MAS REVIEWER
Costs that cannot be changed by any decision made now or in the future are A. Sunk costs B. Indirect costs C. Avoidable costs D. Fixed costs
A. Sunk costs
Management accounting A. is more concerned with the future than is financial accounting. B. is less concerned with segments of a company than is financial accounting. C. is more constrained by rules and regulations than is financial accounting. D. all of the above is true.
A. is more concerned with the future than is financial accounting.
Total production costs for Jordan, Inc. are budgeted at P2,300,000 and P2,800,000 for 50,000 and 60,000 units of budgeted output, respectively. Because of the need for additional facilities, budgeted fixed costs for 60,000 units are 25 percent more than budgeted fixed costs for 50,000 units. How much is Jordan's budgeted variable cost per unit of output? A. P 7.50 B. P30.00 C. P16.00 D. P62.50
B
Management accountants must satisfy their users; therefore, they should all do the following, EXCEPT A. Provide them with high quality information B. Provide specialized information that specific managers can use C. Focus on preparing information for external financial reporting D. Continuously strive to provide better quality information faster and at a lower cost
C. Focus on preparing information for external financial reporting
It is an approach to continuous improvement that focuses on serving customers and uses frontline workers to identify and solve problems systematically. A. ABC system B. Just-in-time (JIT) system C. Total quality management (TQM) D. Process value analysis
C. Total quality management (TQM)
The drivers that explain changes in costs as units produced changed are called: A. Non-unit-level drivers B. Activity based cost drivers C. Unit-level drivers D. All of these
C. Unit-level drivers
In comparing financial and management accounting, which of the following more accurately describes management accounting information? A. historical, precise, useful B. required, estimated, internal C. budgeted, informative, adaptable D. comparable, verifiable, monetary
C. budgeted, informative, adaptable
A management information system should emphasize satisfying A. external demands for information. B. external and internal demands for information. C. internal demands for information. D. the Accounting Department's demands for information.
C. internal demands for information.
If a distinction is made between cost accounting and managerial accounting, managerial accounting is more oriented toward A. valuation of inventory. B. analysis of variances including spoilage. C. financial reporting to third parties. D. the planning and controlling aspects of the management process.
N/A
These costs are long-term in nature and cannot be eliminated even for short periods of time without affecting the profitability or long-term goals of the firm A. Avoidable costs B. Committed fixed costs C. Variable costs D. Controllable costs
B
The cost of the cushions that are used to manufacture sofas is best described as a: A. manufacturing overhead cost. B. period cost. C. variable cost. D. conversion cost.
C
The plans of management are often expressed formally in: A. financial statements. B. performance reports. C. budgets. D. ledgers.
C
Which of the following involves decision making? A. Controlling B. Planning C. Directing D. All of the above
D
. Which of the following is not an objective of management accounting? A. maximization of profit and minimization of costs. B. measuring the performance of managers of subunits. C. providing information for planning and decision making. D. providing assistance in directing and controlling operations.
A
Cultured Company is a manufacturer of its only one product line. It had sales of P400,000 for 2010 with a contribution margin ratio of 20 percent. Its margin of safety ratio was 10 percent. What are the company's fixed costs? A. P72, 000 B. P288,000 C. P80,000 D. P320,000
A
Data to be used in applying the high-low method shows the highest cost of P69,000 and the lowest cost of P52,000. The data shows P148,000 as the highest level of sales and P97,000 as the lowest level. What is the variable cost per peso sales? A. P0.33. B. P0.47. C. P0.54. D. P3.00
A
Fixed cost that would be considered a direct cost is A salary of the sales manager when the cost object is the sales department. B salary of the controller when the cost object is a unit of product. C. fees of the Board of Directors when the cost object is the Production Department. D. the rental cost of the finished goods warehouse when the cost object is the Accounting Department.
