管理会计双语

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1、Managerial Accounting Review Question一、True/False QuestionsFor each of the following, circle the T or the F to indicate whether the statement is true or false.1 Managerial accounting refers to the preparation and use of accounting information designed to meet the needs of decision makers inside the

2、business organization.2 Product costs are selling expenses that appear on the income statement.3 Management accounting reports provide a means of monitoring , evaluating and rewarding performance.4 Product costs are offset against revenue in the period in which the related products are sold, rather

3、than the period in which the costs are incurred.5 Manufacturing overhead is considered an indirect cost, since overhead costs generally cannot be traced conveniently and directly to specific units of product.6 Overhead application rates allow overhead to be assigned at the beginning of a period to h

4、elp set prices.7 Pepsi Cola would most likely use a job order costing system.8 Activity-based costing tracks cost to the activities that consume resources.9 Activity based costing uses multiple activity bases to assign overhead costs to units of production.10 The two steps required in Activity Based

5、 Costing are 1) Identify separate activity cost pools and 2) allocate each cost pool to the product using an appropriate cost driver11 The new manufacturing environment is characterized by its shift toward labor intensive production and declining manufacturing overhead costs.12 A cost driver is an a

6、ctivity base that is highly correlated with manufacturing overhead costs.13 In ABC, only one cost driver should be used in applying overhead.14 As companies become more automated overhead costs decrease and direct labor costs increase.15 An equivalent unit measures the percentage of a completed unit

7、s cost that is present in a partially finished unit.16 Costs do not flow through a process cost system in the same sequence as actual products move through the assembly process.17 Non-value added activities are those that do not add to a products desirability.18 Target costing centers on new product

8、 and service development as opposed to managing the value chain for existing products.19 In the target costing process, target price is computed by adding the desired profit margin to the target product cost.20 Target cost equals target price plus profit margin.21 Variable costs which increase in to

9、tal amount in direct proportion to an increase in output represent a constant amount per unit of output.22 Any business which operates at less than capacity will have larger fixed costs than variable costs.23 With variable costs, the cost per unit varies with changes in volume.24 The contribution ma

10、rgin is the difference between total revenue and fixed costs.25 The volume of output which causes fixed costs to be equal in amount to variable costs is called the break-even point.26 Any business which operates at less than capacity will have larger fixed costs than variable costs.27 Margin of safe

11、ty is the dollar amount by which actual sales volume exceeds the break-even sales volume.28 Life cycle costing considers all potential resources used by the product over its entire life.29 Economies of scale can be achieved by using facilities more intensively.30 The break-even point is the level of

12、 activity at which operating income is equal to cost of goods sold.31 Contribution margin ratio is equal to contribution margin per unit divided by unit sales price.32 Opportunity cost is the benefit that could have been obtained by pursuing an alternate course of action.33 All incremental revenue o

13、r incremental costs are relevant.34 Sunk costs are relevant to decisions about replacing plant assets.35 In determining whether to scrap or to rebuild defective units of product, the cost already incurred in producing the defective units is not relevant.36 In making a decision, management will look

14、thoroughly at both relevant and irrelevant data.37 3.Responsibility margin is useful in evaluating the consequences of short-run marketing strategies, while contribution margin is more useful in evaluating long-term profitability.38 The transfer price is the dollar amount used in recording sales to

15、primary customers.39 Under variable costing, fixed manufacturing costs are treated as period costs, rather than product costs.40 The transfer price is the dollar amount used in recording sales to primary customers.41 Variable costing treats all fixed manufacturing costs as expenses of the current pe

16、riod.42 In full costing when production rises above the amount of sales, some of the fixed costs will remain in inventory.43 Return on Investment (ROI) tells us how much earnings can be expected for the average invested dollar.44 Capital turnover can be improved by reducing invested capital while ke

17、eping sales constant.45 The value chain consists of only those activities that increase the selling price of a product as it is distributed to a customer.46 Residual income is calculated by subtracting the minimum acceptable return on the average invested capital from the operating income.二、Multipie

