Multiple Choice UAS Manacc 

@TUTORKU 

 
Pricing
1. Target cost related to price and profit means that:
a. Cost and desired profit must be determined before selling price.
b. Cost and selling price must be determined before desired profit.
c. Price and desired profit must be determined before costs.
d. Costs can be achieved only if the company is at full capacity.

2. The disadvantage of cost-plus pricing is:

a. Does not consider the supply side
b. Does not consider demand side
c. Depends on the cost of production
d. Variable costs changes along with sales volume

3. Cost plus pricing means:

a. Selling price = variable cost + markup percentage
b. Selling price = fixed cost + markup percentage
c. Selling price = fixed cost + (markup percentage x variable cost)
d. Selling price = total cost + (markup percentage x total cost)

4. Material loading charge includes, except:

a. Cost of handling material
b. Cost of purchasing material
c. Cost of delivering materials to customer
d. Desired profit margin on materials
5. BGC’s total costs of labor is $120,000 for 12,000 hours of labor. The company expects $5
profit per hour on labor hours. The labor charge of the company would be:
a. $20
b. $25
c. $15
d. $10

6. (Refer to number 5) If the total invoice cost, parts & materials is $500,000 for the period,
the total cost of handling & storing of materials is $100,000. The material loading charge
after 10% profit margin on the invoice cost of parts and materials is:
a. 20%
b. 10%
c. 40%
d. 30%

7. (Refer to number 5) A client of BGC requested a quote for ‘Green-plant’ project. The project
will require 1,250 hours of labour and $150,000 material cost. The project would cost the
client:
a. $213,750
b. $183,750
c. $63,750
d. $207,500

8. A company is trying to launch a new flavour of Vegamite. Based on a management research,

customers won’t buy the product if it costs more than $14 per jar, and the company needs at
least $6 of profit per jar to survive the competition. Therefore, the maximum cost of this
product must be:
a. $5
b. $9
c. $4
d. $8

9. TamTim invests $1,000,000 on new machines to create its delicious chocolate. The company
expects to produce 25,000 pack of TamTim with total unit cost of $10 per pack with this
new investment. If the company targeted 10% of ROI on the investment, the markup per
pack would have to be:
a. $5
b. $9
c. $4
d. $8
 10. The markup on cost plus pricing depends on, except:
a. ROI of investment
b. Total unit cost
c. Investment costs
d. Price per unit

Budgetary Planning
1. The benefits of budgeting are, except:
a. Management can plan ahead
b. As an early warning system for potential problems
c. Facilitates coordination of activities within the business
d. Provide indefinite objectives for evaluating performance

2. The length of budget period should be:

a. Short enough to provide attainable goal
b. Long enough for reliable estimates
c. Long enough to minimize seasonal or cyclical fluctuations
d. Long enough to maximize seasonal or cyclical fluctuations

3. The Master budget contains two classes of budgets, which are:

a. Top management budget & Bottom management budget
b. Operational budget & Financial budget
c. Long term budget & Short term budget
d. Operational budget & Accounting budget

4. After the sales budget, _______ is the second operational budget prepared
a. Selling & administrative budget
b. DM budget
c. DL budget
d. Production budget

5. Which formula calculates the required direct materials unit to be purchased?

a. DM units required for production + desired ending DM units - beginning DM
units
b. DM units required for production - desired ending DM units + beginning DM units
c. DM units required for production + desired ending DM units + beginning DM units
d. DM units required for production - desired ending DM units - beginning DM units
6. Koala Company expects to produce 100 goods next year. Each product requires 10 hours of
labour that costs $3 per hour. The total direct labor cost will be:
a. $30
 b. $3000
c. $1000
d. $100

7. Tofufah Corp predicted sales for the next year to be 3,450,000 units. Quarterly sales are
expected to be 25%, 10%, 45%, 20% of annual sales, respectively. If the price of 1 unit is $5,
Tofufah Corp will record ______ of profit in the 3rd quarter of next year
a. $7,726,400
b. $7,982,000
c. $7,762,500
d. $7,672,500

8. (Refer to number 6) Production in 2nd quarter requires 1,000,000 hours of labour. The
indirect materials, indirect labour, utilities, and maintenance costs are $2,$1,$0.5, and $0.1
per hour, respectively. The MOH budget for the 2nd quarter is
a. $3,600,000
b. $4,800,000
c. $1,000,000
d. $1,200,000

