Midterm Exam

Trimester 2, 2023-2024 Set A

UEH-ISB

STUDENT DETAILS

Complete your details in this section when instructed by the Exam Supervisor at the start of the exam.
You should also complete your details on any answer booklets provided.

STUDENT FAMILY NAME:

STUDENT GIVEN NAME:

STUDENT ID:

EXAM INSTRUCTIONS
Read all the information below and follow any instructions carefully before proceeding.
You must comply with all directions given by Exam Supervisors.
You may begin writing when instructed by the Exam Supervisor at the start of the exam.
Clearly indicate which question you are answering on any Examination Answer Booklets used.

Unit Name: Managerial Accounting

Unit Number: ACC202

Number of Questions: 40 Multiple Choice Questions

Total Number of Pages: 09 pages (excluding exam cover sheet)

Value of Questions: 40 multiple choice questions

Total marks: 100

Answering Questions: Answer all questions in the Examination Answer Sheets provided.

Lecturer/Unit Coordinator: Mr. Manoj Menon

Time Allowed: 60 minutes

RESOURCES ALLOWED
Only the resources listed below are allowed in this exam
This is a closed-book examination.
No talking during the exam. No mobile phone or any media devices used during the exam.

DO NOT TAKE THIS PAPER FROM THE EXAM ROOM

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 MULTIPLE CHOICE QUESTIONS
The exam paper is composed of 40 multiple-choice questions. Students should complete ALL
multiple-choice questions.

1) ________ gathers, summarizes, and reports on the financial impact of changes to business
operations.
A) Managerial accounting
B) Planning
C) Directing
D) Controlling

2) Planning involves which of the following activities?

A) Evaluating the results of operations
B) Overseeing the company's day-to-day operations
C) Setting goals and objectives for the company
D) None of the above

3) Budgets are a way for managers to communicate their

A) control.
B) decision-making.
C) hiring practices.
D) plans.

4) Which of the following statements is true regarding managerial accounting information?

A) Managerial accounting information is audited by CPAs.
B) Managerial accounting information emphasizes relevance.
C) Managerial accounting information is prepared annually and quarterly.
D) Managerial accounting information must be prepared in conformity with Generally Accepted
Accounting Principles (GAAP).

5) The primary goal of managerial accounting is to provide information to

A) internal decision-makers.
B) shareholders.
C) creditors.
D) both shareholders and creditors.

6) Managerial accountants may be responsible for

A) providing decision support.
B) communicating results.
C) analyzing data.
D) All of the above.

7) The standards of the IMA Statement of Ethical Professional Practice include which of the following?
A) Objectivity
B) Fairness
C) Honesty
D) Integrity

8) What ethical standard is being violated when you tell a friend that the company you work for is
going to report lower than expected earnings next week?
A) Credibility
B) Integrity
C) Confidentiality
D) Competence

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 9) Which of the following is not one of the IMA's credibility standards?
A) To disclose all relevant information
B) To disclose deficiencies in internal control
C) To communicate information fairly and objectively
D) All of the above are part of IMA's credibility standard.

10) Accepting a job that you know can be better performed by someone else with the required skills
would violate the ethical conduct standard of
A) credibility.
B) integrity.
C) competency.
D) confidentiality.

11) Before these materials are used to manufacture its cars, Toyota classifies steel, glass, and plastic
as
A) raw materials inventory.
B) finished goods inventory.
C) work in process inventory.
D) merchandise inventory.

12) Which of the following items could be found in work in process inventory at a candy bar
manufacturer?
A) Candy bars made but not coated in chocolate
B) Cocoa products to make candy bars
C) Sugar products to make candy bars
D) Candy bars completed but not yet sold

13) All of the following are part of a company's value chain except
A) design.
B) distribution.
C) administration.
D) marketing.

14) Joe's Bottling Company provided the following expense information for July:
Assembly-line workers' wages $56,400
Depreciation on factory equipment $35,700
Caps for bottles $3800
Plastic bottles $52,200
Reconfiguring the assembly line $123,600
Salaries of salespeople $63,800
Customer support hotline $12,900
Salaries of research scientists $65,200
Delivery expenses $40,200
Customer toll-free order line $8800

What is the total cost for the production category of the value chain?
A) $462,600
B) $310,000
C) $148,800
D) $148,100

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 15). Which of the following is not one of the primary responsibilities of management?
A. Adhering to GAAP
B. Planning
C. Directing
D. Controlling

16). Which of the following value chain elements is associated with the costs of shipping
inventory to the retail outlet in a merchandising company?
A. Design
B. Distribution
C. Production and Purchases
D. Customer Service

17). Prime costs consist of

A. direct materials and direct labor.
B. direct labor and manufacturing overhead.
C. direct materials and manufacturing overhead.
D. direct materials, direct labor and manufacturing overhead.

18). The unit contribution margin is computed by

A. subtracting the variable cost per unit from the sales price per
unit. B. dividing the sales revenue by variable cost per unit.
C. dividing the variable cost per unit by the sales revenue.
D. subtracting the sales price per unit from the variable cost per unit.

