WorksheetsMA 2025
Total questions: 45
Worksheet time: 23mins
Which of the following management responsibilities often involves evaluating the results of operations
Planning
Directing
Controlling
None of the above
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
Which of the following corporate positions is responsible for general FA, MA, and tax reporting
Controller
Treasurer
Internal audit
Chief operating officer (COO)
Of the following skills which are needed by today’s management accountants
Strategic thinking
Cost management
Decision analysis
All of the above
) Which of the following organizations is the professional association specifically for management accountants
FASB
AICPA
IMA
IFRS
Which of the following professional standards requires management accountants to continually develop their knowledge and skills?
Competence
Confidentiality
Integrity
Credibility
Which of the following professional standards requires MA to not disclose private information about their organizations?
Competence
Confidentiality
Integrity
Credibility
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)
Lean operations
Which of following is false
Globalization has increased the necessity for more detailed and accurate cost information
The triple bottom line focuses on three items: net income, net assets, and return on investment
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
All of the following are business trends affecting management accounting except
Shifting economy
Sustainability
Big data
All of the above
Period costs
Include direct materials and direct labor
Are capitalized as inventory
Are expensed in the period incurred
Include factory overhead
Are included in total manufacturing costs
Factory overhead
Include selling expenses
Includes indirect labor
Is a period cost
Includes general and administrative expenses
Is included in nonmanufacturing costs
Which of the following types of companies would have work in process inventory?
Service
Merchandising
Manufacturing
All of the above
Which of the following is not an activity in the value chain
Marketing
Customer Service
Design
Administration
A cost that can be traced to a cost object is known as a
Period cost
Product cost
Direct cost
Indirect cost
Period costs are often referred to as
Manufacturing expenses
Operating expenses
Direct costs
Product costs
Conversion costs consist of
Direct materials and manufacturing overhead
Direct labor 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 is a calculated amount, rather than general ledger account
Finished goods inventory
Cost of good manufactured
Sales revenue
Cost of goods sold
Which of the following is a calculated amount, rather than general ledger account
Finished goods inventory
Cost of good manufactured
Sales revenue
Cost of goods sold
Which of the following types of companies will always have the Cost of Goods Sold account on their income statements?
Service and merchandising companies
Merchandising and manufacturing companies
Service and manufacturing companies
Service, merchandising, and manufacturing companies
Which of the following is false?
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
Sunk costs are generally relevant to decisions
The difference in cost between two alternatives is known as a differential cost
Which of the following is true?
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
Fixed costs stay constant in total over a wide range of activity levels
Direct materials are considered to be fixed costs
The contribution margin is
Sales revenue minus fixed expenses
Sales revenue minus cost of goods sold
Sales revenue minus variable expenses
Sales revenue minus operating expenses
The contribution margin ratio is
Contribution margin divided by variable expenses
Sales revenue divided by contribution margin
Contribution margin divided by sales revenue
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) / Sales revenue
(Fixed expenses + Operating expenses) / Sales revenue
(Fixed expenses + Variable expenses) / Contribution margin per unit
(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 fixed expense line
The intersection of the total revenue line and the total 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 breakeven point will decrease
There will be no effect on the breakeven point
Its contribution margin ratio will increase
Its contribution margin ratio will decrease
All else being equal, a decrease in a company’s fixed expenses will
Increase the sales needed to break even
Increase the contribution margin
Decrease the sales needed to break even
Decrease the contribution margin
Which of the following is true regarding a company that offers more than one product
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
The breakeven point is dependent on sales mix assumptions
A company with a low operating leverage
Has relatively more risk than a company with high operating leverage
Has relatively more variable costs than fixed costs
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
Contribution margin / sales
Operating income / contribution margin
Which of the following is false regarding choosing between two cost structures
The indifference point is the point where total regarding choosing between two cost structures
The indifference point is the point at which costs under two options are the same
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
A cost that cannot be changed because it arises from a past decision and is irrelevant to future decisions is
An uncontrollable cost
An out-of-pocket
A sunk cost
An opportunity cost
An incremental cost
The potential benefit of one alternative that is lost by choosing another is known as
An alternative cost
A sunk cost
A differential cost
An opportunity cost
An out-of-pocket cost
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
Both of the above
None of the above
Which is true of price-setters?
Their pricing approach emphasizes cost-plus pricing
Their pricing approach emphasizes target costing
Their products lack uniqueness
They are in highly competitive markets
Which of the following should be considered for 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
Whether excess capacity exists
All of the listed choices should be considered in special order decisions
The formula for arriving at target cost is which of the following
Cost minus actual profit
Revenue minus variable cost
Revenue minus desired profit
Revenue minus actual profit
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 all fixed costs
Segment’s contribution margin minus allocated fixed costs
Same as the segment’s contribution margin
Segment’s contribution margin minus direct fixed costs
When resources are constrained, which of the following should be used to guide product mix decisions?
The products’ gross margin per unit of constraint
The products’ contribution margin per unit of constraint
The products’ contribution margin
The products’ gross margin
Which of the following is false?
Outsourcing decisions should take into consideration the intended use of freed capacity
Outsourcing refers to having work performed overseas
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
Incremental costs that would be incurred by processing further
Costs incurred up to the “sell as is” decision point
Incremental revenues that would be earned by processing further
All of the above should be considered
