MAS
MAS
Question 1
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a. The product selling price per unit is constant at all volume levels.
b. All costs incurred by a firm can be separated into their fixed and variable components.
c. For multiproduct situations, the sales mix can vary at all volume levels.
d. Operating efficiency and employee productivity are constant at all volume lev
els.
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Question 2
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The Net Present Value (NPV) method and the Internal Rate of Return (IRR) model
are used to analyze capital expenditures. The IRR model, as contr asted with the
NPV model
a. Almost always gives a different decision than does the NPV method as to the acceptability of a given
proposal.
b. Is considered inferior because it fails to calculate compounded interestate.
r
c. Assumes that the rate of return on thereinvestment of the cash proceeds is at the indicatedate
r of
return of the project analyzed rather than at the discount rate used.
d. Is a discounted cash flow model while the NPV model is not.
Clear my choice
Knox Company uses 10,000 units of a part in its production process. The costs to
make a part are: direct material, P12; direct labor, P25; variable overhead, P13; and
applied fixed overhead, P30. Knox has received a quote of P55 from a potential
supplier for this part. If Knox buys the part, 70 percent of the applied fixed
overhead would continue. Knox Compan y would be better off b y
Select one:
a. P50,000 to manufacture the part.
b. P40,000 to buy the part.
c. P160,000 to manufacture the part.
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Question 4
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Select one:
a. internal rate of return is lower than the discount rate of return.
b. discount rate is higher than the hurdlerate of return.
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Question 5
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The ratio of earnings before interest and taxes to total interest expense is a
measure of
a. Liquidity.
b. Activity.
c. Profitability.
d. Risk.
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Question 6
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Select one:
a. push-through manufacturing flows are the most efficient.
c. maintaining inventories wastes resources and frequently covers up poor work or other problems.
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Question 7
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Ebony Company has the following expected pattern of collections on credit sales:
70 percent collected in the month of sale, 15 percent in the month after the month
of sale, and 14 percent in the second month after the month of sale. The remaining
1 percent is never collected. At the end of Ma y, Ebony Company has the following
accounts receivable balances:
From April sales P21,000 From Ma y
sales P48,000
Ebony's expected sales for June are P150,000. What were total sales for April?
Select one:
a. P70,000
b. P140,000
c. P150,000
d. P72,414
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Question 9
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Choose which part of the feasibility study or business plan will the statement be
found/answered. DESCRIBE THE AMOUNT OF INVENT ORY (IF ANY) REQUIRED T O
SUPPORT THE SALES FORECAST.
Select one:
a. Management/Operation
b. Marketing
c. Technical
d. Financial
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Razonable Compan y installs shingle roofs on houses. The standard material cost
for a Type R house is P1,250, based on 1,000 units at a cost of P1.25 each. During
April, Razonable installed roofs on 20 Type R houses, using 22,000 units of material
cost of P26,400. Razonable’ s material price variance for April is:
Select one:
a. P2,500 unfavorable
b. P1,400 unfavorable
c. P1,000 favorable
d. P1,100 favorable
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Question 11
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A management decision ma y be beneficial for a given profit center, but not for the
entire company. From the overall company viewpoint, this decision would lead to
Select one:
a. centralization.
b. maximization.
c. goal congruence.
d. suboptimization.
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Question 12
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a. A master budget.
b. A special budget
c. An operating budget.
d. A financial budget.
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Mansho Co. is applying for a loan in which the bank requires a quick r atio of at
least 1. Mansho’s quick ratio is 0.8. Which of the following would increase
Mansho’s quick ratio?
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Question 14
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a. Direct materials cost, direct labor costs, but not factory overhead cost.
b. Direct materials cost, direct labor cost, and variable factory overhead cost.
c. Prime cost but no conversion cost.
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Phelps Company produces 50,000 units of Product Q and 6,000 units of Product Z
during a period. In that period, four set-ups were required for color changes. All
units of Product Q are black, which is the color in the process at the beginning of
the period. A set-up was made for 1,000 blue units of Product Z; a set-up was made
for 4,500 red units of Product Z; a set-up was made for 500 green units of Product Z.