19). The primary goal of managerial accounting is to provide information to

A. internal decision-makers.
B. shareholders.
C. creditor
D. both shareholders and creditors.

20). Which of the following types of companies has raw materials, work in process and
finished goods inventory?
A. Retailers
B. Manufacturers
C. Wholesalers
D. Service
companies

21). A CFO would have all of the following responsibilities except

A. investing in new production equipment.
B. managing corporate financing.
C. manage the preparation of all corporate tax returns.
D. providing reports to creditors as required.

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 22). Which of the following is NOT a technical competency that a managerial accountant needs
to possess?
A. Internal Controls
B. Tax return preparation
C. Decision Analysis
D. Technology

23). Which one of the following items is not one of the three primary manager responsibilities?
A. Controlling
B. Planning
C. Directing
D. Adjusting

24). CVP analysis assumes all of the following except

A. the mix of products will not change.
B. revenues are linear through the relevant range.
C. inventory levels will increase.
D. a change in volume is the only factor that affects
costs.

25). Dairy Days Ice Cream sells ice cream cones for $5 per customer. Variable costs are $2 per cone.
Fixed costs are $2900 per month. What is Dairy Days' contribution margin per ice cream
cone?

A. $3.00
B. $2.00
C. $0.60
D. $5.00

26). Which of following statements is true?

A. Managerial accounting focuses on historical
transactions.
B. Financial accounting focuses on future data.
C. Management accounting focuses on relevant data.
D. Managerial accounting uses the cash basis for recording transactions.

27) Which of the following items could be an example of a cost object?

A. A manufacturing plant.
B. An international plant.
C. The accounting
department.
D. All of the above are examples of potential cost objects.

28). Who Done It Mystery Theater sells tickets for dinner and a show for $55 each. The cost of
providing dinner is $21 per ticket and the fixed cost of operating the theater is $60,000 per
month. The company can accommodate 15,000 patrons each month. The contribution
margin ratio is closest to?
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 A. 99.38%
B. 62.00%
C. 34%
D. 162%

29). What factor has changed the roles of managerial accountants?

A. Stricter GAAP standards
B. Technology
C. Stricter audit
standards
D. None of the above

30). What ethical standard would you violate if you take pens home from work for personal use?
A. Integrity
B. Competence
C. Confidentiality
D. Credibility

31). Which of the following are merchandising companies?

A. Manufacturers
B. Retailers
C. Wholesalers
D. Both retailers and wholesalers

32) A factory janitor's wages would be classified as manufactured product.

A. an indirect cost
B. a direct cost
C. a period cost
D. none of the above

33) Conversion costs consist of

A. direct materials and direct labor.
B. direct labor and manufacturing overhead.
C. direct materials and manufacturing overhead.
D. direct materials, direct labor and manufacturing overhead.

34). Buzz Appliances manufactures two products: Food Processors and Espresso Makers. The
following data are available:
Food Processors Espresso Makers
Sales price $145 $255
Variable costs $50 $190

The company can manufacture two food processors per machine hour and three espresso
machines per machine hour. The company's production capacity is 1,200 machine hours per
month. What is the contribution margin ratio for food processors?
A. 65.52%
B. 160.00%
C. 131.03%
D. 25.49%

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 35) Managers can quickly forecast the total contribution margin by multiplying the
A. projected sales units by the variable cost ratio.
B. projected sales units by the contribution margin ratio.
C. projected sales revenue by the unit contribution margin.
D. projected sales revenue by the contribution margin
ratio.

36) Jackie's Snacks sells fudge, caramels, and popcorn. It sold 8000 units last year. Popcorn
outsold fudge by a margin of 2 to 1. Sales of caramels were the same as sales of popcorn.
Fixed costs for Jackie's Snacks are $15,000. Additional information follows:
Product Unit Sales Prices Unit Variable Cost
Fudge $7.00 $2.00
Caramels $5.00 $2.00
Popcorn $3.00 $2.00

The weighted average contribution margin for the three products of Jackie's Snacks is
A. $5.60.
B. $0.87.
C. $2.50.
D. $21.00.

37). Richard's Framing Company provides the following information about its single product.
Targeted operating income $54,000
Selling price per unit $75.00
Variable cost per unit $70.00
Total fixed cost $10,500

What is the breakeven point in units?

A. 2,100
B. 10,800
C. 372
D. 72

38). Testing a prototype of a new product is an example of a:

A. Unit-level activity.
B. Batch-level activity.
C. Product-level activity.
D. Organization-sustaining activity.

Accola Company uses activity-based costing. The company as two products: A and B. The
annual production and sales of Product A is 1,100 units and of Product B is 700 units. There
are three activity cost pools, with estimated costs and expected activity as follows:

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Managerial Accounting – T1 2023/2024 – Midterm Page 9 of 9
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 39). The activity rate for Activity 3 is closest to:
A. $119.72
B. $116.18
C. $26.67
D. $56.74

40) The cost per unit of Product A is closest to:

A. $59.23
B. $57.20
C. $47.89
D. $22.70

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