Managerial Accounting Canadian 10th Edition by Garrison – Test Bank

Managerial Accounting Canadian 10th Edition by Garrison – Test Bank

Chapter 31. Expense A is a fixed cost; expense B is a variable cost. During the current year, the activity levelhas increased but is still within the relevant range. In terms of cost per unit of activity, you wouldexpect which of the following statements to be true?A. Expense A has remained unchanged.B. Expense B has decreased.C. Expense A has decreased.D. Expense B has increased.2. Which costs will change with a decrease in activity within the relevant range?A. Total fixed costs and total variable costs.B. Unit fixed cost and total variable costs.C. Unit variable cost and unit fixed cost.D. Unit fixed cost and total fixed costs.3. Within the relevant range of activity, how will variable cost per unit behave?A. It will increase in proportion with the level of activity.B. It will remain constant.C. It will vary inversely with the level of activity.D. Its behaviour cannot be determined without additional information.4. What will result from an increase in the activity level within the relevant range?A. An increase in fixed cost per unit.B. A proportionate increase in total fixed costs.C. An unchanged fixed cost per unit.D. A decrease in fixed cost per unit.5. What does the term “relevant range” mean?A. The range within which costs may fluctuate.B. The range within which a particular cost formula is valid.C. The range within which production may vary.D. The range within which the relevant costs are incurred.6. The linear equation Y = a bX is often used to express cost formulas. Which of the followingrepresentations in this equation is correct?A. The b term represents variable cost per unit of activity.B. The a term represents variable cost in total.C. The X term represents total costs.D. The Y term represents total fixed costs.7. Which of the following is an example of a discretionary fixed cost?A. Insurance.B. Taxes on real estate.C. Management training.D. Amortization of buildings and equipment.8. Which of the following is an example of a committed fixed cost?A. A training program for salespersons.B. Executive travel expenses.C. Property taxes on the factory building.D. New product research and development.9. What are discretionary fixed costs?A. They vary directly and proportionately with the level of activity.B. They have a long-term planning horizon, generally encompassing many years.C. They are made up of plant, equipment, and basic organizational costs.D. None of these options.10. In describing the cost formula equation Y = a bX, which of the following statements is correct?A. The X term is the dependent variable.B. The a term is the fixed component.C. In the high-low method, the b term equals change in activity divided by change in costs.D. As the X term increases, the Y term decreases.11. Which of the following best describes the contribution approach to the income statement?A. It organizes costs on a functional basis.B. It shows data based on the cost behavior aspect of fixed and variable.C. It shows a contribution margin rather than an operating income figure at the bottom of thestatement.D. It can be used only by manufacturing companies.12. Contribution margin is the excess of revenues over which of the following?A. Cost of goods sold.B. Manufacturing cost.C. All direct costs.D. All variable costs.13. Which of the following is an example of a cost that is variable with respect to the number of unitsproduced and sold?A. Insurance on the headquarters building.B. Power to run production equipment.C. Supervisory salaries.D. Amortization of factory facilities.14. What is a cost driver?A. It is the largest single category of cost in a company.B. It is a fixed cost that cannot be avoided.C. It is a factor that causes variations in a cost.D. It is an indirect cost that is essential to the business.15. The following data pertain to activity and costs for two months:Assuming that these activity levels are within the relevant range, what were the mixed costs forNovember?A. $20,000.B. $25,000.C. $35,000.D. $40,000

Managerial Accounting – Canadian 10th Edition by Garrison – Test Bank

Overview

“Managerial Accounting” by Ray H. Garrison, Eric W. Noreen, and Peter C. Brewer, adapted for the Canadian context by professors from various Canadian institutions, is a fundamental resource in the field of managerial accounting. The 10th Canadian Edition integrates practical examples and cases relevant to the Canadian business environment, making it an essential tool for students studying managerial accounting in Canada. The accompanying test bank is a critical resource for instructors, designed to assess and reinforce students’ understanding of the concepts covered in the textbook.