A set-up was then made to return the process to its standard black color ation and
the units of Product Q were run. Each set-up costs P500. Assume that Phelps
Company has decided to allocate overhead costs using levels of cost drivers. What
would be the approximate per-unit set-up cost for the green units of Product Z?
Select one:
a. P1.00.
b. None of the responses are correct.
c. P0.04.
d. P0.25.
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Question 16
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A project’s net present value , ignoring income tax consider ations, is normally
affected by the
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Question 17
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In present value problems, unless stated otherwise, cash flow are assumed to be
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The cost estimation method that gives the most mathematically precise cost
prediction equation is
Select one:
a. regression analysis.
b. the contribution margin method.
c. the high-low method.
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Question 19
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Torrey Pines is studying whether to outsource its Human Resources (H/R) activities.
Salaried professionals who earn P390,000 would be terminated; in contr ast,
administrative assistants who earn P120,000 would be tr ansferred elsewhere in the
organization. Miscellaneous departmental overhead (e.g., supplies, cop y charges,
overnight delivery) is expected to decrease b y P30,000, and P25,000 of corpor ate
overhead, previously allocated to Human Resources, would be pick ed up by other
departments. If Torrey Pines can secure needed H/R services locally for P410,000,
how much would the compan y benefit by outsourcing?
a. P35,000.
b. P130,000.
c. P10,000.
d. P155,000.
Clear my choice
Rainbow Compan y uses a standard cost system for its production process. Rainbow
Company applies overhead based on direct labor hours. The following information
is available for July:
Standard:
Direct labor hours per unit 2.20
Actual:
Units produced 4,400
Select one:
a. P13,260 U
b. P2,640 F
c. P6,930 U
d. P0
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Question 21
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Antigo Company uses job-order costing. Data related to March are as follows:
Antigo applies overhead to jobs at P8 per machine hour. T otal overhead cost
incurred in March was P8,400. There were no beginning inventories. Job A was
incomplete at the end of March, Job B was sold for P28,000, and Job C was in
finished goods inventory. Selling and administr ative expenses were P2,100. Normal
cost of goods sold is?
Select one:
a. 25,000
b. 19,100
c. 14,700
d. 26,300
Clear my choice
Select one:
a. impossible to determine from the information given.
b. P165,812.
c.
P174,992.
d. P157,392.
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Laurence Retail Store seeks your assistance to develop cash and other budget
information for Ma y, June and July 2018. On April 30, 2018, the compan y had cash
of P5,500, accounts receivable of P437,000, inventories worth P309,400, and
accounts payable of P133,055. The budget is based on the following assumptions:
A. Sales
Ø Each month’s sales are billed on the last day of the month.
Ø Customers are allowed 3% discount if pa yment is made within 10 da ys after the
billing date. Accounts receivable are book ed gross.
Ø 60% of the billings are collected within the discount period, 25% are collected b y
the end of the month, 9% are collected b y the end of the second month, and 6%
prove to be uncollectible.
B. Purchases
Ø 54% of all purchases of materials and selling, gener al and administr ative
expenses are paid in the month purchased/incurred and the remainder in the
following month.
Ø Each month’s units of ending inventory are equal to 130% of the next month’ s
unit of sales.
Ø The cost of each unit of inventory is P20.
Ø Selling, general and administr ative expenses, of which P2,000 is depreciation,
are equal to 15% of the current month’ s sales.
a. P333,786.
b. P329,694.
c. P316,674.
d. P311,582.
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Choose which part of the feasibility study or business plan will the statement be
found/answered. TABLE FOR DEMAND FORECAS T
Select one:
a. Marketing
b. Financial
c. Management/Operation
d. Technical
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Question 25
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Choose which part of the feasibility study or business plan will the statement be
found/answered. DETERMINE HO W MUCH CAPITAL THE COMPANY NEEDS AND
HOW IT WILL BE USED
Select one:
a. Technical
b. Management/Operation
c. Marketing
d. Financial
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Question 26
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Choose which part of the feasibility study or business plan will the statement be
found/answered. WHY DO THE Y BUY FROM YOU? (QUALITY, PRICE, REPUTATION,
ETC.?)
