Sample Questions - Introduction to Managerial Accounting
1. What is managerial accounting?
2. What is the difference between managerial and financial accounting?
3. What is the importance of managerial accounting?
4. You are being hired by a large audit firm to offer audit services to its clients, which type of accounting (managerial or financial) are you expected to be performing?
5. Which of the following companies are considered manufacturing companies based on cost allocation and managerial accounting purposes?
a. A refurbishing plant
b. Landscape service company
c. Milton medical center
d. Burns aircraft manufacturer
6. What kinds of personnel are tasked with managerial accounting tasks of a company?
7. Differentiate between:
a. Product costs and Period costs
b. Prime costs and Conversion costs
8. Explain what is meant by sunk costs.
9. Kimberly had two options of spending his vacation: Taking a trip to Chicago or travelling to Washington DC to visit the capital's famous sites. Kimberly chose the trip to Washington, DC. How do the forfeited costs associated with the Chicago trip called?
10. What is the difference between job order costing and process costing?