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Questions and Answers

What is a potential consequence of comparing financial figures from different years?

  • It simplifies the financial calculations.
  • It may result in a misleading picture. (correct)
  • It always highlights the trend in profits.
  • It provides a consistent analysis of performance.

    • What is vertical analysis commonly used for?

  • To analyze a single year's financial statements.
  • To calculate net profit margins before tax.
  • To express income statement components as percentages of revenue. (correct)
  • To compare cash flows of varying firms.

    • What can lead to subjective conclusions in financial analysis?

  • The consistency of financial reporting.
  • The regularity of financial data collection.
  • The use of standardized financial ratios.
  • The knowledge and ability of the analyst. (correct)

    • Which action is NOT part of performing vertical analysis on the balance sheet?

    <p>Calculating the net cash flow from operating activities.</p> Signup and view all the answers

    Why is financial analysis limited when focusing on a single year's statements?

    <p>It loses insight from comparative data.</p> Signup and view all the answers

    What is the primary purpose of financial analysis?

    <p>To assess a company's performance and improve recommendations.</p> Signup and view all the answers

    In vertical analysis of the income statement, what does each component get divided by?

    <p>Revenue.</p> Signup and view all the answers

    Which statement best describes horizontal analysis?

    <p>It compares financial data across multiple periods.</p> Signup and view all the answers

    Which costs are included under the category of Labor Costs?

    <p>Salaries and wages paid to employees</p> Signup and view all the answers

    What is one of the main objectives of managerial accounting?

    <p>Providing information for decision making and planning</p> Signup and view all the answers

    What type of costs can be categorized as both Direct and Indirect Costs?

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

    How does managerial accounting assist in organizational strategy?

    <p>By offering expertise in financial reporting and control</p> Signup and view all the answers

    Which of the following represents an example of a Product Cost?

    <p>Cost of raw materials for production</p> Signup and view all the answers

    What distinguishes cost accounting from financial accounting?

    <p>Cost accounting analyzes specific costs for various operations</p> Signup and view all the answers

    What distinguishes Fixed Costs from Variable Costs?

    <p>Fixed costs remain constant regardless of production levels</p> Signup and view all the answers

    Which statement best describes financial accounting?

    <p>It records transactions and prepares financial statements at the end of each accounting year</p> Signup and view all the answers

    Which classification identifies costs by their relevance to decision making?

    <p>Relevance classification</p> Signup and view all the answers

    Which of the following best reflects the purpose of motivating managers in managerial accounting?

    <p>To align their objectives with the organization’s goals</p> Signup and view all the answers

    Which of the following is NOT considered a Material Cost?

    <p>Salaries of factory workers</p> Signup and view all the answers

    What is a key limitation of financial accounting from a managerial perspective?

    <p>It may not provide sufficiently timely information for managerial actions</p> Signup and view all the answers

    What is a key characteristic of Expenses in cost classification?

    <p>They include all costs unrelated to manufacturing</p> Signup and view all the answers

    What role does cost accounting play in operational activities?

    <p>It provides detailed cost information for various business operations</p> Signup and view all the answers

    Which costs would be categorized under Period Costs?

    <p>Advertising expenses incurred for a quarter</p> Signup and view all the answers

    How does managerial accounting contribute to assessing competitive position?

    <p>By working collaboratively with other managers for long-run competitiveness</p> Signup and view all the answers

    Which type of cost includes expenses related to the manufacturing or construction of goods?

    <p>Production Costs</p> Signup and view all the answers

    What costs are incurred for various purposes and cannot be easily traced to a specific cost center?

    <p>Indirect Costs</p> Signup and view all the answers

    Which costs are considered normal costs in cost classification?

    <p>Costs incurred at a normal level of output</p> Signup and view all the answers

    What type of cost data is typically required for preparing external financial reports?

    <p>Historical cost data</p> Signup and view all the answers

    Which statement describes product costs?

    <p>They are inventoriable and included in the cost of sales when sold.</p> Signup and view all the answers

    Which of the following describes direct materials in manufacturing?

    <p>Materials that are essential and traceable to the finished product</p> Signup and view all the answers

    Which category does labor cost fall into when it can be directly traced to individual products?

    <p>Direct labor</p> Signup and view all the answers

    What type of costs must be charged to the profit and loss account and are not part of normal production costs?

    <p>Abnormal Costs</p> Signup and view all the answers

    Which costs are considered non-manufacturing and charged against revenue immediately?

