ReSA - THE REVIEW SCHOOL OF ACCOUNTANCY

CPA Review Batch 43  May 2022 CPALE  7 Feb 2022  6:00 PM - 9:00 PM

MANAGEMENT ADVISORY SERVICES FIRST PRE-BOARD EXAMINATION

INSTRUCTIONS: Select the correct answer for each of the questions. Mark only one
answer for each item by shading the box corresponding to the letter of your choice on
the answer sheet provided. STRICTLY NO ERASURES ALLOWED. Use pencil no. 2 only.
Set A
1. Which is NOT among the typical strategic analysis to operating profit?
C a. Cost effect of growth component
b. Cost effect of price-recovery component
c. Revenue effect of productivity component
d. Revenue effect of price-recovery component

2. Using the high-low method of cost segregation, Chinese Zodiac Company has
developed a monthly variable cost function of Y = 2.5X (where X is based on the
number of machine hours) for the factory overhead costs of its lone product based
on the following information:
Machine Hours Factory Overhead
Month 1 (Low) 200 P 1,700
Month 2 (High) ??? P 1,800

The number of machine hours for month 2:

B a. Must have been 250 hours
b. Must have increased by 20% from month 1
c. Must have increased by 40% from month 1
d. Cannot be determined from the given information

3. If a firm uses variable costing, fixed manufacturing overhead will be included

B a. Only on the balance sheet
b. Only on the income statement
c. On both the balance sheet and income statement
d. On neither the balance sheet nor income statement

4. Tiger Corporation uses a standard cost system. The following information was
provided for the period that just ended:
Actual price per kilogram P 3.00
Actual kilograms of material used 31,000
Actual hourly labor rate P 18.10
Actual hours of production 4,900 labor hrs.
Standard price per kilogram P 2.80
Standard kilograms per completed unit 6 kilograms
Standard hourly labor rate P 18.00
Standard time per completed unit 1 hr.
Actual total factory overhead P 34,900
Fixed factory overhead P 18,000
Standard fixed factory overhead rate P 1.20 per labor hour
Standard variable factory overhead rate P 3.80 per labor hour
Maximum plant capacity 15,000 hours
Plant operated during the period 10,000 hours
Units completed during the period 5,000

The direct materials cost variance is:

B a. P 3,400 unfavorable
b. P 9,000 unfavorable
c. P 9,000 favorable
d. P 3,400 favorable

5. If economic activity slows down, total costs could easily decline in which of
the following categories?
A a. Variable costs and discretionary fixed costs
b. Variable costs and committed fixed costs
c. Committed fixed costs only
d. Variable costs only

6. If sales and expenses both rise by P 100,000

D a. Asset turnover will decrease
b. Residual income will increase.
c. Return on investment will increase.
d. Return on investment will be unchanged.

Page 1 of 12 0915-2303213  resacpareview@gmail.com

 MANAGEMENT ADVISORY SERVICES
ReSA Batch 43 - May 2022 CPALE Batch
07 Feb 2022  6:00 PM to 9:00 PM MAS First Pre-Board Exam

7. An actual cost system differs from a normal cost system in that an actual cost
system
B a. Assigns overhead as it occurs during the manufacturing cycle
b. Assigns overhead at the end of the manufacturing process
c. Does not use an Overhead Control account
d. Does not assign overhead at all

8. Horse Co. presents the following operating data for its manufacturing operations:
Unit selling price P 250
Unit variable cost P 100
Total fixed costs P 840,000
The company has decided to increase the wages of hourly workers which will
increase the unit variable cost by 10%. Increases in the salaries of factory
supervisors and property taxes for the factory will increase fixed costs by 4%.
If sales prices are held constant, the next break-even point for Horse will be:
A a. increased by 640 units
b. increased by 400 units
c. decreased by 640 units
d. increased by 800 units

9. The opportunity cost of making a component part in a factory with no excess

capacity is the:
D a. Fixed manufacturing cost of the component
b. Variable manufacturing cost of the component
c. Cost of the production given up in order to manufacture the component
d. Net benefit foregone from the best alternative use of the capacity
required

10. Based on past experience, Dragon Company has the following expected pattern of
collections on credit sales: 70 percent collected in the amount of sale, 15
percent in the month after the month of sale, and 14 percent in the second month
after the month of sale. The remaining 1 percent is never collected. At the end
of May, Dragon Company has the following accounts receivable balances:
From April sales P 21,000
From May sales 48,000

Dragon’s expected sales for June are P150,000. What were total sales for April?
B a. P 150,000
b. P 140,000
c. P 72,414
d. P 70,000

