MANAGEMENT ACCOUNTING QUESTION BANK (4 CREDITS)
Management Accounting Department
QUESTIONS FOR GROUP 1 (3 marks):
Choose the best answer by selecting 1 from 4 options A, B, C or D and give short
explain with this content below:
1. Concept, purpose and content of management accounting
2. Direct and indirect costs
3. Controllable and uncontrollable costs
4. Product and period costs
5. Cost behavior: fixed cost, variable cost and mixed cost
6. Cost for decision-making purposes
7. Job-order costing system
8. Process costing system
9. CVP relationship: Contribution margin, contribution margin ratio, cost structure,
Operating leverage
10. Break-even point analysis
11. The difference between absorption costing and variable costing
12. Distinguish between a traceable fixed cost and a common fixed cost
13. Budget and type of budget in business
14. Distinguish and evaluate performance between a cost center, a profit center, and
an investment center
15. The Differential Cost Approaches
16. The difference between capital budgeting screening decisions and capital
budgeting preference decisions
17. Identify two simplifying assumptions associated with discounted cash flow
methods of making capital budgeting decisions.
18. The Payback period method of making capital budgeting decisions
19. The Net present value (NPV) method of making capital budgeting decisions
20. The Internal rate of return (IRR) method of making capital budgeting decisions
QUESTIONS FOR GROUP 2 (3 marks):
1. Basing on the cost data extracted from the books of a company in a month to
calculate (1) prime cost, (2) conversion cost, (3) production cost, (4) period cost, (5) the
production cost of unit.
2. According to the data about the volume of selling products of a company in the
year to (1) prepare contribution format income statement for the recent year, (2) compute
the break-even point in sales dollar and units sold.
3. Basing on the given data in year/month/quarter, using the cost-volume-profit
relationship analysis to (1) calculate the profit of a company, (2) compute the Margin of
Safety and (2) Give your suggestion.
4. Basing on the data concerned manufacturing company to calculate: (1)The
company’s unit contribution margin, (2) contribution margin ration, (3) The company’s
break-even point in sales dollars and units, (4) determine the degree of operating
leverage, (5) calculate the required units to come up with a target profit.
5. Basing on the given data, using the cost-volume-profit relationship analysis to
give your suggestion for one particular company in some plans such as: (1) increase
advertising costs, (2) increase variable costs for higher quality products, (3) decrease
selling prices.
6. Using the cost-volume-profit relationship in pricing for a special order in one
manufacturer and help manager to consider whether or not to accept one special order.
7. With the data concerned about the manufacturing of a company and some
alternatives are proposed, using the C-V-P relationship to calculate appropriately and
choose the best alternative .
8. Basing on the data concerning the mixed cost at the company to (1) Express the
cost formula for the cost by using the high-low method of cost analysis, (2) Estimate the
cost at a level of activity.
9. Basing on the cost data of the company in a year to (1) Classify each of these
costs according to: the behavior of cost, controllable, cost for managerial decisions,
function of cost, (2) Calculate the cost of manufactory per unit.
10. Apply break-even analysis in relation to cost, variable cost, unit price in
specific situations as a basis for consulting the business decision-making managers?
QUESTIONS FOR GROUP 3 (4 marks):
1. On the database of a particular business, make a production report for a
department basing on weighted – average method and FIFO method? Explain the
difference between two methods when computing the equivalent unit.
2. On the database about sale volume, fixed cost, variable cost of a particular
business, compute the break - even point, draw a break- even graph? Analyze the effect
of operating leverage, cost structure on profit? Give opinion and consult to the manager
about that result?
3. On the database about sale volume, fixed cost, variable cost of a particular
business, compute the break- even point, target profit, margin of safety, sales price for a
special order (in case of having an order before or after attaining break - even point)
4. On the database about revenue, fixed cost, variable cost of a particular business,
make a contribution income statement? Compute the break-even point? Determine the net
income when changing in variable cost, fixed cost, sale price, sale volume? Analyze
relevant information to consult to manager in case of selling more products?
5. On the database of a particular business, make a job – cost sheet? Determine
whether the company over-applied or under-applied production overhead?
6. On the database about cash flow of particular investment projects, using these
methods (payback period, NPV, IRR) to consult to the manager for making capital
budgeting decisions?
7. On the database about cost, sale, profit (loss) of an enterprise, using the
differential cost approaches to consult to the manager for making short term decisions?