Ashworth Semester Exam BU33S Accounting For Managers

BU33S : Accounting for Managers

Question 1

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Which of the following are a manager’s three primary responsibilities?

Planning, Directing, Controlling

Budgeting, Planning, Controlling

Budgeting, Directing, Controlling

Budgeting, Planning, Directing

Question 2

All of the following are ethical principles identified in the IMA’s Statement of Ethical Professional Practice except:

honesty.

teamwork.

objectivity.

responsibility.

Question 3

Which of the following companies would use a job costing system?

Health care provider

Crayon manufacturing company

Potato chip manufacturing corporation

Spring water bottling company

Question 4

When selecting a manufacturing overhead allocation base, managers should select the:

number of products produced.

activity-based products.

cost driver of those manufacturing overhead costs.

same number used in prior years.

Question 5

Conversion costs include:

direct labor and manufacturing overhead.

manufacturing overhead only.

direct materials and direct labor.

direct materials and manufacturing overhead.

Question 6

If the sales price is $20 per unit, the variable cost is $12 per unit, total fixed costs are $12,000, and 15,000 units are produced, the contribution margin per unit is:

20

9

12

8

Question 7

Which of the following budgets is the comprehensive planning document for the entire organization?

Sales budget

Capital expenditure budget

Master budget

Budgeting income statement

Question 8

Which of the following is a true statement regarding fixed overhead volume variance?

If production volume is less than anticipated, then fixed overhead has been under allocated and the fixed overhead volume variance is favorable.

If production volume is less than anticipated, then fixed overhead has been under allocated and the fixed overhead volume variance is unfavorable.

If production volume is greater than anticipated, then fixed overhead has been under allocated and the fixed overhead volume variance is favorable.

If production volume is greater than anticipated, then fixed overhead has been over allocated and the fixed overhead volume variance is unfavorable.

Question 9

Which of the following is a cash equivalent?

Accounts receivable

Certificates of deposit that mature in less than three months

Certificates of deposit that mature in one year or less

Prepaid expenses

Question 10

All of the following are business reasons for adopting environmentally sustainable practices except:

cost reduction.

competitive strategy.

stakeholder influence.

historical orientation of accounting.

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