tuzon) Manila and Origes 738-8884/734-7808 ° Calaraa, Laguna (a8) 84538 eayas) Bacoled City abu City (082) 265-7777 Loc. 122 (flindanac) Cagayan de Gro City (08822) 725150 "Davao City (082) 225-1068 wunw.prte.com.oh CPA REVIEW OPEN FINAL PRE-BOARD EXAMINATIONS MANAGEMENT ADVISORY SERVICES {Exam Coverage | RPCPATI | Examination Syllabus Exam Code" MAS.OpenFPB.100¢ ~ September 26, 2009cororsasusdo'syn Reese sxsorsbes 40 “quan ysueau By 02 “ou84s 48d anjen nj00q & sey 31 Vou ‘SuIpueisino seieys UoUMUICD 9g Sey y AUEGWOD J °Z zk 8 sors TieaEo| gory si ‘seneid feuipap jo sai6ap aul “T Hidhe sé oF asupdag xe) sui0seT % oz -3su3dxa 352. oot oot asuadxg uopenaided 00s 00 ——sasuecx3 eanensiunusy 00's 008 10$ Spa0g Jo 3509 08's 908¢ saieS @ v Auedwio _Auedwoz ‘od? oe snag 092 oor rporg Au2e os coz gag WuaL-6u0} os 00; aigedeg siunoaoy oor Gz, Syossy axle YN oot umouxun SBHOWwaAUT 09% moun djeenroay squnozy 002s ole use9) 3 v Aueduoy — Auedwoy “ig Bue Vy SSiUBaISS +0) ued ae MojaG paqUEsald Suysolioy ata Yo paseg aze Z pue T Suonsand 2igp quWaIe}s ]eDueLY pus-sea) voneu eixnTG009 GTTVANT 3284S semsue uoWeuMUeXs INdK 19pueL CEMOTY SSUNSWS ON AROS “papicid Jeoys sawsuE 8u3 UO WOy! Y2e0 JO} Jamsu2 euo duo YER] ‘suORSENb Bumojios 912 Jo yes soy Jamsue 3S9q SY} 199ISS ISNOTLONALSNT 9138 seemieg Kvstipy wauebeueyManagement Advisory Senices sere AL PLE? c P87 B. P2.50 DB. P5.00 3. Perlman Company had 100,000 shares of common stock and 20,000 shares of preferred stock at the end of the year Just completed, Preferred stockholders received dividends tot 149,000, Common stockholders received dividends totaling 210,000. If the dividend payout ratio for the year was 70%, ‘then the net income for the year was A. 300,000, c. P440,000 B. 287,000, DB. Pi47,000 4. Cameron Company had 50,000 shares of common stock issued the year just ended. The these shares: P40 Book value at end of current year P70 Market value, 1g of current year PBS Market value, end of current year P90 The total dividend on common stock for the year was 490,000. Cameron Company's dividend yield ratio for the year was: A, 20.00% Cc. 9.41%, B. 11.43%, ©. 8.89%. 5. The betas and expected returns for three investments being considered by Sky Inc. are givan below. westment Beta Expected Return A 14 125 8 a8 1196 peso eesaeaeECEEEE RS aE 13%, ‘The return on the market is 11% and the risk-free rate is 6%. If the Capital Asset Pricing Model (CAPM) is used for ting the required rate of return, which investments the management of Sky make? (M) WAS pant PBIO OSeoursauedoswn R RR eso sr a8ee © [suopneutwexg pueog-2ig usdo 44d 247 Sup{er 10) nod ques euuoRsend ays daay, Reus Jamsue .NOA JuUgns 9se2}g ~ voReuuexe Jo Bus - (oe9'v2e “a osece’td *s gorocs'std 2 ose *y 5 queudinba Ou BUR 30 TUBURSBAU! 9u2 J0 OnjeA IWSSEIC JOU BU “OL ‘sieeh oy a “si20h LS't “a seek OE "D. sieak got pue uopeaidap asojaq summya, Buisn poued yaeqAed ays 69 wee Uz UEYI S59] ING YNZ VELL a10u 5002 vein sso} 02 Si qustudinbs mau ayy uo wane: jo ayes paqunoosip 94 ‘89 <6dd 9138 seojueg Kosny souasouay arse rare ae B6GE 5! BEI XB] BUICDUT “LOsuIeUuOD Jo Sssodund jonzisasdap so spaymaus omy 24j Buisn o1aMm ni adap 40 poysEt 51894-942-J0-LUNS OUp UBURSBAUI 30UI PSUNO;LI ser ynq ‘pasn si vonepaidsp jo poulew aul! ‘27 J wimal JO Byes