A
In JIT, the flow of goods is controlled by a "pull" approach. It means that, A. work is initiated only in response to customer orders. B. customers are pulled to buy more units to reduce the company's inventory. C. production supervisors see to it that there is always something to do to keep everyone busy. D. warehouses should always be full to be sure that customer demands are always met
A
It may be considered as the master plan for the engagement which serves as a framework for controlling its progress. It can be used as a planning tool that documents how the engagement will be carried out, organizes the engagement into scheduled and logical sequences, and indicates the various tasks necessary to achieve the objectives of the engagement. A. Engagement work program B. Master Budget C. Engagement blueprint D. Engagement plan
A
Maco Corporation's Research and Development Department was able to develop a new product - a flashlight powered by solar energy. After reviewing the data prepared by the company's controller, Maco's management is confident that the new product will contribute profit to the company. The data prepared by the controller are as follows: Suggested selling price P200 Costs: Materials P60 Parts fabrication (P10 per hour) 40 Assembly (P6 per hour) 18 Variable overhead (P4 per hour) 28 Fixed overhead (P3 per hour) 21 TotaL cost P167 The total research and development costs incurred to develop the new product amounted to P200,000. The company is planning to spend half of this amount for promotion and advertising. The company's fixed overhead includes rent, equipment depreciation, and salaries of factory supervisors. For Maco's new flashlight, total prime costs amount to A. P118 B. P167 C. P146 D. P107
A
Management accounting A. focuses on estimating future revenues, costs, and other measures to forecast activities and their results. B. provides information about the company as a whole. C. reports information that has occurred in the past that is verifiable and reliable. D. provides information that is generally available only on a quarterly or annual basis.
A
Management services of CPAs cover all the following, except A. Audit, tax, and legal services B. Organizational Development C. Systems design, development, and implementation D. Project feasibility studies and planning
A
Modern management accounting can be characterized by its A. flexibility B. standardization C. complexity D. precision
A
RTW Company, in producing Lot No. 647 which called for 2,500 dresses, Style No. 34, incurred costs as follows: Materials, P240/dress; Labor, P165/dress; Factory Overhead, P135/dress. When the lot was completed, inspection rejected 200 spoiled dresses which were sold for P324 each. Assuming spoilage is normal what is cost per unit of good output? A. Php 540 B. Php 324 C. Php 558.78 D. Php 586.96
A
Standard cost variances are not closed to A. Direct material inventory B. Work-in-process inventory C. Finished goods inventory D. Cost of goods sold
A
The following data for the month of September were taken from the cost records of Department A of NLP which uses average costing: Work in process, beginning Unit Cost (All materials, 50% converted) 500 Materials P 2,400 Labor 1,500 Factory Overhead 760 Put into Production 5,000 Materials 25,100 Labor 19,380 Factory Overhead 14,900 Units completed and transferred 4,800 Units in process, End (all materials, 60% converted) 700 The unit cost of material for the month is A. P 5.00 B. P 5.50 C. P 4.00 D. P 4.50
A
The following information is available for Ana manufacturing Company when it produced 2,100 units in the month of February: Standard Material: 2 pounds per unit @ 4.00 per pound Labor: 3 hours per unit Variable overhead: P15 per hour Actual Material: 4,500 pounds purchased @ P17,100 Labor: 6,400 direct labor hours What is the materials purchase price variance? A. P900 favorable B. P900 unfavorable C. P840 favorable D. P840 unfavorable
A
The professional certification most relevant for managerial accountants is the A. CMA. B. CPA. C. CSA. D. MAS.
A
The type of accounting which deal with how accounting and other financial data can be used for decision-making in controlling, monitoring, and directing business activity is called A. management accounting B. responsibility accounting C. financial accounting D. general accounting
A
TransEx Company operates a fleet of delivery trucks in Luzon. The company has determined that if a truck is driven 105,000 kilometers during a year, the average operating cost is P11.40 per kilometer. If a truck is driven only 70,000 kilometers during a year, the average operating cost increases to P13.40 per kilometer. Assuming that in a given year, a truck were driven 80,000 kilometers, what total cost would you expect to be incurred? A. P1,012,000 B. P1,407,000 C. P1,225,143 D. P1,072,000
A
Under which ethical standard of conduct does the managerial accountant have the responsibility to refrain from either actively or passively subverting the attainment of an organization's legitimate and ethical objectives? A. integrity B. objectivity C. competence D. confidentiality
A
Which function is most directly related to management by objectives? A. Planning. B. Control. C. Decision making. D. Reporting.
