FREE CMRP Certification MCQ Question and Answers

0%

Which assets can be capitalized with interest?

Correct! Wrong!

Explanation:
In contrast to other types of assets, those that the firm generates for its own purpose are eligible for interest capitalization. In addition, a firm may capitalize interest on assets made for its use by another organization.

The Robinson-Patman Act forbids what practice?

Correct! Wrong!

Explanation:
The Robinson-Patman Act forbids discrimination based on price. It specifically states that suppliers must charge all clients at a certain level the same pricing. In other words, medical facilities must charge the same prices for private patients as they do for commercial clients.

Which of the following causes the greatest decrease in a manufacturer's revenue?

Correct! Wrong!

Explanation:
The factor that affects a manufacturer's profits the most is the cost of items sold. The cost of supplies, labor, and overhead is a factor that affects the cost of items sold. The total goods available for sale are calculated by adding the cost of goods manufactured to the beginning completed goods inventory, from which the cost of goods sold can be calculated by deducting the ending finished goods inventory. After deducting the cost of products sold from the sales, the gross margin is obtained. Operating income is obtained by deducting selling and administrative costs from the gross margin. Operating income is reduced by interest expense, income tax expense, other expenses, and losses, and then net income is calculated.

Which of the following, according to Total Quality Management, is NOT a part of every process?

Correct! Wrong!

Explanation:
Total Quality Management states that not every process includes variation. The fundamental tenet of TQM is that output will suffer as a result of unfavorable variation in either input or processing. / Variation may be a necessary component of industrial processes, but the TQM model does not include it.

An enterprise resource planning system's back office function is generally utilized to interface with:

Correct! Wrong!

Explanation:
An enterprise resource planning system's back-office component is mostly utilized for manager communication. Back-office functions are all internal and comprise all of the subsystems in a standard enterprise resource planning system. This material is primarily meant for managers, executives, and other employees to use. On the other hand, more recent iterations of enterprise resource planning software include front-office features. Information for communication with creditors, suppliers, consumers, and other external users is provided through front-office tasks.

Which of the following is a benefit that participatory budgeting might have?

Correct! Wrong!

Explanation:
Increased employee buy-in is one potential benefit of participatory budgeting. The goal of this budgeting strategy is, in fact, to increase employee participation. Employee commitment to the budget's performance will increase, or at the very least, they will be more aware of how their actions will likely affect the budget's success in the long run. Participatory budgeting is typically more expensive and time-consuming. Additionally, rather than managers, it tends to concentrate research more on the knowledge and abilities of employees. In other words, it takes a bottom-up strategy as opposed to a top-down one. Due to its utter reliance on the attitudes and opinions of its workforce, it is susceptible to interference from inaccurate employee perceptions.

Which costing methods are permitted to use a standard-cost system?

Correct! Wrong!

Explanation:
A standard cost method may be used for job-order costing and process costing. In a typical cost method, the price of the product is anticipated at a certain level, and the expected and actual prices are then contrasted. When costs differ from what was anticipated, these differences can be identified and studied. The usage of a standard cost system is supported by both job-order and process costing systems.

Premium Tests $49/mo
FREE July-2024