poyunorsio © pI 51 Due Weak © ONO'DHZd 0} JUOWE jum JUDURSOAU; B49 Wop XB} SUOdU! S08q Moy ysed syp eu? sOIe9;pU BIEUINSD Uy ‘SN|eA BBEAES CU PUE S1eBK € 40 OyIf [PYBSN 2 yyiM quauidinbs ¥} 000'08Hd Jo WaUSSAU! Ue Buneniens si ROD CONNSN “8 83 pajesdxa Surseniue siqeute apgesecas wos aves peongoe 01 “ppefoid “a zoel “e semper rBnpor peed S 1eioe “y Sitolo} pe ¢ 3noge HoREUNOLT “UIEE 14 ou ue Aysunus jyoriés stp puoken > pie f ss990id 0 vauaDum GulApnas 5) 93520 5] UoIsizep ous sI Dales preyeXeM pinoUs Tefosd YIU Ue s:s00 Bulssazoud IIOf Je 090"00Zd Sey LONVei0ds05 e:pu; “99 O0S'¢Td “v 78303 uoIsDap SuDsnosINO 5,009 Uj $3509 fengjeia) aut “%OL Aq paonpa! aq pINOM sIsoo BuNeLsdo pax Tu Bsn 0} 518M OGD MT “elsy oss pane>t wipe ayeied:09 Jo 990'ste © vonuppe U ‘Ayennnedse: ‘go0’6a Sue GOD'DBE 12103 S3802 Bujjersdo paxy pue siqeuen a1geanes, yueNsuaD e 03 S01AIS ay sonosyno 9} JaySyR Buuo|de s! yuauedeuaW ‘sure|qod Suresade yo zequinu @ paqea.d Sey SB0/U8S 24} 40 J0 SJUBURIedap snoLeR 104 § susioyad Apuauin> 'sasudiaiuz eIsy Jo uoIs! ‘00*62a oad °o vd *e ood 3. “Od v 181 pinosd 03 aygeun Bujaq Jo yS03 AMO 4nOy-18d UR ‘SHONEU WAI 494 UO AyDeded yy 22 BuPLOM ‘Apuasna a1e ssahojdwe sje JI “Ajsanoedsau ‘gtd pue Soe 2c i s3502 Gunjeiado paxy pue ajgeuen Ajinoy payeja. aus “anoY d Oz tg swat ya AuedwoD 2uL “sqUEND $31 0} BDIAES mau e Buipinosd ynoge paypeoidde ueaq sey ‘Sul ‘ceAeG “99 }O4pAH 30 spuned gos'y Bidda adanoe 02 Jaipaym Buipiosp ul quenaje: (exe) S) BUIMOIIOS au OREM “fOPAH JO Spunod Qoz"y Jo Bsn lp euinbed plnom eK 9138 soonieg Kosapy meweBaueyy oo'coe oac’ost 990'00t 0009 ono'se 00's en ore eae uum |}O} 43 Jo BUC Ss0oyD IsNUL 4 ANUBLIND S| AURCWOD By ‘uy Sulsn Aq syaafoud aimany seienjend af) weloid Bnoge ay3 30 SuON *¢ ex 8 esc 3 oot ¥ 2uexge u2> Aueduios aun Ag wewxew aun S} eum ‘Sanur of UOlU OZ JO HUH B sey UUY SYR IT OF “Ze GE OT- 89 GZ OFT OZ 0% OST 0S 09 O% 06 2 qs ay SA alge} Bu ey Sssteia 6) 804 “zr weet ‘a 01 a “Ir 3 %6 “V ez aunpews nbs T SUIUDEW) pINOM axes JUNODSIP r2UR IY ‘pELS8°0 51 Z poUad pUE EEEzE'O 81 T poued so pua 98 28 T Jo anjen auasaid ay, “Ajenipadses *yr9sc’o pue 25899'0 212 Spousd z pue poyiod T 30 pus %ST WE T 40 anjen yuasaid 24) “pua-12—4 2 21290 smo YSED TY ‘Buiydeu! OUODRS 24] LEU OM JEEA v} MOY YSeD $82) 000OT Td se viqerdance Aj 913s seo;nag Aosnpy uausBeveyyManagement Advisory Services sere 60. Extron Division reported a residual income of P200,000 for the year just ended. The division had P8,000,000 of invested capital and P1,000,000 of income, On the basis of this information, the imputed interest rate was: A. 25% C. 12.5%, B. 10.0%. D. 20.0%. 61. Carolina Corporation has an after-tax operating income of 3,200,000 and 2 9% weighted-average cost of capital Assets’ total P7,000,000 and current fiabilities tot P1,800,000. On ‘the basis of this information, Carolina's economic value added is A. 2,408,000 C. 73,868,000, 8. 2,732,000, 3,392,000. 