Financial Management Quiz

A project team has been set up to develop a large scale database application Which TWO of the following roles within the team are suitable for a trainee accountant?

1, Reviewing cost data to be entered into the computer database 

2, Participating in the design of codes for categorizing transactions 

3, Designing and implementing the computer database structure

4, Signing be completed project as accepted by the user department

• 1,2

• 1,3

• 2,3

• 3,4

Consider the following incomplete statements: Assess the profitability of product and services Provides a financial information systems of management Follows all accounting standards and company law Which statement(s) is/ are describing aspects of costs and management accounting?

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

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. (i) and (ii) only

• B. (ii) and (iii) only 

• C. (i) and iii only

• D. All i, ii and iii

The following budgets have been prepared for alternative levels of output

• 167k

• 192k

• 136k

• 154k

The following statements relate to management accounting and financial accounting

1.     Management accounting provides information to pp outside an organization to enable them to make decisions.

2.     Financial accounting provides information to facilities the production of annual accounts. 

Which of the following is/ are correct?

• A. Statement 1

• B. Statement 2

• C. Both statement are correct

• D. None of them is correct

A particular cost is fixed in total for a period. What is the effect on the cost per unit of a reduction in activity of 50%?

• A.Cost per unit increase by 50%

• B. Cost per unit reduces by 50%

• C. Cost per unit increases by 100%

• D. Cost per unit is unchanged

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 one Whoopie amount to $3.15. Calculate the prime cost of a Whoopie. What is the prime cost (total of direct cost) of a Whoopie?

• A.$3.65

• B.$4.50

• C.$ 5.00

• D.$8.15

The following data relate to the overhead expenditure of contract cleaners at two activity levels. What is the estimate of the overhead if 17,000 square metres are to be cleaned if the total fixed costs are expected to increase by $1,000 when the square metres cleaned exceed 16,000 m2?

• A. $103,415

• B. $104,415

• C. $106,127.5

• D. $107,127.5

Which of the following is the most useful for monitoring and controlling the costs incurred by a freight transport organisations?

• A. Cost per tonne carried

• B. Cost per kilometer traveled

• C. Cost per driver hour

• D. Cost per tonne-kilometre

• A. $840/ $880

• B. $840/ $911

• C. $Nil/ $280

• D. $840/ $Nil