Management Accounting Quiz

Variance analysis is an example of

• controlling and planning.

• controlling, directing, and planning.

• controlling

• directing and controlling.

The senior manager of Mashle Consulting Inc. reported the following information about the sales budget for the period ending December 31, 2023: Observe the Sales Budget and determine which primary responsibility the managerial accountant uses to determine which quarter generated the most per-unit product sales data in order to adjust the marketing strategy?

• Analyzing.

• Controlling.

• Directing.

• Planning.

Which of the following statements is false?

• Management accounting is most concerned with meeting the needs of internal users.

• Managerial accounting is highly regulated by rules and regulations.

• Financial accounting is most concerned with addressing the needs of the firm as a whole.

• Management accounting is mostly concerned with addressing the needs of individual departments of the firm.

Which of the following organization would most likely advertise that focuses on public relations?

• A bus company

• A water utility company

• A hotel and restaurant chain

• A car manufacturer

A position in the organization chart that is directly related to achieving the basic objectives of an organization is called:

• a staff position.

• a line position.

• chief finance officer.

• controller.

The average variable cost curve always sloped parallel to the x-axis because

• Total fixed costs always decrease.

• Marginal costs are below average fixed costs.

• Average variable costs are constant within the relevant range

• Total fixed costs do not change as output increases.

When cost relationships are linear, total variable prime costs will vary in proportion to changes in

• direct labor hours.

• total overhead cost.

• total material cost.

• production volume.

The Mugawara Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows: The linear cost function is _____

• Y = 19,885 - 3.75X

• Y = 9,560 + 2.56X

• Y = 9,560 + 3.75X

• Y – 3.75X = 19,885

In regression analysis, which of the following coefficient of correlation (r) represents the strongest direct relationship between variables?

• 0.60

• 0.25

• 1.02

• - 0.85

Which of the following is not true regarding break-even point?

• Intersection of revenue and cost line in a revenue-cost graph

• Intersection of the profit line with the y-axis in a profit graph

• Under CVP Analysis, breakeven point is assumed constant

• Always higher than the shutdown point