62. Coastal A\ ce icant presence at the San Jose Internati nd therefore operates the Emerald Club, mm gate 36 in terminal 4. The Emerald Club provides food and business services (2.g., data ports) for the company's frequent flyers. Consider the following selected costs of Ciub operation Receptionist and supervisory salaries Catering Terminal depreciation (based on square footage) Airport fees (computed as a percentage of club revenue) Allocated Coastal administrative overhead Management is exploring whether to close the club and expand the seating ares ich of the preceding expenses would the airl y as unavoidable? AL 3. Bs 63. Two months ago, Victory purchased 4,500 pounds of Hydrol, paying P15,300. The market for this product has been very strong since the acqi ith the market price jumoing to 4.05 per pound. ‘an buy or sell Hydrol at this price.) The company recently received 2 speciel-order inquiry, one fips bar ims RS Beata OE Mangement Advisor Services sere n of new mat e next eigi ing information is ev Annual savings in cash operating costs: P350,000 Annual depreciation expense: P250,000 If the company is subject to a 30% tex sate, what denominator should be used to compute the machinery’s payback period? 270,000. Cc. P245,000. 8. 170,000. D. P320,000. learning and growth performance measures. internal-operations performance measures, B. customer performance measures. D. 16. Bfern Electronics currently sells a camera aggressive competitor has announced plans product that for P205. | Sfem’s mark 'f the price Is dropped to meet crease by 10%. The current cost to manufacture and distribute the camera is P175, and has 2 profit coal of 20% of sales. if Efern meets competi selling prices, what is the company’s target cost? AL Pai. Cc. P64, BL Pas. DB. PES. 17. Melanie currently sails mixer for P83 thet market leaders sell for P815. The current costs te manufacture and distribute the mixer total P530, and the company has @ profit goat of 40% of sales, Melanie uses target costing in its effarts to be a leader in the marketplace. On the basis of this information, (2) what should Melanie consider to be the Initial driver of t target-costing process and (2) what amount of cost reductior is needed for the company te achieve its goals? Revo aE WAS pent PB10.05Pe ‘000'000'0rd | -0 Doo’oan’ed “S ‘090'000'0Td 2 "000'00S'tc “¥ i siseq 243 UO snuanss sajes sAueduicd 3u3 ‘uoReWojUI Si 200'000'0z¢ :le3ide> paxsenut @ ‘senousns jeqided 948" ¢ uiB2eul S8le5 uoneodsoD 2yey, 02 Sale|ar sao}|O4 2u7 UONUIIOSU! BYL “6S coo'ozed “o ‘o0'ortd ‘e ‘o00’oszd “2 ‘000'02td 'Y Fale $1940 Aq a|ge|jou3u0> ang z “ou queUutsedaq BIGEEDEAR S350 POXY ‘uoReUUJU! SUA JO SISEq ayy UC o00'0tr e1Buew oid wowbes veBeuew ooo'oez quawiBes 9tn Aq aigeyjanucn wibiews yo14 o00'O8rs USieW UoRnainues qUaLIBoS uonjesod.03 Buno, so "Ou quaUEdag 0} s2z/a4 sep SujMoyO} Ou “Bs 584 Se, oN en adda Blanmemy oj anmemy oc} anpemy {uoRes0d.09 jeaoI so ywewabevew sus - 3 p9sn s1 (Te) SwooU! eNpISEL 5 sienjena 0} pasn si 1OY JI WeWeSeveW jeuoIsing -1 10} aaqpeme Bq IUAUASERU! Bur DiNOM ‘GebT JO e61eUD soz0IUF parndu 9138 seojniag Asin weaustoueyy _eworaasusdo'syn, SR 5210.9 2608 ‘suoReBuqo Buumeu 531 UO Aed 0} uny 24 Jo Amygeu: aug on sieses ySLs 9 SH 322 ¥ seztujulur ABeres sun esnedsq aigeusap pesapisuo> 5} Sopunyeu Augen pue esse jo Bujyoiews v ridaaxe 7221109 ave syususoye3s Sulmoljoy BU 30 II “TZ 1YSeD WIM aiqeked aBeSyiow 1994-92 @ Jo joUAEE “a ideataaes squnosde Jo wogoe|IOD USED “> “algeAed a200 4294 Omg B uaiM sigeded sow UUEy-zOUS 2 BuBUEUyoY 'S1GBAed Saxe? }O1Aed Jo UaWAed YSeD zAu2duie> e Jo JOp ays 40 BuO UOIAA “Oz da Jeudes Gupyom ay2 