Question 1

Which of the following statements is a responsibility for an IMA member regarding the "Integrity" standard of ethical conduct?

Options :

A : To refrain from using confidential information for unethical or illegal advantage.

B : Perform professional duties in accordance with relevant laws, regulations, and technical standards.

C : Provide all relevant information that could reasonably be expected to influence an intended user-s understanding of the reports,analyses, or recommendations.

D : Refrain from engaging in any conduct that would prejudice carrying out duties ethically.

Answer: D

Question 2

Dividends paid to company shareholders would be shown on the statement of cash flows as

Options :

A : operating cash inflows

B : operating cash outflows

C : cash flows from financing activities

D : cash flows from investing activities

Answer: B

Question 3

Contribution margin focuses on which one of the following?

Options :

A : The amount of revenue available to cover fixed costs.

B : The total variable manufacturing costs.

C : How competitive a company is compared to other companies.

D : The total revenue expected during the year.

Answer: A

Question 4

Wilson Company uses a comprehensive planning and budgeting system. The proper order for Wilson to prepare certain budget scheduleswould be:

Options :

A : Cost of goods sold, income statement, balance sheet, and statement of cash flows.

B : Cost of goods sold, balance sheet, income statement, and statement of cash flows.

C : Income statement, balance sheet, statement of cash flows, and cost of goods sold.

D : Statement of cash flows, cost of goods sold, income statement, and balance sheet.

Answer: A

Question 5

A corporation utilizes an activity-based costing system for applying costs to its two products, P and Q. In the assembly department, material handling costs vary directly with the number of parts inserted into the product. Machinery is recalibrated and oiled each weekend regardless of the number of parts inserted during the previous week. Both material handling and machinery maintenance costs are charged to the product on the basis of the number of parts inserted. Due to reengineering of the production process for Product P, the number of insertion parts per finished unit has been reduced. How will the redesign of the production process for Product P affect the activity-based cost of Product Q?

Options :

A : Material handling cost per Q will remain unchanged, and machinery maintenance cost per Q unit will remain unchanged.

B : Material handling cost per Q unit will increase, and machinery maintenance cost per Q unit will remain unchanged.

C : Material handling cost per Q will remain unchanged, and machinery maintenance cost per Q unit will increase.

D : Material handling cost per Q unit will increase, and machinery maintenance cost per Q unit will increase.

Answer: C

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