UEH Trắc nghiệm kế toán quản trị 2 CLC

UEH Trắc nghiệm kế toán quản trị 2 CLC. Đợt rồi mình học thi trong này trúng khá nhiều. Môn này học cần luyện tập làm trắc nghiệm nhiều trước. Đề thi khá sát với những gì được học và ôn qua các file trắc nghiệm mình đăng tải.

1

#MC# Which of the following statements is true for budgeting?

Establishing plans and actions; a system of resource allocation; and a base of risk

identification, operational coordination and business performance measurement and evaluation as well

Determining resources and how to use the resources in a firm’s production and business activities in each period

Determining the revenues, expenses and operating profits of a firm in each period

Determining the cash inflow and cash outflow of a firm in each period

2

#MC# Johnny Company, a retailer, is preparing budgets for the year ended December 20x1

Budgeted sales volumes for the first 8 months of the year are as follows:

Expected cash collection in April will be $9,000,000

Expected cash collection in May will be $12,600,000

Expected cash collection in June will be $12,200,000

#MC# Miller Corporation, a manufacturer, is preparing budgets for the year ended December

20x1 Budgeted sales volumes for the first 8 months of the year are as follows:

Finished goods inventory at the beginning and ending of the second quarter are 2,100 units and 2,400 units respectively

The number of units need to be produced in April is 6,100 units

The number of units need to be produced in May is 7,800 units

The number of units need to be produced in June is 8,900 units

a) Beginning inv of 2nd quarter = beg inv of april = end inv of mar = 10%*sales volume of april

= 10%*6000 = 600 units b) Unit produced = total needs – beginning inv = units for sales + units for ending – beginning inv

#MC# Wonderland Corporation manufactures a single product and has budgeted production

volume of this product over the next 6 months as follows:

Standard direct material cost is 5 kgs/unit x $20/kg Past experience has shown that

materials on hand at the end of each month equal to 10% of materials required for the

following month’s production Which of the following calculation is true?

Materials on hand at the beginning of the second quarter is 6,150 kgs

Materials on hand at the ending of the second quarter is 7,650 kgs

Materials need to be purchased in the second quarter is 61,500 kgs

Materials need to be purchased in the second quarter is 63,000 kgs

a) materials beginning april = materials ending Mar = 10%*materials needed for production of april

= 10%*3100u*5kg/u = 1550 kgs

b) materials ending june = 10%*6100u*5kg/u = 3050 kgs

c) materials purchased in 2nd quarter

= materials needed for production pf 2nd Q - materials ending 2nd Q + materials beginning 2nd Q

All sales are on account with 30% collected in the month of sale and 70% collected in the

month following sale

The cost incurred in a month has the cash outflow in the month and the next month is 60%

and 20% respectively

Assume that the company does not have any cash at the beginning of a month Choose the

correct answer:

Expected cash collection in May is $4,900,000

Expected cash disbursement in May is $3,000,000

Total cash excess in May is $1,900,000

Total cash excess in May is $3,100,000

Cash collection in May = 70%*7,000,000 + 30%*6,000,000 = 6,700,000 => A sai

Cash disbursement in May = 20%*3,000,000 + 60%*5,000,000 = 3,600,000 => B sai

Cash excess in May = cash available - Cash disbursement = beg cash + cash collection - Cash disbursement

= (0 + 30%*6,000,000 + 70%*7,000,000) – (20%*3,000,000 + 60%*5,000,000) = 3,100,000 => C sai, D correct

6

#MC# Which of the following statements shows the difference between a flexible budget and a

static budget?

Differences in resources estimated to use for production and business activities

Differences in standard cost used to estimate total production and operating costs

Differences in the approach to estimate the operating profit

Differences in the level of activities used to estimate resources, costs and operating profits

7

#MC# Henry Company uses a standard cost system to plan and control the production cost of

product X in June The standard direct materials cost for each unit of product X is

$200/unit (8 kgs/unit *$25/kg) The estimated production volume for the month is 80,000

units In June, Henry Company bought and used 350,000 kgs of materials with a purchase

price of $28/kg to produce 70,000 units Which of the following statements is correct?

