F2 BAI DIEU KIEN

The following statement about Activity ratio in management accounting for labour is true or false?

“Activity ratio compares the number of standard hours equivalent to the actual work produced and budgeted hours.”

• true

• false

What method of materials issue pricing is consistent with the inventory being issued in the same order it is received?

• Periodic weighted average

• LIFO

• FIFO

• Cumulative weighted average

A  company  uses  absorption  costing  with  a  predetermined  hourly  fixed  overhead  absorption  rate.  The following situations arose last month:

(i) Actual overhead expenditure was less than the planned expenditure.

(ii) Actual hours worked exceeded planned hours.

Which statement is correct?

• Situation (i) would cause overheads to be under absorbed and situation (ii) would cause overheads to be over absorbed.

• Situation (i) would cause overheads to be over absorbed and situation (ii) would cause overheads to be under absorbed.

• Both situations would cause overheads to be over absorbed.

• Both situations would cause overheads to be under absorbed.

The annual demand for an items is 60,000 units, and the purchase costs is $10 per unit. It costs $105 to place an order, and the annual cost of holding one unit is $1.40.

What is the economic order quantity?

• 3000

• 4000

• 5000

• 6000

A management accountant prepare a report containing the following terms of information.

Which TWO of these are external information

1, The average wage paid by the company

2, The percentage of turnover accounted for the company four biggest customer

3, Customer opinion on a proposed new product

• 1 and 2

• 1 and 3

• 2 and 3

• 3 and 1

Flexible budgets are normally prepared on a absorption cost basis. True or false?

• true

• false

Details of the movements and cost prices of raw material XX for a period are:

The cost of raw materials is charged to the WIP account immediately after each issue occur. The company uses the weighted average method to establish the cost price of material issues (to two decimal places)

How many different weighted average cost prices will be used during the period for charging the issues of material XX to the WIP account?

• 1

• 2

• 3

• 4

Which of the following statements is/are correct?

(i) A by-product is a product produced at the same time as other products which has a relatively low volume compared with the other products

(ii) Since a by-product is a saleable item it should be separately costed in the process account, and should absorb some of the process costs

(iii) Costs incurred prior to the point of separation are known as common or joint costs

• i and ii

• i and iii

• ii and iii

• iii

The standard direct material cost for a product is $50 per unit (12·5 kg at $4 per kg). Last month the actual amount paid for  45,600  kg  of  material  purchased  and  used  was  $173,280  and  the  direct  material  usage  variance  was  $15,200 adverse.

What was the actual production last month?

• 3344 units

• 3520 units

• 3952 units

• 4160 units

A company manufactures a single product. An extract from a variance control report together with relevant standard cost data is shown below:

What was the sales volume profit variance in February?

• 300 (F)

• 300 (A)

• 1400 (F)

• 1400 (A)