Management Accounting

A segment could be which of the following?

• Product

• Customer type

• Geographic region

• All of these

Companies may choose to use variable costing because it

• accords with GAAP

• is useful for external reporting

• is most useful for management decision making

• provides the gross margin

In a segmented income statement, which of the following statements is true?

• Segment margin is equal to contribution margin less direct fixed expenses

• Common fixed expenses must be allocated to each segment

• Segment margin is greater than contribution margin

• Gak ngerti jawabannya sampe pengen nangis

A factor that causes or leads to a change in a cost or activity is a(n)

• intercept

• driver

• slope

• cost object

Which of the following would probably be a variable cost in a soda bottling plant?

• None of these

• Time spent by adjusters to evaluate accidents

• Application forms

• The salary of customer service representatives

Product (or manufacturing) costs consist of

• direct materials, direct labor, and selling costs

• prime costs and manufacturing overhead

• administrative costs and conversion costs

• selling and administrative costs

The accountant wants to assign costs to boxes of biscuits. Which costs can be traced directly to boxes of biscuits?

• The cost of flour and baking soda

• The cost of packing labor

• The wages of the mixing labor

• All of these

Which of the following is an indirect cost?

• The cost of restriping the parking lot at a perfume factory

• The cost of bottles in a shampoo factory

• The cost of denim in a jeans factory

• All of the above

The amount of revenue required to earn a targeted profit is equal to

• total fixed cost plus targeted profit divided by contribution margin ratio

• total fixed cost divided by contribution margin

• targeted profit divided by the contribution margin ratio

• targeted profit divided by the variable cost ratio

Break-even revenue for the multiple-product firm can be calculated by

• dividing segment fixed cost by the overall contribution margin ratio

• dividing total fixed cost by the overall contribution margin ratio

• dividing total fixed cost by the overall variable cost ratio

• multiplying total fixed cost by the contribution margin ratio