BSNS115 MANAGEMENT EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
What is the Main Focus?
Internal to managers
What is the nature of reports?
Specific
How Detailed is management accounting Compared to financial accoutning?
Management is more detailed while financial is broad
Does management accounting have restrictions?
No
Reporting Interval?
Frequent and timely - one day after period ends
What is the time frame?
present and future
What is the Range of information
Quantitive and Qualitative (non financial info) less focus on objective and verifiable data
What is management accounting more concerned with?
Economic and financial information
Is management accounting only quantitive? only qualitative? or both?
Both
What is management accounting?
,- the provision of financial data and advice to a company for use in the organization and
development of its business.
- Management accounting is more future-orientated and supports the internal planning
decisions made by management
Management accounting _______ and ________ activities and _________
managers decisions
Plan, control, support
Contribution Margin
Sales
Less: VC (variable costs)
____________________
CM
Less: FC (Fixed costs)
____________________
Operating Profit
Whats an Example of Contribution Margin?
Sales $100,000
Less: $60,000
____________________
CM $40,000
Less: $30,000
____________________
Operating Profit: $10,000
, Per Unit %
To find the Contribution margin
CM = Selling price - Variable costs
Manufacturing Overhead
- includes all manufacturing costs except raw material and direct labor - and indirect
cost
- Over head is an indirect cost, it is not feasible to specifically relate overhead items to
individual products or services
Direct Costs
Costs that are easily conveniently traces to a unit of product or activity - would not be
incurred if product or activity were discounted
period costs
All other costs that are not product costs, usually a lump sum for the period and almost
always indirect
Indirect Costs
Costs that are not easily conveniently traces to a unit of product or activity - would not
be incurred if product or activity were discounted
Cost Objects
Products, jobs, and service that costs are assigned to from a cost pool
Product Costing
Process of assigning all possible direct costs to a job ad then charging each unit of
output with a fair share of indirect costs.
ANSWERS WITH COMPLETE SOLUTIONS VERIFIED
What is the Main Focus?
Internal to managers
What is the nature of reports?
Specific
How Detailed is management accounting Compared to financial accoutning?
Management is more detailed while financial is broad
Does management accounting have restrictions?
No
Reporting Interval?
Frequent and timely - one day after period ends
What is the time frame?
present and future
What is the Range of information
Quantitive and Qualitative (non financial info) less focus on objective and verifiable data
What is management accounting more concerned with?
Economic and financial information
Is management accounting only quantitive? only qualitative? or both?
Both
What is management accounting?
,- the provision of financial data and advice to a company for use in the organization and
development of its business.
- Management accounting is more future-orientated and supports the internal planning
decisions made by management
Management accounting _______ and ________ activities and _________
managers decisions
Plan, control, support
Contribution Margin
Sales
Less: VC (variable costs)
____________________
CM
Less: FC (Fixed costs)
____________________
Operating Profit
Whats an Example of Contribution Margin?
Sales $100,000
Less: $60,000
____________________
CM $40,000
Less: $30,000
____________________
Operating Profit: $10,000
, Per Unit %
To find the Contribution margin
CM = Selling price - Variable costs
Manufacturing Overhead
- includes all manufacturing costs except raw material and direct labor - and indirect
cost
- Over head is an indirect cost, it is not feasible to specifically relate overhead items to
individual products or services
Direct Costs
Costs that are easily conveniently traces to a unit of product or activity - would not be
incurred if product or activity were discounted
period costs
All other costs that are not product costs, usually a lump sum for the period and almost
always indirect
Indirect Costs
Costs that are not easily conveniently traces to a unit of product or activity - would not
be incurred if product or activity were discounted
Cost Objects
Products, jobs, and service that costs are assigned to from a cost pool
Product Costing
Process of assigning all possible direct costs to a job ad then charging each unit of
output with a fair share of indirect costs.
