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كورس CMA PART 1 - الوحدة 7

cma course part 1 :  lectures and some questions about each unit
كورس UNIT 7 : CMA PART 1
MR:amr taison
MR:mohamed cma
MR:desoky kh.
(7.1) Cost Management Terminology
1) Subdisciplines of Accounting
2) Basic Definitions
3) Direct vs. Indirect
4) Manufacturing vs. Nonmanufacturing
5) Product vs. Period
MR:amr taison
MR:mohamed cma
MR:desoky kh.
(7.2) Cost Behavior and Relevant Range
1) Relevant Range
2) Variable Costs
3) Fixed Costs
4) Mixed (Semivariable) Costs
5) Linear vs. Nonlinear Cost Functions
6) Relevant Range and Marginal Cost
MR:amr taison
MR:mohamed cma
MR:desoky kh.
(7.3) Cost Classification
1) Controllable vs. Noncontrollable
2) Avoidable vs. Committed
3) Incremental vs. Differential
4) Engineered vs. Discretionary
5) Outlay vs. Opportunity
6) Relevant vs. Sunk
7) Normal vs. Abnormal Spoilage
8) Rework, Scrap, and Waste
9) Other Costs
10) Manufacturing Capacity
MR:amr taison
MR:mohamed cma
MR:desoky kh.
(7.4) Costing Techniques
1) Actual vs. Normal Costing
2) Cost Accumulation Systems
3) Standard Costing, Flexible Budgeting, and Variance Analysis
MR:amr taison
MR:mohamed cma
MR:desoky kh.
(7.5) Absorption and Variable Costing
1) Two Ways of Treating Fixed Production Costs: Period vs. Product Costs
2) Absorption Costing
3) Variable costing
4) Variable vs. Absorption Costing
5) Justification for Variable Costing
6) Effects on Operating Income
7) Summary of Effects on Income and Ending Inventory
8) Benefits of Variable Costing
9) Further Aspects of Variable Costing
G.2020G.2022mr.amro taison
5.17.1lec. 10
5.27.2lec. 10
5.37.3lec. 10
5.47.4lec. 11
7.1,27.5lec. 14
Some Questions about unit 7
1- What is the definition of cost in management accounting according to IMA?
A cost is defined by the IMA in following two senses:
"In management accounting, the cost is a measurement in monetary terms of the amount of resources that the company uses for its purpose. The term by itself is not operational. It becomes operational when modified by a term that defines the purpose, such as acquisition cost, incremental cost, or fixed cost."
2- What is the definition of cost in financial accounting according to IMA?
"In financial accounting, the sacrifice measured by the price paid or required to be paid to acquire goods or services. The term ‘cost’ is often used when referring to the valuation of a good or service acquired. When ‘cost’ is used in this sense, a cost is an asset. When the benefits of the acquisition (the goods or services) expire, the cost becomes an expense or loss."
3- What is the definition of cost object and cost driver?
Cost object: It is any object to which costs can be attached.
Cost driver: is the basis used to assign costs to a cost object
4- What is the difference between direct and indirect cost?
Direct costs are: all costs that are available to be associated with a particular cost object economically.
Indirect costs are: all costs that are not available to be associated with a particular cost object, so this cost must be allocated to that object.
5- What is the difference between manufacturing and non-manufacturing cost?
* Manufacturing cost can be classified as one of three types:
1) Direct materials
2) Direct labor
3) Manufacturing overhead
* Non-manufacturing cost includes the following:
1) Selling (marketing) expenses
2) Administrative expenses
6- What is the difference between Product cost & Period cost?
1) Product cost: this cost is capitalized as part of finished goods inventory
2) Period cost: this cost is not capitalized in finished goods inventory, but it is excluded from cost of goods sold.
7- What are the variable costs?
Variable cost is the cost that changes with the change in the level of production
8- What are the fixed costs?
Fixed cost: the cost that remains constant regardless of production level.
9- What are the mixed (semi-variable) costs?
Mixed (semi-variable) costs contain from the two kinds of costs, (fixed portion and variable portion)
10- What is marginal cost?
Marginal cost is the cost incurred as a result of a one unit increase in the activity level of a particular cost driver.
11- What is the difference between Controllable & Non-controllable costs?
* Controllable costs: the costs that CO. managers can change, either by increasing or decreasing.
