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Management accountants are required by the Institute of Management Accountants (IMA) to obtain

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Question 1;Management accountants are required by the Institute of Management Accountants (IMA) to obtain a certain number of continuing professional education hours. This is to comply with which of the following standards of ethical conduct;Question 1 options;a) confidentiality;b) integrity;c) competence;d) objectivity;Question 2;Which of the following is a fixed factory overhead cost;Question 2 options;a) advertising expense;b) direct labor costs;c) factory building depreciation;d) office president's salary;Question 3 (12 points);Aaron Company's year-end finished goods inventory for the current year is higher than the year-end finished goods inventory for last year. This indicates that during the current year Aaron company;Question 3 options;a) finished more goods than were sold;b) sold more goods than were finished;c) finished more goods than last year;d) sold more goods than last year;Question 4;A company manufactures small planes. One of these planes was started on April 15, completed on May 15, and sold on June 15. Where would the cost of this plane appear on the April, May, and June financial statements respectively? (assume the financial statements are prepared at the end of each month);Question 4 options;a) work-in-process, work-in-process, cost of goods sold;b) direct materials, work-in-process, finished goods;c) work-in-process, cost of goods sold, gross margin;d) work-in-process, finished goods, cost of goods sold;Question 5;Which of the following statements is true?;Question 5 options;a) a misclassification of a period cost as a product cost will understate the unit cost of a product;b) a misclassification of a factory overhead cost as an operating cost will overstate the unit cost of a product;c) a misclassification of a selling expense as a general and administrative expense will have no effect on the operating income;d) a misclassification of an indirect labor cost as a general and administrative expense will overstate the total manufacturing cost;Question 6;An understatement of the Finished Goods Inventory account at the end of a period will lead to which of the following;Question 6 options;a) an understatement of the Cost of Goods Sold in the current period;b) an overstatement of the Gross Margin in the current period;c) an understatement of the Net Income for the current period;d) an overstatement of the Net Income for the current period;Question 7;Office salaries $25,000;Advertising expense $13,000;Materials inventory, Jan 1 $39,000;Direct labor $30,000;Materials inventory, Jan 31 $38,000;Office supplies $1,000;Sales $118,000;Work-in-process, Jan 1 $12,000;Materials purchased $16,000;Work-in-process, Jan 31 $16,000;Finished goods, Jan 1 $24,000;Factory depreciation $12,000;Finished goods, Jan 31 $22,000;Units completed 5,600;Factory utilities $6,000;Factory rent $17,000;Use the above information to answer questions 7 - 9;Cook Co. reports the above information for January 2013.;Determine the cost of materials used in January;Question 7 options;a) $17,000;b) $38,000;c) $55,000;d) $55,000;(39000+160000-38000);= 170000;Question 8;Use the following information to answer questions 7 - 9;Cook Co. reports the following information for January 2013.;Office salaries $25,000;Advertising expense $13,000;Materials inventory, Jan 1 $39,000;Direct labor $30,000;Materials inventory, Jan 31 $38,000;Office supplies $1,000;Sales $118,000;Work-in-process, Jan 1 $12,000;Materials purchased $16,000;Work-in-process, Jan 31 $16,000;Finished goods, Jan 1 $24,000;Factory depreciation $12,000;Finished goods, Jan 31 $22,000;Units completed 5,600;Factory utilities $6,000;Factory rent $17,000;Determine the cost of goods sold (COGS) for January.;Question 8 options;a) $76,000;b) $78,000;c) $80,000;d) $94,000;Total manufacturing cost = 17000 + 30000 + 12000 + 6000 + 17000 = 82000;Cost of Goods Manufactured = 12000 + 82000 -16000 = 78000;COGS = 24000+78000-22000 = 80000;Question 9;Use the following information to answer questions 7 - 9;Cook Co. reports the following information for January 2013.;Office salaries $25,000;Advertising expense $13,000;Materials inventory, Jan 1 $39,000;Direct labor $30,000;Materials inventory, Jan 31 $38,000;Office supplies $1,000;Sales $118,000;Work-in-process, Jan 1 $12,000;Materials purchased $16,000;Work-in-process, Jan 31 $16,000;Finished goods, Jan 1 $24,000;Factory depreciation $12,000;Finished goods, Jan 31 $22,000;Units completed 5,600;Factory utilities $6,000;Factory rent $17,000;Compute the unit cost for January (round to 2 decimal places);Question 9 options;a) $14.64;b) $13.93;c) $14.11;d) $14.82;Unit cost = 78000/5600 = 13.93;Question 10;Which of the following statements is false?;Question 10 options;a) the t-stat indicates how significant a contribution a specific independent variable makes to a regression model;b) the most critical step in the regression process is the correct identification of the independent variables;c) the cost estimation model obtained from a regression analysis is more reliable than a cost estimation model obtained using the high-low method;d) in a multiple regression model, an independent variable with a t-statistic of -2.46 indicates that it is not making a contribution to the overall model

 

Paper#19330 | Written in 18-Jul-2015

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