Certified Management Accountant

Standard Costs Correct Answer: Standard costs are predetermined, attainable unit costs. Standard cost systems isolate deviations (variances) of actual from expected costs. One advantage of standard costs is that they facilitate flexible budgeting. Accordingly, standard and budgeted costs should not differ when standards are currently attainable. However, in practice, budgeted (estimated actual) costs may differ from standard costs when operating conditions are not expected to reflect those anti...

TC=(VCs xQs) + FCs Correct Answer: Master Budget uses standard quantity TC=(VCs x Qa) + FCs Correct Answer: Flexible Budget uses actual quantity ROA Correct Answer: ROA =Profit Margin x Asset Turnover Income/Assets = Income/Sales x Sales/Total Assets ROA numerator issues Correct Answer: There are two major issues for measurement of income in the numerator: (a) income taxes, and (b) GAAP. ROA Denominator issues Correct Answer: Denominator Issues It is in this figure that ther...

Initial entry for installment method Correct Answer: Cash (down pmt) Installment Receivable (yr 1 pmt) Cost of Installment sales (cost) *********Inventory (cost) *********Installment Sales (total) Installment Year End for receivables Correct Answer: Installment Sales (total) ******Cost of Installment sales (cost) ****** Deferred GP (Total-cost) deferred GP year 1 (GP%*amount paid) ******Realized GP ***GP %= (total-cost)/total Cost recovery method Year One for receivables...