MAS
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Questions and Answers

What type of cost includes direct materials and direct labor?

  • Variable Costs
  • Mixed Costs
  • Inventoriable Costs (correct)
  • Period Costs
  • Which cost remains constant within a relevant range and is not affected by changes in activity levels?

  • Fixed Cost (correct)
  • Step Cost
  • Mixed Cost
  • Variable Cost
  • What expense is necessary to secure customer orders or deliver products to customers?

  • Direct Labor
  • Marketing or Selling Expense (correct)
  • Factory Overhead
  • General Administrative Expense
  • Which of the following describes costs that can be traced to specific product units economically?

    <p>Direct Material</p> Signup and view all the answers

    What type of fixed cost is considered a long-term commitment based on past decisions?

    <p>Committed Fixed Cost</p> Signup and view all the answers

    What is the general term for costs that cannot be practically traced to specific product units?

    <p>Factory Overhead</p> Signup and view all the answers

    Which type of cost can vary with the level of production but is not directly proportional to it?

    <p>Mixed Cost</p> Signup and view all the answers

    Which type of cost is related to the overall operation of the organization, such as executive salaries?

    <p>General Administrative Expenses</p> Signup and view all the answers

    What is the primary goal of managerial finance?

    <p>To maximize shareholder's wealth</p> Signup and view all the answers

    Which of the following best describes the role of financial managers?

    <p>To make investment decisions that increase firm value</p> Signup and view all the answers

    What constitutes the scope of managerial finance?

    <p>Acquisition, financing, and management of assets</p> Signup and view all the answers

    How does globalization affect financial management?

    <p>It creates opportunities and challenges in a new financial environment</p> Signup and view all the answers

    What is a key consideration for procurement of funds in managerial finance?

    <p>Compliance with legal and regulatory provisions</p> Signup and view all the answers

    What type of cost is incurred in two or more accounting periods and includes costs that keep the business running?

    <p>Common Cost</p> Signup and view all the answers

    Which cost represents expenses incurred in the manufacture of multiple products at the same time and cannot be specifically identified with any single product?

    <p>Joint Cost</p> Signup and view all the answers

    What is classified as costs intended to benefit more than one accounting period?

    <p>Capital Expenditures</p> Signup and view all the answers

    Which cost should not be considered when making future investment decisions because it has already been incurred?

    <p>Sunk Cost</p> Signup and view all the answers

    What term describes the cost that increases when one alternative is selected over another?

    <p>Incremental Cost</p> Signup and view all the answers

    Which type of cost is considered when evaluating alternatives and may change based on the decision made?

    <p>Relevant Cost</p> Signup and view all the answers

    What kind of cost explicitly requires the payment of money or other assets when incurred?

    <p>Out-of-Pocket Cost</p> Signup and view all the answers

    Which of the following is a cost that is incurred but not typically recorded in the accounting system?

    <p>Opportunity Cost</p> Signup and view all the answers

    What is the primary goal of investment decisions in a firm?

    <p>To choose projects with positive net present value exceeding marginal cost of capital</p> Signup and view all the answers

    Which of the following is primarily concerned with the distribution of profits to owners?

    <p>Dividend decisions</p> Signup and view all the answers

    The Philippine Stock Exchange aims to maintain which of the following during its operations?

    <p>Efficiency, fairness, and transparency in the equities market</p> Signup and view all the answers

    What type of decisions determine the mix of debt and equity to finance investments?

    <p>Financing decisions</p> Signup and view all the answers

    Which service is NOT provided by the Philippine Stock Exchange?

    <p>Investment banking advice</p> Signup and view all the answers

    How does market data function within the Philippine Stock Exchange?

    <p>Empowers investors to develop trading strategies and conduct research</p> Signup and view all the answers

    What is the primary purpose of post-trade services offered by the PSE?

    <p>To meet international standards in clearing and settlement</p> Signup and view all the answers

    In the context of a financial manager's responsibilities, which of the following is NOT a major type of decision they must make?

    <p>Market entry decisions</p> Signup and view all the answers

    What is the primary difference between money market and capital market securities?

    <p>Money market securities have a life of 1 year or less, while capital market securities last more than one year.</p> Signup and view all the answers

    Which function does the derivative market serve regarding pricing?

    <p>Price discovery, reflecting market sentiments and expectations.</p> Signup and view all the answers

    Which of the following statements is true regarding futures contracts?

    <p>Futures contracts oblige both parties to fulfill their commitments.</p> Signup and view all the answers

    What distinguishes options contracts from futures contracts?

    <p>Options contracts allow the buyer to choose whether to exercise the agreement.</p> Signup and view all the answers

    What type of risk is associated with forwards contracts?

    <p>Counterparty risk because they do not trade on exchanges.</p> Signup and view all the answers

    What is a feature of the capital market related to the duration of securities?

    <p>Intermediate markets deal with securities that have a life of 1 to 10 years.</p> Signup and view all the answers

    How does the derivative market enhance capital efficiency for investors?

    <p>By requiring a lower initial capital outlay.</p> Signup and view all the answers

    Which type of option gives the seller the right to disregard the contract?

    <p>Put-Option</p> Signup and view all the answers

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