Activity variance for direct material costs is $2,000,000 (adverse)

Spending variance for direct material costs is $4,200,000 (adverse)

Total direct material cost variance (actual costs versus static budgeted costs) is $6,200,000

(adverse)

Both activity variance and spending variance for direct material costs are favorable

a) activity variance = flexible budget – static budget

#MC# Which of the following is a limitation on the use of standard cost system as a tool to

evaluate management performance at the business units?

It is difficult for business units to attain the standard cost when they have to adjust to increase the production volume

When business units reduce the production volume, the favorable cost variance does not accurately reflect their cost management performance because no matter how the business units control costs, they always fulfill the cost standard well

It is unfair to use the standard cost system to evaluate management performance in different business units

When business units are too focused on achieving the standard cost, it can lead to

conservatives who do not accept the arising of new costs and the costs associated with quality and productivity improvement, results in the decrease in competition capacity

9 chapter 3

#MC# Tony Company uses a standard cost system to plan and control the production cost of

product Y in July The standard direct materials cost for each unit of product Y is $25/unit (5 metres/unit *$5/metre) The estimated production volume for the month is 10,000 units

In July, Tony Company used 48,000 metres of direct material to produce 8,000 units with

a purchase price of $4.5/metre Which of the following statements is correct?

Quantity variance of direct material cost is $40,000 (unfavorable)

Price variance of direct material cost is $24,000 (unfavorable)

Total direct material cost variance is $16,000 (favorable)

All variance of direct material cost including quantity variance, price variance and total variance are favorable

Quantity variance = (48,000m – 8,000u*5m/u)*$55/m = $40,000 (U) = (AQ – SQ)*SP

Price variance = 48,000m*($4.5/m - $5/m) = $-24,000 (F) = AQ*(AP - SP)

Total variance = $40,000 (U) + $-24,000 (F) = $16,000 (U)

10

#MC# Andy Garment Corporation uses a standard cost system to plan and control the garment

costs of product Z in June The standard direct materials cost for each unit of product Z is

$100/unit (4 metres/unit *$25/metre) The estimated production volume for the month is 80,000 units In June, the Corporation bought 400,000 metres with a purchase price of

$28/metre and only used 300,000 metres to produce 60,000 units Which of the following statements is correct?

Direct material cost variance due to the change in production volume is adverse with the increase in direct material cost of $2,000,000

Direct material cost variance due to the change in the direct material cost per unit (spending per unit) is favorable with the decrease in direct material cost of $2,400,000

Direct material cost variance due to the change in the material usages is favorable with the decrease in direct material cost of $1,500,000

Direct material cost variance due to the change in the price of material is adverse with the increase in direct material cost of $1,200,000

a) activity variance = (60,000u – 80,000u)*$4m/u*$25/m = -2,000,000 (F) (CHAPTER 2) b) spending variance = actual cost – flexible budget cost (chap2)

= actual units*(actual cost/u – standard cost/u)

#MC# Which of the following decisions falls within the rights and responsibilities of an

investment center manager in a decentralized organization?

Deciding the production costs incurred in the period at the production department

Deciding the revenues and selling costs incurred in the period at the selling department Deciding the revenues and total costs incurred in the period at the business units

Deciding the capitals and their profitability invested in the projects of expanding production plants

12

#MC# Company AB has two segments, segment X and segment Y Which of the following

changes will not affect their segment margin on the segment report

Increasing the selling price and variable costs in each segment

Rearranging the decentralized and hierarchical management system in the company

Changing the internal transfer pricing method of products from division X to division Y, specifically changing from cost-based pricing to market-based pricing

Increasing common fixed costs and changing allocation bases of common fixed costs

which belongs to the responsibility of the general director

13

#MC# Anthony Company has following information related to the Investment Center managed by

its manager – Kenny

Over the past two years, Kenny has

contributed to an increase in the profit margin of his segment by 10%

caused a decrease in the asset turnover of his segment by 0.6 rounds

contributed to an increase in the ROI of his segment by 4%

caused a decrease in the residual income of his segment by $90,000

a) profit margin = segment margin/sales revenue

#MC# Benny Company bases on ROI to research and choose a business plan Currently, in the

year X, the company has the following data:

Production volume 10,000 units Selling price per unit $4,000/unit Variable costs per unit $3,200/unit