Select one:
a. Management/Operation
b. Technical
c. Financial
d. Marketing
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Question 27
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A project has an initial cost of P100,000 and gener ates a present value of net cash
inflows of P120,000. What is the project's profitability index?
Select one:
a. 1.20
b. 5.00
c. .20
d. .80
Clear my choice
Choose which part of the feasibility study or business plan will the statement be
found/answered. LIS T OF SUPPLIERS (MER CHANDISING,SER VICE)
Select one:
a. Technical
b. Marketing
c. Management/Operation
d. Financial
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Question 29
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Colfax Creations produces three products: A, B, and C. F our machines are used to
produce the products. The sales demands and time on each machine (in minutes)
is as follows:
PRODUCT Demand Time on M1 Time on M2 Time on M3 Time on M4
A 100 10 15 10 5
B 80 10 5 10 5
C 60 5 5 15 15
There are 2,400 minutes available on each machine during the week. Which
machine is the bottleneck?
Select one:
a. M3
b. M1
c. M4
d. M2
Clear my choice
Select one:
a. Most advantageous prices.
b. Mix of variables that will result in the largest quantity
.
c. Fastest timing.
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Question 31
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Select one:
a. payback period is infinite.
b. internal rate of return is less than zero.
c. net present value is negative.
d. discount rate is above its cost of capital.
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Question 32
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Arthur Inc. has P125,000 of inventory that suffered minor smok e damage from a
fire in the warehouse. The compan y can sell goods “as is” for P45,000; alternatively ,
the goods can be cleaned and shipped to the firm’ s outlet center at a cost of
P23,000. There the goods could be sold for P80,000. What alternative is more
desirable and what is the relevant cost for that alternative?
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For the month of June M. Dal angin Company’s records disclosed the following data
relating to direct labor:
The actual direct labor hours used during June was 5,000 hours. How much was
the company’s standard dire ct labor rate per hour?
a. P5.50
b. P4.50
c. P4.75
d. P5.00
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Question 34
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The Arvid Corpor ation manufactures widgets, gizmos, and turnbols from a joint
process. May production is 4,000 widgets; 7,000 gizmos; and 8,000 turnbols.
Respective per unit selling prices at splitoff are P15, P10, and P5. Joint costs up to
the splitoff point are P75,000. If joint costs are allocated based upon the sales value
at splitoff, what amount of joint costs will be allocated to the widgets?
Select one:
a. P26,471
b. P28,125
c. P17,647
d. P30,882
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Edelweiss has an opportunity to invest in a project that will yield five annual
payments of P12,000 with no salvage. The first pa yment will be received in exactly
one year. On low-risk projects of this type, Edelweiss requires a return of 6 percent.
Based on this requirement, the project gener ates a profitability index of 1.1233.
How much is Edelweiss required to invest in this project?
a. P41,581.20
b. P45,000.00
c. P40,000.00
d. P48,626.59
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Question 36
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The method of project selection that considers the time value of money is a capital
budgeting decision computes the
a. Payback period.
b. Discounted cash flow.
c. Accounting rate of return on average investment.
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Question 37
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Select one:
a. the interest rates related to the firm's bonds.
b. its cost of capital.
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Select one:
a. an ordering cost.
b. a cost of not carrying goods in stock.
c. a purchasing cost.
d. a carrying cost.
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Question 39
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Company makes 40,000 units per year of a part it uses in the products it
manufactures. The unit product cost of this part is computed as follows:
Direct materials..................................... P13.80
Direct labor........................................... 18.10
Variable manufacturing overhead........... 4.30
Fixed manufacturing overhead............... 24.60
Unit product cost................................... P60.80
An outside supplier has offered to sell the compan y all of these parts it needs
for P51.80 a unit. If the compan y accepts this offer, the facilities now being used to
make the part could be used to mak e more units of a product that is in high
demand. The additional contribution margin on this other product would be
P268,000 per year.
If the part were purchased from the outside supplier, all of the direct
labor cost of the part would be avoided. However, P17.10 of the fixed
manufacturing overhead cost being applied to the part would continue even if the
part were purchased from the outside supplier. This fixed manufacturing overhead
cost would be applied to the compan y's remaining products.
