WorksheetsMAS REVIEWER
Total questions: 98
Worksheet time: 49mins
Name
Class
Date
1.
1. It is the process of identifying, measuring, analyzing, interpreting, and communicating information in
pursuit of an organization’s goals (Hilton, 2010).
a)
Financial Accounting
b)
Financial Management
c)
Management Accounting
d)
Management Consulting
2.
Which of the following statements describe decision-making?
a)
It is involved in the all of the other three functions of management
b)
It entails choosing among alternatives available to management
c)
. Both a and b
d)
either a nor b
3.
a)
I and II
b)
I, II and III
c)
II and III
d)
I, II, III and IV
4.
It is the management function which pertains to the day-day activities in running the business.
a)
Planning
b)
Decision making
c)
Controlling
d)
Directing
5.
The management function of controlling ensures that:
a)
The organization operates in the intended manner
b)
Achieves its goals
c)
Both a and b
d)
Neither a nor b
6.
Statement I. Reports prepared by management accountants should cover at least a year.
Statement II. Reports prepared by management accountants may cover for a day only.
a)
Only statement 1 is true
b)
Only Statement II is true
c)
Both statements are true
d)
Neither statements are true
7.
Statement I. The reports of management accounting are based on historical data, estimates,
projections and budgets.
Statement II. The reports of financial accounting are almost entirely based on historical data.
a)
Only statement 1 is true
b)
Only Statement II is true
c)
Both statements are true
d)
Neither statements are true
8.
The focus of financial accounting is
a)
Reporting on the organization as a whole
b)
Reporting on the geographical regions of the organization
c)
Reporting on the departments of the organization
d)
All of the above mentioned.
9.
Controllers are ordinarily concerned with:
a)
Investor relations
b)
Credit extension and bad debts collection
c)
Short term financing
d)
Income tax return preparation
10.
Which of the following is a staff position?
a)
Internal Auditor
b)
COO
c)
CEO
d)
None of the above
11.
using high low method, what is the value of fixed cost
a)
168
b)
169
c)
170
d)
171
12.
using high low method, what is the value of variable cost
a)
3
b)
4
c)
5
d)
6
13.
using high low method, if x=9 what is the estimated cost/total cost?
a)
322
b)
534
c)
122
d)
222
14.
using least regression method, what is the value of fixed cost?
a)
322
b)
158.37
c)
159.37
d)
148.35
15.
using least regression method, what is the value of variable cost?
a)
7
b)
6.22
c)
6.63
d)
7.62
16.
using least regression method, what is the estimated total cost if x=9
a)
218.02
b)
219.02
c)
220.02
d)
221.02
17.
a)
140,000
b)
150,000
c)
160,000
d)
170,000
18.
a)
1.1
b)
1.2
c)
1.3
d)
1.4
19.
a)
A
b)
B
c)
C
d)
D
20.
a)
A
b)
B
c)
C
d)
D
21.
a)
A
b)
B
c)
C
d)
D
22.
a)
A
b)
B
c)
C
d)
D
23.
a)
A
b)
B
c)
C
d)
D
24.
a)
A
b)
B
c)
C
d)
D
25.
a)
A
b)
B
c)
C
d)
D
26.
a)
A
b)
B
c)
C
d)
D
27.
a)
A
b)
B
c)
C
d)
D
28.
a)
A
b)
B
c)
C
d)
D
29.
a)
A
b)
B
c)
C
d)
D
30.
a)
A
b)
B
c)
C
d)
D
31.
a)
A
b)
B
c)
C
d)
D
32.
a)
A
b)
B
c)
C
d)
D
33.
a)
A
b)
B
c)
C
d)
D
34.
a)
200,000
b)
300,000
c)
550,000
d)
750,000
35.
a)
20,000
b)
30,000
c)
40,000
d)
50,000
36.
a)
880,000
b)
900,000
c)
750,000
d)
0
37.
. ZARAH has been approached by a foreigner who wants to place a special order for 15,000 units of its
product ATB at P22.50 per unit. ZARAH currently sell this item for P39 per unit, and the item has a
cost of P29 per unit. Further analysis reveals that ZARAH will not be paying sales commission of
P2.50 a unit on the sales and its packaging requirement will save an additional P1.50 per unit.
However, an additional graphics required on this job will cost ZARAH P30,000. Note also that fixed
costs amounting to P400,000 for the production of 50,000 units will not change. ZARAH decided to
accept the order but another customer who buys an average of 2,000 units for the period wants to
pay P22.50 only rather than the regular selling price of P39.00 Accepting the special order will
increase (decrease) profits by how much?
a)
19,500
b)
20,500
c)
35,000
d)
0
38.
PATRENZ Corporation sells a product for P20 with variable cost of P8 per unit. PATRENZ could accept
a special order for 1,000 units at P14. If PATRENZ accepted the order, how many units could it lose
at the regular price before the decision become unwise?
a)
500
b)
200
c)
300
d)
400
39.
