| Segment of organization | Scope of information of managerial accounting |
| P7,500 | What amount of overhead is applied to Job #200? |
| P400 | Using the high-low method of separating mixed costs, what is the variable cost per unit? |
| Credibility | Institute of Management Accountants' (IMA) overarching ethical principles include the following except one: |
| FALSE | Managerial accounting is most concerned with addressing the needs of the company as a whole. |
| FALSE | Direct labor is gaining importance in many manufacturing applications with respect to being a significant cost driver. |
| manufacturing overhead | Materials used in the operation of a factory, such as cleaning supplies, that are not an integral part of the final product should be classified as: |
| TRUE | In the value chain, planning and controlling activities in the organization is to be managed on a sequential order of the business functions. |
| TRUE | Actual Cost is a past cost or historical cost. |
| TRUE | Cost accounting serves as a bridge between financial and managerial accounting. |
| TRUE | Break-even Point is the point of activity level where total revenue is equal to total cost. |
| Helps managers to make decisions to fulfill an organization's objectives | Purpose of informationof managerial accounting |
| 4,625 units | Q: What should be the actual unit sales to realize the desired profit? |
| FALSE | If a company opt to use the activity-based costing in allocating overhead costs, companies do not need to classify at which level of activities costs were incurred. |
| FALSE | In applying the Standards of Ethical Professional Practice, the member will never encounter unethical issues or behavior. |
| FALSE | Within the relevant range, the two main cost behaviors are direct and indirect costs. |
| Value Chain | It is a cycle of processes in an organization |
| all manufacturing costs except direct labor and direct materials | Manufacturing overhead includes: |
| FALSE | Period Costs are also inventoriable costs. |
| FALSE | Financial accounting is most concerned with addressing the needs of individual departments of the company. |
| TRUE | Activity based costing assigns overhead to products produced on a basis of usage of activities during the production process like purchase order activities, machine set-ups and other activities that are required to complete the manufacturing process. |
| budgeted, informative, adaptable | In comparing financial and management accounting, which of the following more accurately describes management accounting information? |
| P62,500 | To be able to answer the following questions, kindly refer to the problem below: |
| $1,000 underapplied | Media, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $150,000, direct professional labor hours were estimated to be 15,000, and direct professional labor cost was projected to be $225,000. During the year, Media incurred actual overhead costs of $146,000, actual direct professional labor hours of 14,500, and actual direct labor cost of $222,000. By year-end, the firm's overhead was: |
| TRUE | Product Costs can either be presented in the balance or income statement |
| break-even point | It is the point of activity level where total revenue is equal to total cost |
| break-even point | It is the point of activity level where total revenue is equal to total cost |
| FALSE | Businesses are established because owners are just after the break-even point. |
| FALSE | The company's normal operating range is referred to as the operating cycle. |
| Financial reports must be audited by an independent Certified Public Accountant (CPA) | The need of independent examination and verification process for financial accounting |
| FALSE | Activity-based costing systems have a tendency to distort product costs. |
| TRUE | IMA members have a responsibility to comply with and uphold the standards of Competence, Confidentiality, Integrity, and Credibility |
| TRUE | Financial accounting adheres strict compliance to Generally Accepted Accounting Principles (GAAP) |
| Cost Object | These are items for which management accumulates costs |
| TRUE | Opportunity costs are the potential benefit that is given up when one alternative is selected over another. |
| TRUE | Financial accounting is most concerned with meeting the needs of external users. |
| FALSE | Many traditional costing systems trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates. |
| FALSE | The emphasis of information of financial accounting is future oriented. |
| TRUE | An example of a customer-value-added activity is final painting and polishing of the product. |
| P 959 | A tailoring company has gathered information on utility costs for the past year. The accountant has decided that utilities are a function of the hours worked during the month. The following information is available and representative of the company's utility costs: |
| P225,000 | To be able to answer the following questions, kindly refer to the problem below: |
| P62,500 | What is the amount of income tax? |
| TRUE | It is in the planning phase where the problems and issues of the company are identified. |
| $1.00 per part | HiTech Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. |
| $19.63 | Referring to the preceding problem, the cost of wages and salaries and other overhead that would be charged to each delivery is closest to: |
| FALSE | Product Costs are always presented in the income statement as part of cost of goods sold. |
| Financial reports do not need to be audited by an independent CPA | The need of independent examination and verification process for managerial accounting |
| FALSE | Prime cost is the sum of direct labor and manufacturing overhead. |
| result in either underapplied or overapplied overhead that is closed to Cost of Goods Sold if it is immaterial in amount | The estimates used to calculate the predetermined overhead rate will virtually always: |
| TRUE | The cost of goods sold of a manufacturing company equals beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory. |
| P138 | Based on the preceding number, compute the fixed cost element (to the nearest whole peso) |
| Conveys financial information to investors, banks, government regulatory agencies and other outside parties | Purpose of information of financial accounting |
| FALSE | Generally speaking, companies prefer doing business with customers who order small quantities rather than large quantities. |