11. Line management typically includes

C a. IT Managers
b. HR Managers
c. Manufacturing Managers
d. Management-Accounting Managers

12. Consider the following production and cost data for two products, L1 and C2:
Product L1 Product C2
Contribution margin per unit ....... P 130 P 120
Machine set-ups needed per unit .... 10 set-ups 8 set-ups

The company can only perform 65,000 machine set-ups each period due to limited
skilled labor and there is unlimited demand for each product. What is the largest
possible total contribution margin that can be realized each period?
C a. P 845,000
b. P 910,000
c. P 975,000
d. P 1,820,000

13. The number of variables used in simple regression analysis is:

B a. One
b. Two
c. Two or more
d. Three or more

Page 2 of 12 0915-2303213  resacpareview@gmail.com

 MANAGEMENT ADVISORY SERVICES
ReSA Batch 43 - May 2022 CPALE Batch
07 Feb 2022  6:00 PM to 9:00 PM MAS First Pre-Board Exam

14. Standard costs are LEAST useful for:

B a. Controlling costs
b. Income determination
c. Measuring efficiencies
d. Forming a basis for price setting

15. Rabbit Corporation uses the total cost concept of product pricing. Below is cost
information for the production and sale of 60,000 units of its sole product.
Rabbit desires a profit of 21% rate of return on invested assets of P 600,000.

Fixed factory overhead cost P 37,500

Fixed selling and administrative costs 7,500
Variable direct materials cost per unit 4.50
Variable direct labor cost per unit 1.88
Variable factory overhead cost per unit 1.13
Variable selling and administrative cost per unit 4.50

What is the unit selling price for the company's product?

B a. P 13.92
b. P 14.86
c. P 14.97
d. P 15.00

16. Managerial finance

A a. Involves tasks such as budgeting, financial forecasting, cash
management, and funds procurement.
b. Devotes the majority of its attention to the collection and
presentation of financial data.
c. Involves the design and delivery of advice and financial products.
d. Recognizes funds on an accrual basis.

Items 17 to 19 are based on the following information

The following information is available for Ox Company for its first year of
operations:

Sales in units 5,000

Production in units 8,000
Manufacturing costs:
Direct labor P 3 per unit
Direct material P 5 per unit
Variable overhead P 1 per unit
Fixed overhead P 100,000
Net income (absorption method) P 30,000
Sales price per unit P 40

17. If Ox Company had used variable costing, what amount of income before income
taxes would it have reported?
A a. (P 7,500)
b. P 30,000
c. P 67,500
d. cannot be determined from the information given

18. What was the total amount of Selling, General and Administrative expense incurred
by Ox Company?
A a. P 62,500
b. P 30,000
c. P 6,000
d. can’t be determined from the information given

19. If Ox Company were using variable costing, what would it show as the value of
ending inventory?
C a. P 120,000
b. P 64,500
c. P 27,000
d. P 24,000

Page 3 of 12 0915-2303213  resacpareview@gmail.com

 MANAGEMENT ADVISORY SERVICES
ReSA Batch 43 - May 2022 CPALE Batch
07 Feb 2022  6:00 PM to 9:00 PM MAS First Pre-Board Exam

20. A company that maintains a raw material inventory, which is based on the following
month's production needs, will purchase less material than it uses in a month
where
C a. Sales exceed production
b. Production exceeds sales
c. Planned production exceeds the next month's planned production
d. Planned production is less than the next month's planned production

21. Rooster Company has two divisions – North and South. The divisions have the
following revenues and expenses:
NORTH SOUTH
Sales ........................ P 550,000 P 500,000
Variable costs ............... 275,000 200,000
Direct fixed costs ........... 180,000 150,000
Allocated corporate costs .... 170,000 135,000
Net income (loss) ............ (75,000) 15,000

The management of Rooster is considering the elimination of the North Division.

