CNA Managerial Accounting Flashcards
6 cards from real CNA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CNA Managerial Accounting flashcards as text
Which budgeting approach requires managers to justify all expenditures from scratch each period rather than basing budgets on prior-year figures?
Answer: Zero-based budgeting
Zero-based budgeting requires every expense to be justified anew each budget cycle, ignoring historical spending levels.
A company's contribution margin is calculated as:
Answer: Sales revenue minus variable costs
Contribution margin equals sales revenue minus variable costs, representing the amount available to cover fixed costs and generate profit.
Which variance measures the difference between standard labor hours allowed for actual output and actual labor hours worked?
Answer: Labor efficiency variance
Labor efficiency variance compares standard hours allowed for actual production to actual hours worked, multiplied by the standard rate.
The break-even point in units is calculated by dividing fixed costs by:
Answer: Contribution margin per unit
Break-even units = Fixed Costs ÷ Contribution Margin per Unit, where contribution margin is selling price minus variable cost.
Absorption costing differs from variable costing primarily because absorption costing:
Answer: Includes fixed manufacturing overhead in product cost
Absorption costing includes fixed manufacturing overhead in unit product cost, while variable costing treats it as a period expense.
Which managerial accounting tool allocates overhead costs to products based on the activities that drive those costs?
Answer: Activity-based costing
Activity-based costing (ABC) assigns overhead using cost drivers linked to specific activities, providing more accurate product costing.