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| Section | Weight | Objectives |
|---|---|---|
| Internal Controls | 25% | |
| Cost Management | 20% | |
| Planning, Budgeting and Forecasting | 20% | |
| Performance Management | 20% | |
| External Financial Reporting Decisions | 15% |
Question 1
Which one of the following is the most important factor in the successful implementation of a balanced scorecard?
A. Obtaining management buy-in and support
B. Setting appropriate measurement criteria
C. Linking the scorecard to external criteria
D. Providing a feedback mechanism
Question 2
The manager in charge of the disaster recovery plan for a company has ensured that there is off-site storage of key data programs, operating systems and documentation. Which one of the following is the best next step to be prepared for a disaster?
A. She should enter into reciprocal agreements with alternative ''hot'' sites.
B. She should create a planning document including a list of critical applications.
C. She should make sure that everyone Knows the location of offsite data storage.
D. She should ensure that the "cold" sites are fully equipped and ready.
Question 3
COSO's Internal Control-Integrated Framework is the widely accepted internal control framework in the U S Five major Internal control components are Included in this framework Control environment consists of
A. management s identification and analysis of risks relevant to the preparation of financial statements according to generally accepted accounting principles
B. the actions, policies, and procedures that reflect the overall attitudes of top management directors and owners about internal control
C. policies and procedures that management has established to meet its objectives for financial reporting
D. management's ongoing and periodic assessment of the quality of internal control performance to determine if controls are operating as intended
Question 4
GorCo anticipates 10% sales growth each month for the next three months, and plans to sell 120.000 units of finished goods In the first month. The company plans production so that ending inventory is equal to 5% of the next month's budgeted sales On GorCo's production budget for the second month the number of finished goods units to be produced would be
A. 132,600.
B. 132,660.
C. 131,340.
D. 132,000.
Question 5
Grayson Inc. experienced the following costs per unit this year for one of the direct materials involved in producing its main product
3.1 pounds @ $4 20 per pound = $13.02 per finished unit
For the next year. Grayson expects to produce 7.400 finished units. The price per pound of the direct material is expected to rise 10%. To combat this increase. Grayson has adapted its manufacturing process to reduce the amount of the direct material needed per finished unit by 5% What is the direct materials budget for the next year?
A. $91,531
B. $105,983
C. $101,165
D. $100,684
Solutions:
| Question 1 Answer: C | Question 2 Answer: C | Question 3 Answer: B | Question 4 Answer: B | Question 5 Answer: D |
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