How much of the unit product cost is relevant in the decision of whether to mak e
or buy the part?
a. P43.70
b. P43.80
c. P36.20
d. P44.80
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Question 41
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Bagu Manufacturing uses 10 units of Part Number KJ37 each month in the
production of radar equipment. The unit cost to manufacture one unit of KJ37 is
presented below.
Direct materials P 1,000
Materials handling (20% of DM cost) 20
Direct labor 8,000
Manufacturing overhead (150% of DL) 12,000
Total manufacturing cost P 21,200
Material handling represents the direct variable costs of the Receiving Department
that are applied to direct materials and purchased components on the basis of
their cost. This is a separ ate charge in addition to manufacturing overhead. Bagu’ s
annual manufacturing overhead budget is one-third variable and two-thirds fixed.
Yu Supply, one of Bagu’s reliable vendors, has offered to supply Part Number KJ37
at a unit price of P15,000.
If Bagu purchases the KJ37 units from Yu, the capacity Bagu used to manufacture
these parts would be idle. Should Bagu decide to purchase the parts from Yu, the
unit cost of KJ37 would
a. Increase by P4,800.
b. Increase by P1,800.
c. Decrease by P6,200.
d. Decrease by P3,200.
Clear my choice
Rainbow Compan y uses a standard cost system for its production process. Rainbow
Company applies overhead based on direct labor hours. The following information
is available for July:
Standard:
Direct labor hours per unit 2.20
Actual:
Units produced 4,400
Select one:
a. P5,775 U
b. P16,480 U
c. P12,080 U
d. P21,650 U
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Select one:
a. Queuing theory
b. Cost-volume-profit analysis
c. PERT/CPM analysis
d. Linear programming
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Question 44
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The vice president for sales of Ride Corpor ation has received the income statement
for November. The statement has been prepared on the direct cost basis. The firm
has just adopted a direct costing system for internal reporting purposes. The
controller attached the following notes to the statements: What is the value of the
ending inventory on November 30 under variable costing?
a. P960,000.
b. P945,000.
c. P800,000.
d. P1,280,000.
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A company that is operating at full capacity should emphasize those products and
services that have the:
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If Foxglove requires investm ent to earn a 12% return, the NPV for replacing the old
machine with the new machine is
a. P136,400.
b. P143,000
c. P83,000.
d. P171,000.
Time left 0:32:42
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Question 47
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Choose which part of the feasibility study or business plan will the statement be
found/answered. DESCRIPTION REGARDING COMP ANY’S 4 PS (PRODUCT ,PRICE,
PLACE, PROMOTION)
Select one:
a. Technical
b. Management/Operation
c. Financial
d. Marketing
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A beverage stand can sell either soft drinks or coffee on an y given day. If the stand
sells soft drinks and the weather is hot, it will mak e P2,500; if the weather is cold,
the profit will be P1,000. If the stand sells coffee and the weather is hot, it will
make P1,900; if the weather is cold, the profit will be P2,000. The probability of
cold weather on a given da y at this time is 60%. The expected pa yoff for either
selling coffee or soft drinks and the expected pa yoff if the vendor has perfect
information are
Select one:
a. COFFEE- P3,900; SOFTDRINKS- P1,900; PERFECT INFORMA
TION- P1,960
b.
COFFEE- P2,200; SOFTDRINKS- P1,900; PERFECT INFORMA
TION- P1,360
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Doyle Company has 3 divisions: R, S, and T . Division R's income statement shows
the following for the year ended December 31:
Sales P1,000,000
Cost of goods sold (800,000)
Cost of goods sold is 75 percent variable and 25 percent fixed. Of the fixed costs, 60
percent are avoidable if the division is closed. All of the selling expenses relate to
the division and would be eliminated if Division R were eliminated. Of the
administrative expenses, 90 percent are applied from corpor ate costs. If Division R
were eliminated, Do yle’s income would
Select one:
a. decrease by P215,000.
b. decrease by P 75,000.
c.
increase by P150,000.
d. decrease by P155,000.