eseauou pinom Sum ‘Sd Oo ‘Ord “@ "8d 3 ved v 1S] anol 1sd aBvexp awn sAuedutod ays coo’ozz, ayoie (26e103s pue Suypuey 000‘08r —feuszeW sepnioxa) s3S09 pEBYIDAG 000‘008s 3809 js9u9q @BULy pue 10427 Feqep pa399/08 Buimojio} 4 sey pue Ayagoe Jo sunoy ‘soge} W2EuP 90007 SHECKS JeuTIEdaD tiedas oy “Bupud jeuDyeus pue wR Sasn VOIeIOdIOD OTE “6T Buuasuibus anjen a ‘Bulpped Aiexs6png “3 eBunso> 336103 4 UoRDUNfuDD UL _pasn ueyo s| sanbluysay quswanosdU -S9e0010 pue UoRINpeL.js09 SuMojfOj 342 10 WHIM “AT ied Seq 19 B0u0 siop29) EW “Cc oe 538d 40 800 s1ape9] 129UeW “> Ted oge¢ 40 99ud JuBLIND “Be oz aged Jo aoud Juasind *y TENTED 9138 seeing Aiosnpy wawedeuey,Managemen: Advisory Serviece sero 54. Which of the following are methods for setting standards? A. Analysis of historical data 8. Task analysis, . Task analysis and the analysis of historical dats. D. Matrix application forms. 55. Consider the following information: Direct material purchased and used, 80, gallons lowed for May tion, 76,000 gal Actual cost of direct materi 176,000 Unfavorabie direct-materiat quantity verlance, P9,400 Purchased and used, ‘The direct-materia! price variance is: AL P1800 F, C932,000 F. B. Pi1,400 U DB. Pi2\000 U. 56. Lucky Corporation's purchasing manager obtained price on an direct-material price variance of P9,500F. T more waste than normal produced 25 evidenced by @ direct-material quantity variance of P2,000U, and was aise difficult to use. This slowed worker efficiency, generating @ P2,500U labor efficiency variance. To help remedy the situation, the Production manager used senior line employees, which gave se te @ P8OQU labor rate variance, If overall product q Gid not suffer, what variance amount is best used she appropriateness of the purchasing manager's, acquire substandard material? AL P4100 F. © P7,900 F. B. 5,000 F. DB. P7500 The Magellan Division of Global Corporation, which has income of 250,000 and an aeset Investment of P1,562,500, is studying an investment opportunity that will cost P450,000, and yield a profit of 67,500. Assuming that Global uses an ge aa HAS. OpanPPR TOES Management Acvisery Services sere 2 ‘The matching of assets and liability maturities lowers default D. An increase in the payables deferral period will fead to 2 reduction in the need to non-spontaneous funding. 22. A compeny’s management is concerned about the large bank overdraft, which it wishes to reduce over the Sudget period of one year. Which one of the four items below will not necessarily result in a lower bank overdraft? ducing bad debts. 8. Taking fonger credit from suppliers without any loss of discounts. C. Reducing wastage and loss through damage of reguiarly- used stock items. D. Reducing unit costs of production 23. when a company is evaluating whether marcetable securities to total assets sh Gecision will be based upon A, Financial leverage considerations, 3. Operating leverage considerations. CC. Risk-profitability trade-off considerations. 