Management Accounting

SET 1

END OF SEMESTER EXAMINATION SEMESTER 2, 2012/2013 SESSION KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES

Programme Time Duration Course Code Course Title : : : : : BBA 2.30 pm – 5.30 pm 3 Hr(s) 0 Min(s) ACC 3515 Management Accounting Section(s) : 1-4 Level of Study Date : : 3 26/05/2013

(This Question Paper Consists of 9 Printed Pages including the cover page) DO NOT OPEN UNTIL YOU ARE ASKED TO DO SO INSTRUCTION(S) TO CANDIDATES 1. 2. 3. ANSWER ALL QUESTIONS. SHOW ALL WORKINGS. DO NOT WRITE IN PENCIL

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1

SET 1

SECTION A – MULTIPLE CHOICE QUESTIONS 1. Which of the following statements represents a similarity between financial and managerial accounting? A. Both are useful in providing information for external users. B. Both are governed by GAAP. C. Both draw upon data from an organization's accounting system. D. Both rely heavily on published financial statements. E. Both are solely concerned with historical transactions. 2. Which of the following is not a period cost? A. Legal costs. B. Public relations costs. C. Sales commissions. D. Wages of assembly-line workers. E. The salary of a company's chief financial officer (CFO). 3. Mastel Company has a variable selling cost. If sales volume increases, how will the total variable cost and the variable cost per unit behave?

4. Feinstein, Inc., an appliance manufacturer, is developing a new line of ovens that uses controlled-laser technology. The research and testing costs associated with the new ovens is said to arise from a: A. unit-level activity. B. batch-level activity. C. product-sustaining activity. D. facility-level activity. E. competitive-level activity. 5. A flexible budget: A. parallels a static budget with respect to format and advantages of use. B. is preferred over a static budget in the evaluation of performance. C. gives management flexibility in terms of meeting budget goals....