Quiz about F2 BAI DIEU KIEN

Question 1

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

Accepted Answer

FIFO

Answer

Periodic weighted average

Answer

LIFO

Answer

Cumulative weighted average

Question 2

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?

Accepted Answer

Both situations would cause overheads to be over absorbed.

Answer

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

Answer

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

Answer

Both situations would cause overheads to be under absorbed.

Question 3

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?

Accepted Answer

3000

Answer

4000

Answer

5000

Answer

6000

Question 4

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

Accepted Answer

2 and 3

Answer

1 and 2

Answer

1 and 3

Answer

3 and 1

Question 5

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

Accepted Answer

false

Answer

true

Question 6

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?

Accepted Answer

3

Answer

1

Answer

2

Answer

4

Question 7

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

Accepted Answer

iii

Answer

i and ii

Answer

i and iii

Answer

ii and iii

Question 8

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?

Accepted Answer

300 (F)

Answer

300 (A)

Answer

1400 (F)

Answer

1400 (A)

Question 9

The overhead absorption rate for product T is $5 per machine hour. Each unit of T requires 2 machine hours. Inventories of product T last period were:

- Opening inventory: 2,700 units

- Closing inventory: 2,400 units

Compared with the marginal costing profit for the period, the absorption costing profit for product T will be which of the following?

Accepted Answer

3000 lower

Answer

1000 higher

Answer

1000 lower

Answer

3000 higher

Question 10

The statement belows is true or false?

"A standard cost is a predetermined estimated unit cost, used for inventory valuation and control"

Accepted Answer

T

Answer

F

Question 11

The following budgeted information relates to a manufacturing company for next period:

Production: 14,000 units

Fixed production costs: $63,000

Sales: 12,000 units

Fixed selling costs: $12,000

The normal level of activity is 14,000 units per period.

Using absorption costing the profit for next period has been calculated as $36,000.

What would the profit for next period be using marginal costing?

Accepted Answer

27000

Answer

25000

Answer

45000

Answer

47000

Question 12

What is the correct description of the following graph? (See the graph of Q.46)

Accepted Answer

Variable costs per unit are constant until output reaches Q after which further produciton incurs higher variable cost per unit.

Answer

Total fixed costs fall after production reaches Q, but variable costs per unit increase.

Answer

Fixed costs are constant until production reaches Q after which fixed costs step up to a higher level.

Answer

Variable costs per unit are constant until output reaches Q after which all production (from the first unit onwards) incurs higher variable cost per unit.

Question 13

There are 4,000kg of material input to a chemical process. Normal losses are expected to be 10% of input and because of their toxic nature will incur a disposal cost of $2 per kg. The process cost $11,800 and actual output was 3,550kg.

What is the total cost of the abnormal loss?

Accepted Answer

275

Answer

53

Answer

153

Answer

175

Question 14

'A budgeting system in which all budget holders are given the opportunity to participate in setting their own budgets' is the term of which following budgetting system?

Accepted Answer

Proposed/Bottom-up budget

Answer

Imposed/Top-down budget

Answer

Functional budget

Answer

Master budget

Question 15

A company uses standard costing and the standard variable overhead cost for a product is: 6 direct labour hours @ $10 per hour.

Last month when 3,900 units of the product were manufactured, the actual expenditure on variable overheads was $235,000 and actual labour hours were 24,050 hours, including 50 hours of non-productive time.

What was the variable overhead efficiency variance for last month?

Accepted Answer

6,000 Adverse

Answer

6,500 Favouralbe

Answer

5,000 Favourable

Answer

6,500 Adverse

Question 16

Jill Co manufactures a single product and has drawn up the following flexed budget for the year.

What would be the total cost in a budget that is flexed at the 75% level of activity?

Accepted Answer

362,500

Answer

372,500

Answer

360,625

Answer

370,000

Question 17

Phil is paid $12 per hour for his first 40 hours per week, then time and a quarter for any excess. On average he works 44 hours per week during which time he completes 60 units.

If Phil method of remuneration was charged to piecework, what rate would he have to be paid to match his current earrings for an average week?

Accepted Answer

9 per unit

Answer

8.8 per unit

Answer

8.1 per unit

Answer

9.2 per unit

Question 18

Under which sampling method is the population divided into categories?

Accepted Answer

Stratified

Answer

Systematic

Answer

Quota

Answer

Random

Question 19

The information available for a process for the month of December is as follows:

All material is input at the start of the process whereas conversion occurs evenly through the process.

What is the value of closing WIP at 31 December, using the Weighted average method of valuation?

Accepted Answer

99,480

Answer

84,680

Answer

101,250

Answer

136,200

Question 20

Taylor Co. absorbs overheads based on units produced. In one period, 23,000 units were produced, actual overheads were $276,000 and there was $46,000 under-absorption.

From the data above, budgeted OAR was calculated as $12 per unit. Is this true or false?