A
Which of the following best describes a fixed cost? A. It may change in total when such change is unrelated to changes in production. B. It may change in total when such change is related to changes in production. C. It is constant per unit of change in production. D. It may change in total when such change depends on production within the relevant range.
A
Which of the following is not an objective of management accounting? A. Maximization of profit and minimization of costs. B. Measuring the performance of managers of subunits. C. Providing information for planning and decision making. D. Providing assistance in directing and controlling operations.
A
Which of the following is/are false? A. Managerial accounting is as concerned with providing information to stockholders as it is with providing information to managers. B. Managerial accounting focuses more on the segments of an organization rather than on the organization as a whole. C. Managerial accounting need not follow the Generally Accepted Accounting Principles (GAAP). D. Managerial accounting is not mandatory, i.e., not required by any external law or regulation.
A
Which of the following statements about cost behavior is correct? A. Within the relevant range, total variable costs may vary directly with activity, while total fixed costs remain unchanged for a given period despite fluctuations in activity. B. Within the relevant range, variable cost per unit varies directly with activity, while fixed cost per unit remains unchanged for a given period despite fluctuations in activity. C. Within the relevant range, fixed cost per unit varies directly with activity, while variable cost per unit remains unchanged for a given period despite fluctuations in activity. D. Within the relevant range, total variable costs may vary inversely with activity, while total fixed costs remain unchanged for a given period despite fluctuations in activity.
A
Which of the following would not affect the breakeven point? A. Number of units sold B. Variable cost per unit C. Total fixed costs D. Sales price per unit
A
. As volume increases, A. total fixed costs remain constant and per-unit fixed costs increase. B. total fixed costs remain constant and per-unit fixed costs decrease. C. total fixed costs remain constant and per-unit fixed costs remain constant. D. total fixed costs increase and per-unit fixed costs increase.
B
The treasury function includes A. Preparation of tax returns B. Cash custody and banking C. Reporting to government D. Financial reporting
B
The unit contribution margin of Product A is P20 and of Product B is P16. If sis units of Product A and eight units of Product B can be produced per machine hour, the contribution margin of the products per machine hour is A. Product A, P160; Product B, P96 B. Product A, P120; Product B, P128 C. Product A, P3.33; Product B, P2.00 D. Product A, P32.00; Product B, P30.00
B
A security guard's wages at a factory would be an example of: Indirect labor Fixed manufacturing overhead A. No No B. Yes Yes C. Yes No D. No Yes
B
An activity that causes resources to be consumed is called a A. Non-value-added activity B. Cost driver C. Just-in-time activity D. Extracurricular activity
B
During the month of June, Armani Corporation produced 12,000 units and sold them for P20 per unit. Total fixed costs for the period were P154, 000, and the operating profit was P26, 000. The variable cost per unit for June was A. P2.5 B. P3.75 C. P4.50 D. P5.00
B
During the month of June, Behold Corporation produced 12,000 units and sold them for P20 per unit. Total fixed costs for the period were P154,000, and the operating profit was P26,000. Based on the foregoing information, the variable cost per unit for the month of June was A. P4.50 B. P5.00 C. P6.00 D. P7.17
B
Frances Corporation conducted a regression analysis of its factory overhead costs. The analysis yielded the following cost relationship: Total factory overhead cost = P50,000 per month + 5H* *H = number of direct labor hours, the selected cost driver for overhead costs Each unit of product requires 6 direct labor hours. The company's normal production is 20,000 units of product per year. The predetermined fixed overhead rate per hour is A. P6.00 B. P5.00 C. P2.50 D. P0.42
B
In comparing management and financial accounting, which of the following more accurately describes management accounting information? A. Comparable, verifiable, monetary B. Budgeted, informative, adaptable C. Required, estimated, internal D. Historical, precise, useful
