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WorksheetsMA - Ch-1 to 6, 10, 11, 17
Total questions: 50
Worksheet time: 2hrs 52mins
Which TWO of the following statements about qualities of good information are true?
1. It should be relevant for its purposes
2. It should be communicated to the right person
3. It should be completely accurate
4. It should be provided whatever the cost
1 & 2
2 & 3
1 & 3
2 & 4
The sales manager has prepared a manpower plan to ensure that sales quotas for the forthcoming year are achieved. This is an example of what type of planning?
Strategic planning
Tactical planning
Operational planning
Corporate planning
Which TWO of the following statements about management accounting information are true?
1. They may include non-financial information
2. They are required by law to be produced
3. They are used to aid planning
4. They are for use by parties external to the organization
1 & 2
1 & 3
2 & 3
1 & 4
Monthly variance reports are an example of which one of the following types of management information?
Tactical
Strategic
Non-financial
Operational
Which of the following statements is correct?
Management accounting systems provide information for use in fulfilling legal requirements.
Management accounting systems provide information for the use of decision-makers within an organisation
Management accounting systems provide information for use by shareholders
Management accounting systems provide information for use by tax authorities.
Which TWO of the following statements regarding different types of data are true?
1. Secondary data are data collected especially for a specific purpose.
2. Discrete data can take on any value.
3. Qualitative data are data that cannot be measured.
4. Population data are data arising as a result of investigating a group of people or object
1 & 3
2 & 3
1 & 4
3 & 4
Which of the following statements are true?
1. Big data analytics allows businesses to analyse and reveal insights in data which they havepreviously been unable to analyse.
2. In order for organisations to analyse big data and to gain insights from it, the source data needs to be structured within a software package.
3. One of the key features of big data is the speed with which data flows into an organisation, and with which it is processed.
1 and 2 only .
1 and 3 only
2 and 3 only
1, 2 and 3
The cost of materials for product A are as follows. Material W: $2,250
Material X: $3,000
Material Y: $3,600
Material Z: $150
If the material proportions were displayed on a pie chart, how many degrees would material Y represent?
1400 degrees
44 degrees
140 degrees
144 degrees
Which of the following statements is true?
Sales of mint choc chip rose steadily over the four months
Total sales fell in the month of July
In June, the gap between sales of strawberry and sales of chocolate reduced
Sales of blueberry rose in May and July
Which TWO of the following would be classed as indirect labour?
1. Assembly workers in a company manufacturing televisions
2. A stores assistant in a factory store
3. Factory cleaning staff
4. Plasterers in a construction company
5. A consultant in a firm of management consultants
1 & 2
3 & 4
2 & 3
4 & 5
A company makes chairs and tables.
Which TWO of the following items would be treated as an indirect cost?
1. Wood used to make a chair
2. Metal used for the legs of a chair
3. Staple to attach fire retardant labels to chairs
4. Fabric to cover the seat of a chair
5. The salary of the sales director of the company
1 & 3
2 & 5
3 & 5
1 & 5
Which TWO of the following is the manager of a profit centre likely to have control?
1. Selling prices
2. Controllable costs
3. Apportioned head office costs
4. Capital investment in the center
1 & 3
2 & 4
1 & 2
3 & 4
Which TWO of the following items might be a suitable cost unit within the credit control department of a company?
1. Stationery cost
2. Telephone bill
3. Customer account
4. Cheque received and processed
1 & 2
2 & 3
3 & 4
1 & 4
Which of the following best describes a period cost?
A cost that relates to a time period which is deducted as expenses for the period and is not included in the inventory valuation.
A cost that can be easily allocated to a particular period, without the need for arbitrary apportionment between periods.
A cost that is identified with a unit produced during the period, and is included in the value of inventory. The cost is treated as an expense for the period when the inventory is actually sold.
A cost that is incurred regularly every period, eg every month or quarter.
A company manufactures and sells toys.
Which TWO of these costs are classified as distribution costs?
1. Rental of the finished goods warehouse
2. Depreciation of its own fleet of delivery vehicles
3. Costs associated with a marketing campaign
4. Commission paid to sales staff
1 & 2
3 & 4
2 & 3
1 & 4
Fixed costs are conventionally deemed to be which of the following?