18、 Choice QuestionsChoose the best answer for each of the following questions and insert the identifying letter in the space provided. 1.Costs that are traceable to a particular unit and are inventoriable are calledA) Period costs B) Product costs C) Overhead costs D) Job costs2. .Determine the amount

19、 of manufacturing overhead given the following information:a.Depreciation on a factory building$2,400b.Telephone expense in factory office750c.Telephone expense in sales showroom850d.Factory foremans salary5000e.Maintenance for factory800f.Maintenance for sales showroom680A) $4,010 B) $9,800 C) $8,9

20、50 D) $10,54024.Goods that are still in the production process would be in which account?A) Materials inventory B) Work-in-process inventory C)Finished goods inventory D)Cost of goods sold29.The principal difference between managerial accounting and financial accounting is that managerial accounting

21、 information is:A) Prepared by managers.B) Intended primarily for use by decision makers inside the business organization.C) Prepared in accordance with a set of accounting principles developed by the Institute of Certified Managerial Accountants.D) Oriented toward measuring solvency rather than pro

22、fitability.30.Management accounting systems are designed to assist organizations in the performance of all of the following functions except:A) The assignment of decision-making authority over company assets.B) Planning and decision-making.C) Monitoring, evaluating and rewarding performance.D) The p

23、reparation of income tax returns.35.In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial accounting report is less likely to:A) Focus upon the entire organization as the accounting entity. B) Focus upon future accounting periods.

24、 C) Make use of estimated amounts. D) Be tailored to the specific needs of an individual decision maker. 4.If the salaries of the sales staff of a manufacturing company are improperly recorded as a product cost, what will be the likely effect on net income of the period in which the error occurs?A)

25、Net income will be overstated. B) Net income will be understated.C) Net income will be unaffected. D) Net income will be understated only if inventory levels rise. 5.Manufacturing overhead is best described as:A) All manufacturing costs other than direct materials and direct labor.B) All period cost

26、s associated with manufacturing operations.C) Indirect materials and indirect labor.D) All operating expenses other than selling expenses and general and administrative expenses. 43.Underapplied overhead at the end of a month:A) Results when actual overhead costs are less than amounts applied to wor

27、k in process.B) Indicates a poorly designed cost accounting system.C) Is represented by a debit balance remaining in the Manufacturing Overhead account.D) Is represented by a credit balance remaining in the Manufacturing Overhead account.58.The account Work-in-Process InventoryA) Consists of complet

28、ed goods that have not yet been soldB) Consists of goods being manufactured that are incompleteC) Consists of materials to be used in the production processD) Consists of the cost of new materials used, labor but not overhead.66.Red Star Company uses a job order cost system. Overhead is applied to j

29、obs on the basis of direct labor hours. During the current period, Job No. 288 was charged $400 in direct materials, $450 in direct labor, and $180 in manufacturing overhead. If direct labor costs an average of $15 per hour, the companys overhead application rate is:A) $9 per direct labor hour. B) $

30、6 per direct labor hour.C) $17 per direct labor hour.D) $20 per direct labor hour.24.The best cost system to use for a company producing a continuous stream of similar items would be aA) Job order systemB) Process costing system C) Production costing systemD) No cost system is required when jobs are

31、 similar64.Ken Gormans Company uses a job order cost system and has established a predetermined overhead application rate for the current year of 150% of direct labor cost, based on budgeted overhead of $900,000 and budgeted direct labor cost of $600,000. Job no. 1 was charged with direct materials

32、of $30,000 and with overhead of $24,000.The total cost of job no. 1:A) Is $54,000. B)Is $70,000. C)Is $90,000. D) Cannot be determined without additional information.27. Equivalent units of production areA) A measure representing the percentage of a units cost that has been completed.B) May be compu

33、ted separately for each input added during productionC) May be assigned to beginning work-in-process or ending work-in-processD) All of the above27.Equivalent units of production areA) A measure representing the percentage of a units cost that has been completed.B) May be computed separately for eac

34、h input added during productionC) May be assigned to beginning work-in-process or ending work-in-processD) All of the above21.Process costing would be suitable forA) Automobile repair B) Production of television setsC) Boat building D)Kitchen remodelingUse the following to answer questions 75-76:Riv

