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US CMA Part 1 Managerial Accounting Concepts — practice questions

Explore 12 free Managerial Accounting Concepts questions in US CMA Part 1 Management Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Managerial Accounting Concepts questions and exercises with answers

Showing questions 1–12 of 12.

Product cost or period cost?Read the answer and worked solution →Order the manufacturing cost flowRead the answer and worked solution →Match each inventory stageRead the answer and worked solution →Fill in prime and conversion costRead the answer and worked solution →Flip and match the cost pairsRead the answer and worked solution →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 →Direct materials cost $700, direct labor is $500 and factory overhead is $300 on a batch of cabinets. What are conversion costs?Read the answer and worked solution →Which costs are classified as period costs in a manufacturing business?Read the answer and worked solution →How does activity-based costing relate to job order costing and process costing?Read the answer and worked solution →

Worked practice questions

Product cost or period cost?

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Left
Product cost
Items
  1. Item
    Wood and hinges
    Answer
    Product cost
  2. Item
    HR department
    Answer
    Period cost
  3. Item
    Assembly wages
    Answer
    Product cost
  4. Item
    Sales commissions
    Answer
    Period cost
  5. Item
    President's office
    Answer
    Period cost
  6. Item
    Factory insurance
    Answer
    Product cost
  7. Item
    Accounting dept
    Answer
    Period cost
  8. Item
    Factory utilities
    Answer
    Product cost
Right
Period cost
Instructions
Swipe left for a product cost, right for a period cost.
_Source: Jonick, Principles of Managerial Accounting, section 1.2 Cost Terminology and Concepts_

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Order the manufacturing cost flow

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Steps
  1. Materials
  2. Work in Process
  3. Finished Goods
  4. Cost of Goods Sold
Instructions
Tap the accounts in the order costs move through them.
_Source: Jonick, Principles of Managerial Accounting, section 1.3 Inventory Terminology and Concepts_

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Match each inventory stage

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Matching pairs
  1. Left
    Materials
    Right
    Items not yet entered into production
  2. Left
    Work in process
    Right
    Products started but not yet completed
  3. Left
    Finished goods
    Right
    Completed products not yet sold
  4. Left
    Cost of goods sold
    Right
    Cost of the manufactured items that sold
Instructions
Tap a term, then tap the stage it describes.
_Source: Jonick, Principles of Managerial Accounting, section 1.3 Inventory Terminology and Concepts_

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More Management Accounting topics

Activity-Based CostingResponsibility AccountingBudgetingJob Order CostingProcess Costing