CPA Management Accounting - MA FREE EXAM DUMPS QUESTIONS & ANSWERS
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?
(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?
Correct Answer: B
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Sun Mics' e-procurement system shows the bidding to be placed over the Internet, and rival bids for all suppliers. Which of the following will be an advantage of e-procurement system for Sun Mics'?
Correct Answer: C
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Which of the following statements about divisionalizationis/are correct?
(i)
Divisionalizationleads to head office managers having reduced control over operational decisions in an operating unit.
(ii)
Achieving corporate goals will be the only factor considered by divisional managers when they are making decisions.
(iii)
Divisionalizationallows operating decisions to reflect the local conditions of an operating unit.
(i)
Divisionalizationleads to head office managers having reduced control over operational decisions in an operating unit.
(ii)
Achieving corporate goals will be the only factor considered by divisional managers when they are making decisions.
(iii)
Divisionalizationallows operating decisions to reflect the local conditions of an operating unit.
Correct Answer: B
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At 31 May 2010 the non-current assets of Solace Co were reported on the statement of financial position at a value of $1,643,800.
The assets had cost $2,200,000. Taxation allowances of $1,200,000 had been claimed.
The tax rate is currently 22%, and is expected to reduce to 20% in the near future.
The deferred tax liability at 31 May 2009 was $200,000.
What value should be reported on the income statement for the year to 31 May 2010 for deferred taxation?
The assets had cost $2,200,000. Taxation allowances of $1,200,000 had been claimed.
The tax rate is currently 22%, and is expected to reduce to 20% in the near future.
The deferred tax liability at 31 May 2009 was $200,000.
What value should be reported on the income statement for the year to 31 May 2010 for deferred taxation?
Correct Answer: D
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Which of the following statements about transfer pricing is correct?
Correct Answer: C
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Which of the following objectives is/are valid for a transfer pricing system?
(i)
Maximizationof corporate profit
(ii)
Assessment of divisional performance
(i)
Maximizationof corporate profit
(ii)
Assessment of divisional performance
Correct Answer: D
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Which of the following statements about target costing is/are correct?
i) The features included in the product are often identified after the target cost has been established.
ii) Target costing will often continue to be used after the product has been launched.
i) The features included in the product are often identified after the target cost has been established.
ii) Target costing will often continue to be used after the product has been launched.
Correct Answer: D
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At 1 November 2009 Boho Co's statement of financial position reported a deferred tax liability of $36,560. At 31 October 2010 the net book value of non-current assets was $135,400 greater than the tax written down value.
The current rate of tax is 22%. It has recently been announced that this will be reduced to 20% during the next financial year.
What should be reported in the statement of comprehensive income for the year to 31 October 2010 in respect of deferred tax?
The current rate of tax is 22%. It has recently been announced that this will be reduced to 20% during the next financial year.
What should be reported in the statement of comprehensive income for the year to 31 October 2010 in respect of deferred tax?
Correct Answer: D
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