35、erview Companys budget for the coming year includes $6,000,000 for manufacturing overhead, 100,000 hours of direct labor, and 500,000 hours of machine time.75. Refer to the above data. If Riverview applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be as

36、signed to a unit of output which requires 0.5 machine hours and 0.25 labor hours to complete?A) $6.00. B) $15.00. C) $21.00. D)Some other amount.76. Refer to the above data. If Riverview applies overhead using a predetermined rate based on labor-hours, what amount of overhead will be assigned to a u

37、nit of output which requires 0.5 machine hours and 0.25 labor hours to complete?A) $6.00. B) $15.00. C) $21.00. D)Some other amount.21.Process costing would be suitable forA) Automobile repair B) Production of television sets C)Boat building D)Kitchen remodeling 21.Which one of the following is not

38、one of the basic procedures related to ABC?A) Identify the activity.B) Create an associated activity cost pool.C) Transact identified cost centers. D) Calculate the cost per unit of activity.23. Examples of value-adding activities include all of the following except: A) Product design.B) Assembly ac

39、tivities.C) Machinery set-up activities. D) Establishing efficient distribution channels.26.Just-in-time manufacturing systems are also known as:A) Supply push systems. B)Supply pull systems. C)Demand push systems. D) Demand pull systems.28. Target costing is directed toward:A) Reducing the activity

40、 costs associated with existing products.B) Identifying the amount by which the costs of existing products must be reduce to achieve a target profit margin.C) The creation and design of products that will provide adequate profits.D) The improvement of existing production processes by eliminating non

41、-value adding activities. 30.During which element of manufacturing cycle time is value added to products?A) Storage and waiting time. B) Processing time.C) Movement time.D) Inspection time.33.Four categories of costs associated with product quality are: A) External failure, internal failure, prevent

42、ion, and carrying.B) External failure, internal failure, prevention, and appraisal.C) External failure, internal failure, training, and appraisal.D) Warranty, product liability, prevention, and training.41.During cycle time, value is added only duringA) Processing time.B) Storage and waiting time. C

43、) Movement time. D) Inspection time.26.A semivariable cost:A) Increases and decreases directly and proportionately with changes in volume.B) Changes in response to a change in volume, but not proportionately.C) Increases if volume increases, but remains constant if volume decreases.D) Changes invers

44、ely in response to a change in volume.27.Which of the following is an example of a fixed cost for an airline?A) Depreciation on the corporate headquarters. B) Fuel costs.C) Income taxes expense.D) Passengers meals.28.In order to calculate break-even sales units, fixed costs are divided by:A) Contrib

45、ution margin per unit. B) Contribution margin percentage.C) Target operating income. D) Sales volume.29. A companys relevant range of production is:A) The production range from zero to 100% of plant capacity.B) The production range over which CVP assumptions are valid.C) The production range beyond

46、the break-even point.D) The production range that covers fixed but not variable costs.30. The break-even point in a cost-volume-profit graph is always found:A) At 50% of full capacity.B) At the sales volume resulting in the lowest average unit cost.C) At the volume at which total revenue equals tota

47、l variable costs.D) At the volume at which total revenue equals total fixed costs plus total variable costs.32.The contribution ratio is computed as:A) Sales minus variable costs, divided by sales. B)Fixed costs plus variable costs, divided by sales. C) Sales minus fixed costs, divided by sales.D)Sa

48、les divided by variable costs.33.In comparison to selling a product with a low contribution margin ratio, selling a product with a high contribution margin ratio always:A) Requires less dollar sales volume to cover a given level of fixed costs.B) Results in a greater margin of safety.C) Results in h

49、igher operating income. D) Results in a higher contribution margin per unit sold.36.How will a companys contribution margin be affected by an investment in equipment that increases fixed costs in order to achieve a reduction in direct labor cost?A) Contribution margin will increase. B) Contribution

50、margin will fall.C) Contribution margin will either increase or decrease depending on the relative magnitudes of the changes in fixed and variable costs.D) Contribution margin will remain the same.43.If a product sells for $10, variable costs are $6 and fixed costs are $400,000 what would total sale

