Accounting Assignment Questions

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A S S I G N M E N T
Q U E S T I O N S

Managerial Accounting Assignment
Questions
1. What is the competitive environment at Gibson? What actions has the
company undertaken in response? What strategic issues do contemplated
actions raise?
2. In order for it to be practical to undertake the redesign of a company's
cost accounting system, there are two general requirements. What are they
and how well does Gibson meet these criteria? Explain.
3. Consider the CURRENT cost accounting system at Gibson which allocates
support costs based on a flat rate of $82.25 per policy. What is one
advantage and one disadvantage of the current system? Show & explain.
4. What are the total costs allocated to the three business units (Midwest,
Gibson, Compton)?
5. The three basic types of manufacturing cost are direct materials, direct
labor, and manufacturing overhead. True of false?
6. As companies become more automated overhead costs increase and direct
labor costs decrease. True or false?
7. An increase in an activity base must cause an increase in actual overhead
costs incurred for that base to be considered a cost driver. True or false?
8. Is it true that a company may choose to use process costing or job costing
but never both simultaneously?
9. A process cost system is highly desirable when a company is producing the
mass produced, identical goods. True or false?
10. The salary of the vice president of finance would be considered a(n):
A) manufacturing cost.
B) product cost.
C) administrative cost.
D) selling expense.
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Management Accounting Assignment
Questions
1. Management can compute the per-unit cost of finished goods accurately
only when a job order cost system is in use. True or false?
2. Is it true that two steps required in Activity Based Costing are identifying
separate activity cost pools and allocating each cost pool to the product
using an appropriate cost driver?
3. Direct materials used, direct labor, and manufacturing overhead are
included among the expenses listed in the income statement of a
manufacturing company. Ture or false?
4. Managers need information from the management accounting system
because? (Tick the one untrue answer)
A) They cannot get this from the financial accounts
B) The financial accounts are not detailed enough
C) The financial accounts are prepared too late
D) The financial accounts are prepared for each part of the organization and
the management accounts are prepared for the whole organization.
5. A management accountant in a decentralized organisation…. (Tick the one
true answer)
A) Needs less information than one in a centralized organization
B) Is given more responsibility
C) Needs the same reporting information system as one in a centralized
organization
D) Gets paid less money than one in a centralized organization
6. If production volume increases then:
A) Total variable cost decreases while variable cost per unit is constant.
B) Variable cost per unit is constant while total variable cost increases.

C) Total variable cost remains constant while variable cost per unit increases.
(D) Variable cost per unit decreases while total variable cost is constant.
7. Which of the following is not a recent development that has affected
management accounting
A) DUCK
B) TQM
C) JIT
D) TOQ
8. Time value of money supports the comparison of cash flows recorded at
different time period by:
A) Discounting all cash flows to a common point of time
B) Compounding all cash flows to a common point of time
C) Using either A or B
D) None of the above
9. If the cost of goods manufactured is greater than the cost of goods sold,
then:
A) work in process inventory has decreased during the period.
B) finished goods inventory has increased during the period.
C) total manufacturing costs must be greater than the cost of goods
manufactured.
D) finished goods inventory has decreased during the period.
10. The term management accounting was first coined in:
A) 1960
B) 1950
C) 1945
D) 1955
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College Accounting Assignment
Questions
1. Revenues minus expenses equals __________.
2. Resources owned by a company (such as cash, accounts receivable,
vehicles) are reported on the balance sheet and are referred to as
__________.
3. The accrual basic of accounting recognizes revenues and expenses when:
A) Revenues are earned and expenses are paid
B) Revenues are received and expenses are incurred
C) Revenues are received and expenses are paid
D) Revenues are earned and expenses are incurred
4. Obligations (amounts owed) are reported on the balance sheet and are
referred to as __________.
5. Liabilities often have the word __________ in their account title.
6. If beginning capital was $25,000, ending capital is $37,000, and the
owner?s withdrawals were $23,000, the amount of net income or net loss
for the period was:
A) Net loss of $35,000
B) Net income of $35,000
C) Net income of $14,000
D) Net loss of $14,000
E) None of the options listed
7. In the accounting equation: A=L+E, what does E stand for?
A) Event
B) Equal
C) Everything
D) Equilibrum
E) Equity

