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

Absorption costing (full costing) includes both fixed and variable manufacturing overhead in product cost and is mandated by US GAAP for external reporting.

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

Break-even units = Fixed costs ÷ Contribution margin per unit = $90,000 ÷ ($80 − $50) = $90,000 ÷ $30 = 3,000 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

Zero-based budgeting requires every budget item to be justified from scratch each period, eliminating the assumption that prior-year spending is automatically approved.

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

The four balanced scorecard perspectives are Financial, Customer, Internal Business Processes, and Learning & Growth; supply chain efficiency is not a standalone perspective.

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

An unfavorable labor efficiency variance means workers took more hours than the standard allowed for the number of units actually produced.

(AICPA) American Institute of Certified Public Accountants Practice Test

(AICPA) American Institute of Certified Public Accountants Practice Test

AICPA AICPA Managerial Accounting