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CPA MA Exam Dumps - Actual Questions Answers

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MA Questions and Answers

Question # 1

Which ONE of the following statements is correct?

A.

Since management accounts are prepared for a different purpose from that of external financial reports, there is no need for any convergence between the two.

B.

The setting of appropriate performance measures will ensure that anorganization’sperformance management is effective.

C.

Since the board of directors is not concerned with the day to day management of a business they do not require regular management reports.

D.

Management control activity might involve a comparison of the latest forecast results with the original budget.

Question # 2

Which of the following statements about transfer pricing is correct?

A.

Market price should always be used as the transfer price

B.

Transfer prices allow divisions to operate with complete autonomy

C.

Cost-based transfer prices should be based on full cost

D.

The use of transfer prices is intended to focus attention on corporate performance

Question # 3

Which of the following choices is likely to occur if cellular manufacturing is introduced as a result of a business process re-engineering exercise?

A.

Employees will develop highly specific skills

B.

Production runs will be longer

C.

Individual goals will be used for control purposes

D.

Customer value will be improved

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