FAR — Financial Accounting & Reporting — Quiz 82

Questions in this quiz (20)

1. Which managerial accounting tool determines the sales level required to avoid losses?

   • Break-even analysis
   • Horizontal analysis
   • Vertical analysis
   • Ratio analysis

2. Which managerial accounting tool determines the sales level required to avoid losses?

   • Break-even analysis
   • Horizontal analysis
   • Vertical analysis
   • Ratio analysis

3. Which formula calculates break-even point in units?

   • Fixed Costs ÷ Contribution Margin per Unit
   • Sales ÷ Expenses
   • Net Income ÷ Sales
   • Revenue ÷ Assets

4. Which formula calculates break-even point in units?

   • Fixed Costs ÷ Contribution Margin per Unit
   • Sales ÷ Expenses
   • Net Income ÷ Sales
   • Revenue ÷ Assets

5. Which of the following best defines contribution margin?

   • Sales revenue minus variable costs
   • Sales revenue minus fixed costs
   • Total revenue minus total expenses
   • Net income minus expenses

6. Which of the following best defines contribution margin?

   • Sales revenue minus variable costs
   • Sales revenue minus fixed costs
   • Total revenue minus total expenses
   • Net income minus expenses

7. Which statement best describes the purpose of managerial accounting?

   • To prepare external financial statements
   • To assist management in planning and decision-making
   • To prepare tax returns
   • To eliminate accounting estimates

8. Which statement best describes the purpose of managerial accounting?

   • To prepare external financial statements
   • To assist management in planning and decision-making
   • To prepare tax returns
   • To eliminate accounting estimates

9. Which of the following defines contribution margin ratio?

   • Net income divided by sales
   • Contribution margin divided by sales
   • Fixed costs divided by sales
   • Variable costs divided by sales

10. Which of the following defines contribution margin ratio?

    • Net income divided by sales
    • Contribution margin divided by sales
    • Fixed costs divided by sales
    • Variable costs divided by sales

11. Which formula calculates contribution margin per unit?

    • Sales price per unit minus variable cost per unit
    • Fixed costs divided by units produced
    • Sales minus expenses
    • Revenue divided by assets

12. Which formula calculates contribution margin per unit?

    • Sales price per unit minus variable cost per unit
    • Fixed costs divided by units produced
    • Sales minus expenses
    • Revenue divided by assets

13. Which of the following is considered a direct cost?

    • Factory rent
    • Direct labor
    • Administrative salaries
    • Office utilities

14. Which of the following is considered a direct cost?

    • Factory rent
    • Direct labor
    • Administrative salaries
    • Office utilities

15. Which of the following is considered an indirect cost?

    • Direct materials
    • Direct labor
    • Manufacturing overhead
    • Raw materials

16. Which of the following is considered an indirect cost?

    • Direct materials
    • Direct labor
    • Manufacturing overhead
    • Raw materials

17. Which of the following best describes overhead costs?

    • Costs directly related to production
    • Costs related to manufacturing support activities
    • Costs associated with selling products
    • Costs related to financing activities

18. Which of the following best describes overhead costs?

    • Costs directly related to production
    • Costs related to manufacturing support activities
    • Costs associated with selling products
    • Costs related to financing activities

19. Which managerial accounting method assigns manufacturing costs to specific jobs?

    • Job costing
    • Budgeting
    • Financial analysis
    • Break-even analysis

20. Which managerial accounting method assigns manufacturing costs to specific jobs?

    • Job costing
    • Budgeting
    • Financial analysis
    • Break-even analysis