A typical use of managerial accounting is to:

MGMT 640 Financial Decision Making for Managers Final Exam Part 1 with Answers


  1. A typical use of managerial accounting is to:
  2. Three costs incurred by Pitt Company are summarized below: 
  3. Bubba's Steakhouse has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: Materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,570; depreciation, $760; and other fixed costs, $540. Each steak dinner sells for $13.60 each. How much would Shula’s profit increase if 10 more dinners were sold? 
  4. Bellfont Company produces door stoppers. August production costs are below: 
  5. Aaron's chairs is in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were: 
  6. Carry-ALL plans to sell 1,300 carriers next year and has budgeted sales of $46,000 and profits of $22,000. Variable costs are projected to be $20 per unit. Michael Co. offers to pay $20,800 to buy 600 units from Carry-ALL. Total fixed costs are $7,000 per year. This offer does not affect Carry-ALL's other planned operations. The incremental revenues for this situation are 
  7. Stellar Company has the following sales, variable cost, and fixed cost. If sales increase by $10,000 then their profit increases/decreases by how much? 
  8. Susan is trying to decide whether or not to attend college during the next 12-week session. She has the following options: 
  9. Total costs were $79,700 when 28,000 units were produced and $92,500 when 39,000 units were produced. Use the high-low method to find the estimated total costs for a production level of 32,000 units. 
  10. Professional University teaches a large range of undergraduate courses. It is interested in determining the cost equation for the facilities cost as a function of student credit hours so that it an more accurately budget its facilities costs as enrollment grows. Information for the high and low cost semesters and volumes for last 5 years appears below 
  11. Randy's tireland makes a product that sells for $75 per unit and has $47 per unit in variable costs. Annual fixed costs are $24,000. If Rambles sells 10 units less than breakeven, how much loss would the company recognize on its income statement? (As the question asks "how much loss" you don't have to put the negative sign. For example, suppose the loss is 100, then write the answer as 100 rather than -100.) 
  12. Ritz Furniture has a contribution margin ratio of 0.12. If fixed costs are $178,300, how many dollars of revenue must the company generate in order to reach the break-even point? 
  13. U.S. Telephone Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10% (based on the unit sales price per phone). Fixed manufacturing costs total $1,280 per month, while fixed selling and administrative costs total $2,420. How many phones must be sold to achieve the breakeven point? 
  14. Swimkids is a swimsuit manufacturer. They sell swim suits at a selling price is $30 per unit. Swimkids variable costs are $18 per unit. Fixed costs are $81,000. Swimkids expects sales of $274,200 next year. What is Swimkids's margin of safety (in dollars)? 
  15. Lambardi Company sells 3 types of bags. Bag A sells for $16 and has variable cost of $9.00 per unit. Bag B sells for $14 and has variable cost of $12.00 per unit. Bag C sells for $9 and has variable costs of $6.00 per unit. Lambardi sells in a mix of 2 units of A, 3 units of B and 5 units of C. What is the weighted average contribution margin per unit for Lambardi? 
  16. Product A has a contribution margin per unit of $500 and required 2 hours of machine time. Product B has a contribution margin per unit of $1,000 and requires 5 hours of machine time. How much of each product should be produced given there are 100 hours of available machine time? 
  17. Delfi Company produces two models of seats, Toro and Prep. Information regarding these products for May follows: 
  18. Abagail Corp. uses activity-based costing system with three activity cost pools. The following information is provided: 
  19. Which of the following is not a goal of Managerial Accounting? 
  20. Which one of the following is least likely to be a fixed cost?