Accepted Answer

F

Answer

T

Question 21

The following data is relevant for calculate the total costs per period of ordering material and holding inventory:

What is the total cost per period of ordering and holding inventory?

Accepted Answer

3,616

Answer

3,296

Answer

4,896

Answer

3,456

Question 22

Costs are up by 25% is an example of a quatitative performance measure. True or false?

Accepted Answer

T

Answer

F

Question 23

Budgeted net profit absorption costing would be $6,700 for a period with each unit of inventory valued at $10. Net profit marginal costing for the same period would be $5,500 with inventory valued at $6 per unit.

What would change in inventory during the period?

Accepted Answer

Increase 300 units

Answer

Decrease 300 units

Answer

No change

Answer

None of the above is correct

Question 24

A company absorbs fixed production overheads in one of its departments on the basis of machine hours. There were 100,000 budgeted machine hours for the forthcoming period. The fixed production overhead absorption rate was $2.50 per machine hour.

During the period, the following actual results were recorded:

- Standard machine hours: 120,000

- Fixed production overheads $300,000

What was the fixed production overhead under/over absorption amount?

Accepted Answer

No over or under absorption

Answer

Over absorbed by $50,000

Answer

Under absorbed by $50,000

Answer

Over absorbed by $25,000

Question 25

Canberra has established the following information regarding fixed overheads for the coming month:

Budgeted information:

- Fixed overheads: $180,000

- Labour hours: 3,000 hours

- Machine hours: 10,000 hours

- Units of production: 5,000 units

Actual fixed costs for the last month were $160,000. Canberra produces many different products using highly automated manufacturing processes and absorbs overheads on the most appropriate basis.

What will be the pre-determined overhead absorption rate?

Accepted Answer

18

Answer

16

Answer

36

Answer

60

Question 26

A company absorbs overheads on the basis of machine hours worked. The following information is given for a year:

Budget Machine hours: 2600

Actual machine hours 2400

What is the total under/over absorption of overheads in the year?

Accepted Answer

3,200 under absorbed

Answer

7,200 under absorbed

Answer

3,200 over absorbed

Answer

7,200 over absorbed

Question 27

Overtime premium paid for direct worker in general overtime is classified as

Accepted Answer

indirect cost

Answer

prime cost

Answer

direct cost

Answer

variable cost

Question 28

Which of the following costs are fixed per unit, but change in total, as production level change?

Accepted Answer

variable costs

Answer

direct costs

Answer

fixed costs

Answer

step costs

Question 29

Good information should have certain qualities. Which of the following are qualities of good information?

(i) Understandable

(ii) Complete

(iii) Relevant

(iv) Accurate

Accepted Answer

all of them

Answer

i, ii, iii

Answer

i, iii, iv

Answer

ii, iv

Question 30

What is the "lead time" in inventory control?

Accepted Answer

The time between placing an order with a supplier, and the inventory becoming available for use

Answer

The time between placing an order with a supplier, and the time purchasing department receiving inventory

Answer

The time inventory be used from maximum inventory level to minimum inventory level

Answer

The time inventory be used from production department making a request to purchasing department placing an order

Question 31

Billecarte Ltd manufactures two products, Zonk and Tink, in a factory divided into two production cost centres, Machining and Assembly. In order to find a fixed overhead cost per unit, the following budgeted data are relevant.

Budgeted production is 4,000 units of each product (8,000 units in all) and fixed overheads are to be absorbed by reference to labour hours.

What should be the budgeted fixed overhead cost of a unit of Zonk?

Accepted Answer

18

Answer

28

Answer

24

Answer

20

Question 32

Which of the following could be carried out by higher level management?

(i) making short term decisions

(ii) defining the objectives of the business

(iii) making long run decisions

Accepted Answer

i, ii, iii

Answer

i, ii

Answer

i, iii

Answer

ii, iii

Question 33

An inventory record card shows the following details.

What is the value of inventory at 28 February using the FIFO method?

Accepted Answer

2,950

Answer

2,450

Answer

2,700

Answer

3,000

Question 34

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

Accepted Answer

Development and design stage

Answer

Introduction stage

Answer

Growth stage

Answer

Maturity stage

Question 35

A company operates a process in which no losses are incurred. The process account for last month, when there was no opening work-in-progress, was as follows:

The closing work-in-progress was complete to the same degree for all elements of cost.

What was the percentage degree of completion of the closing work-in-progress?

process account: 624000

Accepted Answer

75%

Answer

12%

Answer

30%

Answer

40%

Question 36

A firm recorded a profit of $50,000 under absorption costing when inventory increased from 1,000 units at the start of the period to 1,400 units at the end of the period. The fixed production overhead absorption rate for the period would be $12 per unit.

What would be the profit for the period under marginal costing?

Accepted Answer

45,200

Answer

54,800

Answer

50,000

Answer

None of the above is correct

Question 37

A company produces a certain food item in a manufacturing process. On 1 November, there was no opening inventory of work in process. During November, 500 units of material were input to the process, with a cost of $9,000. Direct labour costs in November were $3,840. Production overhead is absorbed at the rate of 200% of direct labour costs. Closing inventory on 30 November consisted of 100 units which were 100% complete as to materials and 90% complete as to labour and overhead. There was no loss in process.

