Mas Reviewer With Complete Solution 2023

MAS REVIEWER WITH COMPLETE SOLUTION 2023 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 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 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 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 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 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 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 . 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 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. 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 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. 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 plans of management are often expressed formally in: A. financial statements. C. budgets. B. ledgers. D performance reports. - 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 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 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 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 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 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 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 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 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 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 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.