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**Osama Makled** · 10-29-2023, 10:24 AM

which of the following is the best example of variable cost?
1- The Corporate presidnt's salary
2-Cost of raw material
3-Interst Charges
4-Propert taxes

Answer 2 is correct
materials. Variable costs are expenses that change in direct proportion to the level of production or activity within a business. When a company produces more units or provides more
services, the cost of raw materials increases accordingly. Conversely, when production decreases, the cost of raw materials decreases as well. This makes it a prime example of a variable cost

**Osama Makled** · 10-29-2023, 10:34 AM

**Osama Makled** · 10-29-2023, 11:20 AM

Which one of the following is correct regarding a relevant range?
A. Total variable costs will not change.
B. Total fixed costs will not change.
C. The relevant range cannot be changed after being established.
D. The relevant range will remain the same as long as prices do not change.

Answer: B) Total fixed costs will not change
Explanation: The relevant range is the level of activity wherein total fixed costs and variable costs per unit are expected to be unchanged

**Osama Makled** · 11-05-2023, 03:29 PM

From the following budgeted data, calculate the budgeted indirect cost rate that would be used in a normal costing syste

Total direct labor hours 250,000
Direct costs $10,000,000
50,000 Total indirect labor hours
Total indirect-labor-related costs $ 5,000,000
Total indirect non-labor related costs $ 7,000,000
a. $20.
b. $28.
c. $40.
d. $48.

Total Direct Labor Hours: 250,000
Total Indirect-Labor-Related Costs: $5,000,000
Total Indirect Non-Labor Related Costs: $7,000,000

Now, plug these values into the formula

Budgeted Indirect Cost Rate = ($5,000,000 + $7,000,000) / 250,000
Budgeted Indirect Cost Rate = $12,000,000 / 250,000
Budgeted Indirect Cost Rate = $48 per direct labor hour

So, the correct answer is (d) $48

Under actual costing, rates are based on costs incurred, while in normal costing, rates are based on the anticipated total efficiency of production. For example, the actual number of units produced at each rate might be lower than your team expected, resulting in inefficient use of resources and higher costs per unit

في ظل التكاليف الفعلية، تعتمد الأسعار على التكاليف المتكبدة، بينما في التكاليف العادية، تعتمد الأسعار على الكفاءة الإجمالية المتوقعة للإنتاج. على سبيل المثال، قد يكون العدد الفعلي للوحدات المنتجة بكل معدل أقل مما توقعه فريقك، مما يؤدي إلى استخدام غير فعال للموارد وارتفاع التكاليف لكل وحدة

**Osama Makled** · 11-06-2023, 10:45 AM

A company provides fertilization, insect control, and disease control services for a variety of trees
plants, and shrubs on a contract basis. For $50 per month, the company will visit the subscriber's premises and
apply appropriate mixtures. If the subscriber has any problems between the regularly scheduled application
dates, the company’s personnel will promptly make additional service calls to correct the situation. Some
subscribers elect to pay for an entire year because the company offers an annual price of $540 if paid in advance
For a subscriber who pays the annual fee in advance, the company should recognize the related revenue

.A. When the cash is collected
.B. Evenly over the year as the services are performed
.C. At the end of the contract year after all of the services have been performed
.D. At the end of the fiscal year

Answer (B) is correct. Revenues should be recognized when (1) realized or realizable and (2) earned. The most common time at which these two conditions are met is when goods are delivered or services are rendered. In the situation presented, the performance of the service (monthly spraying) is so significant to creating a sufficient probability of a flow of future economic benefits that it should be the triggering event for revenue recognition

**Osama Makled** · 11-06-2023, 03:14 PM

?Which of the following classifications is correct? Prime Cost/ Conversion Cost

A-Direct labour and materials /Direct labour and material and manufacturing overhead
B-Direct labour and direct materials /Direct labour and manufacturing overhead
C-Direct materials/ Direct labour
D-Raw materials/ Work in process

Correct answer: (B)

Direct labour and direct materials /Direct labour and manufacturing overhead

Prime Cost = Direct Material Cost + Direct Labor Cost + Direct Expenses

Conversion Costs are the total of direct labor and factory overhead costs. They are combined because it is the labor and overhead together that convert the raw material into the finished product

**Osama Makled** · 11-07-2023, 10:21 AM

The controller of ABC Manufacturing would consider the cost of salaries paid to personnel in his/her department to be

A-direct and controllable
B-direct but not controllable
C-indirect and controllable
D-indirect and not controllable

Right Answer: C (indirect and controllable)

**Osama Makled** · 11-09-2023, 08:47 AM

Inventoriable costs
.A. Include only the prime costs of manufacturing a product
.B. Include only the conversion costs of manufacturing a product
.C. Are expensed when products become part of finished goods inventory
.D. Are regarded as assets before the products are sold

Answer (D) is correct. Under an absorption costing system, inventoriable (product) costs include all costs necessary for good production. These include direct materials and conversion costs (direct labor and overhead). Both fixed and variable overhead is included in inventory under an absorption costing system. Inventoriable costs are treated as assets until the products are sold because they represent future economic benefits. These costs are expensed at the time of sale

**Osama Makled** · 11-12-2023, 08:08 AM

?company produces 200,000 units of a good that has the following cost
Direct material costs $2,000,000
Direct manufacturing labor costs 1,000,000
Indirect manufacturing labor costs 600,000

