Managerial Accounting Flashcards
6 cards from real Accounting Online Program practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Managerial Accounting flashcards as text
Which of the following best describes the primary purpose of managerial accounting?
Answer: Providing financial information to internal managers for decision-making
Managerial accounting focuses on providing relevant financial and non-financial data to internal managers to support planning, controlling, and decision-making.
A budget that adjusts based on actual activity levels is called a:
Answer: Flexible budget
A flexible budget adjusts revenue and cost estimates to reflect actual output levels, making variance analysis more meaningful.
Which cost behavior remains constant in total regardless of changes in activity level?
Answer: Fixed cost
Fixed costs, such as rent or salaries, remain constant in total within a relevant range, regardless of changes in production volume.
The difference between budgeted and actual results is called a:
Answer: Variance
A variance is the difference between a budgeted, planned, or standard amount and the actual amount incurred or achieved.
Contribution margin is calculated as:
Answer: Sales revenue minus variable costs
Contribution margin equals sales revenue minus variable costs and represents the amount available to cover fixed costs and generate profit.
Which of the following is an example of a direct cost?
Answer: Raw materials used in production
Direct costs, like raw materials, can be directly traced to a specific product or cost object without allocation.