CMA I - Intro & Cost Classification

Accounting reports are prepared for the use of external users. The statement above best describes:

• Management Accounting

• Cost Accounting

• Financial Accounting

• All of the above

Which of the following phrases describes Management Accounting?

• Under legal obligation

• For external users

• Any presentation formats

• By-product of financial accounting

The cost increases in direct proportion to increases in number of units produced. Sketch the graph:

Which ONE of the following costs would NOT be classified as a production overhead cost in a food processing company?

• The cost of renting the factory building.

• The salary of the factory manager.

• The depreciation of equipment located in the materials store.

• The cost of ingredients.

Constant in total when production volume changes. Classify the cost:

The audit fee paid by a manufacturing company would be classified as:

• A production overhead cost

• A selling and distribution cost

• A research and development cost

• An administration cost

Financial accounts are prepared for external stakeholders.

Management accounts are prepared for _________ stakeholders.

The direct material cost is RM20,000 and the prime cost is RM55,000, then the direct labour cost would be:

• RM70,000

• RM55,000

• RM20,000

• RM35,000

The direct labour cost is RM30,000 and the direct material cost is RM65,000, then the prime cost would be:

• RM35,000

• RM95,000

• RM30,000

• RM65,000

The direct labour cost is added into factory overhead cost to calculate

• merchandise cost

• conversion cost

• transactional cost

• resale cost