CMA Community / Study Group

1.  CMA Pop Quiz - Q169

Posted 03-03-2017 12:08 PM
ENQKnmTQU6laiedLnQ8x_Q169--question.png
Are you preparing for the CMA exam? Take our CMA Pop Quiz!

------------------------------
Morgan Greenleaf
Social Media & Marketing Product Specialist
IMA
Montvale NJ
United States
------------------------------


2.  RE: CMA Pop Quiz - Q169

Posted 03-04-2017 06:19 AM
If, freight charges on incoming parts used in the manufacture of tables is excluded from overhaed, being treated - pro-rata as cost of goods then why isn't the same stance taken on the amount of glue applied to affix the legs of the table?

------------------------------
Clifford Moggs CMA
Other
Reading
United Kingdom
------------------------------



3.  RE: CMA Pop Quiz - Q169

Posted 03-10-2017 01:17 PM
Hi Clifford,

We are looking into this for you!

------------------------------
Morgan Greenleaf
Social Media & Marketing Product Specialist
IMA
Montvale NJ
United States
------------------------------



4.  RE: CMA Pop Quiz - Q169

Posted 03-17-2017 12:39 PM

Hi Clifford,
Please see the response to your question from my colleague, Bill Cordes. Please let us know if you have any additional questions.
Thank you,
Morgan


Thank you for a great question concerning “CMA Pop Quiz” question 169. This is an opportunity to share an important concept concerning direct materials.  Materials that are insignificant and relatively small in relation to the cost of all other materials used are treated as indirect costs and included in overhead.  In the case of this question, the glue meets the definition of an indirect cost as it is a trivial cost in relation to the cost of the other materials used in the finished product.

 

Bill Cordes

Senior Director, Exam Development and Performance Analysis



------------------------------
Morgan Greenleaf
Social Media & Marketing Product Specialist
IMA
Montvale NJ
United States
------------------------------



5.  RE: CMA Pop Quiz - Q169

Posted 03-18-2017 09:32 AM
Thank you for commenting - that 'items that have a triva cost are more easily threated as overhead' - the position taken for exams - which I recognised.
Of course I am trying to 'open' the constraint of 'just follow the leader'. There is the 'old saying', "look after the cents (pennies) and the dollars(pounds) will lokk after themselves. Management accountancy is not locked into some prescribed rule - if it supports the management team then prescribe the rules that benefits your operation and not the concept of 'examination questions'.

Cliff

------------------------------
Clifford Moggs CMA
Other
Reading
United Kingdom
------------------------------



6.  RE: CMA Pop Quiz - Q169

Posted 03-18-2017 09:33 AM
Thank you for commenting - that 'items that have a triva cost are more easily threated as overhead' - the position taken for exams - which I recognised.
Of course I am trying to 'open' the constraint of 'just follow the leader'. There is the 'old saying', "look after the cents (pennies) and the dollars(pounds) will lokk after themselves. Management accountancy is not locked into some prescribed rule - if it supports the management team then prescribe the rules that benefits your operation and not the concept of 'examination questions'.

Cliff

------------------------------
Clifford Moggs CMA
Other
Reading
United Kingdom
------------------------------



'