Answers

Class Quiz 1
Managerial Accounting Introduction
October 10, 2019
Q. 1

Managerial accounting is a framework that enable firms to increase

(a) firm value through planning and controlling firm activities, which
are aimed to cause revenue (b) increment and/or cost (c) decrement.
Q. 2

For a given firm, Financial accounting statements and Cost accounting

statements are mutually exclusive and independent data sources.

(a) Is the above statement True or False

(b) In strictly less than 10 words, state the reason for your choice above

Cost accounting data feeds into financial statements, as product and

period costs.
Q. 3

In strictly less than 25 words, distinguish between managerial

accounting and cost accounting?

Cost accounting pertains to cost data which feeds into managerial and
financial accounts, whereas Managerial accounting is a broader
framework for influencing firm activities & decisions.
Q. 4
Which of the below mentioned objectives of managerial accounting activities are
directly involved in the process of comparing the actual and planned cost of a
consulting engagement completed by an engineering firm.
a. Providing information for decision making and planning.
b. Assisting managers in directing and controlling operational activities
c. Motivating managers and other employees toward the organization’s goals.
d. Measuring the performance of activities, subunits, managers, and other
employees within the organization.
e. Assessing the organization’s competitive position, and working with other
managers to ensure the organization’s long-run competitiveness in its industry.
Q. 5
Which of the below mentioned objectives of managerial accounting activities are
directly involved in the process of measuring the cost of the inventory of digital
cameras on hand in a Best Buy store.
a. Providing information for decision making and planning.
b. Assisting managers in directing and controlling operational activities
c. Motivating managers and other employees toward the organization’s goals.
d. Measuring the performance of activities, subunits, managers, and other
employees within the organization.
e. Assessing the organization’s competitive position, and working with other
managers to ensure the organization’s long-run competitiveness in its industry.
 Q. 6
Classify each cost item below as one of the business functions in the value chain
a. Purchase of tomatoes by a canning plant for Campbell’s tomato soup products Production
b. Materials purchased for redesigning Pepperidge Farm biscuit containers to make biscuits stay fresh longer
Design of products and processes
c. Payment to Backer, Spielvogel, & Bates, the advertising agency, for advertising work on the Healthy Request
line of soup products Marketing
d. Salaries of food technologists researching feasibility of a Prego pizza sauce that has minimal calories
Research and development
e. Payment to Safeway for redeeming coupons on Campbell’s food products Marketing
f. Cost of a toll-free telephone line used for customer inquiries about using Campbell’s soup products
Customer service
g. Cost of gloves used by line operators on the Swanson Fiesta breakfast-food production line Production
h. Cost of handheld computers used by Pepperidge Farm delivery staff serving major supermarket accounts
Distribution