| Line position only | It is the position in the organization structure wherein the personnel assigned are directly involved in the responsibility of achieving the goals of an organization |
| P250,000 | Which of the following is NOT a period cost? |
| TRUE | Consumption ratios are useful in determining the existence of product-line diversity. |
| FALSE | Net Income is the amount available to cover fixed costs |
| external and internal users | These are the primary users of financial information |
| Internal reporting system that provides product costing and other information used by managers in performing their functions | Generally speaking, cost accounting can be defined as a |
| TRUE | If the resolution efforts of resolving ethical issues are not successful, the member may wish to consider disassociating from the organization. |
| Must conform with Generally Accepted Accounting Principles (GAAP) | Overriding criteria of financial accounting |
| FALSE | The Graphic Approach is the widely used method in calculating the break-even point. |
| Accounting | It is a systematic process of providing financial information of an organization or unit that is intended to be useful in decision making |
| FALSE | Managerial accounting adheres strict compliance to Generally Accepted Accounting Principles (GAAP) |
| TRUE | If direct labor is a good cost driver, increases in direct labor are matched with increases in manufacturing overhead. |
| P250,000 | To be able to answer the following questions, kindly refer to the problem below: |
| All of the following because service providers cannot use job-costing systems | Which of the following would not likely be used by service providers to accumulate job costs? |
| Does not conform with GAAP as long as it is relevant to management decision making and complies with standards set by the management | Overriding criteria of managerial accounting |
| P7.00 per direct labor hour | If the company still employs the plantwide factory overhead rate method, how much is the overhead cost per unit for TV, Computer and cellphone using the total direct labor hours as a basis of allocation. |
| P6,300 | What amount of overhead is applied to Job #100? |
| TRUE | Managerial accounting is most concerned with meeting the needs of internal users. |
| TRUE | Budgeted Cost is the amount that is anticipated to be incurred in the future |
| manufacturing overhead costs | The primary difference between normalized and actual costing methods lies in the determination of a job's |
| cost of goods sold | Inventoriable costs that have become expenses can be found in: |
| Its generated information is not important to any company | Which of the following statements about cost accounting is not true? |
| Overapplied by $35,000 | Tiffany charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of labor hours. The following data pertain to the current year: |
| P100 | To be able to answer the following questions, kindly refer to the problem below: |
| All of the following | One major difference between financial and management accounting is that |
| Entireorganization | Scope of information of financial accounting |
| TRUE | Period Costs are treated as outright expenses |
| FALSE | At Break-even Point, there could either be a net income or net loss. |
| direct labor and direct materials | Prime costs consist of: |
| P375,000 | To be able to answer the following questions, kindly refer to the problem below: |
| Helps managers to make decisions to fulfill an organization's objectives | Purpose of information of managerial accounting |
| P28,920 | Assume that Jobs #100 and #300 are incomplete at the end of December. What is the balance in Work in Process Inventory at that time? |
| P1,156,250 | Q: How much should be the actual peso sales to realize the desired profit? |
| P25.48 per unit | How much is the factory overhead cost per unit for Computer under activity-based costing? |
| Controlling | This phase involves the process of gathering responses and feedbacks on the plan being executed through evaluation and monitoring |
| FALSE | One of the uses of financial accounting data is to determine product costs in order to help management in making decisions. |
| FALSE | The sum of all costs that composed manufacturing costs except direct materials is called manufacturing overhead. |
| P312,500 | Q: What is the amount of desired profit before tax? |
| TRUE | External parties and management uses product cost information for investment decision and, planning and controlling |
| investment decision and, planning and controlling | External parties and management uses product cost information for: |
| FALSE | As activity increases within the relevant range, fixed costs remain constant on a per unit basis. |
| TRUE | Product Costs are also inventoriable costs |
| fixed cost | A cost that remains constant in total but varies on a per-unit basis with changes in activity is called a |
| depreciation on the company's retail outlets | All of the following are examples of product costs except: |
| P0.98 | ABC Corporation has the following data for use of its machinery |
| Using the high-low method, compute the variable cost element |
| 1,500 units | To be able to answer the following questions, kindly refer to the problem below: |
| TRUE | Contribution Margin is the amount remaining from sales revenue after deducting the variable expenses. |
| TRUE | All of the following are examples of opportunity costs: salary given up to start a business; rental income given up when you live in a house you own; interest income that could be earned on money spent for a car. |
| Debits: Accounts Receivable, Cost of Goods Sold; credits: Sales Revenue, Finished-Goods Inventory. | A computer manufacturer recently shipped several laptops to a customer (cost: $25,000) and billed the customer $30,000. Which of the following options correctly expresses the accounts that are debited and credited to record this transaction? |
| TRUE | When faced with unethical issues, the member should follow the established policies of his or her organization, including use of an anonymous reporting system if available. |
| increases constant remains | Which of the following defines variable cost behavior? |
| FALSE | External parties and management never use product cost information for investment decision and, planning and controlling. |
| FALSE | If the resolution efforts of resolving ethical issues are not successful, the member should stay at the organization and must find other ways to resolve such issues. |
| FALSE | The emphasis of information of managerial accounting is past oriented. |
