Accounting Midterm
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
- Get instant feedback on your answers
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
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