CMA Part 1 – Financial Planning‚ Performance‚ & Control Examination Practice Questions © Copyright 2013 Institute of Certified Management Accountants CMA Part 1 – Financial Planning‚ Performance and Control Examination Practice Questions 1. A company is preparing the sales budget for two potential products. Both products require the use of the same manufacturing equipment‚ which is only available for 60 hours each month. The contribution margin of product A is $95 per unit and the contribution
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Answer: custom furniture manufacturing. oil refining. grain milling. newsprint production. Instructor Explanation: Chapter 4 Points Received: 5 of 5 Comments: Question 3. Question : (TCO F) Unizat Corporation uses the weighted-average method in its process costing system. The following information pertains to one of the company’s processing departments for a recent month: Units Material Cost Beginning work in process 30‚000 $22‚000 Started during the month 80‚000 $72‚000
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Certified ACCounting teChniCiAn exAminAtion SAmple multiple ChoiCe queStionS – June 2009 Paper T7 Planning Control and Performance Management Section A only All questions are compulsory Note: Section B of the actual exam paper will contain four written questions FOR FREE ACCA & CAT RESOURCES VISIT: http://kaka-pakistani.blogspot.com the following questions are typical of those that will appear in Section A of the examination paper from June 2009 onwards. there will be a total of ten
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Company uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at $2‚250‚000 and direct labor hours are budgeted at 415‚000 hours. Actual overhead was $2‚200‚000 and actual overhead hours worked were 422‚000. (a) Calculate the predetermined overhead rate. (b) Calculate the overhead applied. (c) Determine the amount of overhead that is over/underapplied. (Points : 6) (a) Calculate the predetermined overhead rate. 2250000/415000 = 5
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The actual overhead incurred was $1‚100‚000. Ending balances in the relevant accounts were: Work-in-process $ 100‚000 Finished Goods 750‚000 Cost of Goods Sold 24‚150‚000 Requirements: A) Prepare a journal entry to write-off the difference between allocated and actual overhead directly to cost of goods sold. Be sure your journal entry closes the related overhead accounts. B) Prepare a journal entry that prorates the write-off of the difference between allocated and actual overhead using ending
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the corresponding circle on your Scantron sheet. Only answers on the Scantron will be scored. Please use the following information to answer questions 1 and 2: Forrester‚ Inc.‚ currently uses traditional costing procedures‚ applying $815‚000 of overhead to products Alpha and Gamma on the basis of direct labor hours. The company is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH)‚ material handling (MH)‚ and number of
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the sale price of beef at the market. A 2012 survey by the United States Department of Agriculture’s Economic Research Service (USDA/ERS) estimated that profitability per cow will increase significantly over the long term‚ rising from a current average profit of $96.11 per cow in 2012 to a $252.98 per cow profit in 2021. People often think that things will "take care of themselves." Cattle require significant care. People often buy small ranches only to discover that all of their free time is
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relative to the traditional approach. It also offers an opportunity to discuss the cost/ benefit trade-off between simple ABC systems versus refined systems‚ and the potential benefit of using capacity rather than expected sales when allocating fixed overhead costs. (Related to Chapter 4‚ Activity-Based Costing.) This case illustrates the importance of proper transfer pricing for decision making as well as performance evaluation. The student is required to evaluate profitability using two different transfer
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would be to create their own pub to be called Beach Karaoke. To evaluate the two mutually exclusive projects‚ we have to consider the following criteria: • The present capital budgeting system ranks projects according to their payback period and average return on investment. Ranking projects is often used in the situation of capital rationing. PBH might have had difficulties in terms of availability of cash‚ which would justify the use of the Payback method. However‚ it’s an old system that hasn’t
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Week 4 Assignment from Textbook: Chapter 23 & 24 Esther Tate ACC/400 July 26‚ 2015 Theresa Pekron Brief Exercise 23.6 – Elements of the Budget Identify the budgets in Column B from which dollar amounts are transferred directly in constructing the budgets listed in Column A: 1. Budgeted income statement a. Direct materials budget 2. Budgeted balance sheet b. Cost of goods sold budget 3. Cash flow budget c. Production budget 4. Cost of goods sold budget d. Payables budget 5. Production
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