9. Flotation cost considerations, jo of cash and be high or fow, its 24, Suppose that the interest rate on Treasury bills is 6%, and every sale of bills costs P20. You pay out cash at a rate of 400,000 a month. According to Baumal's model of cash balances, what is optimal cash transfer? A. P16,000 43,000 B. 24,000 B. P57;000 25. A firm has daily cash receipts of 300,000 anc ie interested in acquiring 2 lockbox service in order to reduce collection time. nk 1's lockbox service costs P3,000 per month and wi reduce collection time by 3 days. > Bank 2's lockbox service costs P5,000 per month and will Feduce collection time by 4 days. Bea amass a aesororeewneorsvn TFUROTETEER __5¢00r 2604 o00’vttd -a sun oge't 28e5n Ayap winpcey pco'etra S889 9 aus Bea) wines role Aterugad u sidiezes yse> 9a3909nG step 00E Sere enn canines LION su98uj219 “pauinou; yquour oneiaicap Ul pied ase sasuadxs Sus 00'S @pniou) SounSy asuadxe AiyyuOW! SUL ‘Avensgag ut payDa|}00 0g pue Agenuer ui parpsijo> 2¢ yonowe Suniewas au Od0'sed ‘eoueleg Sima JO & ooo'ee aigesed squnoaoy aoo'ss s2deaiene squncaay 000'88¢ use) 5 Avenue jo Se a2 seouejeg 61 qunorsip 9%E @ JO aewerpe sax2r pue ase 1o} YuOu Byy UL SeseyDINd ye JO) shed JeBU;EID BAR Ul MAGE 'IeS 30 WUC 243 UI BOS PAT 009‘sz —gos'ps © DoooeT oy 0002 = asz'te «= oo’szr ye ooz've —oaa'e9 Avenged 000d © —o00’eze_—onooeTd Arenuer SSSUSOK] | SSSEING «SSIES use Bureoijoy 343 spayed quawaxers aulcoul pazabpng sAuedwoD 196uIe:5 au “eS ‘oos'ved 'G ooz'tee “8 ‘o0ceed “3 ‘oos’std_"'v 12 paraéipng aq pinom asnny 40) 3900 40qey WALI ‘Ste Si snoY Jog) Jod 3S09 sassmuION pue Hun yes sonpo1d 0} suNoY Joqz| TEND OM SBxED 3) JT oss oot't 90'S swun Jonanposd pauueig ya8pnq uopPNpeid Ausyend Juana 2sou! a1 WO USd}e2 218M eIeP Gulmoljos sy “abesn 9138 seowag Kos savy skep OF ‘un pea) jen, dee Bie! 3603 Buikise9 cose 1aps0 J9d 3805) syun 490 Oot sud aseoing yan 090" 90E pueuiap renuuy Ave? SIBLE BulpieBas uonesi0;u) Surmojjo; ay sapincid uoHesodioD Jay “az m9s8 %22'8 °@ S2"6'3 Mec. Geo} |up 10 ate! IsaraqU] BANDEYD auD S| IeUM “SOsodind uonpesuess 20) tuneD2e sy! u! 900’NSd.JO soUeIed 2 SuIeI/eW Auecuio> 243 “AyeurDiO “mE JO ste1 fenuUe Ue Ie IaiSqUL nos22 Gupjpay> su "3unonse Buysay}> sii UI 0G0‘OOTd duos 2 wipwew 03 pasinba: st Aueduioa j0D 2 Sy "968 JO BYE! SABI! jenuUE Ue Bun “ued; Bip Jo UL 3B GOO'DOSE JO UeO} yUeG UHEL-OYS 2 PauIeIgO AUedWIOD y “Le ge'soe'sr -o zz'e0s't “s veer“ 9 e6r89 “¥ E1284 Awp-coe @ Guiunsse /owp ul qustuow Aue ye AUedtuo> au) 201 Soueleg aigeniooai siunose oGeisAe poinedxo Ug SI ey "PAYSYCRISE [5M 5} AD!od 7S. BiB JOUY “sKep $2.4 posed volpbles ebeione ou Jean aurasy “Atenuue 99 JO S0ud Suljjas yun e ie SUUN COG'OT ses AvedWIOD ayL “oz “yyuea cg zauea “g ceyueg “2 seg “y gasooy> Ly aug plnoys yueq pigie ‘ewODUI SzIUXeW Oo] SBUSIM Why ay PUR “8K Oy) BuLnp 99 Beene 03 payzecxe oie soyel oyeU! ABUL JT *skep z Aq alu uonpalo> sonped lim pue yuo 42d Q90'Tg SIS09 sDIAIES KOG>DO| Sp ALE < "Ae 7 Aq ouin woRmaijoa eonpad Im PUR IRUOW Jed YDgg SIS02 sdIAIas XoqyOO] s.¢ MULE 9138 senyuag Krosay quoweBsueyLManagement Advieary Seniees SETS 49. 50, ‘The budgeted income statement, budgeted balance sheet, and budgsted statement of cash flows comprise: A. the final portion of the master budget. B. the depiction of an organization's overall actual financie! results C. the first step of the master buaget. D. the portion of the master budget prepared after the sales forecast and before the remainder of the operational budgets. Swanson plans to sell 10,000 units of 2 particular product ch and expects sales to increase at the rate of 