CARO Corp produces 1,000 units of part CAM per month. The total manufacturing costs of the part
are as follows:
Direct materials P10,000
Direct labor 5,000
Variable overhead 5,000
Fixed overhead 30,000
Total manufacturing cost P50,000
An outside supplier has offered to supply the part at P30 per unit. It is estimated that 20% of the
fixed overhead being assigned to part CAM will no longer be incurred if the company purchases the
part from the outside supplier. If CARO Corp purchases 1,000 units of part CAM from the outside
supplier, its monthly operating income will decrease/increase by:
a)
increase by 4,000
b)
decrease by 4,000
c)
0
d)
increase by 5,000
40.
LAMIKA Inc. is a multi-product company that currently manufactures 30,000 units of part JADA each
month for use in the production of its main product. The facilities now being used to produce JADA
have fixed monthly cost of P150,000 and a capacity to produce 84,000 units per month. If LAMIKA
were to buy JADA from an outside supplier, the facilities would be idle, but 60% of its fixed costs
would not continue. The variable production costs of part JADA are P11 per unit. If LAMIKA is able to
obtain part JADA from an outside supplier at a unit purchase price of P12.875, the monthly usage at
which it will be indifferent between purchasing and making part JADA is?
a)
48,000
b)
60,000
c)
70,000
d)
90,000
41.
FAUSTINO Inc. manufactures two products, MICHAEL and GABRIEL.
Contribution margin per unit is determined as follows:
MICHAEL GABRIEL
Revenue P 130 P 80
Variable costs (70) (38)
Contribution margin 60 42
Total demand for MICHAEL is 16,000 units and for GABRIEL, 8,000 units. Machine hours is a scarce
resource. Only 42,000 machine hours are available during the year. MICHAEL requires 6 machine
hours per unit while GABRIEL requires 3 machine hours per unit. How many units of MICHAEL and
GABRIEL should FAUSTINO Inc. produce
a)
Michael - 3,000 & GABRIEL - 8,000
b)
Michael - 8,000 & GABRIEL - 3,000
c)
Michael - 2,000 & GABRIEL - 4,000
d)
Michael - 4,000 & GABRIEL - 2,000
42.
CHUA Corp is deciding whether or not to eliminate GINO Segment of its business. GINO segment
generates total sales of P104 000, its direct expenses are P22 000, and its indirect expenses are P26
000. Its cost of goods sold is P64 000. Only P6 000 pesos of the direct expenses and P8 000 of the
indirect expenses are avoidable.
Determine the incorrect statement.
a. The segment has a net loss of P8 000
b. The segment’s revenue is greater than its avoidable costs.
c. The segment is a good candidate for elimination
d. The segment’s avoidable costs are greater than unavoidable costs.
a)
A
b)
B
c)
C
d)
D
43.
DAVID Corporation produces two products from a joint process. Information about the two joint
products follows:
Product X Product Y
Anticipated production 2,000 lbs 4,000 lbs
Selling price per pound at split-off P30 P16
Additional processing cost/pound after split off (all variable) 15 30
Selling price per pound after further processing 40 50
DAVID currently sells both products at split-off point. If DAVID makes the
decision which maximizes profit, its profit will increase by
a)
12,000
b)
13.000
c)
15,000
d)
16,000
44.
a)
A
b)
B
c)
C
d)
D
45.
a)
A
b)
B
c)
C
d)
D
46.
a)
A
b)
B
c)
C
d)
D
47.
a)
63,000
b)
53,200
c)
63,200
d)
53,000
48.
a)
6,700
b)
6,500
c)
6,712.50
d)
6,349.50
49.
a)
A
b)
B
c)
C
d)
D
50.
a)
A
b)
B
c)
C
d)
D
51.
a)
A
b)
B
c)
C
d)
D
52.
a)
A
b)
B
c)
C
d)
D
53.
a)
A
b)
B
c)
C
d)
D
54.
a)
A
b)
B
c)
C
d)
D
55.
a)
A
b)
B
c)
C
d)
D
56.
a)
none
b)
36,500
c)
36,000
d)
36,230
57.
a)
9,360
b)
110,760
c)
111,760
d)
10,360
58.
a)
A
b)
B
c)
C
d)
D
59.
a)
2,000
b)
3,000
c)
4,000
d)
5,000
60.
REFER TO LETTER A
a)
100,000
b)
200,000
c)
110,000
d)
210,000
61.
REFER TO LETTER B
a)
120,000
b)
200,000
c)
100,000
d)
210,000
62.
REFER TO LETTER C
a)
120,000
b)
200,000
c)
100,000
d)
210,000
63.
a)
A
b)
B
c)
C
d)
D
64.
a)
A
b)
B
c)
C
d)
D
65.
a)
A
b)
B
c)
C
d)
D
66.
a)
A
b)
B
c)
C
d)
D
67.
a)
A
b)
B
c)
C
d)
D
68.
a)
150,000
b)
(150,000)
c)
100,000
d)
(100,000)
69.
a)
30,000
b)
32,000
c)
38,000
d)
40,000
70.
REFER TO LETTER A?
a)
3 YEARS
b)
3.1 YEARS
c)
3.5 YEARS
d)
LESS THAN 3 YEARS
71.