Average total assets $20,000,000 Next year, in order to increase the return on investment (ROI) by 5%, the company plans

to increase some items like the selling price by 8%, variable costs per unit by 10%, total fixed costs by 20%, sales volume by 30% and total assets by 25%

The plan will cause a decrease in the company's current ROI

By applying that plan, the company can not achieve an increase in ROI by 5%

By applying that plan, the company can achieve an increase in ROI by 5%

By applying that plan, the company can achieve an increase in ROI beyond 5%

ROI current = (10,000 units*($4,000 - $3,200) - $6,000,000)/ $20,000,000 = 10% (profit/investment)

ROI new = [10,000 units*1.3*($4,000*1.08 - $3,200*1.1) - $6,000,000*1.2]/($20,000,000*1.25) = 12.8%

=> Increase 2.8%

15

#MC# Andy & Benny Corporation has two subsidiary units, Andy company and Benny company

Andy company is producing and selling the component “A” in the market with the selling price of $2,500 per unit, variable cost of $1,800 per unit, total fixed cost of $3,500,000, sales volume of 10,000 units and the production capacity of 14,000 units

Benny company processes the product “B” from the component “A” and buys the component A on the market with a purchase price of $2,300 per unit Benny company is considering to buy 8,000 components “A” from Andy company with the purchase price of

$2,200 per unit

Andy Company applies the internal transfer pricing based on market price given that variable costs will be reduced by 10% when the component “A” is produced and transferred internally If the internal transferred is implemented, then

The minimum transferred price is $2,150 per unit

Profit of Andy company is increased by $1,840,000

Profit of Benny company is increased by $2,640,000

Profit of Andy & Benny Corporation is increased by $4,480,000

a) minimum price = VC/u + opportunity cost

= 1800*0.9 + [(8000u – 4000u)*(2500 – 1800)]/8000 = $1,970 per unit

b) maximum price = market price = $2,300

The increase in profit of Andy = ($2,200/u – $1,970/u)*8,000u = $1,840,000

c) The increase in profit of Benny = (2,300 – 2,200)*8,000 = $800,000

d) Total company profit increased = $1,840,000 + $800,000 or (2300 – 1970)*8000

16

#MC# Supply chain is defined as

the association of all enterprises providing products and services

the association of all enterprises consuming products and services

the association of all enterprises directly meeting the customers’ needs

the association of all enterprises directly and indirectly meeting the customers’ needs

17

#MC# Sammy Company is considering to choose one of two raw material suppliers, Anthony

supplier and Ben supplier, based on the information as follows:

Anthony supplier Ben supplier

Total units of materials purchased 1,000 units 2,000 units

Supplier activity costs

Supplier Performance Index (SPI) of Anthony Supplier is 0.50

Supplier Performance Index (SPI) of Anthony Supplier is higher than that of Ben

Supplier

The cost of owner ship per 1 dollar of material purchase price from Anthony Supplier is 3 The cost of owner ship per 1 dollar of material purchase price from Anthony Supplier is higher than that from Ben Supplier

a) SPI Anthony = total Supplier activity costs/purchasement

= ($2,000,000 + $1,000,000 + $2,000,000)/(1,000 units*$2,500/unit)

b) SPI Ben = ($4,000,000 + $3,000,000 + $5,000,000)/(2,000 units*$2,000/unit) = 3

c and d) = total cost of ownership/ purchasement

An: ($2,000,000 + $1,000,000 + $2,000,000 + 1,000 units*$2,500/unit)/(1,000 units*$2,500/unit) = 3 Ben: ($4,000,000 + $3,000,000 + $5,000,000 + 2,000 units*$2,000/unit)/(2,000 units*$2,000/unit) = 4

=> D sai

18 D

#MC# ABC Company has 3 factories, namely Factory A, B and C Below is the information

related to each factory

Queue time 18 20 14 Which of the following statements is correct with the above data?

