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BUSINESS ACCOUNT 01 DOCUMENT 5 QUESTIONS AND ANSWERS UPLOADED 2022 BUSINESS ACCOUNT 01 DOCUMENT 5 QUESTIONS AND ANSWERS UPLOADED 2022 BUSINESS ACCOUNT 01 DOCUMENT 5 QUESTIONS AND ANSWERS UPLOADED 2022 BUSINESS ACCOUNT 01 DOCUMENT 5 QUESTIONS AND ANSWERS UPLOADED 2022 BUSINESS ACCOUNT 01 DOCUMENT 5 QUESTIONS AND ANSWERS UPLOADED 2022
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Overview Management advisory services
A. conduct special studies, preparation of recommendations, development of plans and programs, and provision of advice and assistance in their implementation. B. provide services or to fulfill some social need.
C. improve the client's use of its capabilities and resources to achieve the objectives of the organization.
D. earn the best rate of return on resources entrusted to its care with safety of investment being taken into account and consistent with the firm's social and legal responsibilities.
B. broader in scope and varied in nature
C. utilize more junior staff than senior members of the firm
D. relate to specific problems where expert help is required
A. Systems design. C. Make or buy analysis.
B. Project feasibility study. D. Assistance in budget preparation.
A. CPA’s provide management services to go around the ethical constraints as mandated by the Accountancy Act.
B. Businesses hire management consultants to help define specific problems and develop solutions
C. Included in the practice of consulting is the provision of confidential service in which the identity of the client is concealed
D. CPA’s performing management services may be considered to be in the practice of management consulting
Management accounting & financial accounting
Ext
e r n a l r e
porting Internal
reporting Yes Yes
B. Variable costing Yes No C. Process costing No Yes
D. Standard costing Yes No
Quality Costs
A. training cost C. appraisal cost
B. internal failure cost D. prevention cost
Activity-based Costing
A. identity the major activities that pertain to the manufacture of specific products
B. allocate manufacturing overhead costs to activity cost pools C. Identify the cost drivers that accurately measure each activity’s contribution to the finished product
D. Assign manufacturing overhead costs for each activity cost pool to products
B. Batch level D. Product level
A. scheduling, setting up, and moving C. heating, lighting, and security
B. designing, changing, and advertising D. cutting, painting, and packaging
A. scheduling, setting up, and moving C .heating, lighting, and security
B. designing, changing, and advertising D
. cutting, painting, and packaging
A. Batch level C. Unit level
A. scheduling, setting up, and receiving C. heating, lighting, and security B. designing, changing, and advertising D. cutting, painting, and packaging
B. Machine hours D. Number of inspections
A. B. C. D. Volume (Unit) Base 1, 4, 5, 6
Non-volume (Activity) 2, 3 2, 3, 6 6 1, 4, 5 Base
McMd's value-added, and non value-added costs would be
A. P150 and P0 C. P150 and P
B. P0 and P150 D. P450 and P
If Moon is using direct tracing, the amount of overhead per unit that will be assigned to Alpha and Beta, respectively, are A. P2.40 and P3.60, respectively C. P4.80 and P1.20, respectively B. P3.60 and P2.40, respectively D. P1.20 and P4.80, respectively
The standard time required to manufacture one six-unit case of Mulvey's angle product is 4 machine hours. Mulvey applies manufacturing overhead to
production on the basis of machine hours and its normal annual production is 50,000 cases
Mulvey's estimated variable manufacturing overhead cost for a month in which scheduled production is 5,000 cases would be
A. P80,000 C. P240,
B. P320,000 D. P360,
cost? (E) Graph 1 Graph 2
Total units produced Total units produced
Graph 3 Graph 4
Total units produces Total units produced
A. Graph 2 C. Graph 4 B. Graph 3 D. Graph 1
Fixed Costs
expense (a semi-variable expense), as measured against direct labor hours
for the first three months of the year. The inspection costs are fixed; the
adjustments necessitated by errors found during inspection account for the
variable portion of the maintenance costs. Information for the first quarter
is as follows:
Direct Labor Hours Maintenance Costs January 34,000 P61,
What is the fixed portion of Parts Company’s maintenance expense,
rounded to the nearest pesos?
A. P28,330 C. P37,
B. P32,780 D. P40,
expense (a semi-variable expense), as measured against direct labor
hours for the first three months of the year. Information for the first
quarter is as follows:
Direct Labor Hours Maintenance
Costs January 25,000 P210, February 30,000 240, March 27,000 222, What is the fixed portion of Largo Company’s maintenance
expense? A. P60,000 C. P90,
B. P30,000 D. P120,
Total Costs
17.Molds Corporation has developed the following flexible budget formula for annual indirect labor costs: Total Cost = P300,000 + P5.00 per machine hour Operating budgets for the current month are based upon 18,000 machine hours of planned machine time. Indirect labor costs included in this planning budget are: A. P300,000 C. P 90, B. P390,000 D. P115,
Total Cost = P480,000 + P5.00 per machine hour
Operating budgets for the current month are based upon 20,000 machine hours of planned machine time. Indirect labor costs included in this planning budget are:
A. P 48,333 C. P100,
What would be the expected operating costs, assuming that the occupancy rate increases to 60% during November?
Cost-Volume-Profit Relationship
Basic Concepts
A. "What if" or sensitivity analysis C. computer aided analysis
B. vary the data analysis D. data gathering
Breakeven Analysis – Single Product
Sales Amount
20.Scrambled Brain Company has fixed costs of P90,000. At a sales volume of P300,000, return on sales is 10%; at a P500,000 volume, return on sales is 22%. What is the break-even volume?
A. P120,000 C. P225,
B. P200,000 D. P450,
Units Sold
18.At a sales volume level of 2,250 units, Luzon Company’s contribution margin is one and one-half of the fixed costs of P36,000. Contribution margin is 30%. How many units must be sold by the company to breakeven?
A. 1,250 C. 2, B. 1,500 D. 2,
When sales were 70,000 units, the company had a profit of P1.20 per
unit. The number of units to breakeven is
A. 35,000 C. 52,
B. 45,000 D. 57,
costs are P14 per unit, consisting of manufacturing costs of P11 and selling costs of P3. Fixed costs, which are incurred uniformly throughout the year, amount to P792,000 (manufacturing costs of P500,000 and selling expenses of P292,000). There are no beginning inventories.
If labor costs are 50% of variable costs and 20% of fixed costs, a 10% increase in wages and salaries would increase the number of units required to breakeven to
A. 152,423 C. 175, B. 143,875 D. 129,
data are as follows:
Selling price per pair of sunglasses P25. Variable costs per pair of sunglasses: Raw materials P11. Direct labor 5. Manufacturing overhead 2. Selling expenses 1. Total variable costs per unit P19. Annual fixed costs: Manufacturing overhead P192, Selling and administrative 276, Total fixed costs P468, Forecasted annual sales volume (120,
pairs)
Income tax rate 40% Glareless Company estimates that its direct labor costs will increase 8
percent next year. How many units will Glareless have to sell next year to
reach breakeven?
A. 97,500 units C. 83,572 units
B. 101,740 units D. 86,250 units
22.Madel Company manufactures a single electronic product called Walastik. Walastik sells for P900 per unit. In 2000, the following variable costs were
incurred to produce each Walastik device.
Direct labor P