8. The listing of all of the accounts available for use in a company's
accounting system is known as the __________.
9. Assets minus liabilities equals __________.
10. Incurring an expense before cash is paid is an example of what kind of
adjustment?
A) Accrued Liability
B) Deferred Expense
C) Accrued Asset
D) Deferred Revenue
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Intermediate Accounting Assignment
Questions
1. The body that has the responsibility to set generally accepted accounting
principles in Canada is the:
A) FASB
B) IASB
C) AcSB
D) OSC
2. Factory overhead and burden are terms used as alternatives for the term
__________ overhead.
3. The factory maintenance department and the factory administration
department are examples of __________ departments.
4. To start a corporation in the U.S., it is necessary to file an application in
one of the states. The legal document that the state approves is the
__________.
5. The preparation by some companies of biased information is sometimes
referred to as:
A) conservative financial reporting
B) aggressive financial reporting
C) full disclosure of all material facts
D) management stewardship
6. At a corporation, Assets minus Liabilities is __________.
7. If a common stock does not have a par value or a stated value, the entire
proceeds from issuing the stock is credited to one account entitled
__________.
8. The dividend on preferred stock is often expressed as a percentage. To
calculate the annual dividend on preferred stock, you multiply the percentage
times the __________ of the preferred stock.

9. Which of the following parties is not instrumental in the development of
financial reporting standards in Canada:
A) The financial accountings standards board (FASB)
B) The provincial securities commissions
C) The international accounting standards board (IASB)
D) The American Institute of certified public accountants.
10. Which of the following is not a stakeholder in the Canadian Financial
reporting environment?
A) Investors
B) Creditors
C) Auditors
D) All of the above
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Financial Accounting Assignment
Questions
1. Financial accounting is focused on the __________ financial statements of a
company.
2. What is the accrual basis of accounting?
3. What is the distinction between debtor and creditor?
4. What is the difference between financial accounting and management
accounting?
5. Corporations whose stock is publicly traded must have their financial
statements __________ by independent certified public accountants.
6. Where do dividends appear on the financial statements?
7. What is the difference between accounts payable and accrued expenses
payable?
8. The main components or elements of the income statement are
__________, expenses, gains, and losses.
9. The statement of cash flows explains the changes in cash and cash
__________ during the specified time interval.
10. Which of the following shows a summary of a company's financial position
at a specific date?
A) Profit & Loss Account
B) Cash Flow Statement
C) Balance Sheet
D) Income & Expenditure Account
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Strategic Management Accounting
Assignment Questions
1. Which one of the following statements about the difference between
financial reporting and management accounting is correct?
A) Management accounting information is consolidated and is produced after
the event.
B) Management accounting does not have direct guidance in the form of a
conceptual framework and standards.
C) Financial reporting is about the future, is produced when needed and is
made up of both financial and non-financial information.
D) Financial reporting information includes information on benchmarking,
performance measurement and actual compared to plan.
2. Which one of the following cost classifications is most important when
preparing a list of performance measures for a management team?
A) Relevant / sunk
B) Direct / indirect
C) Outlay / opportunity
D) Controllable / uncontrollable
3. One of the following is not a feature of SMA:
A) The development and monitoring of business strategy
B) Linking goods and MIS
C) The absence of key performance indicators
D) Provision and analysis of Management Accounting data
4. The impact of corporate strategy will not involve one of the following:
A) Strategic Relativity
B) Strategic Choice
C) Organisational Learning

