:”Any counting?
accounting information given must give EF- A. To assist management in decision-
FECT to the decision made” making
A. accuracy B. To create internal reports for man-
B. flexible agers
C. relevant C. To allocate resources within a busi-
D. understandable ness
D. To report on a business’s financial
666. How does lifecycle costing differ from health to external parties
activity-based costing?
A. Activity-based costing is more subjec- 670. A manager that is establishing objectives
tive than lifecycle costing. is performing which management func-
tion?
B. Lifecycle costing refers to an asset
rather than an operation, which is the fo- A. Controlling
cus of activity-based costing.
B. Directing
C. Activity-based costing is updated
C. Planning
yearly, while lifecycle costing is updated
regularly. D. Constraining

671. A debt ratio that measures a company’s D. Items such as glue, nails and screws
financial leverage. This ratio can be calcu- become part of the finished product but
lated by dividing total liabilities by total are usually classified as direct costs.

stockholders’ equity.
676. What is the focus of financial accounting?
A. Debt to equity ratio
A. Future planning and decision-making
B. Accounting Ratio
B. Presenting information to internal
C. Debt to asset ratio managers
D. Equity to debt ratio C. Reporting on past transactions and
events
672. overheads that cannot be allocated to the
production of a particular product and re- D. Managing risks within a business
late to the business as a whole. 677. Activity types are organizational units
A. direct costs within the controlling area, which classify
B. unit cost the performance of const center
C. indirect costs A. True

B. False
D. profit
678. What is the basic difference between a
673. Cost accounting includes
master budget and a flexible budget is that
A. classifying, recording and appropriate a master budget is:
allocation of expenditure for products
A. only used before and during the bud-
B. classifying, recording and appropriate get period and the flexible budget is only
allocation of expenditure for services used after the budget period
C. classifying, recording and appropriate B. for an entire production facility
allocation of expenditure for products and whereas a flexible budget is applicable
services to single departments only
D. none of these C. Based on a fixed standard, whereas
a flexible budget allows management lati-
674. True or False:The cost pool is an account tude in meeting goals
in which a variety of similar costs are ac-
cumulated. D. Based on one specific level of produc-
tion and a flexible budget can be prepared
A. True for any production level within the rele-
B. False vant range
675. Which of these statement is correct? 679. What is the roles of management accoun-
tant?
A. The salary of a factory maintenance
personnel is would be classified as as di- A. Provide information and accounting re-
rect labour. ports
B. The cost of collecting debts from cus- B. Assist departments in achieving the or-
tomers is classified as part of factory over- ganization objectives.
head. C. Responsible for carrying out the task
C. Power used to operate the machinery of helping the management
is classified as factory overhead. D. All of the above

680. James Company has a margin of safety 685. True or False:Selling and administrative
percentage of 20%. The break-even point costs are considered manufacturing cost?
is P200, 000 and the variable expenses A. True
are 45% of sales. Given this information,
the net operating income is: B. False
A. Pah, 500 686. If the cost of goods sold is $95, 700,

beginning merchandise inventory is $10,
B. P18, 000
500, and merchandise purchases are $110,
NARAYAN CHANGDER
C. B.500 000, then the ending merchandise inven-
D. B, 000 tory must be
A. $24, 800
681. The following maybe sources of informa-
tion except B. $3, 800
C. $85, 200
A. economists
D. $10, 500
B. marketer
Explanation:Cost of goods available for
C. skeptics sale = beginning merchandise inventory
D. banker + merchandise purchases = cost of
goods available for sale$10, 500 + $110,
682. My name 000 = $120, 500cost of goods available
for sale less cost of goods sold = end-
A. Effendi ing merchandise inventory $120, 500 less
B. Rohman $95, 700 = $24, 800
C. Rochman 687. Fixed costs stay the same, in total, as ac-
D. Rochman Effendi tivity level changes.
A. T
683. What are the four elements of the road
map to preparing a financial model? B. F
A. goals, staffing. taxes, and accounting 688. What is a business doing when it sells
output beyond the break-even point?
B. data. regulations. oversight, and ac-
counting A. Making a loss
C. interest rates, taxes, debts, and as- B. Making a profit
sets C. Making neither a profit or loss
D. goals, outputs. information, and busi- D. It is not possible to tell from the graph
ness rules
689. Identify whether the item being de-
684. A distinguishing feature of managerial ac- scribed by the statement is Compe-
counting is tence, Confidentiality, Credibility or In-
tegrity:“Maintain an appropriate level of
A. external users.
professional expertise by continually de-
B. general-purpose reports. veloping knowledge and skills.”
C. very detailed reports. A. Competence
D. quarterly and annual reports. B. Confidentiality,