REFER TO LETTER B?
a)
10%
b)
20%
c)
33.33%
d)
44.33%
72.
REFER TO LETTER C?
a)
120,345
b)
130,000
c)
130,644
d)
121,655
73.
a)
36,000
b)
36,200
c)
36,982
d)
37,000
74.
a)
9%
b)
9.33%
c)
10.42%
d)
11.23%
75.
a)
A
b)
B
c)
C
d)
D
76.
a)
A
b)
B
c)
C
d)
D
77.
a)
PROJ 1
b)
PROJ 2 AND PROJ 3
c)
PROJ 1 AND PROJ 2
d)
PROJ 1 AND PROJ 4
78.
REFER TO LETTER A
a)
55,000
b)
53,400
c)
57,600
d)
58,650
79.
REFER TO LETTER B
a)
20,000
b)
357,652
c)
17,653
d)
340,000
80.
REFER TO LETTER C
a)
0.55
b)
1.034
c)
1.052
d)
2.552
81.
Goal congruence exists when
A. the goals of the company harmonize with each other.
B. the company's managers are pursuing their own goals effectively.
C. the company's managers are pursuing the goals of the company.
D. all of the above are true.
a)
A
b)
B
c)
C
d)
D
82.
The sequence that reflects increasing breadth of responsibility is
A. cost center, investment center, profit center.
B. cost center, profit center, investment center.
C. profit center, cost center, investment center.
D. investment center, cost center, profit center
a)
A
b)
B
c)
C
d)
D
83.
Compared to a jewelry store, a supermarket has
A. higher margin and higher turnover.
B. higher margin and lower turnover.
C. lower margin and higher turnover.
D. lower margin and lower turnover.
a)
A
b)
B
c)
C
d)
D
84.
The segment margin of the Wire Division of a manufacturer should not include
A. Net sales of the Wire Division.
B. Fixed selling expenses of the Wire Division.
C. Variable selling expenses of the Wire Division.
D. The Wire Division’s fair share of the salary of the manufacturer’s president.
a)
A
b)
B
c)
C
d)
D
85.
When using a contribution margin format for internal reporting purposes, the major distinction
between segment manager performance and segment performance is
A. Unallocated fixed costs.
B. Direct variable costs of producing the product.
C. Direct fixed costs controllable by the segment manager.
D. Direct fixed costs controllable by others.
a)
A
b)
B
c)
C
d)
D
86.
Division A earns P6,000 on an investment of P36,000. On an investment of P84,000, Division B earns
P12,000. Which of the following is true?
A. Division A's profits are too low.
B. If there are further costs that are common to both divisions, the total company's ROI is probably
greater than 15%.
C. If the minimum desired ROI is 10%, Division A's residual income is lower than that of Division B.
D. ROI for Division B is greater than ROI for Division A.
a)
A
b)
B
c)
C
d)
D
87.
A business is started with an investment of P1,000,000. The investor requires a rate of return of
10%. If the business produced total sales of P1,000,000 and a contribution margin of P500,000 and
had P350,000 of fixed costs, what is its residual income (RI)
a)
30,000
b)
40,000
c)
50,000
d)
60,000
88.
REFER TO LETTER A
a)
ACCEPT:ACCEPT
b)
ACCEPT:REJECT
c)
REJECT:REJECT
d)
REJECT:ACCEPT
89.
REFER TO LETTER B
a)
ACCEPT:ACCEPT
b)
ACCEPT:REJECT
c)
REJECT:REJECT
d)
REJECT:ACCEPT
90.
a)
A
b)
B
c)
C
d)
D
91.
a)
A
b)
B
c)
C
d)
D
92.
a)
A
b)
B
c)
C
d)
D
93.
a)
A
b)
B
c)
C
d)
D
94.
a)
A
b)
B
c)
C
d)
D
95.
a)
A
b)
B
c)
C
d)
D
96.
A company operates under a decentralized structure. The company’s Western Division plans to
purchase a needed component from the Eastern Division that is operating at capacity. Eastern incurs
relevant costs of P4 to manufacture the component and P1 to ship each unit, and it can sell the unit
externally at a price of P8 per unit. The Western Division incurs costs of P9 per unit and sells the
finished goods for P18 each. According to the general guideline for transfer-pricing situations, the
minimum transfer price per unit should be:
a)
5
b)
6
c)
7
d)
8
97.
Each of the following statements represents a “best practice” for implementing and using the
balanced scorecard, except:
A. Balanced scorecard measures should be linked in a “cause-and-effect” manner.
B. Balanced scorecard measures should be consistent with an organization’s strategy.
C. Balanced scorecard measures should be changed as an organization’s strategy changes.
D. Balanced scorecard measures should not be used as part of the performance evaluation process
as employees may focus too much on them.
a)
A
b)
B
c)
C
d)
D
98.
A company is concerned that the number of patents and new products being developed by the
company is declining. Which one of the following perspectives of the balanced scorecard is most
relevant to this issue?
A. Internal process perspective
B. Financial perspective
C. Learning and growth perspective
D. Customer perspective
a)
A
b)
B
c)
C
d)
D
100 %