Constant per unit of output
Constant in total when production volume changes
Outside the control of management
Easily controlled
The following data relate to the overhead expenditure of a contract cleaners at two activity levels.
Square metres cleaned - 13,500 15,950
Overheads - $84,865 $97,850
What is the estimate of the overheads if 18,300 square meters are to be cleaned?
$11,035
$11,305
$110,305
$10,305
A production worker is paid a salary of $650 per month, plus an extra 5 cents for each unit produced during the month.
How is this type of labour cost best described?
A variable cost
A fixed cost
A step cost
A semi-variable cost
A total cost is described as staying the same over a certain activity range and then increasing but remaining stable over a revised activity range in the short term.
What type of cost is this?
A fixed cost
A variable cost
A semi-variable cost
A stepped fixed cost
A company incurs the following costs at various activity levels:
Total cost Activity level
$ Units
250,000 5,000
312,500 7,500
400,000 10,000
Using the high-low method what is the variable cost per unit (to the nearest whole number)?
$10
$20
$300
$30
An organisation manufactures a single product. The total cost of making 4,000 units is $20,000 and the total cost of making 20,000 units is $40,000. Within this range of activity the total fixed costs remain unchanged.
What is the variable cost per unit of the product (to 2 dp)?
$2.25
$1.75
$1.00
$1.25
The total cost of production for two levels of activity is as follows:
Level 1 Level 2
Production (units) 3,000 5,000
Total cost ($) 6,750 9,250
The variable production cost per unit and the total fixed production cost both remain constant in the range of activity shown.
What is the level of fixed costs (to the nearest whole number)?
$10,000
$20,000
$30,000
$3,000
A company has prepared flexed budgets at two activity levels. The cost per unit of three costs is given below. All three costs behave in a linear manner with respect to activity.
Activity level (units)
10,000 15,000
Cost -
X - $3.0 per unit $2.0 per unit
Y - $1.0 per unit $1.0 per unit
Z - $3.5 per unit $3.0 per unit
Is each of the costs variable, semi-variable or fixed?
X - Variable, Y - Fixed, Z - Semi-variable
X - Variable, Y - Fixed, Z - Variable
X - Fixed, Y - Variable, Z- Semi-variable
X - Fixed, Y - Variable, Z - Fixed
The following observations of output and cost have been made:
Output Cost
Units $
8,000 - 39,400
20,000 - 68,000
It is known that at output levels above 15,000 units, variable cost per unit drops by $1 per unit for all subsequent units produced.
What is the variable cost for each unit of output above 15,000 units?
$1.80
$0.97
$2.80
$3.40
The following observations of output and cost have been made:
Output Cost
Units $
8,000 - 39,400
20,000 - 68,000
It is known that at output levels above 15,000 units, variable cost per unit drops by $1 per unit for all subsequent units produced.
What is the variable cost for each unit of output above 15,000 units?
$1.80
$0.97
$2.80
$3.40
Which of the following functions are fulfilled by a goods received note (GRN)?
(i) Provides information to update the inventory records on receipt of goods
(ii) Provides information to check the quantity on the supplier's invoice
(iii) Provides information to check the price on the supplier's invoice
(i) and (ii) only
(i) and (iii) only
(ii) and (iii) only
(i) only
A domestic appliance retailer with multiple outlets sells a popular toaster known as the Autocrisp 2000, for which the following information is available:
Average sales 75 per day
Maximum sales 95 per day
Minimum sales 50 per day
Lead time 12-18 days
Reorder quantity 1,750
Based on the data above, at what level of inventory would a replenishment order be issued?
1700 units
170 units
1710 units
1701 units
.
A domestic appliance retailer with multiple outlets sells a popular toaster known as the Autocrisp 2000, for which the following information is available:
Average sales 75 per day
Maximum sales 95 per day
Minimum sales 50 per day
Lead time 12-18 days
Reorder quantity 1,750
Based on the data above, what is the maximum inventory level?