C. Credibility 900Direct Labor137, 000Manufacturing

D. Integrity overhead 185, 300Finished goods inven-
tory, beginning0Finished goods inventory,

690. Period costs are not inventoriable costs. ending90, 700 What is the cost of goods
A. TRUE sold?
B. FALSE A. $365, 100

B. $455, 800
691. A widely accepted set of rules, conven-
tions, standards, and procedures for re- C. $752, 000
porting financial information, established D. $520, 900
by the Financial Accounting Standards Explanation:Calculations:$455, 800-90,
Board 700 = $365, 100
A. Gaap 695. Which is required by GAAP or regulatory
B. GAP agencies?
C. GAAP A. Managerial Accounting
D. none of above B. Financial Accounting
692. Each of the following would affect the 696. The master budget reflects the impact of
break-even point except a change in the operating decisions, but not financing deci-
A. number of units sold sions.
B. variable cost per unit A. True
C. total fixed cost B. False
D. sales price per unit 697. Samson Company reported total manu-
facturing costs of $320, 000, manufactur-
693. In the key business processes of process-
ing overhead totaling $52, 000, and direct
ing raw materials to the cost of goods sold,
materials totaling $64, 000. How much is
what will be recorded in the “purchase of
direct labor cost?
raw materials” transaction:
A. Cannot be determined from the infor-
A. Dr:Inventory Raw Materials.
mation provided.
Cr:Account Payable / Cash
B. $268, 000
B. Dr:Work in Progress. Cr:Inventory
Raw Materials C. $256, 000
C. Dr:Inventory Finished Goods. Cr:Work D. $204, 000
ini Progress.
698. Which items are classified as outputs in
D. Dr:Cost of Goods Sold. Cr:Inventory a financial model?
Finished Goods
A. costs, cash flows, and return on invest-
694. Russ Maddux Company reports the fol- ment
lowing data for its first year of opera- B. current resources and overhead costs
tion. Cost of goods manufactured$455,
800Work in process inventory, begin- C. transition costs and the lifecycle term
ning0Work in process inventory, end- D. financial return and corporate strat-
ing140, 400Direct materials used 110, egy

699. Direct material are: C. $11, 000

A. Product costs and Manufacturing over- D. $13, 000
head
B. Product costs 704. Management accounting is concerned
with accounting information that is useful
C. Product costs, Manufacturing over- to
head and period costs
A. Investors
D. None of above
NARAYAN CHANGDER
B. Managers
700. Yes or No:It is better to have longer num-
ber of days in inventory C. Bankers
A. Yes D. government
B. No 705. Economic data and changes in consumer
701. What does a favorable variable overhead buying habits would be considered what
spending variance indicate? type of source for budgets?
A. Actual variable overhead rate is higher A. External

than standard variable overhead rate B. Internal
B. Actual variable overhead rate is lower
than standard variable overhead rate 706. A few major products; Higher Volume
C. Actual variable overhead is lower than A. Assembly
standard variable overhead B. Batch
D. Actual variable overhead is higher
C. Job Shop
than standard variable overhead
D. Continuous Flow
702. Information which are related to you is
considered as a/ an information and 707. A manufacturing requires small amounts
is considered to be a good information. of glue. The glue used in the production
A. Objective process is classified as
B. Understandability A. period cost.
C. Relevant B. indirect material.
D. Subjective C. direct material.
703. Contribution margin is the difference be- D. miscellaneous expense.
tween the net sales and the variable costs.
The contribution margin shows the amount 708. A company’s income after expenses are
of money a business has available to pay subtracted from revenues for a particular
its fixed costs and contribute to net in- period of time.
come. Calculate the contribution margin A. net income
if net sales equal $26, 000 and variable
costs is $14, 000 B. gross income
A. $12, 000 C. revenue
B. $40, 000 D. none of above

