Key risk reduction internal control activities: Key risk reduction internal control activities: A. Segregation of incompatible duties B. Regular physical inventory count C. Independent account reconci

Flexible budget variance splits into: Flexible budget variance splits into: A. Price/spending variance B. Efficiency/usage variance C. Static budget planning variance D. Market share variance Answer:

Common types of responsibility center include Common types of responsibility center include: A. Cost center B. Revenue center C. Profit center D. Investment center Answer: ABCD Rationale: Four classic

Items affect breakeven sales volume calculation: Items affect breakeven sales volume calculation: A. Unit selling price B. Unit variable cost C. Total fixed cost D. Actual sales quantity of prior year

Which costs are period cost under GAAP absorption costing Which costs are period cost under GAAP absorption costing? A. Fixed selling expense B. Variable sales commission C. Factory equipment deprecia

Under IMA ethics standard, first step solving ethical conflict: Under IMA ethics standard, first step solving ethical conflict: A. Report directly to external regulator immediately B. Review company&r

Internal control cost-benefit principle means: Internal control cost-benefit principle means: A. Control expense shall not exceed expected loss reduction benefit B. All control procedure must maximize

Contribution margin income statement deducts which first from sales Contribution margin income statement deducts which first from sales? A. All manufacturing fixed cost B. Total variable cost (product

Relevant cost for make-or-buy decision excludes: Relevant cost for make-or-buy decision excludes: A. Avoidable variable production cost B. Extra incremental fixed cost if in-house produce C. Sunk fact

Decentralization management advantage: Decentralization management advantage: A. Eliminate department duplicate resource B. Improve quick response to local market condition C. Completely eliminate age

System Development Life Cycle (SDLC) fits best for: System Development Life Cycle (SDLC) fits best for: A. Small unstructured IT project B. Large highly structured information system project C. Tempor

Under absorption costing, fixed manufacturing overhead is: Under absorption costing, fixed manufacturing overhead is: A. Expensed fully in current period SG&A B. Capitalized into product inventory

Unfavorable material price variance means: Unfavorable material price variance means: A. Actual purchase price > standard unit price B. Actual usage quantity > standard allowed quantity C. Actual outp

Master budget’s starting preparation item is: Master budget’s starting preparation item is: A. Production budget B. Sales budget C. Cash budget D. Operating expense budget Answer: B Ration

Which is risk avoidance strategy Which is risk avoidance strategy? A. Buy insurance to transfer credit risk B. Refuse high-risk unqualified project entirely C. Outsource business to reduce operation r

Quick ratio excludes which asset from current asset calculation? Quick ratio excludes which asset from current asset calculation? A. Cash B. Trade receivable C. Inventory D. Short-term marketable secu

When developing participative standard cost: When developing participative standard cost: A. Top management sets standards alone without department input B. Frontline manager, engineer & accountan

Employee fidelity bonding aims to: Employee fidelity bonding aims to: A. Prevent employee embezzlement & cash fraud loss B. Reduce corporate income tax expense C. Cut employee salary cost D. Optim

Rolling continuous budget feature: Rolling continuous budget feature: A. Lock full-year budget without revision B. Extend budget period forward regularly (month/quarter update) C. Only revise fixed co

A revenue center manager is accountable for: A revenue center manager is accountable for: A. Total operating profit & investment return B. Only sales revenue C. All fixed and variable expenses D.

360-degree performance evaluation’s main drawback 360-degree performance evaluation’s main drawback: A. Only evaluate financial KPIs B. Prone to subjective interpersonal bias C. Cannot app

Under SOX Act, CEO & CFO must Under SOX Act, CEO & CFO must: A. Outsource all internal audit work B. Certify financial statement authenticity formally C. Waive audit committee supervision D. S

High-low cost estimation method uses how many activity data points High-low cost estimation method uses how many activity data points? A. All historical data B. Highest & lowest activity volume on

Sunk cost is irrelevant for short-term decision because Sunk cost is irrelevant for short-term decision because: A. It is future incremental cost B. Already incurred and cannot be changed C. Fully var

Which item is NOT one of five COSO Internal Control Framework components Which item is NOT one of five COSO Internal Control Framework components? A. Control Environment B. Budgeting C. Risk Assessmen