Free CIA Managerial Accounting Questions and Answers

Question 1

What is the primary focus of managerial accounting?

Accepted Answer

Supporting internal decision-making

Answer

Preparing external financial statements

Answer

Allocating dividends to shareholders

Answer

Auditing historical data

Question 2

Which cost behavior classification changes in total with production volume?

Accepted Answer

Variable costs

Answer

Fixed costs

Answer

Mixed costs

Answer

Sunk costs

Question 3

What tool is used to analyze the impact of cost, volume, and price on profit?

Accepted Answer

Cost–volume–profit analysis

Answer

Variance analysis

Answer

Activity-based costing

Answer

Standard costing

Question 4

Which budgeting approach starts from zero for each period?

Accepted Answer

Zero-based budgeting

Answer

Incremental budgeting

Answer

Flexible budgeting

Answer

Static budgeting

Question 5

What is a variance in standard costing?

Accepted Answer

Difference between budgeted and actual costs

Answer

Difference between cash and accrual methods

Answer

Difference between fixed and variable costs

Answer

Difference between actual revenue and budgeted profit

Question 6

Which costing method assigns overhead based on activities driving cost?

Accepted Answer

Activity-based costing

Answer

Job-order costing

Answer

Process costing

Answer

Variable costing

Question 7

What break-even point indicates?

Accepted Answer

Revenues equal costs

Answer

Maximum profit level

Answer

Total cost of goods sold

Answer

Total fixed costs

Question 8

Which cost is relevant for decision-making when considering shutting down a department?

Accepted Answer

Avoidable costs

Answer

Sunk costs

Answer

Fixed overhead

Answer

Allocated common costs

Question 9

Which performance metric measures return generated per dollar of assets?

Accepted Answer

Return on Assets

Answer

Return on Equity

Answer

Profit Margin

Answer

Asset Turnover Ratio