709. Costs that remain the same in total re- C. Payment Accounting
gardless of changes in the activity level. D. Financial Accounting

A. Variable Cost
714. Which factor in determining a company’s
B. Fixed Cost net income is outside of the company’s con-
C. Relevant Cost trol?
D. Sunk Cost A. Sales price
710. The formula to determine the costs of B. variable costs

goods manufactured is: C. fixed costs
A. Beginning raw materials inventory + D. sales volume
Total manufacturing costs-Ending work in
715. What is the ratio for Merchandise Inven-
process inventory
tory Turnover Ratio?
B. Beginning work in process inventory +
A. Cost of merchandise sold ÷
Total manufacturing costs-Ending finished
goods inventory B. Average Merchandise Inventory ÷
C. Beginning finished goods inventory + C. Net Sales ÷
Total manufacturing costs-Ending finished D. none of above
goods inventory
716. A product, sales territory, department,
D. Beginning work in process inventory +
or activity to which costs are traced is
Total manufacturing costs-Ending work in
called a
process inventory
A. cost object
711. It is the property of a company such as
B. direct cost
land, equipment, buildings etc.
C. direct material
A. Assets
D. factory overhead costs
B. Liabilities
C. Equity 717. Which of the following characteristics
does NOT pertain to management account-
D. Own ing?
712. Which of the following are manufacturing A. Provides information and estimates
costs? about future activity
A. Direct Labor B. generates financial statements and re-
B. Direct Material ports
C. Direct Overhead C. provides financial and operating data
multidisciplinary’ in scope
D. Indirect Overhead
D. has externally imposed standards
713. The process of collecting and reporting
the direct materials, direct labor, and fac- 718. Identify whether the item being de-
tory overhead costs related to producing a scribed by the statement is Compe-
good or service. tence, Confidentiality, Credibility or In-
tegrity:“Keep information from other par-
A. Cost Accounting ties except when disclosure is authorized
B. Managerial Accounting or legally required.”

A. Competence 723. Multiple products; Low volume

B. Confidentiality, A. Assembly
C. Credibility B. Batch
D. Integrity C. Continous Flow
D. Job Shop
719. Financial accounting information is pre-
pared according to generally accepted ac- 724. What is the contribution margin for the
NARAYAN CHANGDER
counting principles. Companywide?
A. T A. $300, 000
B. F B. $480, 000
720. The budget schedule that projects the out- C. $780, 000
flow of cash for merchandise, operating D. $1, 000, 000
expenses, and any other payment of cash.
725. What is Managment Accounting?
A. Cash Flow Schedule
A. planning
B. Expense Flow Schedule
B. Organising
C. Cash Payments Budget Schedule
C. directing
D. none of above
D. All the above
721. Managerial Accounting and Financial Ac-
counting differ in the following way: 726. Total Contribution is calculated as
A. Financial Accounting emphasizes fore- A. Sales revenue-fixed costs

casts of future performance B. Total variable costs / units
B. Financial Accounting summarizes in- C. Sales revenue-total variable costs
formation for the company as a whole.
D. none of above
C. Financial Accounting is private infor-
mation for company managers 727. What are fixed costs?
D. Financial Accounting emphasizes time- A. are categories of production costs into
liness over precision. which indirect costs are allocated.
B. is a method for allocating indirect
722. What is the roles of management accoun- costs as parts of production costs.
tant?
C. is an expense that stays the same re-
A. Provide information and accounting regardless of the volume of production
ports
D. none of above
B. Responsible for carrying out the task
of helping the management 728. Recurring payments occasional payments
C. Assist departments in achieving the or- and cash payments are what?
ganization objectives. A. Inflow
D. All of above B. Outflow