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An organization's break-even point is 4,000 units at a sales price of P50 per unit,
variable cost of P30 per unit, and total fixed costs of P80,000. If the compan y sells
500 additional units, b y how much will its profit increase?
a. P25,000
b. P10,000
c. P12,000
d. P15,000
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Question 51
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A budget aids in
Select one:
a. coordination.
b. communication.
c. motivation.
d. all mentioned
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Question 52
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c. Fixed costs that will continue regardless of the decision are relevant.
d. Only conversion costs are relevant.
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Choose which part of the feasibility study or business plan will the statement be
found/answered. A CADEMIC QUALIFICATION AND EXPERIENCE OF KE Y PERSONS
Select one:
a. Management/Operation
b. Marketing
c. Financial
d. Technical
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Question 54
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Grasya Co. has considered excess manufacturing capacity . A special job order ’s cost
sheet includes the following:
a. P54,000
b. P40,750
c. P36,700
d. P58,050
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Paulson Compan y has only 25,000 hours of machine time each month to
manufacture its two products. Product X has a contribution margin of P50, and
Product Y has a contribution margin of P64. Product X requires 5 hours of machine
time, and Product Y requires 8 hours of machine time. If Paulson Compan y wants
to dedicate 80 percent of its machine time to the product that will provide the most
income, the compan y will have a total contribution margin of
Select one:
a. P240,000.
b. P200,000.
c. P250,000.
d. P210,000.
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Question 56
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a. 4.8 times.
b. 8.0 times.
c. 12.0 times.
d. 3.0 times.
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Question 57
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Select one:
a. all of the statements
b. reduce or eliminate non-value-added activities incurred to mak
e a product or provide a service.
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Kaiser's Kraft Korner sells a single product. 7,000 units were sold resulting in
P70,000 of sales revenue, P28,000 of variable costs, and P12,000 of fixed costs.
Breakeven point in units is:
Select one:
a. 5,000 units
b. None of these answers are correct.
c. 3,000 units
d. 2,000 units
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Question 59
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A balanced scorecard
Select one:
a. records the variances between budgeted and actual revenues and expenses.
b. all of the statements
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Question 60
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Question 61
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Question 62
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Select one:
a. weight or volume of outputs per period
b. number of units per processing period
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The primary difference between a fixed (static) budget and a variable (flexible)
budget is that a fixed budget
a. Includes only fixed costs, while a variable budget includes only variable costs.
b. Cannot be changed after the period begins, while a variable budget can be changed after the period
begins.
c. Is a plan for a single level of sales (or other measure of activity), while a variable budget consists of
several plans, one for each of several levels of sales (or other measure of activity).
d. Is concerned only with future acquisitions of fixed assets, while a variable budget is concerned with
expenses which vary with sales.
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Question 64
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Budgeted sales for the first six months for Porter Corp. are listed below: JANUARY
FEBRUARY MARCH APRIL MAY JUNE UNITS: 6,000 7,000 8,000 7,000 5,000 4,000
Porter Corp. has a policy of maintaining an inventory of finished goods equal to 40
percent of the next month's budgeted sales. If Porter Corp. plans to produce 6,000
units in June, what are budgeted sales for July?
Select one:
a. 8,000 units
b. 9,000 units
c. 1,000 units
d. 3,600 units
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Question 66
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Dewey Company had a beginning inventory of 3,000 units 35% complete, and an
ending inventory of 2,500 units 20% complete. If 17,500 units were completed, FIFO
EUP is
Select one:
a. 16,050.
b. 16,950.
c. 15,050.
d. 17,500.
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Question 67
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Browning Compan y has 15,000 units in inventory that had a production cost of P3
per unit. These units cannot be sold through normal channels due to a significant
technology change. These units could be rework ed at a total cost of P23,000 and
sold for P28,000. Another alternative is to sell the units to a junk dealer for P8,500.
The relevant cost for Browning to consider in making its decision is
Select one:
a. P68,000 for reworking the units.
b. P45,000 of original product costs.
c. P23,000 for reworking the units.
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Question 69
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Holly's Ham, Inc. sells hams during the major holida y seasons. During the current
year 11,000 hams were sold resulting in P220,000 of sales revenue, P55,000 of
variable costs, and P24,000 of fixed costs. If sales increase b y P40,000, operating
income will increase b y:
Select one:
a. P20,000
b. P10,000
c. P30,000
d. None of these answers are correct.
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