CGA-MA1答案.doc

LESSON 1 Suggested solutions Note: In multiple-choice questions, students are asked for their numerical choice only. Explanations are not required. Question 1 (14 marks) Multiple choice (1 mark each) a. 4) Management accounting provides information by department, by product line, by geographical segment, and so on. b. 1) The cost of drugs would be traced to specific nursing stations in order to monitor the cost of different types of patient care. c. 3) The cost of the fringe benefits should be accounted for in the same manner as the underlying labour costs. d. 3) Differential costs are those costs which differ between alternatives. Both variable and fixed costs could differ between alternatives. e. 3) Monitoring activities is a form of controlling. f. 4) Throughput time is the time it takes to produce a product. The larger the work in process, the longer it takes to complete the individual products. g. 3) The cost of goods manufactured includes the cost of direct material, direct labour, and manufacturing overhead. Therefore, manufacturing overhead consists of all manufacturing costs excluding direct material and direct labour. h. 1) Fixed costs will stay the same in total but will increase on a per unit basis since a lower number of goods are consuming the same total cost. i. 4) The ability to trace costs to cost objects determines whether a cost is direct or indirect. j. 4) The €1,000 per month is foregone once the space is no longer rented. Even though the company does not actually have to pay this amount, the €1,000 should be considered as a factor in choosing between the various options. k. 2) The cost of the machine is a sunk cost. The cost of the machine will not change no matter what action is taken in 20X8. l. 3) Prime cost = Direct materials used + Direct labour = (€20,000 + €100,000 – €30,000) + €80,000 = €90,000 + €80,000 = €170,000 m. 2) Conversion cost = Direct labour + Factory overhead = 80,000 + (€80,000 ÷ 10 ( 8) = €80,000 + €64,000 = €144,0