729. Business enterprise is separate from its 734. Yes or No:If current assets is twice the
owner according to concept. current liabilities the current ratio is 1:2

A. Money measurement concept A. Yes
B. Matching concept B. No
C. Entity concept 735. Identify whether the following state-
ment are true or false.Managerial account-
D. Dual aspectconcept
ing applies only to merchandising and man-
730. The reason of the managerial accounting ufacturing companies.
is prepared for looking-forward informa- A. True
tion is because B. False
A. The main reason is to assist the exter-
736. What is the definition of a budget?
nal users
A. A budget is a written financial plan for
B. Give opportunity for the creditors to a business over a specific period of time,
well evaluate the business usually a year.
C. The management accountant do not B. A budget shows the net income of a
consider the past financial information company as well its inflows and outflows.
D. The futuristic nature of making deci- C. A budget shows the important finan-
sion cial ratios that are being used.
731. Which branch of accounting only issues D. A budget is a written financial plan for
reports when needed but not necessarily a business over its lifetime.
required to do so? 737. The managerial function of controlling
A. Managerial Accounting A. is performed only by the controller of
B. Financial Accounting a company.
B. is only applicable when the company
732. In the production of shirts, buttons are sustains a loss.
classified as
C. is concerned mainly with operating a
A. Direct materials manufacturing segment.
B. Direct labor D. includes performance evaluation by
management.
C. Manufacturing overhead
D. Non-manufacturing cost 738. Identify whether the following state-
ment are true or false.Financial accounting
733. Which of the following is the process report are generally-purpose reports.
of choosing whether to make a product A. True
in-house or purchase it from an external
B. False
source?
A. Linear regression 739. True or False:The manufacturing cost is
composed of overhead, materials and la-
B. Variance Analysis bor
C. Cost-profit decision A. Yes
D. Make or buy decision B. No

740. The following is information about invest- A. A cost object is the item whose cost is
ing in the Trang sea tour boat project:initial measured
investment of 12, 000, 000 baht, project B. Cost objects are activities that are usu-
life of 12 years, net annual cash receipts ally accumulated
of 3, 000, 000 baht, depreciation (straight
line) of 1, 000, 000 baht, assuming a capi- C. Processes cannot be cost objects
tal cost of 10. % Calculate the net present D. Strategic objectives can be cost ob-
value (NPV). jects
NARAYAN CHANGDER
A. 8, 442, 000 baht 746. Which is NOT one of the four areas of
B. 4, 950, 000 baht managerial accounting?
C. 1, 628, 000 baht A. Cost accounting
D. -700, 000 baht B. Internal Auditing

C. Planning and Forecasting
E. -11, 043, 000 baht
D. Performing a Trial Balance
741. In management accounting, it is not a re-
quirement to follow GAAP in preparing re- 747. The list of accounts with their balances is
ports for internal purposes. the:
A. True A. Journal
B. Trial Balance
B. False
C. Ledger
742. Which best describes cash flows in ser-
D. Balance Sheet
vice companies
A. Inventory for WIP 748. Fixed or variable expense:Rent?
B. Inventory for finished goods A. Fixed

B. Variable
C. Inventory for both WIP and finished
goods 749. calculate the cost of good manufac-
D. No inventory for WIP or finished goods tured whenmanufacturing overhead =
RM1500prime cost =RM2300beginning
743. Reports prepared in financial accounting work in process = RM330ending work in
are general-purpose reports, whereas re- process = RM560
ports prepared in managerial accounting A. RM 1304
are usually special-purpose reports.
B. RM 2156
A. True
C. RM 3570
B. False
D. RM 4350
744. Cash Receipts, Cash Sales, Customers on 750. Manager performs two broad functions
account, interest revenue are what? which are planning and
A. Inflow A. Budgeting
B. Outflow B. Calculating
745. The following is an incorrect statement C. Supporting
regarding cost objects D. Controlling

