1.

Cost-volume-profit analysis is used primarily by management:

a.

To improve the accuracy of actual sales reported the Sales Department

b.

As a planning tool

c.

As a check on data to be included in the external financial statements

d.

For control purposes

2. Which of the following is not an example of committed fixed cost?

a.

Real estate taxes

b.

Factory insurance expense

c.

Advertising expenses for a specific product

d.

Salaries of highly trained engineers

A manufacturing company prepays its insurance coverage for a three-year

period. The premium for the three years is $2,100 and is paid at the beginning of
the first year. Sixty percent of the premium applies to manufacturing operations
and forty percent applies to selling and administrative activities. What amounts
should be considered product and period costs respectively for the first year of
coverage?

a.

Product costs: $420; period costs: $280

b.

Product costs: $280; period costs: $420

c.

Product costs: $700; period costs: $0

d.

Product costs: $0; period costs: $700

Which one of the following statements about ethical behaviour is true?

a.

Ethical behaviour is best described as doing actions that are permitted by law

b.

Ethical behaviour always involves choosing between actions that are clearly right or wrong

c.

Ethical behaviour is not guided by well-defined rules and is often subjective

d.

Ethical behaviour is best guided by a policy of placing corporate performance above individual
ends

T uses a standard labour hour rate to charge its overheads to its clients’ work.
During the last annual reporting period production overheads were over-
absorbed by 19,250. The anticipated standard labour hours for the period were
38,000 hours while the standard hours actually charged to clients were 38,500.
The actual production overheads incurred in the period were $481,250. The
budgeted production overheads for the period were:

a.

$456,000

b.

None of the above

c.

$462,000

d.

$494,000

The company A owns a machine Z1 which has not been used for many months.
Currently, the company A is considering to use this machine for a special
production contract within one year. The carrying amount of machine Z1 is
$100,000, but it would now cost $150,000 to replace. If not being used for this
contract, the machine Z1 could be sold at $120,000 for scrap. However, after
one-year usage for this special contract, the estimated salvage value of the
machine Z1 is nil and the cost to liquidate is $10,000. This machine has no other
use. What is the relevant cost of machine Z1 when deciding whether or not to
accept this special production contract?

a.

$150,000

b.

$120,000

c.

$130,000

d.

$110,000

The company applies a job-order costing system. During the period, the order
1012 consumed VND45,000,000 of direct material costs, VND30,000,000 of direct
labor costs based on the wage rate of VND7,500,000 each direct labor hour. The
manufacturing overhead rate to allocate production overhead costs was
VND12,500,000 per direct labor hour. The indirect non-production costs were
allocated at the rate of 60% of the prime costs. The full cost of the order 1012
was calculated:

a.

VND170,000,000

b.

VND240,000,000

c.

VND195,000,000

d.

VND200,000,000

W Company uses a job-order costing system to account for product costs. The
following information pertains for a period: Materials placed into production:
$140,000; Indirect labour: $40,000; Direct labour (10 000 hours): $160,000;
Depreciation of factory building: $60,000; Other factory overhead: $100,000;
Increase in work-in-process inventory: $30,000; Factory overhead rate is £18 per
direct labour hour. What is the total amount debited to Finished Goods
Inventory for the period?

a.

$510,000

b.

$550,000

c.

$450,000

d.

$490,000

A company owns 800 units of work-in-process at the beginning of the period,

10,000 units started in process and 400 units of work-in-process at the end of
the period, with a completion rate of 60% for labor costs. The equivalent units of
production for labor under FIFO approach is 10,080 units. What is the
completion percentage of beginning work-in-process for the labor item?

a.
30%

b.

50%

c.

40%

d.

70%

Which one is the correct statement?

a.

For performance evaluation purposes, budgeted service department costs should be

allocated to operating departments

b.

In step-down methods of allocating service department costs, the cost of service departments
could be allocated each other reciprocally

c.

Sales dollar would be the most appropriate allocation base to allocate the cost of a human
resources department to other departments

d.