If the North Division were eliminated, the direct fixed costs associated with
this division could be avoided. However, corporate costs would still be P 305,000
in total. Given these data, the elimination of the North Division would result
in an overall company net income (loss) of:
D a. P 15,000
b. (P 60,000)
c. (P 75,000)
d. (P 155,000)

22. Management Accounting

D a. Provides information about the company as a whole
b. Reports information that has occurred in the past that is verifiable
and reliable
c. Provides information that is generally available only on a quarterly
or annual basis
d. Focuses on estimating future revenues, costs and other measures to
forecast activities and their results

23. Sheep Company developed following standards for its main product lamps:
Standard Inputs Expected for Standard Price Expected
Each Unit of Output per Unit of Output
Direct materials 20 pounds P 2 per pound
Direct labor 6 hours P 8 per hour

During January, production of 100 lamps was expected, but 110 lamps were actually
completed. Direct materials purchased and used were 2,100 pounds at an actual
price of P 2.20 per pound. Direct labor cost for the month was P 5,310 and actual
pay per hour was P 9. What was the direct-labor efficiency variance for the month
of January?
A a. P 560 favorable
b. P 560 unfavorable
c. P 630 favorable
d. P 630 unfavorable

24. Controllability and variable costs are different in that

C a. Managers have more influence over variable costs than over
controllable costs
b. Variable costs may be with production or administrative, whereas
controllable costs are only production-related costs
c. Managers have controllability over more than just variable costs
d. Variable costs are only short-run costs

25. In a decentralized company in which divisions may buy goods from one another,
the transfer pricing system should be designed primarily to
D a. Increase the consolidated value of inventory
b. Allow division managers to buy from outsiders
c. Minimize the degree of autonomy of division managers
d. Aid in the appraisal and motivation of managerial performance

Page 4 of 12 0915-2303213  resacpareview@gmail.com

 MANAGEMENT ADVISORY SERVICES
ReSA Batch 43 - May 2022 CPALE Batch
07 Feb 2022  6:00 PM to 9:00 PM MAS First Pre-Board Exam
26. Operating decisions primarily deal with
B a. Satisfying shareholders
b. The best use of scarce resources
c. Acquiring equipment and buildings
d. How to obtain funds to acquire resources

27. The Manila Division of Dog Corporation has the following segment information:
Assets available for use P 2,500,000
Target rate of return 12%
Residual income P 300,000

What was Manila Division's return on investment?

C a. 12%
b. 10%
c. 24%
d. 20%

28. When the number of units manufactured increases, the most significant change in
unit cost will be reflected as a(n)
D a. increase in the fixed element
b. decrease in the variable element
c. increase in the mixed element
d. decrease in the fixed element

29. Snake Company has provided you with the following budget information for April:
Cash collections P 876,000
April 1 cash balance 23,000
Cash disbursement 978,600

Snake has a policy of maintaining a minimum cash balance of P 20,000 and borrows
only in P 1,000 increments. How much will Snake borrow in April?
D a. P 79,600
b. P 80,000
c. P 99,000
d. P 100,000

30. Variable costing regards fixed manufacturing overhead as

D a. a product cost
b. an unexpired cost
c. an inventoriable cost
d. a charge against sales

31. Rat Company uses a two-way analysis of overhead variances. Selected data for the
March production activity are as follows:
Actual variable OH incurred P 196,000
Variable OH rate per MH P 6
Standard MHs allowed 33,000
Actual MHs 32,000

Assuming that budgeted fixed overhead costs are equal to actual fixed costs, the
controllable variance for March is
A a. P 2,000 F
b. P 4,000 U
c. P 4,000 F
d. P 6,000 F

32. Yin-Yang Corporation is composed of three operating divisions. Overall, the Yin-
Yang Corporation has a return on investment of 20%. Division A has a return on
investment of 25%. If Yin-Yang Corporation evaluates its managers on the basis
of return on investment, how would the Division A manager and the Yin-Yang
Corporation president react to a new investment that has an estimated return on
investment of 23%?
Division A Manager Ying-Yang Corporation President
C a. accept accept
b. accept reject
c. reject accept
d. reject reject

Page 5 of 12 0915-2303213  resacpareview@gmail.com

 MANAGEMENT ADVISORY SERVICES
ReSA Batch 43 - May 2022 CPALE Batch
07 Feb 2022  6:00 PM to 9:00 PM MAS First Pre-Board Exam
33. Relevant revenues and costs focus on:
D a. Last year's net income
b. Monies already earned and/or spent
c. Activities that occurred in the past
d. Differences between the alternatives being considered

34. The material purchases budget tells a manager all of the following except the
D a. Quantity of material to be purchased each period
b. Quantity of material to be consumed each period
c. Cost of material to be purchased each period
d. Cash payment for material each period

Items 35 and 36 are based on the following information

The following information relates to financial projections of Pig Company:
Projected sales 60,000 units
Projected variable costs P 2.00 per unit
Projected fixed costs P 50,000 per year
Projected unit sales price P 7.00

35. How many units would Pig need to sell to earn a profit before taxes of P 10,000?
D a. 25,714
b. 10,000
c. 8,571
d. 12,000