751. Which is NOT a risk by not having a bud- D. Indirect materials

get schedule?
757. All of the significant materials that are an

A. Late payments
integral part of the finished product
B. Not enough inventory
C. Bankruptcy A. Direct Materials
D. People losing jobs because of poor B. Total materials
numbers
C. Indirect Materials
752. Fixed or Variable?Insurance D. none of above
A. Fixed
B. Variable 758. Cost of direct materials purchased is cost
of direct material used beginning in-
753. If an expense is increasing at a faster ventory ending inventory.
rate than the sales, what kind of trend is
it? A. plus, minus
A. Unfavorable trend B. less, more
B. Favorable Trend C. more more
C. Neutral Trend D. less, less
D. Not enough information is given
759. What is the focus of managerial account-
754. The following statements regarding Man-
ing?
agement Accounting are true, except:
A. Emphasizes thoroughness and objec- A. Future planning and decision-making
tivity B. Managing risks within a business
B. future oriented
C. Presenting information to internal
C. Provides information for management managers
to make decisions
D. Reporting on past transactions and
D. Does not have a standard format for events
reporting
755. Identify whether the following state- 760. What an entity owes
ment are true or false.Financial accounting
A. Liability
reports pertain to subunits of the business
and are very detailed. B. Expense
A. True C. Asset
B. False
D. Equity
756. Which one of the following would not be
classified as manufacturing overhead? 761. A projection of the revenues, expenses,
and net income for a fiscal year.
A. Indirect labor
B. Direct materials A. Budgeted Income Statement
C. Insurance on factory building B. Income Statement

762. Schultz Company expects to manufacture 767. All of the following can be differential
and sell 30, 000 baskets in 20X4 for $6 cost except
each. There are 3, 000 baskets in begin- A. Opportunity Costs
ning finished goods inventory with target
ending inventory of 4, 000 baskets. The B. Variable Costs
company keeps no work-in-process inven- C. Fixed Costs
tory. What amount of sales revenue will D. Sunk Costs
be reported on the 20X4 budgeted income
statement? 768. What are involved in financial account-
NARAYAN CHANGDER
ing?
A. $174, 000
A. Summarizing
B. $180, 000
B. Recording
C. &186, 000
C. Reporting
D. $204, 000
D. Analyzing
763. Identify whether the item being de- 769. Which 3 of these are costs?
scribed by the statement is Compe-
A. Fixed
tegrity:“Communicate information fairly B. Variable
and objectively.” C. Operating
A. Competence D. Revenue
B. Confidentiality, 770. What is Operating Income?
C. Credibility
D. Integrity
764. Entertainment
A. Fixed Expense
B. Variable Expense
765. What is Break Even Point?

A. total sales = total Cost
A. $ 3.000
B. No Profit No loss
B. $ 5.000
C. In units and value is Calculated
C. $ 6.000
D. none
D. $ 7.000
766. A general term that is used to measure a 771. High production volume; Highly standard-
company’s debt in relation to its assets. izedCommodity products
A. Debt ratio A. Job Shop
B. Liability ratio B. Batch
C. Expense ratio C. Assembly
D. none of above D. Continuous Flow

772. Fasai Tour Company Organized a trip to 776. What are Fixed Costs?
see cherry blossoms in Japan, but not all A. the amount of money allocated for a
seats were sold yet. Therefore would like

