CPA MA - Management Accounting Exam
Page: 3 / 16
Total 80 questions
Question #11 (Topic: )
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 companys return on capital employed (ROCE) and net profit margin ratios for
the year be affected?
Co increased because the directors implemented a policy of revaluation.
How will the companys 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
Answer: D
Question #12 (Topic: )
Dalf Co calculates the margin of safety for each of its products separately. Data for one
product are shown below:
Selling price per unit$85
Variable cost per unit$53
Budgeted sales volume80,000 units
Margin of safety22%
What is the value of fixed costs attributed to the product?
product are shown below:
Selling price per unit$85
Variable cost per unit$53
Budgeted sales volume80,000 units
Margin of safety22%
What is the value of fixed costs attributed to the product?
A. $3,307,200
B. $1,996,800
C. $2,560,000
D. $616,000
Answer: B
Question #13 (Topic: )
Arif must decide which machine to purchase. He has prepared the following payoff table,
showing the profits which it is anticipated each machine will generate, based on the level of
demand:
Low demandHigh demand
$000$000
Machine A4090
Machine B80120
Machine C9530
Machine D11040
Based on the maximin decision-making criterion, which machine should be purchased?
showing the profits which it is anticipated each machine will generate, based on the level of
demand:
Low demandHigh demand
$000$000
Machine A4090
Machine B80120
Machine C9530
Machine D11040
Based on the maximin decision-making criterion, which machine should be purchased?
A. Machine A
B. Machine B
C. Machine C
D. Machine D
Answer: B
Question #14 (Topic: )
Which of the following comments about sales price is correct?
A. Market penetration will normally be achieved by a low price on initial entry to the market
B. Market skimming will lead to a constant price throughout the product’s life
C. Cost plus pricing will lead to profit beingmaximized
D. A target cost price will generate profit immediately following market entry
Answer: A
Question #15 (Topic: )
Which of the following objectives is/are valid for a transfer pricing system?
(i) Maximizationof corporate profit
(ii) Assessment of divisional performance
(i) Maximizationof corporate profit
(ii) Assessment of divisional performance
A. Both (i) and (ii)
B. (i) only
C. (ii) only
D. Neither (i) nor (ii)
Answer: A