36. If Pig Company achieves its projections, what will be its degree of operating
leverage?
B a. 6.00
b. 1.20
c. 1.68
d. 2.40

37. In a linear programming model, the objective function and the resource
constraints have the same
D a. Constants
b. Coefficients
c. Dependent variables
d. Independent variables

38. The West Division of the Feng Shui Company has the following statistics for its
most recent operations:
Assets available for use (Market Value) P 3,600,000
Assets available for use (Book Value) P 2,000,000
West Division's return on investment 25%
West Division's residual income 200,000
Return on investment (entire Feng Shui Company) 20%
If cost of capital is 10% & tax rate is 40%, what is Economic Value-Added (EVA)?
D a. P 150,000
b. P 90,000
c. P 0
d. P (60,000)

39. As the economy becomes more and more depressed, a company's management decides
to slash spending on research and development. What is the likely effect of this
action on net income? Net income will be
A a. higher this period and lower in future periods
b. higher this period and higher in future periods
c. lower this period and higher in future periods
d. lower this period and lower in future periods

40. Favorable volume variances may be harmful when:

C a. machine repairs cause work stoppages
b. supervisors fail to maintain an even flow of work
c. production in excess of normal capacity cannot be sold
d. there are insufficient sales orders to keep the factory operating at
normal capacity

Page 6 of 12 0915-2303213  resacpareview@gmail.com

 MANAGEMENT ADVISORY SERVICES
ReSA Batch 43 - May 2022 CPALE Batch
07 Feb 2022  6:00 PM to 9:00 PM MAS First Pre-Board Exam

41. The primary reason for implementing a new budgeting system is

B a. Managers’ need for more information in making better purchasing
decisions.
b. The relative expected benefits of the new system exceed its costs.
c. Managers’ need for more information for variance analysis.
d. The expected benefits exceed the costs of the old system.

42. The following information regarding fixed production costs from a manufacturing
firm is available for the current year:
Fixed costs in the beginning inventory P 16,000
Fixed costs incurred this period 100,000

Which of the following statements is FALSE?

C a. The maximum amount of fixed production costs that this firm could
deduct using absorption costs in the current year is P 116,000.
b. The minimum amount of fixed costs that firm could deduct for the
current year under variable costing is P 100,000.
c. Using variable costing, this firm will deduct no more than P 16,000
for fixed production costs.
d. If this firm produced substantially more units than it sold in the
current year, variable costing will probably yield a lower income than
absorption costing.

43. In microeconomics, which situation would there be inelastic demand?

B a. A 2% price increase results in a 1% increase in the quantity demanded
b. A 2% price increase results in a 1% decrease in the quantity demanded
c. A 1% price increase results in a 2% increase in the quantity demanded
d. A 1% price increase results in a 2% decrease in the quantity demanded

44. Materials and labor cost standards are generally based on:
D a. Expected actual conditions, anticipated prices, and desired efficiency
levels
b. Theoretical conditions, present price levels, and desired efficiency
levels
c. Capacity conditions, anticipated prices, and desired efficiency levels
d. Normal conditions, present price levels, and desired efficiency levels

45. Monkey Corporation manufactures hats that sell for P 10 per unit. This is its
sole product and it has projected the break-even point at 50,000 units in the
coming period.

If fixed costs are projected at P 100,000, what is the projected variable cost
ratio?
A a. 80 percent
b. 20 percent
c. 40 percent
d. 60 percent

46. The greatest degree of control for committed fixed costs is exerted
C a. in the post-investment audit.
b. during the life of the investment.
c. prior to acquisition.
d. by equipment operators.

47. Budgeted sales for the first six months for Earth Corp. are listed below:
January February March April May June
Units 6,000 7,000 8,000 7,000 5,000 4,000

Earth Corp. has a policy of maintaining an inventory of finished goods equal to

40 percent of the next month’s budgeted sales. If Earth Corp. plans to produce
6,000 units in June, what are budgeted sales for July?
C a. 3,600 units
b. 1,000 units
c. 9,000 units
d. 8,000 units

Page 7 of 12 0915-2303213  resacpareview@gmail.com

 MANAGEMENT ADVISORY SERVICES
ReSA Batch 43 - May 2022 CPALE Batch
07 Feb 2022  6:00 PM to 9:00 PM MAS First Pre-Board Exam
48. Expected value in decision analysis is
A a. An arithmetic mean using the probabilities as weights
b. A standard deviation using the probabilities as weights
c. The standard deviation divided by the coefficient of variation
d. A measure of the difference between best possible outcome and outcome
of the original decision