B
Management accounting involves the following except: A. Determine cost behavior B. Assist in developing company's prices for external transactions only C. Assist in profit planning D. None of the above
B
Meng Company is preparing a flexible budget for next year and requires a breakdown of the factory maintenance cost into the fixed and variable elements. The maintenance cost and machine hours (the selected cost driver) for the past 6 months are as follows: Maintenance Costs Machine Hours January 15,500 1800 February 10,720 1230 March 15,100 1740 April 15,840 2190 May 14,800 1602 June 10,600 1590 What is the average rate per hour at a level of 1500 machine hours? A. Php 5.33 B. Php 8.11 C. Php 7.23 D. Php 5.46
B
Operating leverage measures how sensitive the profit is to a change in A. Fixed costs C. sales price per unit B. Sales Volume D. in tax rates
B
Overhead applied was 130,000 while actual overhead was 126,000. Which of the following is true? A. Direct Labor activity was overestimated B. Overhead was underapplied by 4000 C. Overhead was overapplied by 4000 D. The difference is reported as a loss
B
Spleen Company with P210,000 of fixed cost has the following data: Product X Product Y Unit sales price P10 P5 Unit variable costs P8 P4 Assume that 3 units of X are sold for each unit of Y. How much is the contribution margin of product X at its breakeven point? A. P900,000 B. P180,000 C. P120,000 D. P90,000
B
The following are costs incurred by Abtina Manufacturing Corporation during the previous month: Direct materials P 5,000 Indirect materials 2,000 Direct labor 6,000 Indirect labor 1,000 Factory utilities 4,000 Advertising costs 8,000 Sales commissions 12,000 Depreciation on administration building 3,000 Salaries of administrative personnel 20,000 Depreciation - delivery equipment 2,000 Overtime pay - factory workers 1,000 Rework cost on defective products discovered during quality inspection 2,500 Total period costs: A. P67,000 B. P45,000 C. P49,000 D. P22,000
B
The following data for the month of September were taken from the cost records of Department A of NLP which uses average costing: Work in process, beginning Unit Cost (All materials, 50% converted) 500 Materials P 2,400 Labor 1,500 Factory Overhead 760 Put into Production 5,000 Materials 25,100 Labor 19,380 Factory Overhead 14,900 Units completed and transferred 4,800 Units in process, End (all materials, 60% converted) 700 The equivalent production for labor is A. 7200 B. 5220 C. 4970 D. 5500
B
The term "committed costs" refers to costs that A. Are likely to respond to the amount of attention devoted to them by a specified manager B. Are governed mainly by past decisions that established the present levels of operating and organizational capacity and that only change slowly in response to small changes in capacity C. Fluctuate in total in response to small changes in the rate of utilization of capacity D. Management decides to incur in the current period to enable the company to achieve objectives other than the filling of orders placed by customers
B. Are governed mainly by past decisions that established the present levels of operating and organizational capacity and that only change slowly in response to small changes in capacity
The cost behavior method that may use time and motion studies to determine the activities and amounts for cost behavior analysis is A. Account analysis method B. Industrial engineering method C. Regression analysis D. High-low method
B. Industrial engineering method
Harem Company uses an annual cost formula for overhead of P72,000 + 1.60 for each direct labor hour worked. For the upcoming month, Karla plans to manufacture 96,000 units. Each unit requires five minutes of direct labor. Harem Company's budgeted overhead for the month is A. P 12,800 B. P 18,800 C. P 84, 800 D. P 774, 000
B. P 18,800
. The Overland Company wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month Electricity Cost Direct Labor Hours January P 6,750 1,500 April 7,500 1,700 July 8,500 2,000 October 7,250 1,600 Using the high-low method, what is the reasonable equation? A. Y= P 750 + P5.00X B. Y= P1,500 + P3.50X C. Y= P 750 + P3.50X D. Y= P1,500 + P5.00X
B. Y= P1,500 + P3.50X
. If activity increases, which of the following statements about cost behavior is true? A. Fixed cost per unit will increase. B. Variable cost per unit will increase. C. Fixed cost per unit will decrease. D. Variable cost per unit will decrease.
