Which questions aim to more clearly understand why net income is decreasing when revenues are increasing? What happened? What is happening?, Why did it happen? What are the root causes of past results?, Will it happen in the future? What is the probability something will happen? Is it forecastable?, What should we do based on what we expect will happen? How do we optimize our performance based on potential constraints?

Why did it happen? What are the root causes of past results?

Which management accounting question will require predictive analytics? Why did labor expenses increase over the past year as compared to prior years?, Should the company rent or lease its headquarters office building?, Can we forecast future sales for this company?, Why did our cost structure (fixed and variable costs) change over the past year?

Can we forecast future sales for this company?

Which management accounting question will require prescriptive analytics? Options: Why did the company perform worse this year than last year? Should the company manufacture its product, or should it outsource the production of its products to an outside contractor? Can we forecast future sales, earnings, and cash flows for this company? What was the total revenue last quarter?

Should the company manufacture its product, or should it outsource the production of its products to an outside contractor?

Which of the following is mandatory information that a company's accountants is required to maintain? The cost drivers used to allocate overhead, The calculation of the difference between actual and budgeted performance, The product price that should be charged to maximize profits, The amount of dividends paid to shareholders

The calculation of the difference between actual and budgeted performance

Which entity sponsors the certification of management accountants as a CMA?

Institute of Management Accountants

Which of the following applies to management accounting? There are required audits of management accounting information., Management accounting works to minimize the cost of compliance with regulatory entities., A source of management accounting data comes from a cost accounting system., Common output is the income statement.

A source of management accounting data comes from a cost accounting system.

To estimate costs using prior data, regression analysis is preferable to the high-low method because:

Regression analysis makes use of more data.

Which of the following is not an advantage of using regression analysis to estimate costs rather than the high-low method? - Regression is likely more accurate because it uses more data points in the calculations. - Regression uses simpler calculations. - Regression provides an estimate of fixed costs. - Regression can be used to predict future costs.

Regression uses simpler calculations.

In a regression analysis examining the effect of customer visits on total office costs, R is 0.12. Interpret R.

There is little or no linear relationship between customer visits and total office costs.

Snack Pantry regresses total costs on units produced. Results of the regression indicate a statistically significant coefficient of 2.5 on the units produced variable. How should this result be interpreted?

Each unit costs an average of $2.50 to produce.

Which of the following equations is incorrect? Contribution margin - fixed costs = operating income Contribution margin per unit + variable cost per unit = sales price (Contribution margin per unit * units) - Fixed cost per unit = sales price Revenue - variable costs - operating income = fixed costs

(Contribution margin per unit * units) - Fixed cost per unit = sales price

All things equal, how will the purchase of additional production equipment affect a company's breakeven point?

The breakeven point will increase.

In the short-term, how will Trader Mo's change in strategy affect the breakeven point?

The breakeven point will increase.

Gouda Vibes Company must increase profitability this year to avoid bankruptcy. Gouda Vibes can sell all units produced, but it faces a production constraint: a shortage of skilled labor. To maximize profit, Gouda Vibes should produce:

products that have the highest contribution margin per hour of skilled labor.

All things equal, which of the following will decrease a company's operating leverage? Options: Purchasing production equipment, Hiring supervisors who work on salary, Increasing production, Automating production to decrease direct labor

Hiring supervisors who work on salary

All of the following are reasons why companies are likely to use applied, rather than actual, overhead for job costing EXCEPT: Companies have difficulty tracing supervisor labor costs. Companies face a delay when gathering indirect cost data. Companies decide not to trace certain materials costs.

Companies have significant amounts of indirect costs.

In job costing, costs are accumulated by a specific cost object. Which of the following is not a cost object in job costing? An individual client, A customized order, An individualized service, Monthly factory production costs

Monthly factory production costs

Which of the following information is not contained on a job cost sheet? Direct labor hours, Amount of direct materials purchased, Direct labor rates, Applied overhead rates

Amount of direct materials purchased

Zen Craft applies overhead at a rate of $4.50 per direct labor hour. Zen Craft's actual overhead rate was $4.25. Which of the following is correct? Actual total overhead must be higher than estimated total overhead. Actual total overhead must be lower than estimated total overhead. Zen Craft had fewer direct labor hours than anticipated during the year. There is insufficient data to determine the relationship between estimated and actual overhead.

Actual total overhead must be lower than estimated total overhead.

Bake It Easy incurred more overhead costs than it applied. Prior to any adjusting entries, which of the following must be true? The overhead application rate was higher than the actual overhead rate. The manufacturing overhead account has a debit balance. Net income is overstated. Bake It Easy produced more goods than anticipated.

The manufacturing overhead account has a debit balance.

Shield Bunny had the following information: Allocation base: Direct labor hours (DLH) Estimated DLH: 20,000 hours Actual DLH: 25,000 hours Estimated overhead cost/DLH: $5/DLH Actual overhead cost/DLH: $4/DLH Assuming no adjusting entry to manufacturing overhead, which of the following is true?

There will be a credit balance in the Manufacturing Overhead account.

Under a job costing system, which of the following is most likely to be considered indirect labor during the construction of a chair? Significant labor used to shape and cut wood, Moderate labor used to assemble wood, Minimal labor used to stain the chair, Moderate labor used to closely supervise the production of chairs

Moderate labor used to closely supervise the production of chairs

Management Accounting Flashcard

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Business

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Hard

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FLASHCARD QUESTION

Front

Which component of the AMPS model addresses the question of the best way for management accountants to communicate their analyses with decision-makers?

Back

Share the story

FLASHCARD QUESTION

Front

Which of the following is considered discretionary information for a company's accountants to provide?
The break-even level of a new product
The annual report submitted to shareholders detailing financial performance
The federal tax return
Sales information as part of the sales tax return

Back

Sales information as part of the sales tax return

FLASHCARD QUESTION

Front

Which of the following value chain activities is considered to be a primary activity? Procurement, Inbound logistics, Human resources management, Information technology

Back

Inbound logistics

FLASHCARD QUESTION

Front

What requires context to create information? Options: Knowledge, Data, Facts, Data stores

Back

Data

FLASHCARD QUESTION

Front

The analysis of variances (e.g., actual performance is different from budgeted performance) is most often associated with which type of analytics?

Back

Diagnostic analytics

FLASHCARD QUESTION

Front

Summary statistics are most often associated with which type of analytics?

Back

Descriptive analytics

FLASHCARD QUESTION

Front

Time series analysis is most often associated with which type of analytics?

Back

Descriptive analytics

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