business to use in certain departments
to issue a fire promotion for selling the last
2 seats. Therefore, he wanted students B. business costs, such as rent, that do
to help determine what price would be not vary because of the amount of goods
appropriate and make the company prof- produced
itable. The company has provided relevant C. costs that change depending upon the
information as follows:Variable costs (air- output
fare, accommodation, food, etc.) 20, 000 D. the point in a business when the prof-
baht/person, fixed costs. (Operating ex- its are equal to costs
penses) 80, 000 baht. Normal tour sell-
ing price is 30, 000 baht/person. Total 777. accounting is emphasizes reporting to
seats:15 seats. external users
A. 12, 999 baht A. Financial
B. 15, 999 baht B. Management
C. 17, 999 baht C. Managerial
D. 19, 999 baht D. Business
E. 22, 999 baht
778. Which is a SIMILARITY of Managerial and
773. Which of the following is not one of the Financial Accounting?
IMA’s credibility standards?
A. They both follow GAAP guidelines
A. To disclose all relevant information
B. Reports information to help with fu-
B. To disclose deficiencies in internal con- ture decisions
trol
C. Focuses on different parts of the busi-
C. To communicate information fairly and ness instead of the whole
objectively
D. Reports on past business
D. All of the above are part of IMA’s cred-
ibility standard. 779. The management of an organization per-
forms several broad functions. They are:
774. Managerial accounting is an important
aid to assist the management in A. planning, directing, and selling.
A. Decision making B. planning, directing, and controlling.
B. Control C. planning, manufacturing, and control-
C. Both dcision making and control ling.
D. None D. directing, manufacturing, and control-
ling.
775. The cost most closely proportional to fac-
tory overhead costs. 780. PT Randevu in 2011 purchased a factory
building for IDR 500 million, with a use-
A. Base Activity
ful life of 20 years. Depreciation uses the
B. Salaries straight line method. Costs and expenses
C. Utilities in 2011 are:
D. Materials A. 500 million and 500 million

B. 500 million and 25 million A. Produce it yourself because it’s

C. 25 million and 500 million cheaper than buying 3 baht/box.
B. Produce it yourself because it’s
D. 500 million and 250 million
cheaper than buying 5 baht/box.
781. Managerial accounting focuses on prepar- C. Buy from a restaurant Because it’s
ing the report for its internal users cheaper than producing it yourself, 2
A. True baht/box.
NARAYAN CHANGDER
B. False D. Buy from a restaurant Because it’s
cheaper than producing it yourself, 5
782. Whether a cost is treated as direct or in- baht/box.
direct depends on whether tracing the cost E. You can produce it yourself or buy it.
is either possible or feasible. Because the costs are not much different.
A. T
786. During March, Adams Company had sales
B. F of P5, 000, 000, variable expenses of P3,
000, 000 and fixed expenses of P1, 500,
783. Which of the following is not an operat- 000. Assume that cost behavior and unit
ing budget? selling price remain unchanged during April.
A. Direct labor budget In order for the company to realize net
operating income of P300, 000 for April,
B. Sales budget
sales would be:
C. Production budget
A. Sell, 750, 000
D. Cash budget
B. Pch, 050, 000
784. Internal cost and performance flows are C. Pch, 500, 000
billed using secondary cost elements in D. Pch, 800, 000
SAP ERP system
A. True 787. Which of the Following three processes
takes place at the beginning of a cost cen-
B. False ter accounting process?
785. Fasai Tour Company A service for arrang- A. Create cost center
ing Krabi sea tours on a One Day Trip B. Cost centers are organizational units,
basis and will make 50 lunch boxes for in which costs occur
tourists per day, with raw material costs
C. Differentiation of cost centers occur
(rice, meat, eggs) 20 baht per box, labor
only spatially
costs for the cooks 5 baht per box, pro-
duction costs. 7 baht per box (consist- D. none of above
ing of indirect raw materials, gas, water,
and electricity costs of 2 baht per box and 788. Managerial accounting does not encom-
kitchen equipment depreciation of 5 baht pass
per box). Later, a restaurant offered to A. calculating product cost.
produce boxed lunches for sale at a price B. calculating earnings per share.
of 30 baht/box, tour companies. clear sky
Should you produce boxed lunches yourself C. determining cost behavior.
or buy them from a store that offers them? D. profit planning.

