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A company desires to prepare two sets of financial statements. Conventional financialstatements would be prepared along with a set that is totally consistent with value-chainanalysis. How would customer service costs be treated in the two statements?* Source: Retired ICMA CMA Exam Questions
Conventional Financial Statements: Noninventoriable cost; Value-chain FinancialStatements: Product cost.
Conventional Financial Statements: Inventoriable cost; Value-chain FinancialStatements: Non-product cost.
Conventional Financial Statements: Inventoriable cost; Value-chain FinancialStatements: Product cost.
Conventional Financial Statements: Noninventoriable cost; Value-chain FinancialStatements: Non-product cost.

In practice, items such as wood screws and glue used in the production of school desks andchairs would most likely be classified as* Source: Retired ICMA CMA Exam Questions
factory overhead.
direct labor.
direct materials.
period costs.

Lar Company has found that its total electricity cost has both a fixed component and avariable component within the relevant range. The variable component seems to varydirectly with the number of units produced. Which one of the following statementsconcerning Lar’s electricity cost is incorrect?* Source: Retired ICMA CMA Exam Questions
The variable electricity cost per unit of production will remain constant as productionvolume increases.
The fixed electricity cost per unit of production will decline as production volumeincreases.
The total electricity cost will increase as production volume increases.
The total electricity cost per unit of production will increase as production volumeincreases.

In life-cycle costing, which of the following is the primary method of lowering downstreamcosts?
Improving the upstream and manufacturing cost phases
Proactive management during the downstream phase such as streamliningmanufacturing costs
Improving supplier relationships
Improving product designs in the downstream phase

A manufacturing company has a tennis ball manufacturing machine that had maintenancecosts, direct labor costs, and depreciation costs during a period. Which of the following istrue for this situation?
Depreciation is a period cost, while maintenance and direct labor are product costs.
Maintenance and direct labor are period costs, while depreciation is a product cost.
Maintenance, direct labor, and depreciation are all product costs.
Maintenance and depreciation are period costs, while direct labor is a product cost.

The benefits of materials requirement planning (MRP) systems include all of thefollowing except,
reduced retooling and machine setup time.
reduced coordination between functional areas.
increased bulk purchasing and price breaks.
reduced inventory.

A company uses job-order costing and begins the period with no finished goods inventory,but with a beginning WIP of the following jobs:Job #15 = $42,000Job #16 = $33,000Job #17 = $12,000Total WIP = $87,000During the period, a new job is started (Job #18) and the following costs are incurred:Direct materials: $100,000 (20% each for Jobs #15, #16, #17 and 40% for Job #18)Direct labor: 5,000 hours at $15 per hour (hours for Jobs #15, #16, #17, and #18 are 1,500,1,500, 1,200, and 800, respectively)Factory overhead (using a predetermined rate where total overhead for the year isestimated to be $200,000 and total direct labor (cost driver) is 50,000 hours).Jobs #15 and #16 are completed and sold during the period. What is ending WIP inventory?
$98,000
$112,000
$110,000
$90,000

Logo Inc. has two data services departments (the Systems Department and the FacilitiesDepartment) that provide support to the company’s three production departments(Machining Department, Assembly Department, and Finishing Department). The overheadcosts of the Systems Department are allocated to other departments on the basis ofcomputer usage hours. The overhead costs of the Facilities Department are allocated basedon square feet occupied (in thousands). Other information pertaining to Logo is as follows.Logo employs the step-down method of allocating service department costs and begins withthe Systems Department. Which one of the following correctly denotes the amount of theSystems Department’s overhead that would be allocated to the Facilities Department andthe Facilities Department’s overhead charges that would be allocated to the MachiningDepartment?
Systems to Facilities = $20,000, Facilities to Machining = $20,000
Systems to Facilities = $19,355, Facilities to Machining = $20,578
Systems to Facilities = $20,000, Facilities to Machining = $24,000
Systems to Facilities = $0, Facilities to Machining = $20,000

According to capacity management principles, which of the following actions wouldgenerally be the least viable solution for a firm faced with increasing the capacity of amanufacturing process to address long-term demand forecasts?
Hiring additional staff
Building another factory
Seeking new channels of distribution
Leasing additional space

A service firm decides to contract with another company for billing because those tasks areconsidered peripheral to its core competencies. This best describes an example of
process analysis and improvement.
flexible staffing.
outsourcing.
business process reengineering.

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For Arab Accountants, CPA CMA CIA CISA DipIFR ACCA

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Sherifaryan

I wanna know what question answered wrong ?

2095 days 22 hours 39 minutes ago

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