C
A conventional manufacturer is more likely than a just-in-time manufacturer to A. have a short production cycle. B. produce goods in small batches. C. hold large inventories to serve as buffers. D. none of the above.
C
As fixed cost for a firm rises, all other things held constant, the breakeven point will A. Be unchanged B. Not be affected by fixed costs C. Increase D. Decrease
C
City cruiser accepted a special order of 100 bikes for 558 each. Their normal selling price is 698. While their product cost is 564 consisting of Direct Materials - 372, Direct Labor - 90, Manufacturing Overhead - 102, Fixed portion of Overhead - 90 per unit. In accepting the special order, it would require additional P34 direct cost and P2,400 fixed overhead cost. Assuming this order would have no effect on other sales. What would be the incremental overhead costs in accepting the special order? A. 2,400 B. 2,502 C. 3,600 D. 5,800
C
Craft Manufactures order using job order cost system. For the month just ended, it registered the following data, Beginning work in process (5 partially completed jobs) - 300,000 Orders completed (18) - 2,400,000 Orders Shipped (14) - 2,000,000 Materials requisitioned for the month - 1,700,000 Direct Labor Cost - 800,000 Factory Overhead Rate - 150% of Direct Labor Cost The ending work in process inventory was A. 1,400,000 B. 500,000 C. 1,600,000 D. 700,000
C
Federer Company plans to sell 400,000 laundry hangers. The fixed costs are P600, 000 and the variable cost is 60% of the selling price. If the company wants to realize a profit of P120, 000, the selling price of each laundry hanger must be A. P2.5 B. P3.75 C. P4.50 D. P5.00
C
Frances Corporation conducted a regression analysis of its factory overhead costs. The analysis yielded the following cost relationship: Total factory overhead cost = P50,000 per month + 5H* *H = number of direct labor hours, the selected cost driver for overhead costs Each unit of product requires 6 direct labor hours. The company's normal production is 20,000 units of product per year. The total overhead cost for a month's production of 2,000 units is A. P60,000 B. P50,000 C. P110,000 D. P0
C
Frances Corporation conducted a regression analysis of its factory overhead costs. The analysis yielded the following cost relationship: Total factory overhead cost = P50,000 per month + 5H* *H = number of direct labor hours, the selected cost driver for overhead costs Each unit of product requires 6 direct labor hours. The company's normal production is 20,000 units of product per year. The total predetermined factory overhead rate per hour is A. P5.00 B. P7.50 C. P10.00 D. P35.00
C
If a company is operating at a loss A. Fixed costs are greater than sales B. Selling price is lower than the variable costs per unit C. Selling price is less than the average total cost per unit. D. Fixed cost per unit is greater than variable cost per unit.
C
In financial accounting, certain rules and regulations must be followed on how financial statements must be presented to readers. In managerial accounting, no such restrictions generally apply because it is A. An entirely different field that need not observe the broad guidelines in financial accounting B. Designed to provide management with non-financial information for decision making. C. Designed to provide accounting and other financial data to assist management in making business decisions D. A discipline that does not require preparation of financial statements
C
Management accounting differs from financial accounting in that financial accounting is. A. involved more heavily in decision analysis B. future oriented C. concerned primarily with external financial reporting D. concerned with qualitative information.
