Management Advisory Services

79問 • 2年前

Mark Anthony Germono

通報

問題一覧

In management consultancy, the engagement is recurring in nature

False

In management consultancy, the engagement is past oriented

False

In management consultancy, the engagement benefits the public

False

In management consultancy, the practice is limited only for CPAs

False

Management consultants are outsource professional thus provide an independent point of you on the situation under evaluation.

True

Consultants are required to make a decision for the client to maintain his or her competence

False

The usual services provided by management consultant is preparing market analysis

False

The usual services provided by management consultant includes advertising on accounting and tax matters relative to estate planning

False

The usual services provided by management consultant includes analysis of financial and operating statement

True

The usual services provided by management consultant includes assistance in the preparation of forecasts and budgets

True

MAS areas which are not normally related to the accounting and finance functions may include

Market Forecasting

A CPA should reject an MAS engagement if

It would require him to make management decision for an audit client

Engagement planning that's not involve which of the following activities

Preparation of proposal letter

The following are areas of consideration in determining the scope of services that a CPA may perform except

Range of fees that consultant will rain in each type of services

Users of information in management accounting

Internal exclusively

Restrictive guidelines in management accounting

None

Type of information in management accounting

Monetary and non-monetary

Emphasis of report in management accounting

Relevant or timeliness

Information source of management accounting

Internal and external data

Focus of analysis in management accounting

Various segments

Frequency of reporting in management accounting

Whenever needed

Time orientation of management accounting

Projected and historical

People in the organization who are directly responsible for achieving organizational goals

Line position

Individuals or group in an organization who provide services and advice to line managers

Staff position

Bagger in SM supermarket

Line Function

Accounting Manager

Staff function

Vice president of production

Line Function

Pilot of the Philippine Airlines

Line Function

in management accounting, controller and treasurer should be different person

True

The main functions of controller

Record, Report, Tax, Audit, Protection of assets

Set of standards for management accountants

Institute of management accountants

Four standards for ethical conduct of management accounting

Competence, Integrity, Confidentiality, Objectivity

Planning involves coordinating the diverse activities and human resources of a company to produce a smooth running operation

False

Controlling is the process of determining whether planned goals are being met

True

Managerial accounting is

Focuses primarily on the needs of personnel within the organization

which of the following characterizes management accounting, rather than financial accounting

Emphasizes relevance rather than Precision, Information provided may be monetary and non monetary

Classification of manufacturing costs

Manufacturing overhead, Direct labor, Direct materials

Raw materials that become an integral part of the product and that can be conveniently traced directly to it.

Direct materials

Those labor costs that can be easily traced to individual units of product.

Direct labor

Manufacturing costs that cannot be easily traced directly to specific units produced.

Manufacturing overhead

Materials used to support the production process.

Indirect materials

Wages paid to employees who are not directly involved in production work.

Indirect labor

Two manufacturing costs

Selling cost, Administrative cost

Costs necessary to secure the order and deliver the product.

Selling cost

All executive, organizational, and clerical costs.

Administrative costs

Include direct materials, direct labor, and manufacturing overhead.

Product cost

Include all selling costs and administrative costs.

Period costs

Which of the following costs would be considered a period rather than a product cost in a manufacturing company?

Property taxes on corporate headquarters, Sales commission

What are the prime cost?

Direct material, Direct labor

What are the conversion costs?

Direct labor, Manufacturing overhead

Cost Classifications for Predicting Cost Behavior

Variable cost, Fixed cost, Mixed cost

Refers to how a cost will react to changes in the level of activity.

Cost behavior

Four Activity Base (Cost Driver)

Units produced, Miles driven, Labor hours, Machine hours

A measure of what causes the incurrence of a variable cost

Activity Based

Types of Fixed Costs

Committed, Discretionary

Which of the following costs would be variable with respect to the number of cones sold at a Baskins & Robbins shop?

The cost of ice cream., The cost of napkins for customers.

