QUIZ 1 Accountants forbid management

1. It is a field of accounting that accountant to act on, or even appear

provides financial and non-financial to act on, confidential information
information to an organization's they acquire in doing their work,
managers and other internal except when authorized or when
decision makers. legally obligated to do so
Managerial Accounting confidentiality

2. Which of the following statements 11. Provisions in this Ethical Standards

is/are correct? for Management Accountants cover
The manager's planning function avoidance of conflicts of interest,
involves setting of the organization's impropriety of accepting gifts or
goals and identifying alternatives favors, and other matters generally
and selecting the alternative that associated with professional
best furthers such goals set for the behavior
organization objectivity Integrity
3. Which of the following is/are false? 12. Per the Standards of Ethical
Managerial accounting is concerned Conduct, the management
with providing information to accountants have a responsibility to
stockholders as it is with providing communicate information fairly and
information to managers objectively, and disclose fully all
relevant information that could
4. In which of the following aspects is reasonably be expected to influence
managerial accounting similar to an intended user's understanding of
financial accounting? the reports, comments, and
Reliance on the accounting recommendations presented. These
database provisions are contained in the
standards on
5. Which of the following describes objectivity
management accounting
information? 13. Which of the following statements
It provides reasonable and timely relating to Standards of Ethical
estimates Conduct for Management
Accountants is correct
6. Following are the principles Management accountants have a
governing the design of responsibility to disclose fully all
management accounting systems, relevant information that could
EXCEPT? reasonably be expected to influence
None of the above an intended user's understanding of
the reports, comments, and
7. The American Institute of recommendations presented
Management Accountants came up
with the Standards of Ethical 14. Management accountant is used by
Conduct for Management a company's management for a
Accountants which have four multitude of purposes which are as
sections, namely follows, EXCEPT
competence, confidentiality, integrity, marketing
and objectivity
15. Managerial accounting differs from
8. Financial and managerial accounting financial accounting in that financial
differ in a number of ways. In accounting is
contrast to financial accounting, concerned primarily with external
managerial accounting financial reporting
emphasizes relevance and flexibility
rather than precision 16. If a management accountant has a
problem in resolving an ethical
9. Provisions in this section of Ethical conflict, the first action that should
Standards for Management normally be taken is to
Accountants require management discuss the problem with his/her
accountants to develop their immediate superior
knowledge and skills and to do their
tasks in accordance with relevant 17. Integrity is an ethical requirement for
laws, regulations, and standards. all management accountants. One
competence aspect of integrity requires
avoidance of actual or apparent
10. Provisions in this section of Ethical conflicts of interest and advise all
Standards for Management
 appropriate parties of any potential hours, beds occupied, computer
conflict time, etc., that is a causal factor in
the incurrence of cost
18. That type of accounting which deals
how accounting and other financial 8. Product cost or inventoriable costs
data can be used for are treated as assets before the
decision-making in controlling, products are sold
monitoring, and directing business
activity is called 9. Which of the following costs is not a
management accounting product cost
wages paid to truck loaders who
19. In comparing management and load finished goods onto outgoing
financial accounting, which of the delivery trucks
following more accurately describes
management accounting 10. Product costs
information? are inventoriable costs
budgeted, informative, adaptable

20. Which of the following statements

about management or financial
accounting is false?
Both management and financial
accounting are subject to mandatory
record-keeping requirements

QUIZ 2
1. Cost is the monetary measure of the
amount of resources given up in
obtaining goods and services. Costs
may be classified as unexpired or
expired. Which of the following costs
11. Total product costs
is not always considered to be
expired immediately upon being
22,000 5k+2k+6k+1k+4k+1.5k+2.5k
12. Total period costs
recognized 8k+12k+3k+20k+2k
45,000
depreciation expense for factory
equipment
13. Manufacturing Costs do not include
salary of the company president,
2. An activity that causes resources to
under whom is the vice president for
be consumed is called a
the production
cost driver
14. Direct labor cost is a
3. It refers to anything (a product,
all of the above
product line, a business segment)
for which cost is computed
15. These costs are long-term in nature
cost object
and cannot be eliminated even for
short periods of time without
4. It is a grouping of individual cost
affecting the profitability or long-term
items, or an account in which a
goals of the firm
variety of similar costs, are
Committed fixed cost
accumulated
cost pool
16. This type of fixed cost usually arises
from periodic decisions by
5. It is an event, action, transaction,
management to spend in certain
task, or unit of work that consumes
fixed cost areas. They may be
resources and with a specified
changed by management from
purpose
period to period or even within the
activity
period if circumstances demand
such change
6. An activity that add costs to the
Discretionary fixed cost
product or service, but does not
make such product or service more
17. Mixed cost are costs that have
valuable to customers is called
variable and fixed cost components
non-value adding activity

7. Which of the following statements is

correct
a cost driver is a measure of activity,
such as direct labor hours, machine
 Beyond the break-even point,
operating income will increase by
contribution margin per unit for each
additional unit

11. What is Contribution Margin per unit

and as a percent of sales (CMR)?
18. If KM Company uses the high-low P10 per unit; 40%
method of analysis, the estimated 12. What is the break-even point?
variable rate of maintenance cost 10,000 units or P250,000 100k(40%)
per machine hour is 13. If the corporation desires to earn
5.33 15,840-10,720/2,190-1,230 profit of P20,000 before tax, it must
19. The average annual fixed generate sales of 100k+20k/10(CMU)
maintenance cost amounts to 12,000 units or P300,000
49,92015,840-(5.33*2,190) =4,160*1214. If the corporation pay corporate
20. What is the average rate per hour at income tax rate of 30%, and it21k/1-30%= 30k
a level of 1,500 machine hours. desires to earn after-tax profit of
8.11 FC=10,720-(5.33*1,230) P21,000, it must generate sales of
P325,000 or 13,000 units 100k+30k/10=13k
QUIZ 3 = [4,164 +(5.33*1,500)]/1,500 15. How much sales (in pesos) must be
1. It involves a systematic examination generated to earn profits that is 8%
of the relationships among costs, of such sales?
P312,500
cost driver, and profit 100k/40%-8%= 312.5k
Cost-Volume-Profit Analysis
2. CVP Analysis may be used by
managers in planning and
decision-making, which may involve
the following except
choosing the analytical techniques to
use
3. The elements of CVP analysis 16. The weighted-average unit
include the following, except contribution margin is
relevant cost 5.20
(6*3)+(4*2)/5
4. Which of the following statements is 17. The break-even point in units is 234k/5.2=45k
correct Product 1 - 27,000 ; Product 2 -
One inherent, simplifying 18,000 P1: 45k*(3/5) P2: 45k*(2/5)
assumption in CVP analysis is that 18. The weighted-average contribution
production equal sales margin ratio is
5. In CVP analysis, it is assumed that 24%
selling prices per unit and market
conditions remain unchanged
6. Management may use CVP analysis
to determine the relative profitability
of a product by
determining the unit contribution
margin and the projected profits at
various levels of production
7. Cost-volume profit relationships that
are curvilinear may be analyzed
linearly by considering only
a relevant range of activity 19. The maximum amount of profit that
8. In a contribution income statement can be earned by the company from
fixed costs are shown separately the sales of the new product next
from variable costs year is
9. It is the level of output or sales at P300,000
which total revenues equal total 20. The company's management laid
costs, that is, the point at which down a policy that it will not approve
operating income is zero the manufacture and sale of new
break-even point products unless it would earn a profit
10. A calculation used in CVP analysis ratio of at least 20%. The unit selling
is the break-even point. At this point, price to achieve this target profit
total revenue equals total costs. must be
P53.125