A306 FINAL EXAM With complete Solu on RATED A+
2025/2026 NEW EDITION
An effec ve performance evalua on will do what? - Ans Reward behavior that benefits the
company and will include mul ple performance measures
A company provides the following info:Material price variance: 800F, Material spending
variance: 250FBudgeted material/unit: 1.5 *, Budgeted material price: $6/*Actual units
produced: 100, Budgeted units produced: 120
What is the material quan ty variance? - Ans $550 U
SQA: 100units*1.5* = 150**$6=$900Mat Spending Var = Mat Qty Var + Mat Price Var250F = X +
800FMat Qty Var = 550U
Disadvantage of NPV method. - Ans Can not compare projects with different ini al
investments.
If fixed costs are $15,000 and variable costs are $4/unit, what are the break even units if each
unit sells for $10? - Ans 2500 units
What is a disadvantage of using residual income as a performance indicator? - Ans It favors
large divisions
Who uses management accoun ng and analysis? - Ans ALL business students, ALL managers
Managers use data to: - Ans Plan, control, and make decisions
How is management accoun ng more than just numbers? (6) - Ans -Ethics
-strategy: game plan
,-risk management
-social responsibility: balance needs of all
-process management: value chain
- leadership
Management accoun ng - Ans the process of analyzing business costs and opera ons to
prepare internal financial report, records, and account to aid managers' decision making process
in achieving business goals
Who are the decision makers outside the company (3) - Ans 1. Investors
2. Banks/lenders/creditors
3. Govt agencies/regulators
4 audited stmts in financial accoun ng - Ans 1. Balance sheet
2. Income statement
3. Stmt cash flows
4. Retained earnings
Who are the decision makers inside the company: (3) - Ans 1. Execu ves
2. Dept managers
3. Employees
Purpose of management accoun ng: - Ans 1. Planning - set goals, how to achieve
2. Control - feedback
3. Decision making
Which of the following statements is false:
,a. Creditors would be a user of financial accoun ng informa on
b. Management accoun ng informa on is used to develop budgets
c. Financial accoun ng informa on emphasizes decisions for the future
d. Reports based on management accoun ng informa on are created when required - Ans C -
that's managerial accoun ng
Which best describes management accoun ng?
A. Management accoun ng is mainly focused on past results
b. Management accoun ng reports are rules based using GAAP
c. The main users of mgmt acc info are outside the firm
d. Management accoun ng reports are prepared following the Na onal management
accoun ng standards
E. Management account is primarily used for decision making - Ans E
Planning (2) - Ans - involves developing goals and
- preparing various budgets to achieve those goals
Control (3) - Ans - involves gathering feedback to ensure the plan is working
- making changes as needed
- verifying all parts of the organiza on are working together toward the goals
Make decisions - Ans Have a compe ve advantage
NOI = - Ans REV - COSTS
Names for indirect costs - Ans Shared, allocated, common costs
, If he cost in the smallest circle is D... - Ans It stays direct as you get bigger
If cost in smallest circle is indirect... - Ans It flips to direct and will stay direct
Are mfg and non mfg costs only direct? - Ans Can be direct or indirect! Depends on cost object
What does the cost object determine - Ans If a cost is direct or indirect
What is the purpose of prime and conversion costs? - Ans To gauge efficiency!
