Question 1

A company decided to implement life-cycle costing in order to achieve cost leadership in its industry. An accountant prepared a draft presentation explaining that life-cycle costing covers costs from the production stage to the sales and service stage of the product. After reviewing the draft, her supervisor asked the accountant to include a statement that life-cycle costing

Options :

A : capitalizes upstream product-related costs to highlight their value added.

B : also covers upstream preproduction costs since those lock in most downstream costs.

C : identifies the benefits of learning that reduce product costs over the product life cycle.

D : analyzes activities to help improve the value of products over their life cycle.

Answer: B

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

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 4

A budget developed by using budgeted prices and budgeted costs based on the actual output in the budget period is a(n)

Options :

A : continuous budget.

B : flexible budget.

C : life-cycle budget.

D : operating budget.

Answer: B

Question 5

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

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