Part 1: Multiple Choice:20 Points Managerial Accountants put more emphasis than
ID: 2564589 • Letter: P
Question
Part 1: Multiple Choice:20 Points Managerial Accountants put more emphasis than Financial Accountants on which of the below 1. a. Precision b. Segment Reporting c. Corporate wide reporting d. Past Financial Results 2. In the High-Low Formula, Y- a+ bX, the a represents a. Level of Activity b. Total Mixed Costs Variable Cost per unit of Activity Total Fixed Costs c. d. 3. Executive Salaries is an example of a a. Prime Cost b. Conversion Cost c. Period Cost d. Sunk Cost 4. The Break-Even point on a linear graph is shown when a. Total Fixed Costs equals Total Revenues b. Total Variable Costs equals Total Revenues @ Total Expenses equals Total Revenues d. Total Mixed Cost equals Total Revenues 5. Prime Costs are calculated by which formula b. c· d. The sum of DirectMaterials plus Direct Labor Costs The sum of Direct Materials plus Direct Overhead Costs The sum of Direct Materials, Direct Labor and Direct Overhead Costs The sum of Conversion Costs and Opportunity Costs 6. Which of the following causes the incurrence of a variable costs? a. Budget b. Activity Base c. Relevant Range d. Regression BaseExplanation / Answer
1. The option b. Segment Reporting is the correct option.
Explanation:
Managerial accountants puts a primary importance on segment Reporting whereas financial accountant puts more importance on precision.
2. The option d. Total Fixed Costs is the correct option.
Explanation:
Y = a + bX represented as Y = Total Cost, a = Total Fixed Costs, b = Number of units/ activities and X = Variable cost per unit / activity.
3. The option c. Period Cost is the correct option.
Explanation:
Executive salaries are relating to Administrative Overhead which will not come under prime cost or conversion cost. As the amount of executive salaries are fixed in nature, these amount will come under period cost. However sunk cost is the wrong option. as sunk costs represents the cost that has already been incurred and cannot be recovered.
4. The option c. Total Expenses equals to Total Revenues is the correct option.
Explanation:
At break-even point, there is no profit or no loss. So, it will only happen when Total Expenses equals to Total Revenues.