Managerial Accounting review

What is the purpose of managerial accounting?

• To manage personal finances

• To explain the purpose of budgeting

• To analyze a performance report

• To explain the purpose of managerial accounting

What is the purpose of an operational plan?

• To describe the purpose of a cash budget

• To describe the purpose of an operational plan

• To analyze a performance report

• To explain the purpose of break-even analysis

What is the primary focus of managerial accounting?

• Providing information to internal stakeholders for decision-making

• Reporting to external stakeholders like investors

• Adhering to standardized rules like GAAP or IFRS

• Producing historical data reports

Which of the following is a characteristic of financial accounting?

• Reports to internal stakeholders

• Flexible and tailored to internal needs

• Adheres to standardized rules like GAAP or IFRS

• Future-focused and operational

What is the purpose of a cash budget?

• To outline specific actions and processes

• To track expected cash inflows and outflows

• To compare actual results to budgeted expectations

• To provide a financial framework for organizational goals

What does a performance report compare?

• Expected cash inflows and outflows

• Actual results to budgeted expectations

• Specific actions and processes

• Financial statements like income statements

Which of the following is a characteristic of fixed costs?

• Remain constant regardless of production volume

• Change with production volume

• Directly tied to output levels

• Vary with raw materials

How is gross profit calculated?

• Sales revenue – Cost of Goods Sold (COGS)

• Sales revenue – Variable Costs

• Contribution Margin / Total Units Sold

• Gross Profit / Sales Revenue × 100

What does break-even analysis determine?

• The sales volume needed to cover total costs

• The effect of net income changes

• The contribution margin per unit

• The cost of goods sold

Which tool is used to model how adjustments in cost, sales price, and volume affect net income?

• Sensitivity analysis

• Break-even analysis

• Gross profit margin

• Job-order costing