Throughput (/manufacturing cycle) time of Factory A is highest

Delivery cycle time of Factory A is highest

Manufacturing cycle efficiency (MCE) of Factory A is lowest

The ratio of Non-value-added time on delivery cycle time of Factory A is lowest

1) Throughput time = Inspection time + Process time + Move time + Queue time

Factory A: 7 + 10 + 5 + 18 = 40 (hours)

Factory B: 50 hours

Factory C: 50 hours => A sai

2) Delivery cycle time = wait time + throughput time

Factory A: 40 + 10 = 50 (hours)

Factory B: 80 hours

Factory C: 70 hours => B sai

MCE = Value-added time

Quality is defined as the conformance to specifications at acceptable costs

Quality is defined as the technical standards designed to best meet customers’ needs at an acceptable price and the conformance to specifications at acceptable costs

Quality is defined as the technical standards to ensure firm achieve the highest profit

20

#MC# In order to provide information for quality management, managerial accountants of ABC

company have collected detailed information on quality costs over the past 2 years as follows:

Year X ($) Year X+1 ($)

Cost of quality planning 500,000 4,000,000 Cost of inspecting materials 1,000,000 1,500,000 Cost of inspecting finished goods 1,000,000 2,000,000 Cost of assessing the spoilage 200,000 200,000 Cost of downtime for repairing the spoilage 1,600,000 800,000 Cost of warranty claims 2,500,000 200,000 Cost of processing customer complains 2,700,000 800,000 Cost of quality reporting 500,000 900,000 Which of the following statements is correct with the above data?

In year X, prevention costs accounted for 5% of total quality cost

Over the past 2 years, prevention costs decreased in value and proportion

Over the past 2 years, appraisal cost decreased in value and proportion

Over the past 2 years, reasonable costs tended to increase and failure costs tended to decrease prevention: quality training, quality reporting: (500+500)/10,000 = 10%

appraisal: inspecting materials, inspecting finished goods

internal failure: assessing the spoilage; dowtime for repairing the spoilage

external failure: Warranty claims; processing customer complains;

b) Prevention cost: increase

c) Appraisal cost: increase

d) Reasonable cost = prevention + appraisal: increase

Failure cost = internal + external: decrease

1 Company VP has the optimal order quantity EOQ is 1,600 products, the cost of inventory for each product is 5,000 VND/product/month The annual production demand is 48,000 units VP company's cost per order is:

a.5.062.500 (U)

a.13%

b.6.5%

c.12.5%

d.25%

Profit Margin = Net Profits (or Income) / Net Sales (or Revenue)

8 Price variance of direct materials costs is unfavorable, possibly due to:

a.The supplier has the advantage in negotiating the price of raw materials for the company b.All is wrong

c.There is a sudden increase in supply in the raw material market

d.All are correct

9 Company A has a variable manufacturing overhead standard time of 1.3 hours/product, a standard price of VND 30,000/machine hour at an output level of 8,000 products Actual figures arising in the year are as follows: 8,100 products are produced, the number of production machine hours is 10,500 hours with a total cost of VND 320,000,000, the company allocates general production costs according to the number

of direct labor hours The productivity variance of the variable manufacturing overhead is:

a.3.037.500 (F)

b.3.037.500 (U)

c.900.000đ (F)

d.900.000đ (U)

10.Company A has a fixed manufacturing overheads at 1.3 hours/product, a standard rate of VND 50,000/machine hour at an output level of 8,000 products Actual figures arising in the year are as follows: 8,100 products are produced, the number of production machine hours is 10,500 hours with a total cost of 475,000,000 VND, the company allocates general production overheads according to the number of direct labor hours The budget variance in the fixed manufacturing overheads is:

a.66.950.000đ (U)

b.66.950.000đ (F)

c.45.000.000 (U)

d.45.000.000 (F)

11 Static planning budget:

a.Needs to be compared with actual results to evaluate cost effectiveness

b.Only valid/valid at one activity level

c.Is the best tool that managers use to make spending plans

d.Needs to be compared with flexible budgeting to evaluate cost effectiveness

12 The accounting department of company P recorded the company's operating data for the previous year as follows: Revenue 600,000,000 VND, Average operating assets 300,000,000 VND, Equity 240,000,000 VND, Net Profit 75,000,000 VND, Residual income 39,000,000 VND What is Company P's return on investment?

a.25%

b.13%

c.6.5%

d.12.5%

13 The productivity variance of manufacturing overhead is unfavorable indicating that:

a.Actual total fixed manufacturing overhead exceeds the budget

b.Actual variable manufacturing overhead exceeds the budget

c.Time to use the machine to produce 1 unit of actual product is higher than the standard d.The production department did not complete the number of products produced according to the estimate