Mix cost is also called

Semivariable cost

Contains both variable and fixed elements.

Mixed cost

The total mixed cost line can be expressed as an equation:

Y=a+bX

the range of activity over which the graph of the cost is flat.

Fixed Costs and the Relevant Range

Analysis of Mixed Costs

Account Analysis, Engineering Approach

Each account is classified as either variable or fixed based on the analyst’s knowledge of how the account behaves.

Account Analysis

Classifies costs based upon an industrial engineer’s evaluation of production methods, and material, labor, and overhead requirements.

Engineering Approach

Plot the data points on a graph

Scattergraph Method

A method used to analyze mixed costs if a scattergraph plot reveals an approximately linear relationship between the X and Y variables.

Least-Squares Regression Method

This method uses all of the data points to estimate the fixed and variable cost components of a mixed cost.

Least-Squares Regression Method

The goal of least-squares regression method is to fit a straight line to the data that

minimizes the sum of the squared errors.

Costs that can be easily and conveniently traced to a unit of product or other cost object.

Direct costs

Costs that cannot be easily and conveniently traced to a unit of product or other cost object.

Indirect cost

Cost Classifications for Decision Making

differential costs, opportunity costs, sunk costs.

The potential benefit that is given up when one alternative is selected over another.

Opportunity Cost

Costs and revenues that differ among alternatives

Differential Cost and Revenue

Suppose you are trying to decide whether to drive or take the train to Portland to attend a concert. You have ample cash to do either, but you don’t want to waste money needlessly. Is the annual cost of licensing your car relevant in this decision?

No, the licensing cost is not relevant.

Suppose that your car could be sold now for $5,000. Is this a sunk cost?

No, it is not a sunk cost.

Which of the following is not associated with absorption costing?

contribution margin

What factor, related to manufacturing costs, causes the difference in net earnings computed using absorption costing and net earnings computed using variable costing?

Absorption costing allocates fixed overhead costs between cost of goods sold and inventories, and variable costing considers all fixed costs to be period costs.

Under variable costing

all product costs are variable.

On the variable costing income statement, the difference between the "contribution margin" and "income before income taxes" is equal to

total fixed costs

What costs are treated as product costs under variable (direct) costing?

only variable production costs

FAR Quizzers For Post Test And Term Examination

Mark Anthony Germono · 24問 · 1年前

FAR Quizzers For Post Test And Term Examination

24問 • 1年前

Mark Anthony Germono

PART II: THEORY OF ACCOUNTS (FAR FINALS)

Mark Anthony Germono · 16問 · 1年前

PART II: THEORY OF ACCOUNTS (FAR FINALS)

