Question

QUESTION 1
The company ABC calculated the cost of converting product A to $ 8 per unit. What would happen to the conversion cost for product A if all other factors remain the same but the cycle time increases?

a-The cost per unit would increase.

b-The cost per unit would decrease

c-The cost per unit will remain the same since the cycle time does not affect the conversion costs

QUESTION 2
Your supervisor has asked you to indicate that many more units were produced than they really were, so the cost per unit will be lower.

a-You must do it. After all, it's not like you're changing the total costs

b-You should not do it. You should report this to your supervisor's boss. The general expense is distributed in units; The more units you produce, the less each unit will cost.

c-You should do it. General expenses will not affect the unit cost of a product

QUESTION 3

You manage a subdivision of your company and would like to buy raw materials that have a discount that has not been budgeted. You have discussed this purchase with your manager and have been asked not to buy these materials because you will need cash for other purchases of the company in other departments. You should:

a-Buy the materials because they will save your company money in the long term given that they have a discount.

b-Do not buy the materials as it violates company policies and directives

c-Find another job since your manager is not doing the best for your division

QUESTION 4

1. The IMA Standards of Ethical Conduct include a competency standard, which requires the management accountant to:

a-Discuss with subordinates their responsibilities regarding the disclosure of information about the firm.

b-Report the information, whether favorable or unfavorable.

c-Develop your professional competence continuously.

Answer 1

1)b-The cost per unit would decrease.(Lesser Cycle time signifies higher efficiency; lower cost and time spent is lesser and hence Profitability and ROI increases.)

2)b-You should not do it. You should report this to your supervisor's boss. The general expense is distributed in units; The more units you produce, the less each unit will cost.General and administrative expenses (G&A) are expenditures related to the day-to-day operations of a business. General and administrative expenses pertain to operation expenses rather than to expenses that can be directly related to the production of any goods or services, including rent, utilities, insurance, and managerial salaries. On the company's income statement, these expenses generally appear under operating expenses.

3)a-Buy the materials because they will save your company money in the long term given that they have a discount

4)c-Develop your professional competence continuously. AS PER IMA ETHICAL STANDARD CONDUCT Maintain an appropriate level of professional leadership and expertise by enhancing knowledge and skills.

b-Report the information, whether favorable or unfavorable. AS PER IMA ETHICAL STANDARD CONDUCTCommunicate information fairly and objectively