    <p>Period Costs</p> Signup and view all the answers

    What is the classification of costs that includes materials like solder or glue, which are too insignificant to trace to specific products?

    <p>Indirect materials</p> Signup and view all the answers

    What type of cost is specifically concerned with the potential benefit lost when choosing one alternative over another?

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

    Which classification distinguishes costs based on their traceability to the final product?

    <p>Classification by Traceability</p> Signup and view all the answers

    What does not describe product costs?

    <p>They are charged to profit and loss immediately.</p> Signup and view all the answers

    What is considered as manufacturing overhead?

    <p>Costs of indirect materials used in production</p> Signup and view all the answers

    When preparing budgets and making managerial decisions, which of the following cost classifications may be most relevant?

    <p>Predicted future costs</p> Signup and view all the answers

    Which of the following is NOT a basic category of manufacturing costs?

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

    Which of the following describes the term 'cost behavior'?

    <p>The sensitivity of costs to changes in production or sales volume.</p> Signup and view all the answers

    What are appraisal costs commonly referred to as?

    <p>Inspection costs.</p> Signup and view all the answers

    Which type of cost behavior results from identifying defects before products reach customers?

    <p>Internal failure costs.</p> Signup and view all the answers

    What is the relevant range in cost behavior analysis?

    <p>The range where cost behavior patterns remain unchanged.</p> Signup and view all the answers

    Which of the following costs changes directly with the level of activity?

    <p>Variable costs.</p> Signup and view all the answers

    What method can be used to analyze mixed costs?

    <p>High-low method.</p> Signup and view all the answers

    Which statement best characterizes fixed costs?

    <p>They remain constant regardless of production volume.</p> Signup and view all the answers

    What type of cost includes both fixed and variable components?

    <p>Mixed costs.</p> Signup and view all the answers

    Study Notes

    Course Guide for BA 2 Managerial Accounting

    • This course prepares students for effective financial decision-making at a managerial level.
    • It covers managerial accounting, its processes, and topics like Introduction to Managerial Accounting, Financial Analysis, Cost and Cost Classification, and Cost-Volume-Profit Analysis.
    • The course is taught by Prof. Estrellita R. Siclat, from URS Antipolo Campus. She has a BSC in Accounting from Tomas Claudio Memorial College.

    Contributors to the BA 2 Modules

    • Prof. Loida T. Masinsin (URS Pililla Campus): Bachelor in Accountancy from Polytechnic University of the Philippines, Certified Public Accountant, Certificate in Professional Education from URS Pililla, pursuing MBA at TCC.
    • Prof. Sam Cedrick H. Calites (URS Binangonan Campus): BS Accountancy from URS Binangonan, pursuing Master in Management Studies at URS Binangonan.
    • Prof. Roscel M. Aguirre (URS Tanay Campus): Bachelor of Science in Secretarial Administration from Rizal State College, Master in Business Administration from URS Binangonan, DBA units at URS Binangonan.
    • Prof. Elsa Mia G. Madriaga (URS Rodriguez Campus): Bachelor of Science in Business Administration major in Accountancy from National College of Business Administration in Manila, pursuing MBA at URS Rodriguez.

    Course Title and Description

    • Course Title: BA 2 Managerial Accounting
    • Course Description: This course aims to prepare students for effective financial decision-making, introducing them to managerial accounting. This includes the accounting process utilizing financial information to organize and manage finances within an organization.

    Course Objectives

    • General Objectives: Apply basic managerial accounting concepts, principles, and techniques for decision-making.
    • Specific Objectives: Students will be able to define managerial accounting, identify managerial accounting's objectives, scope, and limitations; describe the role of managerial accounting in the management process, differentiate management accounting and financial accounting; describe the Management Accounting Information System (MAIS), and identify duties and responsibilities of management accountants in accordance with relevant laws, regulations, and technical standards.

    Course Structure

    • The course comprises four instructional modules divided into 14 modules.

    Course Requirements

    • Activities and Assignments
    • Self-Assessment Quizzes
    • Project
    • Exam

    Grading System

    • Activities and assignments (10%)
    • Project (20%)
    • Self-assessment quizzes (30%)
    • Exam (40%)

    Schedule (Dates may vary)

    • August 24, 2020: Registration, Orientation, Submission of agency plans or certification.
    • Sept. 7, 2020: Study Session 1
    • Sept. 28, 2020: Study Session 2
    • Nov. 2, 2020: Study Session 3
    • Dec. 7, 2020: Study Session 4

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    MANAGERIAL ACCOUNTING Course Guide PDF

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