16問 • 1年前

Mark Anthony Germono

OBLIGATION

Mark Anthony Germono · 30問 · 1年前

OBLIGATION

30問 • 1年前

Mark Anthony Germono

CONTRACTS

Mark Anthony Germono · 48問 · 1年前

CONTRACTS

48問 • 1年前

Mark Anthony Germono

Doctrines and Principles - RRC

Mark Anthony Germono · 23問 · 1年前

Doctrines and Principles - RRC

23問 • 1年前

Mark Anthony Germono

AFAR COMPRE

Mark Anthony Germono · 14問 · 1年前

AFAR COMPRE

14問 • 1年前

Mark Anthony Germono

Taxation 1

Mark Anthony Germono · 100問 · 2年前

Taxation 1

100問 • 2年前

Mark Anthony Germono

Taxation 2

Mark Anthony Germono · 31問 · 2年前

Taxation 2

31問 • 2年前

Mark Anthony Germono

Business Taxation By Enrico D. Tabag

Mark Anthony Germono · 77問 · 2年前

Business Taxation By Enrico D. Tabag

77問 • 2年前

Mark Anthony Germono

Business & Transfer Taxation by Rex B. Banggawan

Mark Anthony Germono · 49問 · 2年前

Business & Transfer Taxation by Rex B. Banggawan

49問 • 2年前

Mark Anthony Germono

Chapter 1 - Business Tax

Mark Anthony Germono · 30問 · 2年前

Chapter 1 - Business Tax

30問 • 2年前

Mark Anthony Germono

Chapter 2 - Business Tax

Mark Anthony Germono · 30問 · 2年前

Chapter 2 - Business Tax

30問 • 2年前

Mark Anthony Germono

Other Percentage Tax

Mark Anthony Germono · 15問 · 2年前

Other Percentage Tax

15問 • 2年前

Mark Anthony Germono

Chapter 1 - Multiple Choice Business Tax

Mark Anthony Germono · 10問 · 2年前

Chapter 1 - Multiple Choice Business Tax

10問 • 2年前

Mark Anthony Germono

MAS Post Test 01

Mark Anthony Germono · 33問 · 2年前

MAS Post Test 01

33問 • 2年前

Mark Anthony Germono

Auditing Theory Part 1

Mark Anthony Germono · 70問 · 2年前

Auditing Theory Part 1

70問 • 2年前

Mark Anthony Germono

Auditing Thoery Part 2

Mark Anthony Germono · 58問 · 2年前

Auditing Thoery Part 2

58問 • 2年前

Mark Anthony Germono

Auditing Theory - Handouts Based

Mark Anthony Germono · 10問 · 2年前

Auditing Theory - Handouts Based

10問 • 2年前

Mark Anthony Germono

Auditing Theory - Post Test

Mark Anthony Germono · 60問 · 2年前

Auditing Theory - Post Test

60問 • 2年前

Mark Anthony Germono

FAR 1

Mark Anthony Germono · 80問 · 2年前

FAR 1

80問 • 2年前

Mark Anthony Germono

AFAR

Mark Anthony Germono · 48問 · 1年前

AFAR

48問 • 1年前

Mark Anthony Germono

問題一覧

In management consultancy, the engagement is recurring in nature

False

In management consultancy, the engagement is past oriented

False

In management consultancy, the engagement benefits the public

False

In management consultancy, the practice is limited only for CPAs

False

Management consultants are outsource professional thus provide an independent point of you on the situation under evaluation.

True

Consultants are required to make a decision for the client to maintain his or her competence

False

The usual services provided by management consultant is preparing market analysis

False

The usual services provided by management consultant includes advertising on accounting and tax matters relative to estate planning

False

The usual services provided by management consultant includes analysis of financial and operating statement

True

The usual services provided by management consultant includes assistance in the preparation of forecasts and budgets

True

MAS areas which are not normally related to the accounting and finance functions may include

Market Forecasting

A CPA should reject an MAS engagement if

It would require him to make management decision for an audit client

Engagement planning that's not involve which of the following activities

Preparation of proposal letter

The following are areas of consideration in determining the scope of services that a CPA may perform except

Range of fees that consultant will rain in each type of services

Users of information in management accounting

Internal exclusively

Restrictive guidelines in management accounting

None

Type of information in management accounting

Monetary and non-monetary

Emphasis of report in management accounting

Relevant or timeliness

Information source of management accounting

Internal and external data

Focus of analysis in management accounting

Various segments

Frequency of reporting in management accounting

Whenever needed

Time orientation of management accounting

Projected and historical

People in the organization who are directly responsible for achieving organizational goals

Line position

Individuals or group in an organization who provide services and advice to line managers

Staff position

Bagger in SM supermarket

Line Function

Accounting Manager

Staff function

Vice president of production

Line Function

Pilot of the Philippine Airlines

Line Function

in management accounting, controller and treasurer should be different person

True

The main functions of controller

Record, Report, Tax, Audit, Protection of assets

Set of standards for management accountants

Institute of management accountants

Four standards for ethical conduct of management accounting

Competence, Integrity, Confidentiality, Objectivity

Planning involves coordinating the diverse activities and human resources of a company to produce a smooth running operation

False

Controlling is the process of determining whether planned goals are being met

True

Managerial accounting is

Focuses primarily on the needs of personnel within the organization

which of the following characterizes management accounting, rather than financial accounting

Emphasizes relevance rather than Precision, Information provided may be monetary and non monetary

Classification of manufacturing costs

Manufacturing overhead, Direct labor, Direct materials

Raw materials that become an integral part of the product and that can be conveniently traced directly to it.

