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Exam Paper for Managerial Accounting in BBA (With
Answers)
PAPER # 1
**Managerial Accounting Exam Paper**
**Duration: 2 hours**
**Instructions:**
1
...

2
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3
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Provide complete and concise answers
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Show all calculations and workings where applicable
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Write your answers in the provided space
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6
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**Section A: Multiple Choice Questions (MCQs) (40 marks)**
Circle the letter corresponding to the correct answer
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Which of the following statements is true regarding managerial
accounting?
a
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b
...

c
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d
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**Answer: b**
2
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To minimize costs
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To allocate costs to products or services
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To determine the selling price of a product
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To prepare financial statements
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Contribution margin is calculated as:
a
...

b
...

c
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d
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**Answer: c**
4
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Rent for the production facility
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Direct labor
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Property taxes
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Depreciation expense
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The break-even point is the level of sales at which:
a
...

b
...

c
...

d
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**Answer: b**
**Section B: Short Answer Questions (SAQs) (60 marks)**
6
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Provide an
example
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These costs are futureoriented and can influence the decision-making process
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If

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accepting the special order increases material costs, these increased
material costs are relevant to the decision of whether to accept the order or
not
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Explain the concept of "activity-based costing" (ABC) and its advantages
over traditional costing methods
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It
involves identifying and assigning costs to specific activities or cost drivers,
and then allocating those costs to products or services based on their
consumption of these activities
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Advantages of ABC
include better cost accuracy, improved decision-making, and a clearer
understanding of the cost structure of products or services
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What is a budget, and why is it important in managerial accounting?
**Answer:**
A budget is a financial plan that outlines an organization's expected
revenues, expenses, and financial goals for a specific period, typically a fiscal
year
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Budgets are crucial in managerial accounting because they enable
organizations to plan for the future, allocate resources efficiently, and
measure actual performance against planned performance
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9
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**Answer:**
A master budget

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