Conversion costs - Ans Gauge efficiency of produc on process (DL+MOH)
Prime costs - Ans Helps set selling price to achieve required profits (DM +DL)
To be a prime or conversion cost, it must be a... - Ans MANUFACTURING COST
Which of the following statements is false:
a. Prime costs are always direct costs
b. Manufacturing costs can be direct or indirect
c. Selling and admin costs are only indirect
d. Direct labor is both a prime cost and a conversion cost - Ans C
Manufacturing costs include manufacturing overhead which are all... - Ans Indirect costs BUT
selling and admin can be either
Balance sheets report only: - Ans PRODUCT COSTS (inventory)
2025/2026 NEW EDITION
An effec ve performance evalua on will do what? - Ans Reward behavior that benefits the
company and will include mul ple performance measures
A company provides the following info:Material price variance: 800F, Material spending
variance: 250FBudgeted material/unit: 1.5 *, Budgeted material price: $6/*Actual units
produced: 100, Budgeted units produced: 120
What is the material quan ty variance? - Ans $550 U
SQA: 100units*1.5* = 150**$6=$900Mat Spending Var = Mat Qty Var + Mat Price Var250F = X +
800FMat Qty Var = 550U
Disadvantage of NPV method. - Ans Can not compare projects with different ini al
investments.
If fixed costs are $15,000 and variable costs are $4/unit, what are the break even units if each
unit sells for $10? - Ans 2500 units
What is a disadvantage of using residual income as a performance indicator? - Ans It favors
large divisions
Who uses management accoun ng and analysis? - Ans ALL business students, ALL managers
Managers use data to: - Ans Plan, control, and make decisions
How is management accoun ng more than just numbers? (6) - Ans -Ethics
-strategy: game plan
,-risk management
-social responsibility: balance needs of all
-process management: value chain
- leadership
Management accoun ng - Ans the process of analyzing business costs and opera ons to
prepare internal financial report, records, and account to aid managers' decision making process
in achieving business goals
Who are the decision makers outside the company (3) - Ans 1. Investors
2. Banks/lenders/creditors
3. Govt agencies/regulators
4 audited stmts in financial accoun ng - Ans 1. Balance sheet
2. Income statement
3. Stmt cash flows
4. Retained earnings
Who are the decision makers inside the company: (3) - Ans 1. Execu ves
2. Dept managers
3. Employees
Purpose of management accoun ng: - Ans 1. Planning - set goals, how to achieve
2. Control - feedback
3. Decision making
Which of the following statements is false:
,a. Creditors would be a user of financial accoun ng informa on
b. Management accoun ng informa on is used to develop budgets
c. Financial accoun ng informa on emphasizes decisions for the future
d. Reports based on management accoun ng informa on are created when required - Ans C -
that's managerial accoun ng
Which best describes management accoun ng?
A. Management accoun ng is mainly focused on past results
b. Management accoun ng reports are rules based using GAAP
c. The main users of mgmt acc info are outside the firm
d. Management accoun ng reports are prepared following the Na onal management
accoun ng standards
E. Management account is primarily used for decision making - Ans E
Planning (2) - Ans - involves developing goals and
- preparing various budgets to achieve those goals
Control (3) - Ans - involves gathering feedback to ensure the plan is working
- making changes as needed
- verifying all parts of the organiza on are working together toward the goals
Make decisions - Ans Have a compe ve advantage
NOI = - Ans REV - COSTS
Names for indirect costs - Ans Shared, allocated, common costs
, If he cost in the smallest circle is D... - Ans It stays direct as you get bigger
If cost in smallest circle is indirect... - Ans It flips to direct and will stay direct
Are mfg and non mfg costs only direct? - Ans Can be direct or indirect! Depends on cost object
What does the cost object determine - Ans If a cost is direct or indirect
What is the purpose of prime and conversion costs? - Ans To gauge efficiency!
Conversion costs - Ans Gauge efficiency of produc on process (DL+MOH)
Prime costs - Ans Helps set selling price to achieve required profits (DM +DL)
To be a prime or conversion cost, it must be a... - Ans MANUFACTURING COST
Which of the following statements is false:
a. Prime costs are always direct costs
b. Manufacturing costs can be direct or indirect
c. Selling and admin costs are only indirect
d. Direct labor is both a prime cost and a conversion cost - Ans C
Manufacturing costs include manufacturing overhead which are all... - Ans Indirect costs BUT
selling and admin can be either
Balance sheets report only: - Ans PRODUCT COSTS (inventory)
