AICPA AICPA Managerial Accounting

Question 1

Which costing method assigns all manufacturing costs (fixed and variable) to products and is required under US GAAP for external financial reporting?

Accepted Answer

Absorption costing

Answer

Variable costing

Answer

Throughput costing

Answer

Activity-based costing

Question 2

A company sells a product for $80, with variable costs of $50 per unit and total fixed costs of $90,000. What is the break-even point in units?

Accepted Answer

3,000 units

Answer

1,125 units

Answer

1,800 units

Answer

4,500 units

Question 3

Which budgeting approach starts each budget period from zero and requires managers to justify all expenditures, rather than basing the budget on prior-year amounts?

Accepted Answer

Zero-based budgeting

Answer

Incremental budgeting

Answer

Rolling budgeting

Answer

Flexible budgeting

Question 4

The balanced scorecard framework developed by Kaplan and Norton measures organizational performance across four perspectives. Which of the following is NOT one of those four perspectives?

Accepted Answer

Supply chain efficiency

Answer

Financial

Answer

Customer

Answer

Internal business processes

Question 5

In a standard cost system, an unfavorable direct labor efficiency variance indicates that:

Accepted Answer

Actual labor hours exceeded standard hours allowed for actual production

Answer

The actual wage rate was higher than the standard wage rate

Answer

Fewer units were produced than budgeted

Answer

Overtime premiums were paid to workers

Question 6

Which cost behavior pattern remains constant in total but decreases on a per-unit basis as production volume increases?

Accepted Answer

Fixed cost

Answer

Variable cost

Answer

Mixed cost

Answer

Step cost