Accounting Online Program Managerial Accounting 2

Question 1

The break-even point is reached when:

Accepted Answer

Total revenue equals total costs (fixed + variable)

Answer

The break-even point occurs when total revenue equals total costs, meaning the company has neither a profit nor a loss.

Question 2

What does a favorable cost variance indicate?

Accepted Answer

Actual costs were less than budgeted costs

Answer

A favorable cost variance means actual costs were lower than the budgeted or standard costs, which is generally a positive outcome.

Question 3

Which costing method assigns all manufacturing costs (fixed and variable) to products?

Accepted Answer

Absorption costing

Answer

Absorption costing (also called full costing) includes both fixed and variable manufacturing costs in the cost of a product.

Question 4

Which of the following is a non-financial performance measure used in managerial accounting?

Accepted Answer

Customer satisfaction score

Answer

Non-financial performance measures like customer satisfaction scores help managers assess operational effectiveness beyond what financial statements capture.

Question 5

A sunk cost is best described as:

Accepted Answer

A cost that has already been incurred and cannot be recovered

Answer

Sunk costs are past costs that have already been incurred and are irrelevant to future decision-making because they cannot be recovered.

Accounting Online Program Practice Test

Accounting Online Program Practice Test

Accounting Online Program Managerial Accounting 2