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WorksheetsManagerial Final Exam Review
Total questions: 25
Worksheet time: 14mins
What is the purpose of managerial accounting?
To manage personal finances
To explain the purpose of budgeting
To analyze a performance report
To explain the purpose of managerial accounting
Which of the following is a characteristic of financial accounting?
Reports to internal stakeholders
Flexible and tailored to internal needs
Adheres to standardized rules like GAAP or IFRS
Future-focused and operational
What is the purpose of a cash budget?
To outline specific actions and processes
To track expected cash inflows and outflows
To compare actual results to budgeted expectations
To provide a financial framework for organizational goals
Which of the following is a characteristic of fixed costs?
Remain constant regardless of production volume
Change with production volume
Directly tied to output levels
Vary with raw materials
How is gross profit calculated?
Sales revenue – Cost of Goods Sold (COGS)
Sales revenue – Variable Costs
Contribution Margin / Total Units Sold
Gross Profit / Sales Revenue × 100
What does vertical analysis in an income statement express?
Each income statement item as a percentage of total assets
Each income statement item as a percentage of sales revenue
Each income statement item as a percentage of net income
Each income statement item as a percentage of liabilities
to calculate ratios from the ___________, you’ll use:
•Net Sales
•Cost of Merchandise Sold
•Income from Operations
•Net Income After Federal Income Tax
Income Statement
Balance Sheet
SCOE
COGS
Which of the following is FALSE about managerial accounting versus financial accounting?
Managerial reports are prepared annually, whereas financial reports are prepared when required.
Managerial accounting is primarily utilized by internal users, whereas financial accounting is primarily utilized by external users.
The primary information characteristic for managerial accounting is relevance, whereas the primary information characteristics for financial accounting are reliability and objectivity.
No authoritative body requires managerial accounting reports, whereas the SEC requires financial accounting reports for publicly traded companies.
Which one is NOT one of the five factors of Cost Volume Profit?
Selling prices
Unit variable costs
Total variable costs
Total fixed costs
What is the margin of safety?
The difference between units sold and the break-even amount
The margin between units and sales
The margin between each break-even point
The margin between profit and loss
What is a business doing when it sells output beyond the break-even point?
Making a loss
Making a profit
Making neither a profit or loss
It is not possible to tell from the graph
Contribution margin goes toward
Fixed and variable costs
Variable costs
Only profit
Fixed cost and profit
The difference between the cost of the products sold and the net sales.
Gross profit
Gross margin
Gross ratio
What an entity owes
profit
revenue
liabilities
Budgets can play both planning and control roles for management.
True
False
DeArmond Corporation has budgeted sales of 18,000 units, target ending finished goods inventory of 3,000 units, and beginning finished goods inventory of 900 units. How many units should be produced next year?
21,900 units
20,100 units
15,900 units
18,000 units
Which of the following is calculated by subtracting the actual amount from the budgeted amount?
Linear regression
Cost-profit value
Variance analysis
Cost
Cash outflows are _____.
Expenses
Income
Are management accountants required by law?
Yes, they are legally required for all businesses
No, they are not legally required
Yes, but only for large businesses
No, but they are highly recommended
What is the purpose of a budget in a business?
To achieve financial success
To hire more employees
To design new products
To expand office space
Which of the following is considered an internal source of budgeting information?
Economic data
Historical financial records and patterns
Strikes at related industries
Changes in consumer buying habits
What is the impact of economic data on budgeting?
It affects internal financial records
It influences external market conditions
It determines sales promotion plans
It alters product development costs
What does the performance report help identify?
Only financial losses
What is going well
Employee dissatisfaction
Market trends
How does a budget assist in resource management?
By increasing employee workload
By allocating resources efficiently
By reducing production costs
By expanding market reach
