Which of the following requires the company’s CEO and CFO to assume responsibility for the company’s financial statements and disclosures

Sarbanes-Oxley Act of 2002 (SOX)

Institute of Management Accountants (IMA)

Enterprise Resource Planning (ERP)

Which of following is false

The triple bottom line focuses on three items: net income, net assets, and return on investment

Globalization has increased the necessity for more detailed and accurate cost information

ERP systems integrate information from all company functions into a centralized data warehouse

Lean operations is a philosophy and business strategy of operating without waste

Are expensed in the period incurred

Include direct materials and direct labor

Are included in total manufacturing costs

Includes general and administrative expenses

Is included in nonmanufacturing costs

Conversion costs consist of

Direct labor and manufacturing overhead

Direct materials and manufacturing overhead

Direct materials and direct labor

Direct materials, direct labor, and manufacturing overhead

Which of the following is not part of manufacturing overhead

Period costs, such as depreciation of office computers

Indirect materials, such as machine lubricants

Indirect labor, such as plant forklift operators’ wages

Other indirect manufacturing costs, such as plant utilities

Which of the following types of companies will always have the Cost of Goods Sold account on their income statements?

Merchandising and manufacturing companies

Service and merchandising companies

Service and manufacturing companies

Service, merchandising, and manufacturing companies

Which of the following is false ?

Sunk costs are generally relevant to decisions

Uncontrollable costs are costs over which the company has little or no control in the short run

Sunk costs are costs that have already been incurred

The difference in cost between two alternatives is known as a differential cost

Which of the following is true?

Fixed costs stay constant in total over a wide range of activity levels

The average cost per unit can be used for predicting total costs at many different output levels

Manufacturing overhead is composed of only variable costs

Direct materials are considered to be fixed costs

The contribution margin is

Sales revenue minus variable expenses

Sales revenue minus fixed expenses

Sales revenue minus cost of goods sold

Sales revenue minus operating expenses

The contribution margin ratio is

Contribution margin divided by sales revenue

Contribution margin divided by variable expenses

Sales revenue divided by contribution margin

Fixed expenses divided by variable expenses

The formula to find the break-even point or a target profit volume in terms of number of units that need to be sold is

(Fixed expenses + Variable expenses) / Contribution margin per unit

(Fixed expenses + Variable expenses) / Sales revenue

(Fixed expenses + Operating expenses) / Sales revenue

(Fixed expenses +Operating expenses) / Contribution margin per unit

On a CVP graph, the breakeven point is

The intersection of the total revenue line and the total expense line

The intersection of the total revenue line and the fixed expense line

The area between the variable expense line and the fixed expense line

The area between the total revenue line and the total expense line

All else being equal, if a company’s variable expenses increase

Its contribution margin ratio will decrease

Its breakeven point will decrease

There will be no effect on the breakeven point

Its contribution margin ratio will increase

All else being equal, a decrease in a company’s fixed expenses will

Decrease the sales needed to break even

Increase the sales needed to break even

Increase the contribution margin

Decrease the contribution margin

Which of the following is true regarding a company that offers more than one product

The breakeven point is dependent on sales mix assumptions

Breakeven should be found using a simple average contribution margin

Breakeven should be found using for each product individually

It has one unique breakeven point

A company with a low operating leverage

Has relatively more variable costs than fixed costs

Has relatively more risk than a company with high operating leverage

Has relatively more fixed costs than variable costs

Has an equal proportion of fixed and variable costs

For a given level of sales, a company’s operating leverage is defined as

Contribution margin / operating income

Sales revenue / contribution margin

Operating income / contribution margin

Which of the following is false regarding choosing between two cost structures

The indifference point is the point at which costs under two options are the same

The indifference point is the point where total regarding choosing between two cost structures

Choose the higher operating leverage option when sales volume is expected to be higher than the indifference point

Choose the lower operating leverage option when sales volume is expected to be lower than the indifference point

Which of the following is false?

Relevant information is always financial in nature

Relevant information always regards the future

Sunk costs are never relevant to a decision

Relevant information always differs among alternatives

Keys to making short-term decisions include which of the following

Using a contribution margin approach that separates variable cost from fixed cost

Focusing on relevant revenues, costs, and profits

Which is true of price-setters?

Their pricing approach emphasizes cost-plus pricing

Their pricing approach emphasizes target costing

They are in highly competitive markets

Which of the following should be considered for special order decisions?

All of the listed choices should be considered in special order decisions

Whether the special order will affect regular sales in the long run

Whether the special price will be high enough to cover incremental costs of filling the order

Which of the following is not relevant when deciding whether or not to discontinue a product?

Unavoidable fixed costs related to the product

Avoidable fixed costs related to the product

The product’s contribution margin

The effect of discontinuation on the sales of the company’s other products

A segment margin is the

Segment’s contribution margin minus direct fixed costs

Segment’s contribution margin minus all fixed costs

Segment’s contribution margin minus allocated fixed costs

Same as the segment’s contribution margin

When resources are constrained, which of the following should be used to guide product mix decisions?

The products’ contribution margin per unit of constraint

The products’ gross margin per unit of constraint

The products’ contribution margin

Which of the following is false?

Outsourcing refers to having work performed overseas

Outsourcing decisions should take into consideration the intended use of freed capacity

Outsourcing decisions are often referred to as “make-or-buy” decisions

Contract manufacturers are manufacturers that make products for other companies

In making “sell as is” decisions, companies should consider should consider all of the following EXCEPT for

Costs incurred up to the “sell as is” decision point

Incremental costs that would be incurred by processing further

Incremental revenues that would be earned by processing further

All of the above should be considered

MA 2025

Authored by 11A8_12_Trịnh Nam

Financial Education

University

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following management responsibilities often involves evaluating the results of operations

Planning

Directing

Controlling

None of the above

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MA differs from financial accounting in that managerial accounting

Tends to report on the company as a whole rather than segments of the company

Emphasizes data relevance over data objectivity

Is used primarily by external decision makers

Is required by GAAP

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following corporate positions is responsible for general FA, MA, and tax reporting

Controller

Treasurer

Internal audit

Chief operating officer (COO)

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Of the following skills which are needed by today’s management accountants

Strategic thinking

Cost management

Decision analysis

All of the above

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

) Which of the following organizations is the professional association specifically for management accountants

FASB

AICPA

IMA

IFRS

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following professional standards requires management accountants to continually develop their knowledge and skills?

Competence

Confidentiality

Integrity

Credibility

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following professional standards requires MA to not disclose private information about their organizations?

Competence

Confidentiality

Integrity

Credibility

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MA 2025

Which of the following management responsibilities often involves evaluating the results of operations

MA differs from financial accounting in that managerial accounting

Which of the following corporate positions is responsible for general FA, MA, and tax reporting

Of the following skills which are needed by today’s management accountants

) Which of the following organizations is the professional association specifically for management accountants

Which of the following professional standards requires management accountants to continually develop their knowledge and skills?

Which of the following professional standards requires MA to not disclose private information about their organizations?

Which of the following requires the company’s CEO and CFO to assume responsibility for the company’s financial statements and disclosures

Which of following is false

All of the following are business trends affecting management accounting except

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