The direct method has the disadvantage that it may leave some service department costs
unallocated

A Ltd. produces a single product. A Ltd. plans to use 8,000 machine hours and 5,000 direct
labor hours to produce and sell 10,000 units K yearly. The direct labor costs are $25 per
unit K, and the rate of each direct labor hour is $15. Total variable production costs are
$175,000,000 per year. Total fixed production costs are $425,000,000 per year. All selling
and administrative expenses are fixed costs of $150,000,000 annually. If A Ltd. wants to
make a profit of $175,000,000 each year, the mark-up percentage of pricing under the
marginal costing approach is:

a.

All are incorrect

b.

130.43%
c.

35.14%

d.

50%

Traceable fixed costs consist of depreciation and plant supervisory salaries. All
depreciation on the equipment is dedicated to the product lines. None of the
equipment can be sold. Each of three products has a different supervisor whose
position would be eliminated if the associated product were dropped.

Which is the correct conclusion?

a.

All are incorrect

b.

If Sophia drops UA40, it will make an increase of 100,000 in income

c.

If Sophia drops UA43, it will make a decrease of 100,000 in income

d.

If Sophia drops UA40, it will make a decrease of 100,000 in income

A company estimates that net profit of $255,000 would be earned when it produces and sells
10,000 units of product S each month. At this level of activity, the company consumes 9,000
machine hours and 5,000 direct manufacturing labor hours at the rate of $32 per labor hour.
The following information is available on product S: Direct material per unit: $32; Variable
manufacturing overhead costs per unit: $7; Fixed manufacturing overhead costs: $200,000;
Selling and administrative expenses costs: $420,000. If the company uses the absorption
costing approach to cost-plus pricing, the required markup for product S would be closet to:

a.

90%

b.

All are incorrect

c.

85%

d.

74.17%
In a short-decision making context, which one of the following would be a
relevant cost? Đúng

a.

The original cost of raw material currently in stock that will be used on the project

b.

Specific development cots already incurred

c.

The cost of special material which will be purchased

d.

Depreciation on existing equipment

Management accounting is primarily concerned with:

a.

Providing investors with useful information for valuing securities

b.

Providing managers with relevant information to help achieve organizational goals

c.
Providing creditors information on the status of their loans

d.

All are correct

Anna Corporation wants to set the selling price of a mass product. The
accounting department has provided cost estimations as shown below.

Unit variable cost Total fixed costs per

year

Direct material costs 90

Direct labor costs 30

Production overhead 20 100,000

Selling, administration 10 60,000

and distribution costs

Capacity 2,000 units

Anna Corporation must invest $1,000,000 to produce and sell 2,000 units of the
product each year. Anna expects to obtain a 20% ROI.

Assume that due to recession, Anna Corporation expects to sell only 1,800 units
through regular channels with the selling price at $330 per unit next year. A
large retail chain has offered to purchase 500 units of product. There would be
no sales commissions on this order; thus, variable selling expenses would be
decreased by $5 per unit. However, Anna would have to purchase a special
machine to engrave the retail chain’s name on the 500 units. This machine
would cost $4,000. Determine the minimum price per unit for Anna Corporation
accepting this special order.
a.

$253

b.

$150

c.

$261

d.

$330

For the coming year, D plc’s variable costs are budgeted to be 60% of sales
dollars and fixed costs are budgeted to be 10% of sales dollars. If sales price
increases by 10%, but if total fixed costs, unit variable costs, and sales volume
remain the same, the effect on D plc’s marginal contribution would be:

a.

An increase of 25%

b.

An increase of 5%

c.

Remain unchanged

d.

An increase of 15%

Which of the following production costs, if expressed on a per unit basis, would
be most likely to change significantly as the production level varies?

a.

Direct labor

b.

Variable costs

c.

