CNA CNA Managerial Accounting

Question 1

Which budgeting approach requires managers to justify all expenditures from scratch each period rather than basing budgets on prior-year figures?

Accepted Answer

Zero-based budgeting

Answer

Incremental budgeting

Answer

Rolling budgeting

Answer

Flexible budgeting

Question 2

A company's contribution margin is calculated as:

Accepted Answer

Sales revenue minus variable costs

Answer

Net income minus fixed costs

Answer

Gross profit minus operating expenses

Answer

Operating income plus depreciation

Question 3

Which variance measures the difference between standard labor hours allowed for actual output and actual labor hours worked?

Accepted Answer

Labor efficiency variance

Answer

Labor rate variance

Answer

Labor yield variance

Answer

Labor mix variance

Question 4

The break-even point in units is calculated by dividing fixed costs by:

Accepted Answer

Contribution margin per unit

Answer

Selling price per unit

Answer

Variable cost per unit

Answer

Gross margin per unit

Question 5

Absorption costing differs from variable costing primarily because absorption costing:

Accepted Answer

Includes fixed manufacturing overhead in product cost

Answer

Excludes direct labor from product cost

Answer

Treats selling expenses as product costs

Answer

Ignores period costs entirely

Question 6

Which managerial accounting tool allocates overhead costs to products based on the activities that drive those costs?

Accepted Answer

Activity-based costing

Answer

Process costing

Answer

Job-order costing

Answer

Standard costing