The company’s per unit prime costs and conversion costs, respectively, are

A. $8 and $15
B. $8 and $18
C. $10 and $8
D. $15 and $8
==========================
Answer (D) is correct. Prime cost consists of direct materials and direct labor. Conversion cost consists of direct labor and manufacturing overhead. The per unit calculations are as follows: Direct materials $2,000,000 Direct labor $1,000,000 Direct labor 1,000,000 Manufacturing overhead 600,000 Total prime costs $3,000,000 Total conversion costs $1,600,000 Divided by: production level ÷ 200,000 Divided by: production level ÷ 200,000 Per unit prime cost $ 15 Per unit conversion cost $ 8

**Osama Makled** · 11-13-2023, 02:07 PM

?Which one of the following is correct regarding a relevant range
A. Total variable costs will not chang
B. Total fixed costs will not change
C. Actual fixed costs usually fall outside the relevant range
D. The relevant range cannot be changed after being established

The correct answer is C. Actual fixed costs usually fall outside the relevant range. The relevant range is the range of output where variable costs are predictable and fixed costs are constant per unit. This range helps organizations plan production and pricing. It is important to note that actual costs may differ from
budgeted costs and can affect the organization's profitability

التكاليف الثابتة الفعلية تقع عادةً خارج النطاق ذي الصلة. النطاق ذو الصلة هو نطاق الإنتاج حيث يمكن التنبؤ بالتكاليف المتغيرة وتكون التكاليف الثابتة ثابتة لكل وحدة. يساعد هذا النطاق المؤسسات على تخطيط الإنتاج والتسعير. ومن المهم ملاحظة أن التكاليف الفعلية قد تختلف عن التكاليف المدرجة في الميزانية ويمكن أن تؤثر على ربحية المنظمة

**Osama Makled** · 11-13-2023, 02:25 PM

The term "committed costs" refers to those:
a. Costs which management decides to incur in the current period to enable the company to achieve objectives other than the filling of orders placed by customers
b. Costs which are likely to respond to the amount of attention devoted to them by a specified manager.
c. Costs which are governed mainly by past decisions that established the present levels of operating and organizational capacity and which only change slowly in response to small changes in capacity
d. Costs which fluctuate in total in response to small changes in the rate of utilization of capacity. e. Costs amortized which were
capitalized in previous periods

The right answer is C

**Osama Makled** · 12-10-2023, 09:13 AM

Cotton Company has two service departments and three operating departments. In allocating service department costs to the operating departments, which of the following three methods (direct, step-down, reciprocal) will result in the same amount of service department costs being allocated to each operating department, regardless of the order in
which service department costs are allocated?

A- Direct and reciprocal methods only.

B- Step-down and reciprocal methods only.

C- Direct and step-down methods only.

D- Direct method only.

Answer (A) is correct
With the direct and reciprocal methods, the order of allocation is irrelevant. However, under the step-down method, some service
department cost is allocated to other service departments before allocation to the operating departments. These first allocations change
the proportions of the total constituted by each department

**Osama Makled** · 12-10-2023, 12:53 PM

Wilcox Industrial has two support departments, the Information Systems Department and the Personnel Department, and two manufacturing departments, the Machining Department and the Assembly Department. The support departments service each other as well as the two production departments.
Company studies have shown that the Personnel Department provides support to a greater number of departments than the Information Systems Department.
If Wilcox uses the reciprocal method of department allocation, which one of the following departmental allocations would occur? The costs of the

A- Assembly Department are allocated to the Information Systems Department and the Personnel Departmentِِ
B- Information Systems Department are allocated to the Machining Department and the costs of the Machining Department are allocated to the Assembly Department
C- Personnel Department are allocated solely to the Information Systems Department
D- Information Systems Department are allocated to the Personnel Department
Machining Department, and Assembly Departmen

Answer (D) is correct
The reciprocal method is the most complex and the most theoretically sound of the three service department allocation methods. The reciprocal method recognizes services rendered by all service departments to each other as well as to the production departments

**Osama Makled** · 12-14-2023, 03:12 PM

The manufacturing operations of Barton, Inc. had the following inventory balances for the month of March, 2000:

Inventories 3/1/00 3/31/00

Raw Materials 10,000 12,000

Work in process 6,000 7,000

Finished goods 30,000 22,000

If Barton transferred $38,000 of completed goods from work in process to finished goods during March, what was the amount of the cost of goods sold?
A $38,000
B $43,000
C $30,000
D $46,000

================================================== =
The answer
COGS = {Beginning Finished Goods Inventory} + {Cost of Goods Manufactured (COGM)} - {Ending Finished Goods Inventory}

$46,000 00 = COGS = $30,000 + $38,000 - $22,000 00
Correct answer: (D)

**Osama Makled** · 01-18-2024, 01:57 PM

Question 8 - CMA 1289 5.24 - Forecasting Techniques - Probability
The College Honor Society sells hot pretzels at the home football games.
The frequency distribution of the demand for pretzels per game is presented as follows: Sales Volume Probability
2,000 pretzels
0.10
3,000 pretzels 0.15
4,000 pretzels
0.20
5,000 pretzels
0.35
6,000 pretzels
0.20
The pretzels are sold for $1.00 each, and the cost per pretzel is $0.30. Any unsold pretzels are discarded because they will be stale before the next home game.
The conditional profit (loss) per game of having 4,000 pretzels available but being able to sell 5,000 pretzels if they had been available is
A. $(1,225).
B. $2,800.
C. $3,500.
D. $4,025.

The answer B is correct
You will be ignored --> being able to sell 5,000 pretzels if they had been available
The Revnue (4000×$1) = $4000- Expensess (4000*$.03)=$1200 =Progit $2800

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أسئلة و أجوبة cma 2023

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