Managerial Acc 2 Quiz One M 2

Name ……………………………….. ID………………….

8) ________ involves an analysis of alternative courses of action and the

identification of the best course of action to follow.
A) Scorekeeping
B) Attention directing
C) Problem-solving
D) Internal auditing
Answer: C

4) ________ is the classification, accumulation, and reporting of data that help

users understand and evaluate organizational performance.
A) Scorekeeping
B) Attention directing
C) Problem solving
D) Cost accounting
Answer: A

3) Investigating the reasons for the variances on a department's performance

report is an example of ________.
A) scorekeeping
B) attention directing
C) problem solving
D) auditing
Answer: B
6) How is accounting information prepared by management accountants used
within an organization?
A) to help operating managers make decisions
B) to plan an organization's operations
C) to control an organization's operations
D) all of the above
Answer: D
3) ________ is the field that produces information used primarily by managers
within an organization.
A) Financial accounting
B) Management accounting
C) Internal auditing
D) External auditing
Answer: B
9) Each month Newton Company produces 30,000 units of a product that has
variable costs of $70 per unit. Total fixed costs for the month are $99,000. A
special order is received for 1,000 units at a price of $80 per unit. Newton
Company has adequate capacity for the special order. If Newton Company
accepts the special order, what is the profit to Newton Company from the
special order?
A) $0
B) $6,700
C) $7,000
D) $10,000
Answer: D
11) Dakota Company has been producing and selling 42,000 hats a year. There
are no beginning and ending inventories. The Dakota Corporation has the
capacity to produce 52,000 hats. The following data is available:

Selling price per unit $30

Variable manufacturing costs per unit $13
Variable selling and administrative costs per unit $7

Total fixed manufacturing costs $126,000

Total fixed selling and administrative costs $84,000

If a special order is accepted for 10,000 hats at a price of $25 per unit, net
income would ________.
A) increase by $20,000
B) increase by $50,000
C) increase by $90,000
D) decrease by $24,000
Answer: B
1) When evaluating short-term special order decisions, we normally do not
use contribution margin approach of income statements
False
19) Most scorekeeping information is produced on a nonroutine basis.
Answer: FALSE
14) Financial accounting reports are usually prepared for a period of one year
or less.
Answer: TRUE