Direct materials

Those labor costs that can be easily traced to individual units of product.

Direct labor

Manufacturing costs that cannot be easily traced directly to specific units produced.

Manufacturing overhead

Materials used to support the production process.

Indirect materials

Wages paid to employees who are not directly involved in production work.

Indirect labor

Two manufacturing costs

Selling cost, Administrative cost

Costs necessary to secure the order and deliver the product.

Selling cost

All executive, organizational, and clerical costs.

Administrative costs

Include direct materials, direct labor, and manufacturing overhead.

Product cost

Include all selling costs and administrative costs.

Period costs

Which of the following costs would be considered a period rather than a product cost in a manufacturing company?

Property taxes on corporate headquarters, Sales commission

What are the prime cost?

Direct material, Direct labor

What are the conversion costs?

Direct labor, Manufacturing overhead

Cost Classifications for Predicting Cost Behavior

Variable cost, Fixed cost, Mixed cost

Refers to how a cost will react to changes in the level of activity.

Cost behavior

Four Activity Base (Cost Driver)

Units produced, Miles driven, Labor hours, Machine hours

A measure of what causes the incurrence of a variable cost

Activity Based

Types of Fixed Costs

Committed, Discretionary

Which of the following costs would be variable with respect to the number of cones sold at a Baskins & Robbins shop?

The cost of ice cream., The cost of napkins for customers.

Mix cost is also called

Semivariable cost

Contains both variable and fixed elements.

Mixed cost

The total mixed cost line can be expressed as an equation:

Y=a+bX

the range of activity over which the graph of the cost is flat.

Fixed Costs and the Relevant Range

Analysis of Mixed Costs

Account Analysis, Engineering Approach

Each account is classified as either variable or fixed based on the analyst’s knowledge of how the account behaves.

Account Analysis

Classifies costs based upon an industrial engineer’s evaluation of production methods, and material, labor, and overhead requirements.

Engineering Approach

Plot the data points on a graph

Scattergraph Method

A method used to analyze mixed costs if a scattergraph plot reveals an approximately linear relationship between the X and Y variables.

Least-Squares Regression Method

This method uses all of the data points to estimate the fixed and variable cost components of a mixed cost.

Least-Squares Regression Method

The goal of least-squares regression method is to fit a straight line to the data that

minimizes the sum of the squared errors.

Costs that can be easily and conveniently traced to a unit of product or other cost object.

Direct costs

Costs that cannot be easily and conveniently traced to a unit of product or other cost object.

Indirect cost

Cost Classifications for Decision Making

differential costs, opportunity costs, sunk costs.

The potential benefit that is given up when one alternative is selected over another.

Opportunity Cost

Costs and revenues that differ among alternatives

Differential Cost and Revenue

No, the licensing cost is not relevant.

Suppose that your car could be sold now for $5,000. Is this a sunk cost?

No, it is not a sunk cost.

Which of the following is not associated with absorption costing?

contribution margin

What factor, related to manufacturing costs, causes the difference in net earnings computed using absorption costing and net earnings computed using variable costing?

Absorption costing allocates fixed overhead costs between cost of goods sold and inventories, and variable costing considers all fixed costs to be period costs.

Under variable costing

all product costs are variable.

On the variable costing income statement, the difference between the "contribution margin" and "income before income taxes" is equal to

total fixed costs

What costs are treated as product costs under variable (direct) costing?

only variable production costs