14 Which of the following are considered to be purposes of budgeting?

(1) Planning (2) Expansion (3) Performance evaluation (4) Resource allocation

a.7.3 days

b.9.5 days

c.9.8 days

d.8.6 days

16 variance of direct materials costs is unfavorable, possibly due to:

a.All are correct

b.All is wrong

c.Production department has been inefficient

d.The material purchasing department has purchased raw materials in very low quantities

in order to keep the inventory of raw materials to a minimum

17 Which of the following responsibility centers is a profit center:

a.Product Brand

b.Online distribution channel

c.All are correct

d.Sales agent/ Retail store

18 The production manager's controllable costs are:

a.Machine maintenance cost

b.Cost of purchasing raw materials

c.It's all wrong

d.Wages of workers are decided by superiors

19 The purpose of flexible budgeting is to:

a.Remove expense items not controlled by management from income statements

b.Reduce conflicts between functional departments in the enterprise during the estimation process

c.Adjust static estimates to actual activity levels

d.Allows managers to reduce adverse cost variance between actual and estimated costs

20.VP Company has a cost of ordering raw materials of 400,000 VND each time, storage cost per kg of raw materials is 4,000 VND/kg/month The annual material demand is 21,600 kg To minimize inventory-related costs, VP company's total annual cost of carrying inventory is:

for each production of 1 product K, 4 kg of raw materials R will be required Company B's

inventory policy of raw materials R is: the amount of raw material in inventory at the end of each month is equal to 20% of the demand for material used for production in the next month The demand for material R to be purchased in May is (notice the inventory at the beginning of the month):

a.29.920 kg

a 1.125

b 0.307

c.0.92

d.0.45

asset turnover=net sales/average total asset

24 Which of the following is true of a just-in-time inventory management system:

a.It's all wrong

b.Create higher quality products

c.All are correct

d.Order-based production of goods

25 Company C reported material price variance as favorable and material quantity variance as unfavorable Based on these variances, which of the following conclusions is true:

a.All are incorrect

b.All are correct

c.Actual material price is less than the standard price

d.The amount of raw material used is less than the amount purchased

26 The management accountant explained to the director that, in the market economy, the annual operating budget system is built starting from:

27 Statistical process control costs fall into which of the following cost categories:

a.Appraisal cost

b.Prevention cost

c.Nonconformance cost

d.Internal failure costs

28 The basic difference between static and flexible budget is:

a.Flexible budget allows to accept errors when achieving goals, static budget only accept absolute accuracy

b.Flexible budget only considers variable costs, static budget considers all costs

c.Static budgets are made based on a specific level of activity; flexible budgets are made for all levels of activity within the appropriate range

d.Static budget is made for all production activities, flexible budget is only applied to a single part

29 Company A has a variable manufacturing overhead standard time of 1.3 hours/product, a standard price of VND 30,000/machine hour at an output level of 8,000 products Actual figures arising in the year are as follows: 8,100 products are produced, the number of production machine hours is 10,500 hours with a total cost of VND 320,000,000, the company allocates general production costs according to the number

of direct labor hours The price variance of variable manufacturing overhead is:

a.303.500.000đ (U)

b.354.150.000đ (U)

c.303.500.000đ (F)

d.16.000.000đ (F)

Sales budget => production budget => DM budget => DL budget => Budgeted MOH costs => Ending

finished goods inventory budget => Selling and administrative budget => Cash budget => Budgeted

income statement => Budgeted balance sheet

70% credit sale sẽ nhận được tháng tiếp theo, phần còn lại nhận được ở tháng thứ 2

=> Jan 31: 40,000

Beginning unit in Feb = Ending unit in Jan = 40%*700 = 280

Unit produced = Unit sold + end - beg = 700 + 40%*1700 - 280 = 1100

=> Square feet of glass = 1100*8 = 8,800

Credit sales in Dec = 60%*30,000 = 18,000

Credit sales in Jan = 60%*40,000 = 24,000; Credit sales in Feb = 60%*37,500 = 22,500

Cash collected in Feb = cash in Feb + credit sales of Jan, Feb