CMA I - Intro & Cost Classification

Accounting reports are prepared for the use of external users. The statement above best describes:

• Management Accounting

• Cost Accounting

• Financial Accounting

• All of the above

Which of the following phrases describes Management Accounting?

• Under legal obligation

• For external users

• Any presentation formats

• By-product of financial accounting

The cost increases in direct proportion to increases in number of units produced. Sketch the graph:

Which ONE of the following costs would NOT be classified as a production overhead cost in a food processing company?

• The cost of renting the factory building.

• The salary of the factory manager.

• The depreciation of equipment located in the materials store.

• The cost of ingredients.

Constant in total when production volume changes. Classify the cost:

(a)  

The audit fee paid by a manufacturing company would be classified as:

• A production overhead cost

• A selling and distribution cost

• A research and development cost

• An administration cost

Financial accounts are prepared for external stakeholders.

Management accounts are prepared for (a)   stakeholders.

The direct material cost is RM20,000 and the prime cost is RM55,000, then the direct labour cost would be:

• RM70,000

• RM55,000

• RM20,000

• RM35,000

The direct labour cost is RM30,000 and the direct material cost is RM65,000, then the prime cost would be:

• RM35,000

• RM95,000

• RM30,000

• RM65,000

The direct labour cost is added into factory overhead cost to calculate

• merchandise cost

• conversion cost

• transactional cost

• resale cost