51、s have to be in order to break-even?A) $160,000 B) $166,667 C) $1,000,000 D) $266,66746.If unit sales prices are $10 and variable costs are $6 per unit how many units would have to be sold to break even if fixed costs equal $12,000?A) $1,200 B) $2,000 C) $3,000 D) $2,80062.A company with an operatin

52、g income of $65,000 and a contribution margin ratio of 55% has a margin of safety of:A) $35,750. B) $118,182.C) $153,932. D) It is not possible to determine the margin of safety from the information provided. 63.The following information is available:Sales $100,000Break-even sales $40,000Contributio

53、n margin ratio 25%What is the operating income?A) $0. B) $75,000. C) $87,500. D) $12,500.65. A company with monthly fixed costs of $140,000 expects to earn monthly operating income of $10,000 by selling 5,000 units per month. What is the companys expected unit contribution margin? A) $30. B) $28.C)

54、$2.D) The information given is insufficient to determine unit contribution margin.Use the following to answer questions 82-86:Empire Company produces a single product. The selling price is $50 per unit, and variable costs amount to $20 per unit. Empires fixed costs per month total $80,000.82. Refer

55、to the above information. What is the contribution margin ratio of Empires product? A) 25%. B) 75%. C) 60%. D) 40%.83. Refer to the above information. What is the monthly sales volume in dollars necessary to break even? (Rounded)A) $320,000. B) $106,667. C) $200,000. D) $133,333.84. Refer to the abo

56、ve information. How many units must be sold each month to earn a monthly operating income of $25,000?A) 833. B) 2,300.C)3,500. D)Some other amount.85. Refer to the above information. What will be the monthly margin of safety (in dollars) if 3,000 units are sold each month?A) $16,667. B) $100,000. C)

57、 $12,000. D) $150,000.86. Refer to the above information. What will be Empires monthly operating income if 3,500 units are sold each month?A) $15,000. B) $25,000. C) $75,000. D) $105,000.24. A cost that has already been incurred and cannot be changed is called aA) Opportunity costB) Out of Pocket co

58、stC) Joint costD) Sunk CostUse the following to answer questions 46-48:Tech Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $95 for such a widget and that 50,000 units could be sold each year at this price. Th

59、e current cost to produce the widget is estimated to be $60.46. Refer to the information above. If Tech Products requires a 25% return on sales to undertake production, what is the target cost for the new widget?A) $60. B) $71.25. C) $75. D) Some other amount.47. Refer to the information above. Tech

60、 has learned that a competitor plans to introduce a similar widget at a price of $85. If Tech requires a 25% return on sales, what is the target cost for the new widget?A) $75.B) $63.75. C) $21.75. D)$25.48. Refer to the information above. At a price of $85, Techs market research indicates that it c

61、an sell 40,000 units per year. Assuming Tech can reach its new target cost, how will Techs profit at the $85 price compare to what it would have earned in the absence of the competitors product?A) Profit will be $12,500 greater. B)Profit will be $12,500 smaller.C) Profit will be unaffected if Tech c

62、an reach the revised target cost.D) None of the above.33.In comparison to selling a product with a low contribution margin ratio, selling a product with a high contribution margin ratio always:A) Requires less dollar sales volume to cover a given level of fixed costs.B) Results in a greater margin o

63、f safety.C) Results in higher operating income.D) Results in a higher contribution margin per unit sold.26.Incremental revenuesA) Always increase revenue when one course of action is selected over anotherB) Always decrease revenue when one course of action is selected over anotherC) May increase or

64、decrease when one course of action is selected over anotherD) Cause revenues to remain steady27.By choosing to go into business for himself, Joe Green foregoes the possibility of getting a highly paid job with aD) Joint CostD) Fixed costs.D) All three are relevant.large company. This is called a (n)A) Sunk cost B) Out-of-pocket cost C) Opportunity cost 29.Which of the following types of cost are always relevant to a decision?A) Sunk costs.B) Average costs.C) Incremental costs.40.Which cost is not relevant in making financial decisions?A) Sunk costs.B) Opportunity costs.