49. Which of the following is not true about an imposed budget?

C a. It uses the knowledge of top management as it relates to resource
availability
b. It reduces the budgeting process time frame
c. It increases the feeling of teamwork
d. It enhances coordination

50. Water Company has developed standard overhead costs based on a capacity of 180,000
machine hours as follows:
Standard costs per unit
Variable portion 2 hours @ P 3 = P 6
Fixed portion 2 hours @ P 5 = 10
P 16

During November, 85,000 units were scheduled for production, but only 80,000 units
were actually produced. The following data relate to November:
 Actual machine hours used were 165,000.
 Actual overhead incurred totaled P 1,378,000 (P 518,000 variable plus P 860,000
fixed).
 All inventories are carried at standard cost.

The fixed overhead volume variance for November was

D a. P 60,000 U
b. P 60,000 F
c. P 100,000 F
d. P 100,000 U

51. In evaluating the profit center manager, the income from operations should be
compared:
B a. across profit centers
b. to budget or past performance
c. to the competition's net income
d. to the total company earnings per share

52. Fire Company produces and sells product with the following unit costs:
Prime costs P 10
Variable indirect manufacturing costs 6
Fixed indirect manufacturing costs 4
Variable marketing costs 8
Fixed marketing costs 3
Total unit cost P 31

The company is considering whether to continue producing the product or simply

buy it from an outside supplier. It has found a supplier which can produce the
product per the company’s specifications.

If the company buys the product, variable marketing cost would be reduced by
60%, but fixed marketing costs would remain the same.

What is the maximum unit price that the company would be willing to pay the
supplier without decreasing its operating income?
B a. P 19.20
b. P 20.80
c. P 24.00
d. P 31.00

53. A firm that is successful in meeting its output goal for a period is said to be
B a. efficient
b. effective
c. profitable
d. exercising cost containment measures

Page 8 of 12 0915-2303213  resacpareview@gmail.com

 MANAGEMENT ADVISORY SERVICES
ReSA Batch 43 - May 2022 CPALE Batch
07 Feb 2022  6:00 PM to 9:00 PM MAS First Pre-Board Exam
54. Mr. Lee is an experienced and fully trained shipbuilder based in the Middle East.
Due to significant economic change in supply and demand conditions for
shipbuilding in Mr. Lee's own country, the shipyard he worked for has closed and
he was made redundant.

There was no other local demand for his skills within his own region and he would
have to move to another country to obtain a similar employment, and could only
find similar work locally through undertaking at least a year's retraining in a
related engineering field.

Which of the following describes the type of unemployment that Mr. Lee has been
affected by?
D a. Cyclical unemployment
b. Marginal unemployment
c. Frictional unemployment
d. Structural unemployment

55. The separation of fixed and variable costs is necessary for all of the following
purposes except:
A a. absorption costing and net income analysis
b. direct costing and contribution margin analysis
c. break-even and cost-volume-profit analysis
d. differential and comparative cost analysis

Items 56 & 57 are based on the following information

The Motor Division of Chinese Zodiac Corporation uses 5,000 carburetors per month
in its production of automotive engines. It presently buys all of the carburetors
it needs from two outside suppliers at an average cost of P 100. The Carburetor
Division of Chinese Zodiac manufactures the exact type of carburetor that the
Motor Division requires. The Carburetor Division is presently operating at its
capacity of 15,000 units per month and sells all of its output to a foreign car
manufacturer at P 106 per unit. Its cost structure (on 15,000 units) is:
Variable production costs P 70
Variable selling costs 10
All fixed costs 10

Assume that the Carburetor Division would not incur any variable selling costs
on units that are transferred internally.

56. What is the maximum of the transfer price range for a transfer between the two
divisions?
B a. P 106
b. P 100
c. P 90
d. P 70

57. What is the minimum of the transfer price range for a transfer between the two
divisions?
C a. P 70
b. P 90
c. P 96
d. P 106

58. The flexible budget is

A a. Appropriate for any relevant level of activity
b. Not appropriate when costs and expenses are affected by fluctuations
in volume limits
c. Appropriate for control of direct materials and direct labor but not
for control of factory overhead
d. Appropriate for control of factory overhead but not for control of
direct materials and direct labor

59. From the viewpoint of financial management, profit maximization as a company

goal often fails because it ignores all, EXCEPT
B a. cash flows available to stockholders
b. earnings per share
c. the timing of returns
d. risk

