Management Accounting Exam Questions: Objectives, Statements, and Cost Calculations

Which of the following is not an objective of management accounting?

Question Which of the following is not an objective of management accounting? A. Providing information for decision making. B. Providing information for planning. C. Providing information for profit and loss statements. D. Providing information for control. E. Motivating managers towards achieving organisational goals. Question Which of the following statements about management accounting are true? 1. It is a part of an organisation’s management information system. 2. It is relied upon by managers to plan and control an organisation’s operations. 3. It is relied upon by external users to make investment decisions. A. 1 and 2. B. 1, 2 and 3. C. 3. D. 2. E. 1. Question If there are 15,000 units in the beginning work in process, 5,000 units in the ending work in process, and 40,000 units transferred out, how many units were started during the period? C a. 20000 b. 25,000 c. 30,000 d. 60,000 Question . Minty Manufacturing Company\'s average electricity costs were $1 per machine hour at an activity level of 10,000 machine hours in March and $0.80 at an activity level of 15,000 machine hours in February. Assuming that this activity is within the relevant range, total expected electricity costs for an estimated activity level of 11,000 machine hours would be C a. $11,000 b. $8,800 c. $10,400 d. none of the above Question Leisure Life manufactures various sporting equipment. During the first year of operations the company worked on the following four jobs. The predetermined overhead application rate was 150% of direct labour cost. Job 104 included direct material of $20,000 and total costs were $25,000. The manufacturing overhead applied to Job 104 to date is: A. $5,000 B. $3,000 C. $2,000 D. $2,500 E. $ –0– Question 13 Carolina Plating Company reported a cost of goods manufactured of $520,000, with the firm\'s year-end balance sheet revealing work in process and finished goods of $70,000 and $134,000, respectively. If supplemental information disclosed raw materials used in production of $80,000, direct labor of $140,000, and manufacturing overhead of $240,000, the company\'s beginning work in process must have been: A. $130,000. B. $10,000. C. $66,000. D. $390,000. E. None of the other answers are correct. Question 3. Missar Company\'s direct labour cost is 40 percent of its prime cost and 25 percent of its conversion cost. If manufacturing overhead was $150,000 during the month of May, the direct materials cost for the month of May was A. $90,000 B. $75,000 C. $125,000 D. cannot be determined with the information given DL 25% OH 75% 150,000/.75=200,000 conversion cost , DL =200,000*25% = 50,000 DM 60% DL 40% 50,000, prime cost = 50,000/.4=125,000 DM = 125,000*.6=75,000 Question . As activity levels increase, total variable costs: A*. Increase proportionately with activity. B. Decrease proportionately with activity. C. Remain constant. D. Increase by a fixed amount. E. Decrease by a fixed amount. Question . Barrett Industries began the month of June with a finished goods inventory of $15,000. The finished goods inventory at the end of June was $10,000 and the cost of goods sold during the month was $20,000. The cost of goods manufactured during the month of June was: A. $35,000. B. $25,000. C. $20,000. D*. $15,000. E. $ 5,000. Question . As manufacturing companies become more automated, their cost structure will change so that; A. Variable costs increase, fixed costs decrease. B. Variable cost increase, fixed costs increase. C. Variable costs decrease, fixed costs decrease. D*. Variable costs decrease, fixed costs increase. E. There is no change in the ratio of variable to fixed costs. Question . A cost which has both a fixed and variable component is called: A. Step-fixed cost. B. Step-variable cost. C*. Semi-variable cost. D. Curvilinear cost. E. Discretionary cost. Question . Total costs are $140,000 when 10,000 units are made. Of this amount variable costs are $4 per unit. What are the total costs when 8,000 units are produced? A. $140,000. B. $136,000. C*. $132,000. D. $124,000. E. $112,000. Question . Technical Engineering presently leases a copying machine on a monthly basis. The lease agreement requires a fixed fee each month in addition to a charge per copy. Technical made 2,400 copies and paid a total of $162 in rent in September and in October they paid $195 for 3,500 copies. Determine Technical’s variable cost per copy. A. $0.07 B. $0.06 C. $0.04 D*. $0.03 E. $0.01 Question . Yang Manufacturing makes a product called Yin. The relevant range of operations is between 2,500 units and 10,000 units of Yin per month. Per unit costs at two activity levels are as follows; 5,000 units $17.00 per unit, 7,500 units $13.00 per unit. Determine their total cost if Yang produces 10,000 units. A. $130,000 B. $125,000 C*. $110,000 D. $100,000 E. $ 90,000 Question . The following data apply to Stratford Ltd. Work in Process Inventory, beginning of the year $ 9,000 Manufacturing overhead applied during the year $20,000 Work in Process Inventory, end of the year $14,000 Under-applied Manufacturing overhead $ 2,000 What was the actual manufacturing overhead incurred during the year? A. $24,000 B*. $22,000 C. $20,000 D. $18,000 E. $16,000 20,000 +2,000 = 22,000 Question . A predetermined overhead rate is calculated as follows: A*. Budgeted manufacturing overhead/budgeted amount of cost driver. B. Budgeted amount of cost driver/budgeted manufacturing overhead. C. Budgeted manufacturing overhead/budgeted amount of non-manufacturing overhead. D. Budgeted manufacturing overhead/ budgeted total expenses. E. Budgeted manufacturing/ budgeted cost driver. Question . The Bobkim Company uses a predetermined overhead rate of $4 per direct labor hour to apply overhead. During the year, 30,000 direct labor hours were worked. Actual overhead costs for the year were $110,000. Bobkim\'s overhead variance would be a. $2,500 underapplied b. $2,500 overapplied c. $10,000 underapplied d. $10,000 overapplied e. none of the above Hot\'lanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company\'s utilities cost. The company\'s relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: Question. The fixed utilities cost per month is: A. $3,764. B. $4,400. C. $4,760. D. $5,100. E. an amount other than those listed above. Question. Using the high-low method, the utilities cost associated with 980 machine hours would be: A. $9,510. B. $9,660. C. $9,700. D. $9,790. E. an amount other than those listed above. QUESTION If direct materials used during the year were $135,000, what was cost of goods manufactured? A. $140,500. B. $539,000. C. $409,500. D. $544,500. E. None of the other answers are correct. 20 multiple choice questions within 30 minutes online tests. spoken to mathew and isabella use vpn of singapore please to log in its singapore 6.15pm to log in and start the online test. 20 multiple choice questions to be answered within 30 mins thank you sir madam Exam Date : 21 February 2021 6:00 PM Subject : MBS 669 Management Accounting Exam Duration : don\'t know No Of Question : 20 Type Of Question :