D) The fact that competitive position will not just depend on price but the
marketing mix
5. The need for additional information for the SMA will not involve one of the
following:
A) Attribute Costing
B) Life Cycle Costing
C) Target Costing
D) Corporate Costing
6. One of the following statements does not reflect the relationship between
SMA and Management Accounting:
A) NPV can use data produced by SMA
B) Compared to an SMA model an NPV model is limited
C) NPV is almost incompatible with SMA
D) SMA integrates certain strategic choice models with the strategic
intelligence approach
7. What is the primary objective of strategic management accounting?
A) To create sustainable value and improve organisation outcomes.
B) To create organisation strategy, implementation plans and performance
measures.
C) To enable an organisation to determine what types of products it will
supply or services it will offer.
D) To ensure that an organisation meets its compliance obligations to
shareholders, government and
society.
8. One of the following statements regarding lean technology is not true:
A) Lean enterprises tend to avoid competition through strategic planning
B) Lean technologies collide
C) New technology means customers may become self-reliant

D) Lean enterprises tend to have temporary rather than long term
advantages
9. One of the following would not be considered a good feature of the
balanced scorecard:
A) Immediate feedback
B) A large number of performance measures
C) A number of non-financial measures
D) An employee is only held responsible for what he/she can influence
10. One of the following statements is not true of Emergent Strategies and
Organisational Learning:
A) Organisational Learning isn’t a top down centralised process
B) Strategic Management seeks to establish absolute market positioning and
costs
C) Management Accounting may be seen as an interactive communication
process
D) Strategic Management Accounting may involve new applications of
existing approaches rather than new techniques
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Cost Accounting Assignment
Questions
1. What is a prime cost?
2. What is the difference between prime costs and conversion costs?
3. What is a cost variance?
4. The difference between the sales price and total variable costs is:
A) Gross operating profit
B) Net profit
C) The breakeven point
D) The contribution margin
5. What is an incremental cost?
6. In cost terminology, conversion costs consist of:
A) Direct and indirect labor
B) Direct labor and direct materials
C) Direct labor and factory overhead
D) Indirect labor and variable factory overhead
7. How can a manufacturer determine the precise cost of its products?
8. Which one of the following categories of the cost is most likely not
considered a component of fixed factory overhead?
A) Rent
B) Property taxes
C) Depreciation
D) Power
9. What is the cost of goods sold?
10. How do you compute a selling price if you know the cost and the required
gross margin?
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Managerial Accounting Assignment
Questions
1. As volume increases, the total cost of a mixed cost:
A) increases by the same percentage as volume increases
B) increases
C) decreases
D) decreases by the same percentage as the volume increases
2. Which one of the following costs should not be considered an indirect cost
of serving a particular customer at a Pizza Hut franchise?
A) The salary of the franchise's manager.
B) The cost of the tables and chairs used to furnish the restaurant.
C) The cost of the dough used to make the pizza that is ordered.
D) The cost of lighting and heating the restaurant.
3. Management can do very little to reduce these types of costs over the
period of the next six months:
A) flexible costs
B) discretionary costs
C) committed costs
D) product costs
4. An opportunity cost is:
A) the difference between the total cost of one alternative and the total cost
of another alternative.
B) the benefit forgone when one alternative is selected rather than another.
C) a cost that is saved by not adopting a given alternative.
D) a cost that continues to be incurred even when there is no activity.
5. Management can compute the per-unit cost of finished goods accurately
only when a job order cost system is in use. True or false?

6. Which of the following is classified as a committed, sunk, fixed expense?
A) investment in manufacturing equipment
B) advertising
C) additional maintenance on equipment
D) employee benefit programs
7. The term relevant range means the range that:
A) will cause costs to fluctuate
B) cost relationships identified are valid
C) relevant costs are incurred
D) production volumes may not vary and will remain constant
8. Is it true that a company may choose to use process costing or job costing
but never both simultaneously?
9. Which of the following is least likely to be classified as a variable cost?
A) depreciation on a machine based on how much is produced
B) supervisors on the production line
C) utilities at the manufacturing plant
D) costs to deliver the product to the customer
10. A fixed cost:
A) is set at the beginning of the year and will not change
B) is fixed for one level of production volumes
C) will not change directly in proportion to production volume
D) behaves very similar to costs incurred for material
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