CPA Management Accounting - MA Exam Practice Test

A division manufacturing a single product which sells for $325 has the following unit cost structure: $ Direct materials95 Directlabor78
Variable overheads56 Share of fixed costs45 Total cost274
In the coming period, the budgeted production volume is 10,000 units.
What is the budgeted breakeven sales volume (to the nearest unit)?

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 company's return on capital employed (ROCE) and net profit margin ratios for the year be affected?

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?

A company absorbs overheads on a machine hour basis. Actual machine hours were 20,000, actual overheads were $480,000 and there was over absorption of overheads of $95,000.
What is the overhead absorption rate?

Which of the following comments about sales price is correct?

In an attempt to improve product quality, the management team of Valcq Co replaced some material with more expensive items and introduced a bonus scheme. The bonus scheme was based on reducing both the number of defective units produced and material wastage. No changes were made to the standard costs.
What material variances are likely to be reported as a direct result of these decisions?

The annual salary paid to a business's financial accountant would best be described as:

At 30 April 2009, the book value of the net assets of Emor was $12.5 million, and the economic value was $17.825 million.
The net operating profit after tax for the year was $3,428,554. The budgeted return on investment for the year was 16.5%, and the cost of capital is estimated to be 12%.
What is the company's economic value added (EVA) for the year?