Key Features of the Test Bank

1. Comprehensive Coverage:
   • The test bank includes a wide range of questions covering all chapters of the textbook, ensuring a thorough assessment of key topics.
   • Questions are designed to test knowledge, comprehension, application, and analysis.
2. Variety of Question Types:
   • Multiple-Choice Questions: Test fundamental concepts and factual knowledge.
   • True/False Questions: Evaluate understanding of key principles and statements.
   • Short Answer Questions: Require students to explain concepts and provide detailed responses.
   • Essay Questions: Encourage in-depth analysis and critical thinking on complex topics.
   • Problems and Exercises: Practical problems to apply concepts learned and perform necessary calculations.
3. Alignment with Learning Objectives:
   • Each question is aligned with specific learning objectives outlined in the textbook.
   • This alignment ensures that assessments are directly relevant to the material covered and the intended learning outcomes.
4. Detailed Rationales:
   • Explanations are provided for each question, detailing why a particular answer is correct or incorrect.
   • These rationales help students understand the underlying concepts and learn from their mistakes.
5. Difficulty Levels:
   • Questions are categorized by difficulty level, allowing instructors to tailor assessments to the appropriate level of challenge for their students.
   • This helps in creating balanced tests that can effectively gauge student understanding.
6. Current and Relevant Content:
   • The test bank is updated to reflect the latest developments and trends in managerial accounting.
   • Canadian examples and case studies ensure that the content is relevant to students in Canada.

Structure and Content

The test bank is structured to align with the chapters of the textbook, covering major topics such as:

1. Introduction to Managerial Accounting:
   • Understanding the role of managerial accounting in business.
   • Differences between managerial and financial accounting.
2. Cost Concepts and Behavior:
   • Identifying various types of costs (fixed, variable, and mixed costs).
   • Cost behavior analysis and cost-volume-profit relationships.
3. Job Order Costing:
   • The process of job order costing.
   • Recording and allocating costs in a job order costing system.
4. Process Costing:
   • Understanding process costing and its applications.
   • Calculating unit costs in a process costing system.
5. Activity-Based Costing (ABC):
   • Principles and implementation of activity-based costing.
   • Comparing ABC with traditional costing methods.
6. Budgeting:
   • The budgeting process and different types of budgets (operational, capital, and cash budgets).
   • Preparing and using budgets for planning and control.
7. Standard Costs and Variances:
   • Setting standard costs and analyzing variances.
   • Using variance analysis for performance measurement.
8. Decentralization and Performance Measurement:
   • The role of decentralization in organizations.
   • Methods of performance measurement, including balanced scorecard and ROI.
9. Relevant Costs for Decision Making:
   • Identifying relevant and irrelevant costs in decision making.
   • Applying relevant cost analysis to various business decisions (e.g., make-or-buy, special orders).
10. Capital Budgeting:
    • Techniques for evaluating capital investment decisions (e.g., NPV, IRR, payback period).
    • Comparing and analyzing capital projects.

Benefits for Educators and Students

For Educators:

• The test bank is a valuable tool for creating reliable and valid assessments that measure student learning effectively.
• It saves time in test preparation, allowing instructors to focus more on teaching and student interaction.
• The variety of question types and difficulty levels helps in assessing a wide range of competencies and skills.

For Students:

• Practicing with test bank questions helps students identify areas where they need further study and improvement.
• Exposure to a variety of question types prepares students for the kinds of questions they will encounter on exams.
• Detailed rationales enhance learning by providing explanations and reinforcing key concepts.

How to Access the Test Bank

The test bank for “Managerial Accounting – Canadian 10th Edition” is typically available through the publisher’s website or through educational resource platforms. Instructors often receive access codes or permissions to use the test bank as part of their course materials. It is often available in digital format for easy integration with learning management systems (LMS).

Conclusion

The test bank for “Managerial Accounting – Canadian 10th Edition” by Garrison et al. is an indispensable resource for both educators and students. It supports effective teaching and learning by providing a comprehensive, relevant, and versatile set of assessment tools. By aligning closely with the textbook content and learning objectives, the test bank ensures that students are well-prepared to master the essential concepts and skills required in the study of managerial accounting.