Budgetary Control
1. Budgetary control compares:
a. Budgeted and expected results
b. Operational and Selling results
c. Budgeted and operational results
d. Budgeted and actual results

2. There are 2 types of budgetary control

a. Static and budget
b. Operational and financial
c. Flexible and operational
d. Static and flexible

3. The situation is favorable if the __________ is higher than __________

a. Actual cost incurred, budgeted cost
b. Budgeted cost, actual cost incurred
c. Operational cost, actual cost incurred
d. Actual cost incurred, selling cost

4. The situation is unfavorable if the __________ is higher than __________

 a. Actual cost incurred, budgeted cost
b. Budgeted cost, actual cost incurred
c. Operational cost, actual cost incurred
d. Actual cost incurred, selling cost

5. A static budget is useful in controlling costs when cost behavior is

a. Mixed
b. Fixed
c. Variable
d. Linear

6. The flexible budget formula is fixed costs $50,000 plus variable costs of $4 per direct labor
hour. What is the total budgeted cost at 9,000 hours
a. $54,000
b. $48,000
c. $86,000
d. $68,000

7. The formula for ROI is:

a. Average operating assets : controllable margin
b. Controllable margin : average operating assets
c. Return : total investment
d. Profit : total investment

8. The investment center includes:

a. Controllable costs
b. Revenue and controllable costs
c. Revenue, controllable costs, and uncontrollable costs
d. Revenue, controllable costs, uncontrollable costs, and net income

9. The South Division of Cockatoo Company reported the following data for the current year.
Sales $3,098,000
Variable costs 2,038,484
 Controllable fixed costs 601,000
Average operating assets 5,067,600
The current ROI is
a. 6%
b. 7%
c. 8%
d. 9%

10. If sales is increased by $320,000 with no change in the contribution margin percentage, the
ROI becomes:
a. 12.1%
b. 11.2%
c. 8.9%
d. 9.4%

Standard cost & balanced scorecard

1. Standard cost is defined as:
a. Budgeted cost per unit amount
b. Actual cost per unit amount
c. Variable cost per unit amount
d. FIxed cost per unit amount

2. Normal standard is defined as:

a. Optimum levels of performance that are attainable under current operating
condition
b. Optimum levels of performance that are attainable under perfect operating
condition
c. Efficient levels of performance that are attainable under current operating
condition
d. Efficient levels of performance that are attainable under perfect operating condition

3. Quantity standard is defined as:

a. Cost per unit of DM that should be incurred
b. Cost per unit of DM that is actually incurred e incurred
c. Quantity of DM that is actually incurred per unit of finished goods
d. Quantity of DM that should be used per unit of finished goods
4. The formula for standard predetermined overhead rate (POR) is
a. Actual overhead / standard activity index
b. Budgeted overhead / actual activity index
c. Actual overhead / actual activity index
 d. Budgeted overhead / standard activity index

5. The formula for total labor variance is

a. (actual hours x actual rate) + (standard hours x standard rate)
b. (actual hours x actual rate) - (standard hours x standard rate)
c. (actual hours x standard rate) - (actual hours x standard rate)
d. (actual hours x actual rate) : (standard hours x standard rate)

6. Kangaroo corporation accumulates the following data concerning raw materials in making
one gallon of finished product: (1) Price—net purchase price $2.53, freight-in $0.30, and
receiving and handling $0.20. (2) Quantity—required materials 3.59 pounds, allowance for
waste and spoilage 0.90 pounds. The standard direct material price per gallon is:
a. $6.03
b. $5.03
c. $4.03
d. $3.03

7. (refer to number 6) The standard direct material quantity per gallon is:
a. 2.5 pounds
b. 4.5 pounds
c. 6.5 pounds
d. 8.5 pounds

8. (refer to number 6) The standard materials cost per gallon is:

a. $11.6
b. $12.6
c. $13.6
d. $14.6

9. Orbi Company’s standard materials cost per unit of output is $10.35 (2.30 pounds x $4.50).
During July, the company purchases and uses 3,105 pounds of materials costing $16,767 in
making 1,500 units of finished product. The total materials variance is
a. $1424, favorable
b. $1242, favorable
c. $1424, unfavorable
d. $1242, unfavorable
10. (Refer to number 9] The materials quantity variance is
a. $1553, favorable
b. $1335, unfavorable
c. $1553, unfavorable
d. $1335, favorable