Page 9 of 12 0915-2303213  resacpareview@gmail.com

 MANAGEMENT ADVISORY SERVICES
ReSA Batch 43 - May 2022 CPALE Batch
07 Feb 2022  6:00 PM to 9:00 PM MAS First Pre-Board Exam
60. The coefficient of determination indicates:
A a. The percentage of explained variance in the dependent variable
b. Causal relationships among costs and other factors
c. The linear relationship between two variables
d. Whether several variables fluctuate

Items 61 and 62 are based on the following information

Inventory balances and manufacturing cost data for the month of January for
Fortune Company. Under Fortune’s cost system, any over-applied or under-applied
overhead is closed to the cost of goods sold account at the end of the calendar
year.
Inventories: Beginning Ending
Direct materials P 15,000 P 20,000
Work-in-process 7,500 10,000
Finished goods 32,500 25,000

Month of January
Cost of goods manufactured P 257,500
Factory overhead applied 75,000
Direct materials used 95,000
Actual factory overhead 72,000

61. What was the amount of direct material purchases during January?
D a. P 90,000
b. P 95,000
c. P 97,500
d. P 100,000

62. How much direct labor cost was incurred during January?
C a. P 85,000
b. P 87,500
c. P 90,000
d. P 93,000

63. Which classification of costs shall be least relevant in a responsibility

accounting system?
D a. Controllable cost vs. non-controllable cost
b. Discretionary cost vs. committed cost
c. Direct cost vs. indirect cost
d. Product cost vs. period cost

64. The following operating data refer to Lucky Company’s 6-day workweek:
Sum of the hours 174
Sum of the costs 225
Sum of the hours x costs 3,414
Sum of the squared value of costs 4,259

Which equation shall be used under the least-squares method?

D a. 3,414 = 225 a + 4,259 b
b. 3,414 = 174 a + 4,259 b
c. 225 = 174 a + 3,414 b
d. 225 = 6 a + 174 b

65. Which of the following would least likely cause an unfavorable materials quantity
(usage) variance?
A a. Labor that possesses skills equal to those required by the standards
b. Scheduling of substantial overtime
c. A mix of direct materials that does not conform to plan
d. Materials that do not meet specifications

66. Happiness Company recently reported a profit of P 5,000 when the unit variable
cost of its lone product is P 3.00. If the unit selling price is P 5.00, then
how much is the margin of safety?
B a. P 10,000
b. P 12,500
c. P 15,000
d. Cannot be determined from the given information

Page 10 of 12 0915-2303213  resacpareview@gmail.com

 MANAGEMENT ADVISORY SERVICES
ReSA Batch 43 - May 2022 CPALE Batch
07 Feb 2022  6:00 PM to 9:00 PM MAS First Pre-Board Exam

67. Pricing decisions do not usually consider

A a. Costs of competitors products
b. Total product absorption costs
c. Prices of competitors products
d. Elasticity of demand for the product

68. The following information is for Yin-Yang Company:

Product A
Revenue P 4.00
Variable Cost P 1.00

Product B
Revenue P 6.00
Variable Cost P 2.00
Total fixed costs are P 40,000.

What is the break-even point, assuming the sales mix consists of 10

units of Product A and 5 units of Product B?
C a. 2,000 units of B and 4,000 units of A
b. 2,025 units of B and 4,050 units of A
c. 4,000 units of B and 8,000 units of A
d. 4,025 units of B and 8,050 units of A

69. Which of the following is least likely to be classified as an investment

center in a responsibility accounting system?
A a. Ayala Mall car park ticket outlet
b. Recto branch of a popular fast-food restaurant
c. Selecta product division of Unilever Philippines
d. Convenience store owned by a large chain organization

70. Two market structures that are imperfectly competitive are oligopoly and
monopolistic competition. What is the difference between an oligopoly and
monopolistic competition?
A a. Oligopoly is about the number of firms while monopolistic
competition is about the variety of products
b. Monopolistic competition is about the number of firms while
oligopoly is about the variety of products
c. Oligopoly has no barriers to entry while monopolistic competition
has low entry barrier
d. Monopolistic competition has no barriers to entry while oligopoly
has low entry barrier

- END –

Page 11 of 12 0915-2303213  resacpareview@gmail.com

 MANAGEMENT ADVISORY SERVICES
ReSA Batch 43 - May 2022 CPALE Batch
07 Feb 2022  6:00 PM to 9:00 PM MAS First Pre-Board Exam

Page 12 of 12 0915-2303213  resacpareview@gmail.com