Ashworth Semester Exam BU330 Accounting for Managers

Question 1

Internal parties receive information about past performance from:

audit reports.

budget reports.

planning reports.

managerial accounting reports.

Question 2

The IMA issues which of the following certifications?

CMA

CIA

CFP

CPA

Question 3

A ________ is used to accumulate all of the direct materials and direct labor used on the job, as well as the manufacturing overhead allocated to the job.

bill of materials

job cost record

labor time record

production schedule

Question 4

If a job consists of a batch of identical units, how can managers find the unit cost?

By tracing direct materials to each unit

By multiplying the total job cost by the number of units in the job

By dividing the total job cost by the number of units in the job

By tracing direct labor to each unit

Question 5

Process costing is MOST likely used in which of the following industries?

Pharmaceuticals

Health Care

Shipbuilding

Construction

Question 6

When using the income statement approach to finding breakeven, which of the following is TRUE?

(variable expenses × number of units) - fixed expenses = operating income

sales revenue - variable expenses - fixed expenses = operating income

fixed expenses + variable expenses + sales revenue = operating income

fixed expenses + variable expenses - sales revenue = operating income

Question 7

Which of the following budgets usually shows separate sections for fixed and variable costs?

Direct materials and manufacturing overhead budget

Manufacturing overhead budget and production budget

Production budget and manufacturing overhead budget

Operating expenses budget and manufacturing overhead budget

Question 8

Standards should be reviewed and adjusted at least:

yearly.

monthly.

weekly.

daily.

Question 9

The formula for calculating the accounting rate of return for a capital asset is:

average annual operating income from asset/amount invested in asset.

average annual net cash inflow from asset/amount invested in asset.

(average annual operating income + depreciation expense)/amount invested in asset.

(average annual cash inflows - depreciation expense)/(amount invested in asset + residual value of asset).

Question 10

if a company uses the indirect method to prepare the statement of cash flows, how will the adjustment to reflect the amount of cash received from customers be presented on the statement?

The adjustment will be for the increase or decrease in inventory during the period and will adjust net income in the operating activities section on the statement of cash flows.

The adjustment will be for the increase or decrease in accounts payable during the period and will adjust net income in the operating activities section on the statement of cash flows.

The adjustment will be for the increase or decrease in accrued expenses during the period and will adjust net income in the operating activities section on the statement of cash flows.

The adjustment will be for the increase or decrease in accounts receivable during the period and will adjust net income in the operating activities section on the statement of cash flows.