CPA MA - Management Accounting Exam

Page:    1 / 16   
Total 80 questions

Silur Co buys and restores items of exclusive vintagejewelry. At 31 May 2009, the company had three items in inventory. Details of the itemswere:

NecklaceBraceletPendant -

Purchase cost12,00031,00045,000 -
Expected selling price25,00038,00053,000
Restoration costs to date6,0005,0002,000
Further costs before sale2,0003,0001,000
What was the total value of Silurs inventory at 31 May 2009?

  • A. $88,000
  • B. $100,000
  • C. $106,000
  • D. $107,000


Answer : B

Consider the following uses of budgets in planning:
(i)Toascertain the resources needed to achieve corporate objectives, given a specific level of activity;
(ii)Toprepare contingency budgets, based on varying levels of activity.
Which type of budget (fixed or flexible) is most appropriate for these uses?

  • A. Fixed = (i) and (ii), Flexible = neither (i) nor (ii)
  • B. Fixed = (i) only, Flexible = (ii) only
  • C. Fixed = (ii) only, Flexible = (i) only
  • D. Fixed = neither (i) nor (ii), Flexible = (i) and (ii)


Answer : B

Which of the following statements about accounting concepts are correct?
(1)The money measurement concept is that only items capable of being measured in monetary terms can berecognizedin financial statements.
(2)The prudence concept means that understating of assets and overstating of liabilities is desirable in preparing financial statements.
(3)The historical cost concept is that assets are initiallyrecognizedat their transaction cost.
(4)The substance over form convention is that, whenever legally possible, the economic substance of a transaction should be reflected in financial statements rather than simply its legal form.

  • A. 1, 2 and 3
  • B. 1, 2 and 4
  • C. 1, 3 and 4
  • D. 2, 3 and 4


Answer : C

Which of the following statements about activity based costing (ABC) is/are correct?
(i) All product costs will be lower under ABC than under absorption costing.
(ii) ABC can provide information to assist in controlling costs.

  • A. (i) only
  • B. (ii) only
  • C. (i) and (ii)
  • D. Neither (i) nor (ii)


Answer : B

Devin Co sells a single product at a selling price of $85. Direct costs are $38 per unit and overheads are $24 per unit. 60% of overheads represent the recovery of fixed costs. Both sales and production are budgeted to be 50,000 units.
How many units are sold at the breakeven point (to the nearest unit)?

  • A. 14,724
  • B. 19,251
  • C. 25,532
  • D. 31,304


Answer : B

Page:    1 / 16   
Total 80 questions