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

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 doesnot affect the conversion costs

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

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

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

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

QUESTION 3

You manage a subdivision of your company and would liketo buy raw materials that have a discount that has not beenbudgeted. You have discussed this purchase with your manager andhave been asked not to buy these materials because you will needcash for other purchases of the company in other departments. Youshould:

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

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

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

QUESTION 4

1. The IMA Standards of Ethical Conduct include acompetency standard, which requires the management accountantto:

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

b-Report the information, whether favorable or unfavorable.

c-Develop your professional competence continuously.