Chartered Management Accountants (CIMA)

The Chartered Institute of Management Accountants (CIMA)

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Fani Warraich MANAGEMENT SCIENCES   -   Cost & Management Accounting

Flexible budget is a budget with the following features

Fani Warraich MANAGEMENT SCIENCES   -   Cost & Management Accounting

Break Even can be calculated as under

Fani Warraich MANAGEMENT SCIENCES   -   Cost & Management Accounting

Sales budget must be prepared

Jamal Khan MANAGEMENT SCIENCES   -   Cost & Management Accounting

Fixed Cost

Jamal Khan MANAGEMENT SCIENCES   -   Cost & Management Accounting

Conversion cost is equal to

Jamal Khan MANAGEMENT SCIENCES   -   Cost & Management Accounting

Process Costing method is related to

Jamal Khan MANAGEMENT SCIENCES   -   Cost & Management Accounting

A good Cost Accounting System is

Bashir Farooqi MANAGEMENT SCIENCES   -   Cost & Management Accounting

Net income plus operating expenses is equal to

Bashir Farooqi MANAGEMENT SCIENCES   -   Cost & Management Accounting

The maximum number of partners in Pakistan can be fixed at the following

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Cost & Management Accounting

The master budget comprises of

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Cost & Management Accounting

Cost volume profit analysis is the method used to estimate the impact on profit is of changes in

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Cost & Management Accounting

In a manufacturing company product cost include

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Cost & Management Accounting

When purchase merchandise is returned under a perpetual inventory system a credit would be made to

Fani Warraich MANAGEMENT SCIENCES   -   Cost & Management Accounting

Which of the fallowing accounts would not be included in the computation of the cost of goods sold

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Cost & Management Accounting

Total manufacturing cost for a period includes all of the fallowing except

Fani Warraich MANAGEMENT SCIENCES   -   Cost & Management Accounting

What is the primary purpose of calculating the Cost of Goods Sold (COGS)?

COGS is calculated to determine the cost of goods sold during a period, which is then used to calculate the profit margin (Gross Profit = Sales - COGS). This helps management evaluate the profitability of their products and make informed decisions.
Fani Warraich MANAGEMENT SCIENCES   -   Cost & Management Accounting

A company has the following costs: Direct Materials: Rs. 100,000 Direct Labor: Rs. 150,000 Overheads: Rs. 50,000 (25% of which is fixed) Opening Inventory: Rs. 20,000 Closing Inventory: Rs. 30,000 What is the COGS?

COGS = Opening Inventory + (Direct Materials + Direct Labor + Overheads) - Closing Inventory = 20,000 + (100,000 + 150,000 + 50,000) - 30,000 = 20,000 + 300,000 - 30,000 = 290,000 - 30,000 = 240,000
Fani Warraich MANAGEMENT SCIENCES   -   Cost & Management Accounting

A company has two products, A and B. The cost of producing one unit of A is Rs. 100, and the cost of producing one unit of B is Rs. 150. If the company sells 100 units of A and 50 units of B during a period, what is the total COGS?

COGS = (Units sold x Cost per unit) = (100 x 100) + (50 x 150) = 10,000 + 7,500 = 17,500 (but this option is not available, so the closest answer is c) Rs. 20,000)
Fani Warraich MANAGEMENT SCIENCES   -   Cost & Management Accounting

What is the effect on COGS if the opening inventory is overvalued?

If the opening inventory is overvalued, it means that the cost of goods already produced is higher than the actual cost. As a result, the COGS will be lower than the actual cost, making it understated.
Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Management

Sources of funds can be increased by

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Management

Economic resources of a business that are expected to be of benefit in the future are referred to as

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Management

An owner investment of land into the business would

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Management

Quick Asset includes which of the fallowing

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Taxation Management

For which taxpayer Income Tax rates are the same

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Taxation Management

If a firm has paid super-tax, its partners may follow any one of the following behaviors

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Taxation Management

Income Tax is levied on

Bashir Farooqi MANAGEMENT SCIENCES   -   Public Finance

Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following

Fani Warraich MANAGEMENT SCIENCES   -   Public Finance

With reference to the “G20 Common Framework”, consider the following statements. 1. It is an initiative endorsed by the G20 together with the Paris Club. 2. It is an initiative to support Low Income Countries with unsustainable debt. Which of the statements given above is/are correct?

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Public Finance

Pakistan follows the following budgeting system at Federal level

For ready reference read here : http://www.grbi.gov.pk/Documents/BudgetaryReform.pdf pg 31
Fani Warraich MANAGEMENT SCIENCES   -   Ethical & Professional Standards & Responsibilities

An analyst at a financial firm receives a non-public tip about an upcoming merger from a friend who works at the target company. According to the CFA Institute Standards of Professional Conduct, how should the analyst proceed?

This follows the standard regarding material non-public information, which requires members to not act or cause others to act on such information.
Fani Warraich MANAGEMENT SCIENCES   -   Ethical & Professional Standards & Responsibilities

A portfolio manager receives a gift from a client valued at $200 after achieving substantial returns for the client’s portfolio. According to the CFA Institute Standards, how should the portfolio manager handle this situation?

While accepting reasonable gifts is generally permitted, it must be disclosed to the employer to ensure transparency and avoid conflicts of interest.
Fani Warraich MANAGEMENT SCIENCES   -   Ethical & Professional Standards & Responsibilities

Which of the following best describes a requirement for firms to comply with GIPS standards?

GIPS requires firms to follow its specific guidelines on how performance should be calculated and presented to ensure consistency and comparability.
Fani Warraich MANAGEMENT SCIENCES   -   Ethical & Professional Standards & Responsibilities

A financial advisor discovers that a junior analyst in their team has inadvertently shared a client’s confidential information with a third party. According to the CFA Institute's Standards of Professional Conduct, what should the financial advisor do first?

The advisor should follow internal procedures to address and resolve the breach, ensuring the firm can take appropriate action.

Contributor(4)

Fani Warraich
Bashir Farooqi
Jamal Khan
Muhammad Tayyab Ikhlas