10% per month during the remainder of the year. The june 30 and September 30 ending inventories are anticipated to be 1,10: units and 950 units, respectively. On the basis of this information, how many units should Swanson purchase for the quarter ended September 30? A. 31,850, c 32,950. B. 32,150. D. 33,250, Nguyen pians to seli 40,000 units of product no. 75 in June, and each of these units requires five square feet of raw material. Pertinent data Follow. Product No. 75 Raw Mate: Actual June 1 inventory 5,500 418,000 square feet Est, June 30 inventory 4/309 2 square feet pany purchases 201,000 square feet af rev the month, the estimated raw-material 41,000 scuare fect, cl 13,000 square feat. D. 23,000 square feet. 25,000 square feet. rthwest manufactures @ product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately 360 per ounce; the company maintains an ending platinum inventory equal to 10% of the following month's production z WAS Spank PBIT OS Management Advisory Services sere Which statement is correct? A. The optimal order size B. The average inve C. The reorder 9x D. The total ordering costs at optimal order size Is £5,000, 29. The following information were taken from the published ‘Statement of Comprehensive Income of Mabuhay Corporation (in mitiions): Seles Direct ma Direct lab Other expenses Profit Other information (units in mitions): Quantity sol 2,000 3,875 Materials used in tbs. 808 soo Materials price per |b, 2.50 3.00 DL hours used 400 500 BL rate per hour 2.50 2.80 Other excenses prive per unit P1.00 P1.00 Whet is the materials productivity recovery factor (M = infavorable C. PISO M unfavorable D. P250 M favorable 30. Caiamba Corporation manufactures twe products: X and Y, ‘The company has 4,000 hours of machine time available and can sell no more than 800 units of product X. Other gertinent data follow, Product. x Product.¥ Setting price 78.00 19.00, ‘variable cost 3.00 5.00 Fixed cost 3.50 6.25 Machine time per unit 2hours 3 hours ‘pT wach las penta isororeasuco sym. SESE see, soroeeesusdo'svx z BEESHITAM cv ozr omy opsesfeur ——-2Rsea/9uT onsen a oyse, onsea v (000°Z2d Aq yo as0% 96 jI1m Auzduios ous asneded ‘ON “a puaXsa"N Aappaans J2)nBOy '000'bd Aq 30 asio% 2G jjIm AUedw0D 2yp asnerad ‘ON “> ESi0ARid shun 00's Aq doup jm Sajes asneveq ‘ON “a 20 drab aig yo Gi2Ase\@ puBUiED 24) eqLOSSP N04 pINoM MOH, “900'Gd Ad HO saxjaq 2q jum AuedwIOD ain ‘SOA “Y zebueUD 84 SHELL SBUULID PinoUs ose’t 90z'T 002 ost UarOOA oe ‘05g og 08 uaz soKuas 00's 00's (sun) sajes 00d 008 OTId —80T«—KenyseM JemBou Zid ord 3509 afgenien, SEUNG REY wee ley zee 91d aod Builas Re peAelg sneinaidye = MAN STOIRaLE 000'8he 000°8E¢ 53503 paxiy saueD —paheig sauren TORI © TOTS aBeny — abeieny paredioquy — auauin3 puewas Uf asea.ou! ue oy anp awed TUCREULOZUI SuImayjoy au3 pareie® sey pUe ajoyaulE 2 104 sazy suBaID pase! Sey B61N09 4105 BHT [eel ‘Ze uonesado us aBueU 40 Auiqemozd aur BuiApms 1 SBD “By mst a cst “8 @ Sse HS. 5 OIE TSsH vO Uinyed Jo ayer pawedxo aus St YMA yaeaso id uj Soup Q00'08d Ue “a ae02 @ Aq pesueseq wae 0 a6uey> ou 608 st Audited 943 9607 aiqaas oP nJOR S925 3JuM 3S00q [1m Boue BuHIeS UI dO19 bd 965 umopiois fein ae 2 41 "090'G0rd so $3509 paxy pue /090’D0Bd J0 53809 BaeUeA 01 volssa2ay sr ‘000'00T 40 sejes Jun paleenai