Managerial Accounting Quiz

What is the primary goal of managerial accounting?

• To provide reports for external stakeholders

• To assist managers in decision-making

• To ensure compliance with tax laws

• To audit financial statements

Which of the following is a product cost?

• Office supplies

• Sales commissions

• Factory rent

• Advertising expenses

Direct labor is classified as:

• A fixed cost

• An indirect cost

• A product cost

• A period cost

What is the formula for predetermined overhead rate (POHR)?

• Total direct labor cost ÷ Total units produced

• Estimated total manufacturing overhead ÷ Estimated total allocation base

Differential costs are:

• Irrelevant to decision-making

• Always fixed costs

• Costs that differ between decision alternatives

• The same as sunk costs

What are equivalent units of production?

• Partially completed units expressed as fully completed units

• The total number of units produced during the period

• Units sold during a period

• Inventory units at the beginning of a period

Which of the following is NOT an example of a manufacturing overhead cost?

• Depreciation of factory equipment

• Wages of assembly line workers

• Factory utility costs

• Maintenance of factory equipment

The difference between job-order costing and process costing is:

• The type of company that uses the system

• How costs are assigned to units

• The accounts used

• None of the above

Which cost is irrelevant when making decisions?

• Opportunity cost

• Differential cost

• Sunk cost

• Variable cost

A mixed cost contains:

• Only fixed cost elements

• Both fixed and variable cost elements

• Only variable cost elements

• None of the above