FREE AND STUDY GAMES ABOUT CMA PART 1 EXAM

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FREE AND STUDY GAMES ABOUT CMA PART 1 EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -81 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: _____ budgeting is the calculation of quantity and cost of inputs that have been used to achieve the level of production; it supplements the _____ budget which is a projection for levels of output for an upcoming period.

Answer:

Flexible, Static

Question 2: ______ costs are from holding property, plant, and equipment.

Answer:

Committed (can't be reduced by lowering the short-term production); e.g. insurance, lease payments, depreciation Question 3: One of the most important cost classifications a management accountant can make is to categorize costs as either ______ or _____. second broad category of cost classification

Answer:

product, period

Question 4: _____-______ is where every production process has its own cost pool whereas ____-_____ costing is when all indirect costs are pooled together and is then allocated to production

Answer:

Activity-based, volume-based Question 5: Total manufacturing costs are reported on a separate statement called the ____ __ _____ manufacturing statement

Answer:

Cost of goods, three major elements: raw materials, direct labor, and factory overhead

Question 6: Variable costing

_______ margin = net of sales revenue, variable costs (manufacturing, selling, admin)

Answer:

Contribution

Question 7: Actual vs. Normal costing

____ costing charges actual direct materials and labor to a cost object and applies overhead based on budgeted (normalized) rates.

Answer:

Normal Question 8: _____ costing is the most accurate because it is recorded after production using actual costs for cost object and allocating indirect costs; large fluctuations happen from period to period because per-unit costs are based on the level of production.

Answer:

Actual Question 9: IMA Statement of Ethical Pro Practice's four overarhhing principles are?

Answer:

mnemonic HFOR Honest, Fairness, Objectivity, Responsibility Question 10: _____ (___) costing considers all (variable and fixed) manufacturing costs product costs.

Answer:

Absorption (full); req for external reporting

Question 11: ____ is raw material left over from production and can be used for other purposes.

Answer:

Scrap

Question 12: Engineered vs. Discretionary

_____ costs are the direct, observable, or quantifiable cause-and-effect relationship between output and input.

Answer:

Engineered; e.g. direct materials, direct labor Question 13: Cost in _______ accounting is a monetary measurement of resources used for some purpose.

Answer:

management Question 14: _____ costs are costs that expensed when incurred and they are excluded from COGs

Answer:

Period (would occur even if production is 0) Question 15: _____ (____) capacity is the max capacity w/continuous operations (no holidays, downtime)

Answer:

Theoretical (ideal) Question 16: In ______ accounting cost is the price required to obtain goods or services.

Answer:

Financial Question 17: _____ cost is a sunk cost that is the actual price paid for the asset; this type of cost isn't useful for decision making.

Answer:

Historical

Question 18: ____-____ method is where the service depts are ordered by the dept providing the most service to the dept providing the least; as each allocation is performed the costs are allocated to the remaining service and production depts.

Answer:

Step-down Question 19: When cost is used to refer to the valuation of a good or service acquired, it is an

______

Answer:

asset Question 20: ____ _____ should be used when similar products are continuously produced.Costs are attached to specific depts/phases of production

Answer:

Process costing Question 21: The four specific contained in Statement on Management Accounting 1C (Revised), IMA's Statement of Ethical Professional Practice, are ______, ______, ______, and

_______.

Answer:

competence, confidentiality, integrity, credibility

Question 22: Other costs

____ costs are costs from holding inventory.

Answer:

Carrying; e.g. cost of capital, insurance, breakage, obsolescence, warehousing.

Question 23: ______ is determined at different levels of the organization.

Answer:

Controllability; example is that the outlay for machinery might be controllable by the division VP, but noncontrollable to that plant manager Question 24: Direct ______ includes all raw materials that can be traced to the product.

Answer:

materials