Accounting Online Program Managerial Accounting

Question 1

Which of the following best describes the primary purpose of managerial accounting?

Accepted Answer

Providing financial information to internal managers for decision-making

Answer

Preparing tax returns for the IRS

Answer

Auditing financial statements for external users

Answer

Reporting earnings to shareholders

Question 2

A budget that adjusts based on actual activity levels is called a:

Accepted Answer

Flexible budget

Answer

Static budget

Answer

Master budget

Answer

Capital budget

Question 3

Which cost behavior remains constant in total regardless of changes in activity level?

Accepted Answer

Fixed cost

Answer

Variable cost

Answer

Mixed cost

Answer

Step cost

Question 4

The difference between budgeted and actual results is called a:

Accepted Answer

Variance

Answer

Deviation

Answer

Margin

Answer

Deficit

Question 5

Contribution margin is calculated as:

Accepted Answer

Sales revenue minus variable costs

Answer

Net income minus operating expenses

Answer

Gross profit minus selling expenses

Answer

Operating income minus taxes

Question 6

Which of the following is an example of a direct cost?

Accepted Answer

Raw materials used in production

Answer

Factory rent

Answer

CEO's salary

Answer

Depreciation on corporate headquarters