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In a typical cost ledger, what is the double entry for indirect labour cost incurred?

• A. DR Factory Overhead control CR Wages control

• B. DR Admin overhead control CR Wages control

• C. DR Wages control CR Factory Overhead control

• D. DR Wages control CR Admin overhead control

Over which of the following is the manager of a profit centre likely to have control?

(i) Selling prices

(ii) Controllable costs

(iii) Apportioned head office costs

(iv) Capital investment in the centre

• A. All of the above

• B. (i) and (ii)

• C. (i), (ii) and (iii)

• D. (i), (ii) and (iv)

The following statements refer to qualities of good information. Which TWO of the above statements are correct?

(i) It should be communicated to the right person.

(ii) It should always be completely accurate before it is used.

(iii) It should be understandable by the recipient.

• A. (ii) and (iii) only

• B. (i) and (ii) only

• C. All (i), (ii) and (iii)

• D. (i) and (iii) only

Here are three statements on the determination of overhead absorption rates:

(1) Costs can be allocated where it is possible to identify the department that caused them.

(2) Costs need to be apportioned where they are shared by more than one department.

(3) Service centre costs should not be included in unit overhead costs. Which of these statements are correct?

• A. (1), (2) and (3)

• B. (1) and (3) only

• C. (1) and (2) only

• D. (2) and (3) only

What does an activity (production volume) ratio 105%?

• A. That the budget hours were greater than the actual hours

• B. That the actual hours worked were less than the standard hours of actual output.

• C. That the actual hour worked exceeded the flexible budget

• D. That the standard hours of actual output exceeded the fixed budget hours.

: In process costing, a joint product is:

• A. A product which is produced simultaneously with other products but which is of greater value than any of the other products

• B. A product which is produced simultaneously with other products and is of similar value to at least one of the other products

• C. A product produced jointly with another organization

• D. A product which is produced simultaneously with other products but which is of lesser value than at least one of the other products

Which of the following is NOT a financial information?

• A. Canteen staff costs

• B. Canteen facilities

• C. Costs of subsidising meals

• D. Costs of heat and light

Which line-up as follows is suitable for a product life cycle?

• A. Introduction, Growth, Decline, Maturity

• B. Introduction, Decline, Maturity, Growth

• C. Introduction, Decline, Growth, Maturity

• D. Introduction, Growth, Maturity, Decline

Which stage of a product life is aimed by target costing?

• A. Maturity stage

• B. Development and design stage

• C. Growth stage

• D. Introduction stage

Overheads related to only one cost centre should be

• A. Re-apportioned

• B. Apportioned

• C. Absorped

• D. Allocated