C
Meng Company is preparing a flexible budget for next year and requires a breakdown of the factory maintenance cost into the fixed and variable elements. The maintenance cost and machine hours (the selected cost driver) for the past 6 months are as follows: Maintenance Costs Machine Hours January 15,500 1800 February 10,720 1230 March 15,100 1740 April 15,840 2190 May 14,800 1602 June 10,600 1590 The average annual fixed maintenance cost amounts to A. Php 4,160 B. Php 8,320 C. Php 49,920 D. Php 5,120
C
RTW Company, in producing Lot No. 647 which called for 2,500 dresses, Style No. 34, incurred costs as follows: Materials, P240/dress; Labor, P165/dress; Factory Overhead, P135/dress. When the lot was completed, inspection rejected 200 spoiled dresses which were sold for P324 each. Assuming spoilage is abnormal, what is the cost per unit of good output? A. Php 540 B. Php 324 C. Php 558.78 D. Php 586.96
C
Sams Company wants to develop a single predetermined overhead rate. The company's expected annual fixed overhead is 340,000 and its variable overhead cost per machine hour is P2. The company's relevant range is from 200,000 to 600,000 machine hours. Sams Company expects to operate at 850,000. The predetermined overhead rate per machine hour should be A. P2.4 B. 2.57 C. 2.8 D. 2.85
C
The basic accounting records that are used to provide data for external accounting. In combining and reporting these data to management, however, the accountant can relax the verifiability constraint necessary in public financial reporting and instead prepare data which, although not adequately verifiable for external reporting, are more useful to management. This principle of management accounting considers the following factors are more important than others. A. Verifiability, objectivity, and accuracy B. Conservatism C. Relevance, flexibility and timeliness D. Consistency and disclosure
C
The following are costs incurred by Abtina Manufacturing Corporation during the previous month: Direct materials P 5,000 Indirect materials 2,000 Direct labor 6,000 Indirect labor 1,000 Factory utilities 4,000 Advertising costs 8,000 Sales commissions 12,000 Depreciation on administration building 3,000 Salaries of administrative personnel 20,000 Depreciation - delivery equipment 2,000 Overtime pay - factory workers 1,000 Rework cost on defective products discovered during quality inspection 2,500 Total product costs: A. P67,000 B. P45,000 C. P22,000 D. P18,000
C
The following costs were incurred in February: Direct materials ......................... $43,000 Direct labor ............................... $16,000 Manufacturing overhead ........... $37,000 Selling expenses ........................ $17,000 Administrative expenses ........... $26,000 Conversion costs during the month totaled: A. $59,000 B. $80,000 C. $53,000 D. $139,000
C
Utility costs at Service, Inc. are a mixture of fixed and variable components. Records indicate that utility costs are an average of $0.40 per hour at an activity level of 9,000 machine hours and $0.25 per hour at an activity level of 18,000 machine hours. Assuming that this activity is within the relevant range, what is the expected total utility cost if the company works 13,000 machine hours? A. $4,225 B. $5,200 C. $4,000 D. $3,250
C
A well-conceived plan allows managers the ability to A. not make decisions again until the next planning session. B. keep lower-level managers from implementing change. C. underestimate costs so that actual operating results will be favorable when comparisons are made. D. take advantage of unforeseen opportunities.
D
An increase in the activity level within the relevant range results in: 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.
D
At a sales level of P300,000, Java Company's gross margin is P15,000 less than its contribution margin, its net income is P50,000, and its selling and administrative expenses total P120,000. At this sales level, its contribution margin would be: A. P250,000. B. P155,000. C. P170,000. D. P185,000.
D
Based on the information in the previous number, how did the company factory workers perform in February? A. P100 efficient B. P100 inefficient C. 100 hours efficient D. 100 hours inefficient
D
In which of the following aspects is managerial accounting similar to financial accounting? A. Users of reports B. Emphasis between the past and future C. Type of data provided to users D. Reliance on the accounting database
D
Integrity is an ethical requirement for all management accountants. One aspect of integrity requires A. Maintenance of an appropriate level of professional competence. B. Performance of professional duties in accordance with applicable laws. C. Refraining from improper use of confidential information. D. Avoidance of actual or apparent conflicts of interest and advise all appropriate parties of any potential conflict.
D
Management accounting includes the following processes, except: A. measurement. B. interpretation. C. communication. D. delegation.
D
Managerial accounting places considerable weight on: A. generally accepted accounting principles. B. the financial history of the entity. C. ensuring that all transactions are properly recorded. D. detailed segment reports about departments, products, and customers.