* Uncontrollable costs: the costs that are not subject to a manager's authority to change it
12- What is the difference between Avoidable & Committed costs?
* Avoidable costs: the costs that may be eliminated by not engaging in an activity or by performing it more efficiently.
* Committed costs: the costs that arise from acquiring property, plant, and equipment, these costs are not available to be reduced by decreasing level of production at the short-term
13- What is the difference between Incremental & Differential costs?
* Incremental cost is the additional cost that related to a given decision.
* Differential cost is the amount of difference in total cost that occurs due to choosing one of two decisions.
14- What is the difference between Engineered & Discretionary costs?
* Engineered costs : the costs that have a direct, observable, quantifiable cause-and-effect relationship between the output level and the quantity of the consumed resources .
* Discretionary costs : the costs that characterized by an uncertainty in the causation degree between the output level and the resources consumed quantity
15- What is the difference between Outlay & Opportunity costs?
* Outlay costs (explicit costs , out-of-pocket costs) require actual cash disbursements
* Opportunity cost is the maximum of benefit that forgone by using a scarce resource for a specific purpose
16- What is the difference between Relevant & Sunk costs?
* Relevant costs are those future costs that will differ because of the changes in the action taken
* Sunk costs are costs either already paid by the company or irrevocably committed to incur, so this cost is unavoidable
17- What is the difference between Normal & Abnormal Spoilage?
* Normal spoilage is the damage that occurs in production under normal conditions. It is basically uncontrollable in the short term.
* Abnormal Spoilage is that Spoilage that the company does not expect to occur during the production process under normal operating conditions
- This type of spoilage is more controllable than normal Spoilage
- When abnormal Spoilage occurs, the management must report it in its accounting records
18- What are the types of manufacturing capacity?
1) Normal capacity
2) Practical capacity
3) Theoretical (ideal) capacity
19- What is the difference between Actual & Normal costing?
Actual costing: is the recording the costs of product depending on actual cost of materials, actual cost of labor, and overhead incurred
Normal costing: the difference is that the normal costing applies overhead on the basis of a budgeted rate
20- What are cost accumulation systems?
* Job-order costing
* Process costing
* Activity-based costing (ABC)
* Life-cycle costing
21- What is the standard costing?
Standard costing is a system that is designed to give an alert to management when there is a material (significant) difference between actual costs and budgeted costs
22- What is the flexible budgeting?
A flexible budget is a calculation of the amount and cost of inputs that are supposed to be consumed depending on the level of output actually produced.
23- What are the two ways of treating fixed production?
Period Costs & Product Costs
24- What is the Absorption Costing?
By using absorption costing, the fixed portion of manufacturing overhead is included into the cost of unit produced
25- What is the variable costing?
It is a direct function that expresses the volume of production, and it is affected by the increase and decrease in production levels
26- What are the benefits of variable costing?
1) Its useful and suitable for internal reporting
2) Under the variable costing usage, a production management can manipulate the levels of income by deferring costs, not by overproducing
3) by the variable costing, all cost data that the company need for profit planning and decision making are available directly from accounting records
4) Profits and losses that reported by using variable costing have a relationship to sales revenue, also these reported are not affected by the variations of inventory or production.
And more benefits …
mohamed ashry


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  • غير معرف23 أكتوبر 2022 في 2:50 م

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      mohamed ashry23 أكتوبر 2022 في 3:02 م

      الأسئلة دي مكتوبة داخل اكواد برمجية داخل الموقع ، مش متاحة pdf للأسف

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