quouloeys auso>u) 3usDe sash uojssa.dag eo 3S0u! Susy au "YUN 49d Oz Ze FNPOLG sOuls e sHOs eUeR “Ly sulnjay avedsiSs] ““ABStoDa aw 10 Sig” “Aytgeaoid™ 19}39 UMoYS $2 103 10) suimas popedxe ai; uo pays snopuaway © Sey AusOUODE BYR JO 8123S OY. “S5a1 ysed Su] Jano y903$ njsss09NS e UsEq Sey SeiB9|OUYIaL 1Sd3 “TE s6ueUp aoud auy Sumunsse 'seoud Sues eszas28p uIBi2U UoRNg}:3UoD Bt} Ssea.09p “S350 paxy aseasou! dada INOUS y ‘UIG|w AyapeS Sy BszAsoUI 0; SRUISAP AURALUOD @ JI “Op 000" 5 AE + XZ O 000" AE 1000’7 5X2 “D ‘9ng 2:2 .O, pur .y, SWAUIERIS °C ASTUTE + XOS'9 = Z SAIN “B "yun Jad ¢q Jo aye! aia 2e Aeuown ayeus “hed + XG = 2 OZUIKeN “Y Im Auedwo9 ay ‘payseai S| quIed Lene-yeaiG By; Z2UQ “D g2quIE|eD Jo UoRDUN; JUIESUOD e S) BulmoIlo4 B42 Jo UNA uss seqwieg Kosvpy uowsbeuay, O13 seoiueg Kosupy weusBeueyManagement Advisory Sendces sere Fixed manufacturing overhead 150,000 Fixed selling and administrative cost 200,000 Variable manufacturing cost per uni 8 Variable S and A cost per unit 2 Which of the following statements is true? A. The variable costing income statement profit is ?208,000. B. The difference in profit between absorption and variabi costing methods Is P6,000. C. The absorption costing income statement profit P196,000 ©. The volume variance is 26,000 unfavorable, 44, Consider the statements that follow. 1. Variable selling costs are expensed when incurred. 2. The income statement discloses 8 company’s contribution margin, 3. Fixed manufacturing overhead is attached to each unit produced 4, Direct labor becomes part of a unit’s cost. 5. Sales revenue minus cost of goods sold equals contribution margin. 6. This method must be used for external financial reporting, 7. Fixed selling and administrative expenses are treated in the same manner as fixed manufacturing overhead. 8. This method is sometimes called fuil costing, 9. This method requires thi Fixed ransfacturing cost per unit, Which of the foregoing statements to naither absorption costing nor variable costing. A. 3,6,8,9 GQ 14 B27 5 Management Advisory Serves sere Insleastic _—_—Ineleastic. c Ineleastic ° tic Ineleastic Elastic 33.1f the price elasticity of demand for 2 normal good Is ‘estimated t0 be 7,75, 2 5% reduction in its price causes D. Quantity demanded te increase by 8.75% 34.A company operating in a perfectly compatitive market hes been paying P10 per hour for labor and P20 per hour to rent a piec of capital equipment. The firm can use labor and capital n any desired proportions to produce its product. If wages rise to P20 per hour and capita equipment rentals rise to 822 per hour, in the long run the firrn wil A. Use telatively more equipment and relatively less labor in its production B. Use relatively snore labor and relatively less equigment in its production ©. Use fess of both and equipment in its production, but in the same proportions as before D. Lower its average equipment-output ration and raise its average labor-cutput ratio. tural rate of unemployment Potential national income will exceed actual national 45. A company has fixed costs of P900 and a per-unit contribution income, margin of P3. Which of the foliowing statements fs (are) true? D. The purchasing power of money is likely to decline A. 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