BFA103 An Introduction to Management Accounting

What types of reports come from management accounting?

• Special-purpose reports

• General-purpose reports

What is the reporting frequency of management accounting?

• As needed

• Annual or semiannual

What is the correct order of these statements?

• What information is collected/presented?,

  How is the information presented?,

  To whom is the information provided?,

  Why generate management accounts?

• Why generate management accounts?,

  To whom is the information provided?,

  What information is collected/presented?,

  How is the information presented?

• How is the information presented?,

  Why generate management accounts?,

  To whom is the information provided?,

  What information is collected/presented?

• What information is collected/presented?,

  How is the information presented?,

  Why generate management accounts?,

  To whom is the information provided?

Which of these are part of the five components of planning?

• Evaluating the alternatives

• Determining alternative courses of action

• Collecting the relevant information

• Act on the plan

• Making a decision

Planning needs to be both long-term and short-term in orientation

• True

• False

Variable Costs are:

• Costs that have fixed and variable components

• The costs that change as a result of changing production/service volume

• Costs that are fixed for a particular range of activities

• The costs that don't change in a particular period

Fixed costs are:

• Costs that are fixed for a particular range of activities

• Costs that have fixed and variable components

• The costs that don't change in a particular period

• The costs that change as a result of changing production/service volume

Stepped costs are:

• The costs that don't change in a particular period

• Costs that are fixed for a particular range of activities

• The costs that change as a result of changing production/service volume

• Costs that have fixed and variable components

Mixed costs are:

• The costs that change as a result of changing production/service volume

• The costs that don't change in a particular period

• Costs that have fixed and variable components

• Costs that are fixed for a particular range of activities

The formula for the contribution margin is:

• =Total fixed costs/contribution margin per unit

• =Sales revenue-variable costs