Maira Corporation has set various goals and the management is taking various appropriate actions to ensure the company achieves these goals. One of the actions is to reduce operational costs, which exceeds budgeted amount. Which of the following functions best describes this process? A. Decision-making B. Planning C. Directing operational activities D. Controlling
- Maira Corporation has set various goals and the management is taking various appropriate actions to ensure the company achieves these goals. One of the actions is to reduce operational costs, which exceeds budgeted amount. Which of the following functions best describes this process?
A. Decision-making
B. Planning
C. Directing operational activities
D. Controlling
2. HOC Company's costs for the month of June 2021 were as follows: direct materials, RM25,000; direct labor, RM32,500; selling, RM16,000; administrative, RM15,500; and manufacturing overhead, RM44,400. The beginning work in process inventory was RM17,000 and the ending work in process inventory was RM7,000. What was the cost of goods manufactured for the month?
(a) RM105,000 (b) RM31,500 (c) RM133,400 (d) RM111,900
3. Chery Company manufactures and sells washing machines. In order to make assembly of the machines faster and easier, some of the metal parts in the machines are coated with grease. How should the cost of this grease be classified?
| Direct material cost | Conversion cost | |
| A | Yes | Yes |
| B | Yes | No |
| C | No | Yes |
| D | No | No |
4. An increase in the activity level within the relevant range results in:
A. an increase in fixed cost per unit
B. an unchanged fixed cost per unit
C. a proportionate increase in total fixed
D. a decrease in fixed cost per unit
5. Overhead allocation based solely on a measure of volume such as direct labor-hours:
A. is a key aspect of the activity-based costing
B. will systematically overcost high-volume products and undercost low-volume products.
C. will systematically overcost low-volume products and undercost high-volume
D. must be used for external financial reporting.
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