Direct materials

d.
Fixed manufacturing overhead

The A corporation has 2 service departments as follows: Service department 1

incurred the costs of $2,560,000 to provide 20 units to service department 2, 50
units to the production department, 30 units to sales department and 15 units
for self-usage. Service department 2 incurred the costs of $988,000, to serve 4
and 5 employees at service department 1, 2, respectively, 40 employees at
production department, and 10 employees at sales department. Using the step-
down method, the unit cost of service department 2 could be allocated to
production department:

a.

$30,000

b.

$28,000

c.

All are incorrect

d.

$32,000

Which of the following costs would be included as part of factory overhead?

a.

Depreciation of plant equipment

b.

Depreciation on the corporation's office building

c.

Paint used for product finish

d.

Paper used in the production of books

A manufacturer of food and beverages is considering the following actions.

Which of these is likely to increase its contribution margin ratio?

a.
Offering sales team a higher commission if they sell the products which have higher selling
prices

b.

All are correct

c.

Reducing exports to countries where there is intense price competition

d.

Introducing the programs of total quality management to improve product quality

THT Ltd. that sells a single product N in a situation of financial difficulty.

Financial information related to the product N as follows: the quoted selling
price of $100 per unit, a gross profit margin ratio of 40%, and 100% of mark-up
ratio under marginal costing approach for pricing. There is an overseas
infrequent customer ordering product N. The unit selling price which THT Ltd. is
willing to accept the order from this overseas customer will be:

a.

60

b.

50

c.

40

d.

30

Under variable costing, fixed manufacturing overhead:

a.

Should be capitalized as an asset and amortized over future periods when benefits from such
costs are expected to be received

b.

Would be treated the same as variable manufacturing overhead

c.

Are deferred in inventory when production exceeds sales

d.

Immediately expensed as a period cost

S Company produces a single product. Last year, the company's net operating
income computed by the absorption costing method was $9,100, and its net
operating income computed by the variable costing method was $6,400. The
company's unit product cost was $17 under variable costing and $20 under
absorption costing. If the ending inventory consisted of 2,100 units, the
beginning inventory in units must have been:

a.

3,000

b.

2,100

c.

1,200

d.

4,800

Nathan Corporation had production overhead cost at various levels of activity

for the year 20x0 as below:

Labor-hours Total production overhead

cost

January 32,000 $335,200

February 51,000 524,000

March 21,000 225,000

April 34,000 354,700

 May 55,000 565,000

June 42,000 435,800

Production overhead cost in March was breakdown as follows:

Components of production overhead

cost

Indirect material (variable) $126,000

Supervisor salaries (fixed) 3,000

Rent & Depreciation

(fixed) 8,000

Electricity (mixed) 88,000

What total electricity cost would you expect to be incurred at 40,000 labor-
hours?

a.

$164,000

b.

$415,000

c.

$167,619
d.

All are incorrect

A company sells two products: M and N. The sales mix is expected to be $3.00 of
sales of Product M for every $5.00 of sales of Product N. Product M has a
contribution margin ratio of 40% whereas Product N has a contribution margin
ratio of 50%. Annual fixed expenses are expected to be $259,000. The overall
break-even point for the company in dollar sales is expected to be closest to:

a.

$560,000

b.

$222,000

c.

$592,000

d.

$370,000

W Ltd produces a single product. The budgeted fixed production overheads for
the period are $500,000. The budgeted output for the period is 2,000 units.
There were 800 units of opening inventory at the beginning of the period and
500 units of closing inventory at the end of the period. If absorption costing
principles were applied, the profit for the period compared to the marginal
costing profit would be:

a.

$125,000 higher

b.

$75,000 higher

c.

$75,000 lower

d.

$125,000 lower
A company owns 800 units of work-in-process at the beginning of the period,
10,000 units started in process and 400 units of work-in-process at the end of
the period, with a completion rate of 60% for labor costs. The equivalent units
of production for labor under FIFO approach is 10,080 units. What is the
completion percentage of beginning work-in-process for the labor item?

a.

40%

b.

30%

c.

50%

d.

70%
Câu 13 All are incorrect