ACCA

Which of the following describes Reginald's role
in department M?

• A cost centre manager

• An investment centre manager

• A revenue centre manager

• A profit centre manager

Which of the following statements is NOT correct?

• Cost accounting can be used for inventory
  valuation to meet the requirements of internal reporting only.

• Management accounting provides appropriate information for decision making, planning, control and performance evaluation.

• Routine information can be used for both short-term and long-run decisions.

• Financial accounting information can be used for
  internal reporting purposes.

The following statements relate to financial
accounting or to cost and management accounting.
(i) Financial accounts are historical records.
(ii) Cost accounting is part of financial
accounting and establishes costs incurred by an organisation.
(iii) Management accounting is used to aid planning, control and decision making.
Which of the statements are correct?

• (i) and (ii) only

• (i) and (iii) only

• (ii) and (iii) only

• (i), (ii) and (iii)

The manager of a profit centre is responsible for which of the following?
(i) Revenues of the centre

(ii) Costs of the centre

(ii) Assets employed in the centre

• (i) only

• (ii) only

• (i) and (ii) only

• (i), (ii) and (ji)

Which of the following would be best described as a short-term tactical plan?

• Reviewing cost variances and investigate as appropriate

• Comparing actual market share to budget

• Lowering the selling price by 15%

• Monitoring actual sales to budget

The following statements refer to strategic planning:
(i) It is concerned with quantifiable and qualitative matters.
(ii) It is mainly undertaken by middle management in an organisation.
(iii) It is concerned predominantly with the long term.
Which of the statements are correct?

• (i) and (ii) only

• (i) and (iii) only

• (ii) and (iii) only

• (i), (ii) and (iii)

Which of the following descriptions only contains essential features of useful management information?

• Accurate, understandable, presented in report
  format

• Timely, reliable, supported by calculations

• Regular, complete, communicated in writing

• Understandable, accurate, relevant for its purpose

A firm has to pay a $0.50 per unit royalty to the inventor of a device which it manufactures and sells.
How would the royalty charge be classified in the firm's accounts?

• selling expense

• direct expense

• production overhead

• administrative overhead

Which of the following can be included when
valuing inventory?
(i) Direct material

(ii) Direct labour

(iii) Administration costs

(iv) Production overheads

• (i), (ii) and (iii)

• (i), (ii) and (iv)

• (ii), (iii) and (iv)

• (i), (iii) and (iv)

Which of the following is usually classed as a step cost?

• Supervisor's wages

• Raw materials

• Rates

• Telephone