Accounting Online Program Managerial Accounting 1

Question 1

Which of the following best describes the primary purpose of managerial accounting?

Accepted Answer

Providing financial information to internal managers for decision-making

Answer

Managerial accounting focuses on providing relevant financial and non-financial data to internal managers to support planning, controlling, and decision-making.

Question 2

A budget that adjusts based on actual activity levels is called a:

Accepted Answer

Flexible budget

Answer

A flexible budget adjusts revenue and cost estimates to reflect actual output levels, making variance analysis more meaningful.

Question 3

Which cost behavior remains constant in total regardless of changes in activity level?

Accepted Answer

Fixed cost

Answer

Fixed costs, such as rent or salaries, remain constant in total within a relevant range, regardless of changes in production volume.

Question 4

The difference between budgeted and actual results is called a:

Accepted Answer

Variance

Answer

A variance is the difference between a budgeted, planned, or standard amount and the actual amount incurred or achieved.

Question 5

Contribution margin is calculated as:

Accepted Answer

Sales revenue minus variable costs

Answer

Contribution margin equals sales revenue minus variable costs and represents the amount available to cover fixed costs and generate profit.

Accounting Online Program Practice Test

Accounting Online Program Practice Test

Accounting Online Program Managerial Accounting 1