Start learning →

US CMA Part 1 Management Accounting — practice by topic

Browse 98 questions across 6 Management Accounting topics. Choose what you want to revise, then open a question to check its answer and worked solution.

Start learning US CMA Part 1 with Quill →

Management Accounting topics

Activity-Based Costing (23)Responsibility Accounting (23)Budgeting (19)Managerial Accounting Concepts (12)Job Order Costing (11)Process Costing (10)

Try a Management Accounting question

Which report is published at fixed intervals as part of financial accounting?Read the answer and worked solution →A business assembles and packages products for sale to merchandisers or end users. How is it classified?Read the answer and worked solution →Budgeting and variance analysis both sit under which broad category of managerial accounting work?Read the answer and worked solution →Prime cost is the sum of which two manufacturing costs?Read the answer and worked solution →

Worked practice questions

Which report is published at fixed intervals as part of financial accounting?

  1. The schedule of cost of jobs sold
  2. The statement of cash flows
  3. The direct materials purchases budget
  4. The flexible budget for the year
Show answer and solution

Correct answer: B. The statement of cash flows

1. Financial accounting produces periodic financial statements for external users. 2. Those statements are the income statement, the retained earnings statement, the balance sheet and the statement of cash flows. 3. Schedules of job costs, materials purchases budgets and flexible budgets are internal managerial tools with no fixed publication interval. 4. The statement of cash flows is therefore the financial accounting report in this list. _Source: Jonick, Principles of Managerial Accounting (UNG Press, CC BY-SA 4.0), section 1.1 Introduction_

Open this question →

A business assembles and packages products for sale to merchandisers or end users. How is it classified?

  1. It is a service business
  2. It is a merchandising business
  3. It is a manufacturing business
  4. It is a wholesaling business
Show answer and solution

Correct answer: C. It is a manufacturing business

1. Operations are classified as service, merchandising or manufacturing depending on what the business has for sale. 2. A manufacturing business assembles and packages products for sale to merchandisers or end users. 3. A service business sells expertise, advice, skills or an experience rather than a physical product. 4. A merchandising business buys finished, packaged goods from other companies and resells them at a markup, which is not what assembling describes. _Source: Jonick, Principles of Managerial Accounting (UNG Press, CC BY-SA 4.0), section 1.1 Introduction_

Open this question →

Budgeting and variance analysis both sit under which broad category of managerial accounting work?

  1. Accumulating product costs
  2. Analyzing cost behavior
  3. Comparing cost alternatives
  4. Evaluating performance
Show answer and solution

Correct answer: D. Evaluating performance

1. Managerial accounting topics fall into four categories: accumulating costs, analyzing costs, evaluating performance and comparing alternatives. 2. Budgeting looks into the future and estimates what sales, costs, production and cash flows will be. 3. Variance analysis is a controlling method that compares expected outcomes to actual results and measures progress against goals. 4. Planning ahead and then checking progress against the plan are both acts of evaluating performance. 5. Accumulating costs covers job order, process and activity-based costing, so it is the wrong home for budgeting. _Source: Jonick, Principles of Managerial Accounting (UNG Press, CC BY-SA 4.0), section 1.1 Introduction_

Open this question →

How to practise

  1. Choose a Management Accounting question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.