What is the full production cost of completed units during November?

Accepted Answer

16,604

Answer

10,400

Answer

16,416

Answer

16,800

Question 38

What is one of principles of marginal costing?

Accepted Answer

Period fixed costs are the same, for any volume of sales and production

Answer

Period variable costs are the same, for any volume of sales and production

Answer

Fixed costs are not the same at different levels of activity

Answer

Variable costs per unit are not the same at different levels of activity

Question 39

The following data relates to a process for the month of May:

Input materials (500 units): $3,000

Labour and overhead: $2,670

Normal output is expected to be 9 units for every 10 units input.

Actual output was 460 units. Every item lost has $1 of scrap value.

What is the cost per unit of finished output (to 2 decimal places)?

Accepted Answer

12.49

Answer

11.33

Answer

11.67

Answer

12.60

Question 40

A company faces an annual demand of 2,000 units. It costs the company $1,000 for every order placed and $250 per unit of the product. It faces a holding cost of 10% of a unit cost annually. What is the economic order quantity?

Accepted Answer

400 units

Answer

200 units

Answer

2000 units

Answer

none of above is correct

Question 41

Which formula below is used for "Time work" wages calculation?

Accepted Answer

Wages = Hours worked x Rate of pay per hour

Answer

Wages = Normal time worked x Rate of pay per normal hour worked

Answer

Wages = Normal time worked x Basic rate

Question 42

A company had 50 direct production employees at the beginning of last year and 45 direct production employees at the end of the year. During the year, a total of 15 direct production employees had left the company to work for a local competitor. What is the labour turnover rate for last year?

Accepted Answer

21,05

Answer

10,00

Answer

10,53

Answer

31,58

Question 43

A company manufactures and sells one product which requires 10 kg of raw material in its manufacture. The budgeted data relating to the next period are as follows:

Sales: 19,000 units

Opening inventory of finished goods: 4,000 units

Closing inventory of finished goods: 3,000 units

Opening inventory of raw materials: 50,000 kg

Closing inventory of raw materials: 53,000 kg

Wastage of raw materials incurred in manufacturing process is expected to be 10%.

What is the budgeted raw material purchases for next period (in kg)?

Accepted Answer

203,000

Answer

201,000

Answer

197,000

Answer

183,000

Question 44

A company makes one delivery per week to all of its customers. The cost of these deliveries is

Accepted Answer

A selling and distribution cost

Answer

A prime cost

Answer

A production overhead

Answer

A direct production expense

Question 45

The overhead costs in a factory, where a single product is manufactured comprise a variable element and stepped-fixed element. The variable cost element is $2.4 per direct labor hour. 0.9 direct labor hours are required per unit of the product. The fixed cost is $230,000 per period but is subject to an increase of $15,000 per period when output exceed 60,000 units.

In period 2 the budgeted output was 58,000 units and the actual output was 62,500 units.

What was the fixed budget for factory overheads in period 2?

Accepted Answer

355,280

Answer

380,000

Answer

365,000

Answer

395,000

Question 46

The direct materials involved in the manufacture of a Whoopie cost $2 per unit and the direct labour cost is $2.50 per unit. There are also direct expenses of $0.50 per Whoopie. Fixed costs apportioned to a Whoopie amount to $3.15.

What is the prime cost of a Whoopie?

Accepted Answer

5.00

Answer

3.65

Answer

4.50

Answer

8.15

Question 47

Mick works as a member of a three-person team in the assembly department of a factory. The team is rewarded by a group bonus scheme whereby the team leader receives 40% of any bonus earned by the team, and the remaining bonus is shared evenly between Mick and the other team member. Details of output for one day are given below.

Hours worked by team: 8 hours

Team production achieved: 80 units

Standard time allowed to produce one unit 9 minutes

Group bonus payable at $10 per hour 80% of time saved

What is the bonus element of Mick's pay for this particular day?

Accepted Answer

9.60

Answer

10.67

Answer

6.40

Answer

16.80

Question 48

Joint product A and B are output from a process. The joint costs are apportioned to each product are $12 per unit. Product B can be sold at the split-off point for $10 per unit or can be further processed, at an incremental cost of $2 per unit, to form Product B2 which can be sold for $13 per unit.

Which of the following is correct concerning product B?

Accepted Answer

It should be further processed because an incremental profit is earned

Answer

It should be discontinued because it makes a loss after further processing

Answer

It should be further processed because the selling price will be increase

Answer

It should be discontinued because it makes a loss at the split point

Question 49

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 actual production in February?

Accepted Answer

500

Answer

1,100

Answer

366

Answer

866

F2 BAI DIEU KIEN

60 questions

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.”

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

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?

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?

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

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

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?

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?

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