D
Meng Company is preparing a flexible budget for next year and requires a breakdown of the factory maintenance cost into the fixed and variable elements. The maintenance cost and machine hours (the selected cost driver) for the past 6 months are as follows: Maintenance Costs Machine Hours January 15,500 1800 February 10,720 1230 March 15,100 1740 April 15,840 2190 May 14,800 1602 June 10,600 1590 If Meng Company uses the high low method of analysis, the estimated variable rate of maintenance cost per machine hour is A. Php 7.23 B. Php 8.73 C. Php 5.46 D. Php5.33
D
One certification available to management accountants is the Certificate of Management Accounting (CMA). In the Philippines, the Philippine Association of Management Accountants (PAMA) conducts the CMA Program, which has the following objectives, except: A. To establish Management Accounting as a recognized profession in the field of business. B. To encourage stricter and high quality educational standards in Management Accounting. C. To provide objective means for measuring the Management Accountant's knowledge and competence. D. To supervise or coordinate the Management Accountant's preparation of reports to government agencies.
D
The engineering method of estimating costs: A. Can be used to estimate costs for totally new activities B. Can detail each step required to perform an operation C. Sometimes can be quite expensive to use D. All of the given choices are true
D
Variable costing treats A. All variable expenses as product costs B. All variable expenses as period costs C. All fixed expenses as product costs D. All fixed expenses as period costs
D
Which consideration influences the frequency of an internal report? A. The wishes of the managers receiving the report. B. The frequency with which decisions are made that require the information in the report. C. The cost of preparing the report. D. All of the above.
D
Which of the following is not a valid method for determining product cost? A. arbitrary assignment B. direct measurement C. systematic allocation D. cost-benefit measurement
D
Which of the following relate(s) to management advisory services by CPAs? A. Cost analysis of major investment decisions B. Design and/or installation of accounting systems C. Financial Analysis for project feasibility studies D. All of the above
D
Which of the following statements about management or financial accounting is false? A. Management accounting should be flexible. B. Financial accounting must follow GAAP. C. Management accounting is not subject to mandatory reporting standards. D. Both management and financial accounting are subject to mandatory recordkeeping requirements.
D
Which of the following statements about management or financial accounting is false? A. Management accounting should be flexible. B. Financial accounting must follow GAAP. C. Management accounting is not subject to regulatory reporting standards. D. Both management and financial accounting are subject to mandatory record-keeping requirements.
D
Which of the following statements is false? A. Cost accounting is a tool of both financial and managerial accounting. B. Managerial accounting draws heavily on economics, statistics, operations research, and other disciplines as necessary in providing accounting and financial information. C. In management accounting, emphasis is given to identifying or matching cost with functions, projects, or responsibilities rather than with time periods. D. Financial accounting provides information to individuals within the business organization, while management accounting provides information to parties outside the business entity.
D
. The controller of Jema Company has requested a quick estimate of the manufacturing supplies that it needs for the month of July when the expected production are 470,000 units. Below are the actual data from the prior three months of operations. Production in Units March 450, 000 April 540, 000 May 480, 000 Manufacturing Supplies March 723, 060 April 853, 560 May 766, 560 Using these data and the high-low method, what is the reasonable estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range) A. P 805,284 B. P 1,188,756 C. P 755,196 D. P 752,060
D. P 752,060
Assuming costs are represented on the vertical axis and volume of activity on the horizontal axis, which of the following costs would be represented by a line that is parallel to the horizontal axis? A. Total direct material costs B. A consultant paid P75 per hour with a maximum fee of P1,200 C. Employees who are paid P10 per hour and guaranteed a minimum weekly wage of P200 D. Rent on exhibit space at a convention
D. Rent on exhibit space at a convention
A managerial accountant who prepares clear reports and recommendations after analyzing relevant facts is exercising which of the following standards? A. objectivity C. competence B. integrity D. confidentiality
c
The person MOST likely to use ONLY financial accounting information is a A. factory shift supervisor. C. current shareholder. B. manager. D. vice president of operations.
c
The plans of management are often expressed formally in: A. financial statements. C. budgets. B. ledgers. D performance reports.
c
Control measures should A. be set and not changed until the next budget cycle. B. be flexible to allow for employees who are slackers. C. be kept confidential from employees so that competitors don't have an opportunity to gain a competitive advantage. D. be linked by feedback to planning.
d
The person(s) directly responsible for the attainment of organizational objectives is/are A. the treasurer. C. the controller. B the chief financial officer D. management.
d
