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WorksheetsMixed Bank 3
Total questions: 18
Worksheet time: 22mins
A company wishes to carry out a national survey of adults' reading habits. To reduce travelling costs, the country was divided into constituencies. A sample of 50 constituencies was selected at random. With each of these constituencies, 5 polling districts were selected, again using random techniques. Interviewers will visit a random selection of 30 people on the electoral register of each district selected.
What sampling method is the company using?
Stratified
Systematic
Multi-stage
Simple random
When opening inventories were 8,500 litres and closing inventories were 7,100 litres, William Co had a profit of $61,000 using marginal costing.
If the fixed overhead absorption rate was $4 per litre, what was the profit using absorption costing?
$61,000
$55,400
$56,500
$51,100
The following data relate to the overhead expenditure of an organisation at two activity levels.
Square metres 12,750 15,100
Overheads $73,950 $83,585
What is the estimated overhead expenditure if 16,200 square metres are to be cleaned?
$25,626
$44,745
$88,095
$192,645
A management consultancy recovers overheads on the basis of chargeable consulting hours. Budgeted overheads were $615,000 and actual consulting hours were 32,150. Overheads were under-recovered by $35,000.
If actual overheads were $694,075, what was the budgeted overhead absorption rate per hour?
$19.13
$20.50
$21.59
$22.68
A pet food company incurred the following costs last year for each of its three different markets.
$
Dog food - 1,345,000
Cat food - 2,300,000
Food supplements - 985,000
If a pie chart were used to represent the proportion of costs incurred by each area, what would be the angle of the section representing cat food?
179 degrees
77 degrees
120 degrees
106 degrees
Which TWO of the following statements relating to activity-based costing are true?
1 .Activity-based costs can be used to identify relevant costs for decision making.
2. Activity-based costing cannot be used to cost services.
3. Activity-based costing is a form of absorption costing.
4. Activity-based costing is an alternative to traditional volume-based costing models.
1,2
2,3
1,4
3,4
Which of the following is a disadvantage of the payback method of investment appraisal?
It may lead to excessive investment in short-term projects
Its use will hinder liquidity
It is a fairly complex technique and not easily understood
It tends to maximise financial and business risk
Which four of the following are aspects of value analysis?
(i) Esteem value
(ii) Exchange value
(iii) Net realisable value
(iv) Use value
(v) Cost value
(i), (ii), (iii), (iv)
(ii), (iii), (iv), (v)
(i), (iii), (iv), (v)
(i), (ii), (iv), (v)
1 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?
$3.65
$4.50
$5.00
$8.15
Absorption costing will result in the same profit as marginal costing in which THREE of the following situations?
1. When inventory levels are constant
2. When opening and closing inventory volumes are the same
3. When no inventory is held as opening inventory and no inventory is held as closing inventory
4. When opening inventory is greater than closing inventory When closing inventory is greater than opening inventory
1,2,3
2,3,4
1,4,3
1,2
In process costing, what is an equivalent unit?
A unit of output in relation to which costs may be ascertained
The quantity of work achievable in one hour at standard levels of performance
Notional whole units which represent incomplete work
A unit of output which is identical to others previously manufactured in the same process
A company has recorded the following costs over the last six months.
Month Total cost Units produced
1 .74,000 3,000
2 .72,750 1,750
3. 73,250 2,000
4. 75,000 2,500
5. 69,500 1,500
6. 72,750 2000
Using the high low method, what is the total cost equation?
Total cost = $65,000 + ($3 × units produced
Total cost = $71,000 + ($3 × units produced)
Total cost = $61,250 + ($1.25 × units produced)
Total cost = $70,250 + ($1.25 × units produced)
Which of the following statements is/are correct?
(i) Strategic planning is carried out by line managers
. (ii) Non-financial information is relevant to management accounting.
(i) is true and (ii) is false
(ii) is true and (i) is false
Both are true
Both are false
Which of the following sampling methods require a sampling frame?
(i) Random
(ii) Stratified
(iii) Quota
(iv) Systematic
(i) and (ii) only
(i), (ii) and (iii) only
(i), (ii) and (iv) only
(iii) only
In a time series analysis, the multiplicative model is used to forecast sales and the following seasonal variations apply:
Quarter 1 2 3 4
Seasonal variation 1.2 1.3 0.4 ?
The actual sales values for the first two quarters of 2006 were:
Quarter 1: $125,000
Quarter 2: $130,000 20.17
What is the seasonal variation for the fourth quarter?
–2.9
0.9
1.0
1.1
In a time series analysis, the multiplicative model is used to forecast sales and the following seasonal variations apply:
Quarter 1 2 3 4
Seasonal variation 1.2 1.3 0.4 ?
The actual sales values for the first two quarters of 2006 were:
Quarter 1: $125,000
Quarter 2: $130,000 20.17
Which of the following is true?
The trend line for sales decreased between quarter 1 and quarter2.
The trend line for sales increased between quarter 1 and quarter 2.
The trend line for sales remained constant between quarter 1 and quarter 2
The trend line for sales cannot be determined from the information given.
A firm has used linear regression analysis to establish the relationship between total cost and activity in units.
What does the intercept of the regression line represent?
The variable cost per unit
The fixed cost per unit
The average cost per unit
Total fixed costs
Which of the following statements are true?
(i) Flexible budgets help managers to deal with uncertainty
(ii) Flexed budgets allow a more meaningful comparison to the made with actual results
(i) is true and (ii) is false
(ii) is true and (i) is false
(i) and (ii) are true
(i) and (ii) are false
