CPAR
CPA REVIEW SCHOOL OF THE PHILIPPINES
Manila
MANAGEMENT ADVISORY SERVICES APRIL 27 AND 30, 2022
Final Pre-board Examination
Instructions: Choose the BEST answer for each of the following items.
1. That type of accounting which deals with how accounting and other financial
data can be used for decision-making in controlling, monitoring, and
directing business activity is called
a. management accounting c. financial accounting
b. responsibility accounting d. general accounting
2. In financial accounting, certain rules and regulations must be followed on
how financial statements must be presented to readers. In managerial
accounting, no such restrictions generally apply because it is
a. an entirely different field that need not observe the broad guidelines
in financial accounting.
b. designed to provide management with non-financial information for
decision-making.
c. designed to provide accounting and other financial data to assist
management in making business decisions.
d. a discipline that does not require preparation of financial statements.
3. In comparing management and financial accounting, which of the following
more accurately describes management accounting information?
a. comparable, verifiable, monetary
b. budgeted, informative, adaptable
c. required, estimated, internal
d. historical, precise, useful
4. Which of the following is not an objective of management accounting?
a. maximization of profit and minimization of costs.
b. measuring the performance of managers of subunits.
c. providing information for planning and decision making.
d. providing assistance in directing and controlling operations.
5. Cost is the monetary measure of the amount of resources given up in
obtaining goods and services. Costs may be classified as unexpired or
expired.
Which of the following costs is not always considered to be expired
immediately upon being recognized?
a. salesmen’s commission
b. depreciation expense for factory equipment
, MANAGEMENT ADVISORY SERVICES BATCH 91
FINAL PREBOARD Page 2 of 14
c. cost of goods sold
d. salary of the company president
6. It refers to anything (a product, product line, a business segment) for which
cost is computed.
a. Cost object c. Cost control
b. Cost driver d. Cost variance
7. An activity that adds costs to the product or service, but does not make such
product or service more valuable to customers is called
a. non-value-adding activity. c. costly activity.
b. value-adding activity. d. valuable activity.
8. Product costs or inventoriable costs
a. are charged to expense when products become part of the finished
goods inventory.
b. include only the prime costs of producing a product.
c. are treated as assets before the products are sold.
d. include only the conversion costs of producing the products.
ITEMS 9 to 15 ARE BASED ON THE FOLLOWING INFORMATION:
Data about Annabelle Company’s production and inventories for the month
of June are as follows:
Purchases – direct materials P143,440
Freight in 5,000
Purchase returns and allowances P 2,440
Direct labor 175,000
Actual factory overhead 120,000
Inventories: June 1 June 30
Finished goods P 68,000 P 56,000
Work in process 110,000 135,000
Direct materials 52,000 44,000
Annabelle Company applies factory overhead to production at 80% of
direct labor cost. Over– or underapplied overhead is closed to cost of
goods sold at year-end. The company’s accounting period is on the
calendar year basis.
9. Annabelle Company’s prime cost for June was
a. P154,000. c. P198,000.
b. P329,000. d. P315,000.
10. Annabelle Company’s conversion cost for June was
a. P315,000. c. P329,000.
b. P295,000. d. P444,000.
CPA REVIEW SCHOOL OF THE PHILIPPINES
Manila
MANAGEMENT ADVISORY SERVICES APRIL 27 AND 30, 2022
Final Pre-board Examination
Instructions: Choose the BEST answer for each of the following items.
1. That type of accounting which deals with how accounting and other financial
data can be used for decision-making in controlling, monitoring, and
directing business activity is called
a. management accounting c. financial accounting
b. responsibility accounting d. general accounting
2. In financial accounting, certain rules and regulations must be followed on
how financial statements must be presented to readers. In managerial
accounting, no such restrictions generally apply because it is
a. an entirely different field that need not observe the broad guidelines
in financial accounting.
b. designed to provide management with non-financial information for
decision-making.
c. designed to provide accounting and other financial data to assist
management in making business decisions.
d. a discipline that does not require preparation of financial statements.
3. In comparing management and financial accounting, which of the following
more accurately describes management accounting information?
a. comparable, verifiable, monetary
b. budgeted, informative, adaptable
c. required, estimated, internal
d. historical, precise, useful
4. Which of the following is not an objective of management accounting?
a. maximization of profit and minimization of costs.
b. measuring the performance of managers of subunits.
c. providing information for planning and decision making.
d. providing assistance in directing and controlling operations.
5. Cost is the monetary measure of the amount of resources given up in
obtaining goods and services. Costs may be classified as unexpired or
expired.
Which of the following costs is not always considered to be expired
immediately upon being recognized?
a. salesmen’s commission
b. depreciation expense for factory equipment
, MANAGEMENT ADVISORY SERVICES BATCH 91
FINAL PREBOARD Page 2 of 14
c. cost of goods sold
d. salary of the company president
6. It refers to anything (a product, product line, a business segment) for which
cost is computed.
a. Cost object c. Cost control
b. Cost driver d. Cost variance
7. An activity that adds costs to the product or service, but does not make such
product or service more valuable to customers is called
a. non-value-adding activity. c. costly activity.
b. value-adding activity. d. valuable activity.
8. Product costs or inventoriable costs
a. are charged to expense when products become part of the finished
goods inventory.
b. include only the prime costs of producing a product.
c. are treated as assets before the products are sold.
d. include only the conversion costs of producing the products.
ITEMS 9 to 15 ARE BASED ON THE FOLLOWING INFORMATION:
Data about Annabelle Company’s production and inventories for the month
of June are as follows:
Purchases – direct materials P143,440
Freight in 5,000
Purchase returns and allowances P 2,440
Direct labor 175,000
Actual factory overhead 120,000
Inventories: June 1 June 30
Finished goods P 68,000 P 56,000
Work in process 110,000 135,000
Direct materials 52,000 44,000
Annabelle Company applies factory overhead to production at 80% of
direct labor cost. Over– or underapplied overhead is closed to cost of
goods sold at year-end. The company’s accounting period is on the
calendar year basis.
9. Annabelle Company’s prime cost for June was
a. P154,000. c. P198,000.
b. P329,000. d. P315,000.
10. Annabelle Company’s conversion cost for June was
a. P315,000. c. P329,000.
b. P295,000. d. P444,000.
