CPA MA Management Accounting Online Training
CPA MA Online Training
The questions for MA were last updated at Apr 21,2025.
- Exam Code: MA
- Exam Name: Management Accounting
- Certification Provider: CPA
- Latest update: Apr 21,2025
Coolbreeze Co manufactures refrigerators. The company isorganizedon a divisionalised basis and has two divisions (compressor and cabinet).
The compressor division transfers 65% of its output to the cabinet division for $85 per unit, and sells the rest of its output to external companies for $92 per unit.
The cabinet division sells the final product at an average selling price of $495 per unit. In the next month, it expected that the compressor division will produce 27,000 units. The variable cost of manufacturing compressors is $62 per unit.
Assuming that the divisions operate with total autonomy, which of the following options is the most likely reason for making internal transfers at a value which is less than the external selling price of the compressor division?
- A . Head office has imposed the transfer price.
- B . The management of the compressor division are seeking to restrict the quantity produced.
- C . Some additional costs are incurred on external sales.
- D . The transfer price has been set to allow the cabinet division to compete through lower prices.
A division manufacturing a single product which sells for $325 has the following unit cost structure:
$
Direct materials95
Directlabor78
Variable overheads56
Share of fixed costs45
Total cost274
In the coming period, the budgeted production volume is 10,000 units.
What is the budgeted breakeven sales volume (to the nearest unit)?
- A . 1,385 units
- B . 4,688 units
- C . 8,824 units
- D . 10,000 units
Which of the following statements about accounting concepts and the characteristics of financial information is correct?
- A . The concept of substance over form means that the legal interpretation of a transaction must be reflected in financial statements, regardless of the economic substance.
- B . The historical cost concept means that only items capable of being measured in monetary terms can berecognizedin financial statements.
- C . It may sometimes be necessary to exclude information that is relevant and reliable from financial statements because it is too difficult for some users to understand.
- D . A specific disclosure requirement of an IAS does not need to be satisfied if the information is immaterial.
Each division of Calcul Co manufactures a single product.
In one of the divisions the standard profit of each unit is calculated as:
Selling price$135
Total cost$100
Profit$35
It is estimated that fixed costs comprise 54% of the total cost of the product. The budgeted production and sales volumes for the next month is 3,954 units.
What is the margin of safety?
- A . 39・3%
- B . 43・2%
- C . 56・8%
- D . 60・7%
On 1 December 2009 Reon Co acquired a non-current asset at a cost of $318,000. The purchase was financed through a six year finance lease. Under the lease, an initial payment of $71,000 was made on 1 December 2009. Five further payments of $71,000 are required on 1 December each year, commencing 1 December 2010. Reon uses the sum of digits method to allocate interest to accounting periods.
How should the total lease liability be reported in the statement of financial position at 30 November 2010?
- A . Current liability = $71,000, Non-current liability = $212,000
- B . Current liability = $36,000, Non-current liability = $247,000
- C . Current liability = $42,200, Non-current liability = $240,800
- D . Current liability = $35,000, Non-current liability = $248,000
The budgeted overheads of Nambro for the next year have beenanalyzedas follows:
$000
Purchase order processing costs450
Production run set up costs180
Machine running costs640
In the next year, it is anticipated that machines will run for 32,000 hours, 6,000 purchase orders will be processed and there will be 450 production runs.
One of the company’s products is produced in batches of 500. Each batch requires a separate production run, 30 purchase orders and 750 machine hours.
Using Activity Based Costing, what is the overhead cost per unit of the product?
- A . $0.99
- B . $1.59
- C . $35.30
- D . $495.00
At the beginning of March 2012, INS Plc has an opening balance of $60,000 on its receivables ledger. Sales of $160,000 have been budgeted for March and it is budgeted that 60% of these will be settled in March after a cash discount of 2.5%.
If 23% of the opening receivables are still outstanding at the end of March, what will be the budgeted receivables figure at that date?
- A . $76,200
- B . $77,800
- C . $80,200
- D . $110,200
Consider the following statements relating to activity-based costing (ABC) in a manufacturing environment:
(i) ABC eliminates the use of volume as a means of measuring costs
(ii) More accurate cost estimates will always be produced using ABC than absorption costing
Which of the following combinations is correct?
- A . Statement (i) = True, Statement (ii) = True
- B . Statement (i) = False, Statement (ii) = False
- C . Statement (i) = True, Statement (ii) = False
- D . Statement (i) = False, Statement (ii) = True
On the first day of the new financial year, the value of the non-current assets held by Vieta Co increased because the directors implemented a policy of revaluation.
How will the company’s return on capital employed (ROCE) and net profit margin ratios for the year be affected?
- A . ROCE = Increase, Net profit margin = Increase
- B . ROCE = Increase, Net profit margin = Decrease
- C . ROCE = Decrease, Net profit margin = Increase
- D . ROCE = Decrease, Net profit margin = Decrease
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.
- A . (i) and (ii) only
- B . (ii) and (iii) only
- C . (i) and (iii) only
- D . (i), (ii) and (iii)
Latest MA Dumps Valid Version with 80 Q&As
Latest And Valid Q&A | Instant Download | Once Fail, Full Refund
