MASQ2

Which of the following statements is false?

• Financial accounting reports are general-purpose and intended for external users.

• Managerial accounting reports are special-purpose and issued as frequently as needed.

• Top managers must certify that a company maintains an adequate system of internal control.

• Management accountants have a single role within an organization - collecting and reporting costs to management.

It refers to anything (a product, product line, a business segment) for which cost is computed.

• Cost Object

• Cost Driver

• Cost Control

• Cost Variance

It is a grouping of individual cost items, or an account in which a variety of similar costs are accumulated.

• Cost Driver

• Cost Variance

• Income Statement

• Cost Pool

Which of the following statements about cost behavior is correct?

• A. Within the relevant range, total variable costs may vary directly with activity, while total fixed costs remain unchanged for a given period despite fluctuations in activity.

• B. Within the relevant range, variable cost per unit varies directly with activity, while fixed cost per unit remains unchanged for a given period despite fluctuations in activity.

• C. Within the relevant range, fixed cost per unit varies directly with activity, while variable cost per unit remains unchanged for a given period despite fluctuations in activity.

• D. Within the relevant range, total variable costs may vary inversely with activity, while total fixed costs remain unchanged for a given period despite fluctuations in activity.

When production (in units) decreases, the average cost per unit of product increases. This increase in the average cost per unit is due to the

• A. increase in variable cost per unit.

• B. increase in fixed cost per unit.

• C. increase in total variable costs.

• D. increase in total fixed costs.

Variance analysis should be used

• A. as the only source of information for performance evaluation.

• B. to understand why variances arise.

• C. to encourage employees to focus on meeting standards.

• D. to administer appropriate disciplinary action to employees that do not meet standards.

The average annual fixed maintenance cost amounts to

• A. P4,160.

• B. P8,320

• C. P49,920.

• D. P 5,120.

The estimated monthly fixed room cleaning cost is

• A. P25,000.

• B. P30,000

• C. P10,000

• D. P0

b

• b

• b

• b

• b

b

• b

• b

• b

• b