Practice Management Accounting: Tools And Techniques (14.5) - Introduction to Financial and Management Accounting

Practice: Management Accounting: Tools and Techniques

Lesson 14.5Introduction to Financial and Management Accounting

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9 questions

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3 cards from this section. Quick, good the night before a test.
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Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is budgeting?
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Think about the financial plan for a future period.
Question 2.
Name an example of a key performance indicator (KPI).
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KPIs measure how well an organization achieves its objectives.
3Question 3.
What is the primary focus of management accounting?
- Reporting to external stakeholders
- Future-oriented decision making
- Compliance with laws
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Think about who uses the information and for what purpose.
4Question 4.
True or False: Management accounting is required by law for all businesses.
- True
- False
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Consider the flexibility involved in management reporting.
Question 5.
A company projects that their sales will be $200,000 and the variable costs are projected at 60%. What is their break-even point in sales when fixed costs are $50,000?
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Consider how fixed and variable costs influence the break-even calculation.
Question 6.
A firm has actual sales of $300,000 compared to a budgeted amount of $280,000. If the variable costs are 50% of sales, calculate the variance in profit based on expected values.
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Calculate based on budgeted versus actual performance to find variances.

5 more questions in this section. Enroll free to practise them all.