MA 1  medio chiuso
30 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which type of cost includes executive, organizational, and clerical costs?

  • Non-manufacturing costs (correct)
  • Common costs
  • Indirect costs
  • Direct costs
  • What type of costs are easily traced to a unit of product, such as direct material and direct labor?

  • Common costs
  • Direct costs (correct)
  • Indirect costs
  • Non-manufacturing costs
  • What type of costs include manufacturing overhead and cannot be easily traced to a unit of product?

  • Indirect costs (correct)
  • Direct costs
  • Non-manufacturing costs
  • Common costs
  • Which type of costs are incurred to support multiple cost objects and cannot be directly associated with a single cost object?

    <p>Common costs</p> Signup and view all the answers

    What type of costs are relevant for evaluating cost of goods sold and inventory on financial statements?

    <p>Product costs</p> Signup and view all the answers

    When are product costs attached to a unit of product and remain attached to each unit in inventory until sold?

    <p>At the end of the production process</p> Signup and view all the answers

    What is the main difference between managerial accounting and financial accounting?

    <p>Managerial accounting focuses on providing information for internal use, while financial accounting focuses on providing information for external use.</p> Signup and view all the answers

    What is the primary audience for managerial accounting information?

    <p>Internal management at all levels of the organization.</p> Signup and view all the answers

    How does the scope of managerial accounting differ from financial accounting?

    <p>Managerial accounting has a broader scope and uses free formats, while financial accounting follows specific accounting principles.</p> Signup and view all the answers

    What type of information does managerial accounting primarily provide?

    <p>Quantitative information for internal decision-making.</p> Signup and view all the answers

    How does the use of information differ between managerial accounting and financial accounting?

    <p>Managerial accounting uses information for internal decision-making, while financial accounting uses information for external reporting.</p> Signup and view all the answers

    What distinguishes the formats used in managerial accounting from those used in financial accounting?

    <p>Managerial accounting uses free formats, while financial accounting follows specific accounting principles.</p> Signup and view all the answers

    Which statement best describes the treatment of direct labor and manufacturing overhead costs in the production process?

    <p>They are added to work in process for converting direct materials into finished goods.</p> Signup and view all the answers

    What is the characteristic of variable costs in relation to changes in the level of activity?

    <p>They vary in direct proportion to changes in the level of activity.</p> Signup and view all the answers

    What distinguishes committed fixed costs from discretionary fixed costs?

    <p>Committed fixed costs are long-term and cannot be significantly reduced in the short term, while discretionary fixed costs may be altered in the short term by current managerial decisions.</p> Signup and view all the answers

    What is the defining characteristic of relevant costs in decision-making?

    <p>They depend on the decision-making setting and involve choosing between alternatives.</p> Signup and view all the answers

    How are sunk costs treated in decision-making?

    <p>They have already been incurred and cannot be changed now or in the future, and should be ignored when making decisions.</p> Signup and view all the answers

    For what purpose is the traditional format for income statements primarily used?

    <p>External reporting purposes</p> Signup and view all the answers

    What is the primary focus of financial accounting?

    <p>Companywide reports and compliance with GAAP/IFRS</p> Signup and view all the answers

    What is a requirement to become a Certified Management Accountant (CMA)?

    <p>Bachelor's degree, two years of relevant professional experience, and passage of the CMA exam</p> Signup and view all the answers

    What does the Chartered Global Management Accountant (CGMA) designation require?

    <p>Bachelor's degree in accounting, passage of the CPA exam, membership in the AICPA, three years of relevant management accounting work experience, and passage of the CGMA exam</p> Signup and view all the answers

    What is the focus of managerial accounting courses?

    <p>Teaching measurement skills to support planning, controlling, and decision-making activities, and focusing on cost concepts</p> Signup and view all the answers

    What does the Institute of Management Accountants (IMA) estimate about professional accountants in the U.S.?

    <p>Over 80% work in non-public accounting environments</p> Signup and view all the answers

    What is the emphasis of financial accounting?

    <p>Historical perspective and emphasis on objectivity and verifiability</p> Signup and view all the answers

    What does the degree of operating leverage (DOL) measure in cost-volume-profit analysis?

    <p>The percentage change in profit associated with a change in volume or sales</p> Signup and view all the answers

    What does the contribution margin represent in cost-volume-profit analysis?

    <p>The amount remaining from sales revenue after variable expenses have been deducted</p> Signup and view all the answers

    What does the break-even quantity represent in cost-volume-profit analysis?

    <p>The level of sales at which total revenues equal total costs</p> Signup and view all the answers

    What does the contribution income statement help managers assess in cost-volume-profit analysis?

    <p>The impact on profits of changes in selling price, cost, or volume</p> Signup and view all the answers

    What assumption do managers typically make for cost-volume-profit calculations?

    <p>Constant selling price, linear costs, and constant product mix</p> Signup and view all the answers

    What is the formula for calculating the margin of safety in cost-volume-profit analysis?

    <p>Margin of Safety = (Actual Sales - Break-even Sales) / Actual Sales</p> Signup and view all the answers

    Study Notes

    Applications and Assumptions of Cost-Volume-Profit Analysis

    • Cost-volume-profit analysis uses the classification of variable versus fixed costs for informative purposes
    • It helps determine the quantity of break-even or the sales of break-even, essential for a business to stay afloat
    • The formula for determining break-even quantity is based on a simple equation
    • The analysis can also be used to determine the targeted income and for simulation or what-if analysis
    • It can be used to calculate the margin of safety, indicating how safe the company is in terms of reaching the break-even point
    • The degree of operating leverage (DOL) measures the percentage change in profit associated with a change in volume or sales
    • Managers typically assume constant selling price, linear costs, and constant product mix for CVP calculations
    • The contribution income statement helps managers assess the impact on profits of changes in selling price, cost, or volume
    • The contribution margin is the amount remaining from sales revenue after variable expenses have been deducted
    • Sales, variable expenses, and contribution margin can be expressed on a per unit basis
    • The contribution format income statement can be expressed in an equation
    • It simplifies the estimation of profits at a particular sales volume by multiplying the units sold above break-even by the contribution margin per unit

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Managerial Accounting PDF

    Description

    Test your knowledge of Cost-Volume-Profit (CVP) analysis with this quiz. Explore the applications and assumptions of CVP analysis, including break-even analysis, targeted income determination, margin of safety, and the contribution income statement. Evaluate your understanding of how CVP analysis aids in decision-making and performance assessment in business.

    More Like This

    MA 1 facile aperto
    30 questions

    MA 1 facile aperto

    ProfuseNirvana avatar
    ProfuseNirvana
    MA 1 medio aperto
    30 questions

    MA 1 medio aperto

    ProfuseNirvana avatar
    ProfuseNirvana
    MA 1 difficile chiuso
    36 questions
    MA 1 difficile aperto
    30 questions
    Use Quizgecko on...
    Browser
    Browser