789. Which is considered a major area of man- D. The managers will find its hard to
agerial accounting? make business decision

A. Planning and forcasting 794. Budgeting provides all of the following
B. Cost and tax accounting EXCEPT:
C. Internal Auditing A. a means to communicate the organiza-
D. All are considered major areas tion’s short-term goals to its members
B. support for the management functions
790. total cost and total revenue are
of planning and coordination
equal.
C. a means to anticipate problems
A. Cash flow analysis
D. an ethical framework for decision mak-
ing
C. Product costing and valuation
795. It is not important that the activity base
D. none of above
and overhead costs be causally related
791. Management accounting reports are pre- when developing a flexible budget.
pared A. True
A. to meet the needs of decision makers B. False
within the firm
B. whenever shareholders request them 796. Three activities that Managerial Account-
ing helps managers do:
C. according to guideline& prepared by
the shales and Financial Services Author- A. Plan
ity. B. Act
D. according to financial accounting stan- C. Manage
dards D. Do
792. The COGS account is found on the report:
797. A budget is/does NOT
A. Balance Sheet
A. A primary method of communication
B. Income Statement
B. Promotes efficiency
C. Cash Flow
C. A means to always a profitable com-
D. Capital Changes pany
793. What could happen when there is no (ab- D. Control device
sence of) managerial accountant in a busi-
798. Which simplify the process of evaluating
ness organisation?
a company’s financial performance?
A. Company will save money from paying
managerial accountant’s salary A. Ratios
B. The good name of the company would B. Comparative income statement

turned worse C. Vertical Analysis
C. The managers will loose their job D. Cash inflow budget

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PRACTICE BOOK» NOT FOR SALE

DESIGNED FOR SURE SUCCESS

JAI SHREE RAM

PRACTICE BOOK» NOT FOR SALE

It is my deepest gratitude and warmest

To my mother JOYTSNA CHANGDER

who has been a constant source of Knowledge and in-

The aim of this publication is to sup-

PRACTICE BOOK» NOT FOR SALE

A. True A. analyzing next year’s data

B. False B. locate budget information

PRACTICE BOOK» NOT FOR SALE

13. Happy Face Company has fixed cost of

C. Take the amount value and divide by B. P100, 000

7. A 8. B 9. A 9. B 10. C 11. B 12. A 13. B

A. Fixed assets are assets that are eas- D. none of above

costs, and volume and their effect on C. Reporting financial events.

PRACTICE BOOK» NOT FOR SALE

C. iii 40. Publication of reports is compulsory, in

45. Identify whether the following statement A. Product Cost

PRACTICE BOOK» NOT FOR SALE

51. Which of the following three graphics de-

C. Limited to financial information only B. No

C. PCDEMM D. the recording of all the revenue in-

57. D 58. B 59. A 60. C 61. A 62. C 63. A 64. A 65. A

65. Costs of raw materials purchase will be A. Direct materials

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C. Balance Sheet 74. Lacey Fontaine Company reports the fol-

66. C 67. A 68. A 69. A 70. C 71. B 72. B 73. D 74. C

C. $430, 200 79. Which is NOT a step in the budgeting pro-

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85. D 86. C 87. C 88. A 89. A 90. B 91. D 92. B

A. True A. Contribution Margin

B. False B. Gross Profit

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104. Under Absorption costing, fixed manufac- D. Manufacturing overhead increases as

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C. Remains on the income statement B. Direct Labor (DL)

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D. All of them C. Malaysia Accounting Standard Berhad

118. Cash outflows are B. Work in process

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C. documenting facility management C. relevant

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B. 2 140. Which is not a characteristic of manage-

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B. Profit margin on sales 150. Low production volume; Little standard-

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A. Both report to the same group of ac- C. Variance analysis

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C. Production cost 160. Accounts that continuing existing even

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D. No, but they are highly recommended B. Budget Schedule

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B. $23, 780 D. Product Cost

C. $16, 770 192. The theory and system of setting up,

B. Department manager D. Sunk Cost

C. Controller 194. The two classes of budgets are:

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