JJ24 CHAP 1

1. Which of the following questions would NOT normally be answered by the trainee accountant?

• 1. What has the cost of goods produced been?

• 1. What has the cost of operating department A been?

• 1. What should our business strategy be for the next 5  years?

• 1. What have revenues been?

1. Which of the following describes a faceted code?

• 1. Each digit represents a classification, and each digit further to the right represents a smaller subset than those to the left.

• 1. The code is an abbreviation of the item being coded

• 1. A digit, usually the first one, indicates the classification of the item

• 1. Each digit of the code gives information about the item

1. Which TWO of the following are the main purposes of cost coding?

•  To enable a logical and systematic arrangement of costing records

•  To facilitate electronic data processing

• To provide confidentiality

  
  

• To share production costs between products

1. The following statements explain why coding systems are used EXCEPT for?

• 1. A code is more suited to communicating wider issues than a description

• 1. The use of codes facilitates data processing

• 1. A code is briefer than a description so saves time

• 1. A code is more precise than a description so reduces ambiguity

Which of the following would MOST likely be a responsibility of a trainee accountant?

• Producing a schedule of budgeted and actual costs to calculate variances

• Deciding on procedures for the authorisation of invoices

• Authorising a contract for a new computerised accounting system

• Approving employee recruitment

In accounting systems, data is usually organized using codes. 

Which of the following statements about codes is correct?

• Using codes slows down data processing

• Codes in accounting reduce the need for accountants to understand the principles of accounting.

• Using codes leads to more errors in data input

• A hierarchical code structure makes it easier to find items on a code list, since similar items are grouped

A processed raw data that is meaningful to the recipient is?

• Data

• Statistics

• Information

• Referencing

Which task is likely to be carried out by a trainee accountant?

• Setting selling prices for products and services

• Approving departmental expenditure for control purposes

• Advice on business strategies

• Calculating wages for employees working on special shifts

Which of the following is an example of primary data?

• A local authority survey to assess parking needs

• Trade publications

• An employee survey to determine views on canteen food

• A new legislation on safe working environment

Which of the following sources of information would usually be an external source of information for a business?

• Number of machine set up times

• Receivables ageing report

• Approved suppliers list

• The internet