(UNISA) MAC2601 PRINCIPLES OF MANAGEMENT ACCOUNTING COMPREHENSIVE FINAL EXAM
10 views 0 purchase
Course
ECONOMICS
Institution
University Of South Africa
(UNISA) MAC2601 PRINCIPLES OF MANAGEMENT ACCOUNTING COMPREHENSIVE FINAL EXAM(UNISA) MAC2601 PRINCIPLES OF MANAGEMENT ACCOUNTING COMPREHENSIVE FINAL EXAM(UNISA) MAC2601 PRINCIPLES OF MANAGEMENT ACCOUNTING COMPREHENSIVE FINAL EXAM(UNISA) MAC2601 PRINCIPLES OF MANAGEMENT ACCOUNTING COMPREHENSIVE FINAL...
,1. Which of the following is not a method used in cost estimation?
A) High-low method
B) Least-squares regression
C) Account analysis
D) Time-driven activity-based costing
Correct Answer: D) Time-driven activity-based costing
Rationale: Time-driven activity-based costing is a method of
cost accounting used in managerial accounting that allows
businesses to gather data about their operating costs.
2. In cost-volume-profit analysis, what does the contribution
margin ratio signify?
A) The percentage of each sales dollar available to cover fixed
costs and profit
B) The total fixed costs divided by the contribution margin per
unit
C) The change in total costs due to a one-unit change in
production volume
D) The ratio of variable costs to sales revenue
Correct Answer: A) The percentage of each sales dollar
available to cover fixed costs and profit
Rationale: The contribution margin ratio is the percentage of
each sales dollar remaining after variable costs have been
deducted, which contributes to covering fixed costs and
generating profit.
3. Which cost classification would be used for a cost that changes
in total with the level of activity but remains constant on a per-
unit basis?
A) Fixed cost
B) Variable cost
C) Mixed cost
D) Step cost
, Correct Answer: B) Variable cost
Rationale: Variable costs vary in total in direct proportion to
changes in an activity level but remain constant on a per-unit
basis.
4. What is a cost object?
A) A segment of the business that generates costs
B) A unit of product or service in relation to which costs are
measured
C) A department or function within the organization
D) A ledger account that tracks costs
Correct Answer: B) A unit of product or service in relation to
which costs are measured
Rationale: A cost object is anything for which a separate
measurement of costs is desired, such as a product, service,
project, customer, or activity.
5. In management accounting, which of the following best
describes 'cost behavior'?
A) The process of assigning costs to cost objects
B) The study of how costs change in response to changes in an
organization's activities
C) The classification of costs as either direct or indirect
D) The allocation of fixed costs over various cost objects
Correct Answer: B) The study of how costs change in response
to changes in an organization's activities
Rationale: Cost behavior refers to the way different types of
production costs change when there is a change in the level of
production.
6. Which method is most appropriate for estimating the fixed and
variable components of a mixed cost?
A) Scatter plot method
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Examiner651. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.00. You're not tied to anything after your purchase.
