Accounting Midterm

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Accounting Midterm Quiz

Test your knowledge and understanding of key accounting concepts with our engaging Accounting Midterm Quiz! This quiz covers essential topics in both financial and managerial accounting, providing you with an opportunity to assess your grasp of the material.

Multiple-choice questions
Designed for accounting students and professionals
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15 Questions4 MinutesCreated by CalculatingFox247

Obtaining feedback is generally identified most directly with which of these functions of management?

Planning

Directing and Motivating

Controlling

Decision making

Both financial and managerial accounting rely on the same underlying financial data but there are major differences. Managerial accounting:

Emphasizes financial consequences of past actitivites

Emphasizes precision

Emphasizes relevance

Must follow GAAP

How should the cost of the fire insurance for a manufacturing plant be classified?

Prime cost

Product cost

Period cost

Variable cost

What does manufacturing overhead cost consist of?

All manufacturing costs

All manufacturing costs, EXCEPT direct materials and direct labour

Indirect materials but NOT indirect labour

Indirect labour but NOT indirect materials

Which of the following statements regarding variable cost is true

Variable cost increases on a per unit bases as the number of units produced increases

Variable cost remains constant on a per unit basis as the number of units produced increases

Variable cost remains the same in total as production increases

Variable cost decreases on a per unit basis as the number of units produced increases

When does a decision is made among a number of alternatives, the benefit that is lost by choosing one alternative over another is called what?

Realized cost

Opportunity cost

Conversion cost

Accrued cost

Expense A is a fixed cost; expense B is a variable cost. During the current year, the activity level has increased but it is still within relevant range. In terms of cost per unit of activity you would expect which of the following statements to be true?

Expense A has remained unchanged

Expense B has decreases

Expense B has increased

Expense A has decreased

What does the term 'relevant range' mean

The range within which costs may fluctuate

The range within which a particular cost formula is valid

The range within which production may vary

The range within which the relevant costs are incurred

Which of the following best describes the contribution approach to the income statement?

It organizes costs on a functional nases

It shows data based on the cost behavior aspect of fixed and variable

It shows a contribution margin rather than an operating income figure at the bottom of the statement

It can be used only by manufacturing companies

Which of the following is defined as the difference between total sales in dollars and total variable expenses

Margin of safety

Operating income

The gross margin

The contribution margin

Once the break-even point is reached, which of the following statements is true?

The total contribution margin changes from negative to positive

Operating income will increase by the unit contribution margin for each additional item sold

Variable expenses will remain constant in total

The contribution margin ratio begins to decrease

The total contribution margin decreases if sales volume remains the same and which of the following occurs?

Fixed expenses increase

Fixed expenses decrease

Variable expenses per unit increaes

Variable expenses per unit decreases

How is the degree of operating leverage calculated

Contribution margin divided by sales

Gross margin divided operating income

Operating income divided by sales

Contribution margin divided by operating income

Costs incurred at which of the following activity levels should NOT be allocated to products for decision-making purposes?

Unit-level activities

Batch-level activities

Product-level activities

Organization-sustaining activities

What is a duration driver

A simple count of the number of times an activity occurs

An activity measure that is used for the life of the company

A measure of the amount of time required to perform an activity

An activity measure that is used for the life of an activity-based costing system

Accounting Midterm

Accounting Midterm Quiz

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