Management Accounting Multiple Choice Questions (MCQ)

1. Managerial accounting information is generally prepared for

a. stockholders.

b. creditors.

c. managers.

d. regulatory agencies.

2. Managerial accounting information

a. pertains to the entity as a whole and is highly aggregated.

b. pertains to subunits of the entity and may be very detailed.

c. is prepared only once a year.

d. is constrained by the requirements of generally accepted accounting principles.

3. The major reporting standard for presenting managerial accounting information is

a. relevance.

b. generally accepted accounting principles.

c. the cost principle.

d. the current tax law.

4. Managerial accounting is also called

a. management accounting.

b. controlling.

c. analytical accounting.

d. inside reporting.

Managerial Accounting True-False Statements

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Managerial Accounting True-False Statements in $3.50 only

1. Reports prepared in financial accounting are general-purpose reports, whereas reports

prepared in managerial accounting are usually special-purpose reports.

2. Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.

3. Managerial accounting applies to all forms of business organizations.

4. Determining the unit cost of manufacturing a product is an output of financial accounting.

5. Managerial accounting internal reports are prepared more frequently than are classified financial statements.

6. The management function of directing and motivating is mainly concerned with setting goals and objectives for the entity.

7. An organization chart in a manufacturing company replaces the chart of accounts.

8. Controlling is the process of determining whether planned goals are being met.

9. Decision-making is an integral part of the planning, directing and motivating, and controlling functions.

10. Both direct labor cost and indirect labor cost are product costs.

Master’s of Accountancy Degree at Central University Costs

Master’s of Accountancy Degree at Central University Costs in $8 only (Instant Download)

A Master’s of Accountancy degree at Central University costs $12,000 for an additional fifth year of education beyond the bachelor’s degree. Assume that all tuition is paid at the beginning of the year. A student considering this investment must evaluate the present value of cash flows from possessing a graduate degree versus holding only the undergraduate degree. Assume that the average student with an undergraduate degree is expected to earn an annual salary of $50,000 per year (assumed to be paid at the end of the year) for 10 years after graduation. Assume that the average student with a graduate Master’s of Accountancy degree is expected to earn an annual salary of $66,00 per year (assumed paid at the end of the year) for nine (9) years after graduation. Assume a minimum required rate of return of 10%:

  1. Determine the net present value of cash flows from an undergraduate degree.
  2. Determine the net present value of cash flows from a Master’s of Accountancy degree, assuming no salary is to be earned during the graduate year of schooling.
  3. What is the net advantage or disadvantage of pursuing a graduate degree under these circumstances?

The answer should be in 3 pages and supported by articles journal references.

Sample Answer:

….The best method to evaluate a Capital Budgeting proposal is the NPV method or discounted Cash Flow method. The word “net” in this term indicates that the entire cash flows-positive or negative are considered. This method takes into account the concept of time value of money…..

Year02 to 10
-$12,000.00
Annual Salary$66,000.00
….
Net Cash Flow
* Present value annuity factor @10%15…..
Present…..-$12,000.00$…….
NPV (sum of all present value of cash flows)$333,576.00

Price of Answer: Just US$8 only (Instant Download)Buy Now

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