Accounting Question And Answer For Exam

By:Partizan

Definition

1-Managerial Accounting, refers to accounting information

developed for managers within an organization.

2- Cost volume profit (CVP),analysis is one of the most powerful

tools that managers have. It helps them understand the relationship
among cost, volume and profit.

3-Breakeven point,is that level of activity, in unit or in dollar

(cost), at which the total revenue equals to the total cost.

4-Graphival method, An effective way to find break-even point is

to prepare a break-even graph because this graph shows costs,
volume, and profit.

5-Contribution Margin method, contribution margin is the

amount remaining from sales revenue after variable expenses have
been deducted. Thus, it is the amount available to cover fixed
expenses and then to provide profits for the period.

6-Target profit, analysis is about finding out the estimated

business activity to earn a target profit during a certain period of
time.
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7- Margin cost, The amount at any given volume of output by
which aggregate costs are changed, if the volume of output is
increased or decreased by one unit.

8- Special contracts,A special order is an order that the company

did not anticipate when developing its budget for the year.
Therefore, this is an additional opportunity to generate revenue
above sales goals.

9-Sales mix, Is the quantities (or proportion) of various products

(or services) that constitute company’s total unit sales.

Q/Managers in every organization carry out three major

activities?

1-planning, involves selecting a course of action and specifying

how the action will be implemented.

2-Directing and motivating, involves directing the people and

motivating them to carry out plans and run routine operation in an
efficient way.

3-Controlling, involves ensuring that the plan is actually carried

out and is appropriately modified as circumstances change.

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Q/Main objectives or function of Management Accounting are
as follows?

1- Planning

2-Coordinating

3-Controlling, Controlling is a very important function of

management, and management accounting helps in controlling
performance by control techniques such as standard costing,
budgetary control, internal audit, act.

4-Communication

5-Financial analysis and interpretation

6-Qualitative information, Apart from monetary and quantitative

data, management accounting provides qualitative information
which helps in taking better decisions.

7-yax policies

8-Decision-making, Correctdecision making is crucial to the

success of a business. Management accounting has certain special

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techniques which help management in short term and long term
decisions.

Q-CVP analysis has following assumptions?

1- All cost can be categorized as variable or fixed.

2- Sales price per unit, variable cost per unit and total fixed cost
are constant.

3- All units produced are sold.

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Q/Comparison of Financial and Management Accounting

Q/The Planning and Control Cycle ?

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By:Partizan