Question 1. The Standards of Ethical Conduct for management accountants includes concepts related to _____.
experience
skill
confidentiality
All of the above

Question 2. Sales total $360,000 when variable costs total $270,000 and fixed costs total $80,000. The break-even point in sales dollars is _____.
$280,000
$230,000
$320,000
$358,400

Question 3. In a job-costing system, allocation of manufacturing overhead to jobs is a debit to _____.
materials control
manufacturing overhead allocated
cash
work-in-process control

Question 4. An ABC system will provide benefits when _____.
management does not want to estimate costs of activity pools
there are no disagreements between the operations staff
products make diverse demands on resources due to volume differences
None of the above

Question 5. An operating budget requires _____.
information
predictions
decisions
All of the above

Question 6. A cash budget _____.
helps to avoid overdraft fees
is not necessary for the effective management of a business
predicts the effects of operations on the company's cash balance
All of the above

Question 7. A flexible budget variance of $20,000 and a static budget variance of $35,000 results in _____.
unfavorable static budget variance
favorable sales volume variance
unfavorable sales volume variance
unfavorable flexible budget variance

Question 8. The difference between actual variable overhead cost per unit of the cost allocation base, and the budged variable overhead cost per unit of the cost allocation base, is the _____.
variable overhead efficiency variance
variable overhead static budget variance
variable overhead flexible budget variance
variable overhead spending variance

Question 9. A cause and effect relationship arises when _____.
there is a physical relationship between activity level and costs
there is a contractual relationship
there is knowledge of operations
All of the above

Question 10. The most important issue in estimating a cost function is _____.
determining the cause and effect relationship
establishing a correlation
determining the cost driver
None of the above

Question 11. _____ is (are) long-run pricing approach(es).
Cost-plus approach
Relevant-cost approach
Market-based approach
Both A and C

Question 12. Determining what a customer will pay for a product to determine the product price is a _____.
market-based approach
cost-plus approach
relevant-cost approach
activity-based approach

Question 13. The second step in capital budgeting is _____.
to identify potential projects
to gather information
to forecast potential cash flows
to revise plans as necessary

Question 14. The capital budgeting method that calculates the discount rate where the present value of the cash inflows equals the present value of cash outflows is _____.
the discounted cash flow method
the net present value method
sensitivity analysis
the internal rate-of-return method