1,750 units
2,275 units
2,860 units
2,900 units
Which of the following is correct with regard to inventories?
(i) Stock-outs arise when too little inventory is held.
(ii) Safety inventories are the level of units maintained in case there is unexpected demand.
(iii) A re-order level can be established by looking at the maximum usage and the maximum lead-time.
(i) and (ii) only
(i) and (iii) only
(ii) and (iii) only
(i), (ii) and (iii)
The demand for a product is 12,500 units for a three month period. Each unit of product has a purchase price of $15 and ordering costs are $20 per order placed. The annual holding cost of one unit of product is 10% of its purchase price.
What is the Economic Order Quantity (to the nearest unit)?
577
816
866
1,155
The material stores control account for a company for March looks like this:
Which of the following statements are correct?
(i) Issues of direct materials during March were $18,000
(ii) Issues of direct materials during March were $40,000
(iii) Issues of indirect materials during March were $12,000
(iv) Purchases of materials during March were $49,000
(i) and (iv) only
(ii) and (iv) only
(ii), (iii) and (iv) only
All of them
The following data relate to work in the finishing department of a certain factory. Normal working day - 7 hours
Basic rate of pay per hour - $5
Standard time allowed to produce 1 unit - 4 minutes
Premium bonus payable at the basic rate 60% of time saved
On a particular day one employee finishes 180 units. What is his gross pay for the day?
$500
$550
$50
$450
An employee is paid on a piecework basis. The basis of the piecework scheme is as follows:
1 to 100 units – $0.20 per unit
101 to 200 units – $0.30 per unit
201 to 299 units – $0.40 per unit
with only the additional units qualifying for the higher rates. Rejected units do not qualify for payment.
During a particular day the employee produced 210 units of which 17 were rejected as faulty.
What did the employee earn for their day's work?
$47.90
$54.00
$57.90
Employee A is a carpenter and normally works 36 hours per week. The standard rate of pay is $3.60 per hour. A premium of 50% of the basic hourly rate is paid for all overtime hours worked. During the last week of October, Employee A worked for 42 hours. The overtime hours worked were for the following reasons: Machine breakdown: 4 hours
To complete a special job at the request of a customer: 2 hours
How much of Employee A's earnings for the last week of October would have been treated as direct wages?
$10
$140.40
$140
$140.04
Jane 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 per cent of any bonus earned by the team, and the remaining bonus is shared evenly between Jane 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 $6 per hour 70% of time saved
What is the bonus element of Jane's pay for this particular day?
$5.04
$7.20
$10.08
$16.80
What does the statement 'sales is the principal budget factor' mean?
The level of sales will determine the level of cash at the end of the period
The level of sales will determine the level of profit at the end of the period
The company's activities are limited by the level of sales it can achieve
Sales is the largest item in the budget
A company manufactures a single product. In a computer spreadsheet the cells F1 to F12 contain the budgeted monthly sales units for the twelve months of next year in sequence, with January sales in cell F1 and finishing with December sales in F12. The company policy is for the closing inventory of finished goods each month to be 10% of the budgeted sales units for the following month.
Which of the following formulae will generate the budgeted production (in units) for March next year?
=[F3 + (0.1*F4)]
=[F3 – (0.1*F4)]
=[(1.1*F3) – (0.1*F4)]
=[(0.9*F3) + (0.1*F4)]
Misty Co's budgetary control report for last month is as follows:
What was the expenditure variance for last month?
$7,480 (F)
$2,725 (F)
$7,480 (A)
$2,725 (A)
The following spreadsheet shows the calculation of a company’s profit.
Which formula would calculate contribution?
B2 – B3
B5 – B6
B8 + B7
B8 + B7 + B4
An extract from a company's sales budget is as follows:
$
October 224,000
November 390,000
December 402,000
Ten per cent of sales are paid for immediately in cash. Of the credit customers, 30 per cent pay in the month following the sale and are entitled to a one per cent discount. The remaining customers pay two months after the sale is made.
What is the value of sales receipts shown in the company's cash budget for December?
$285,567
$286,620
$290,430
$312,830
The following details have been extracted from the payables' records of X Co:
Invoices paid in the month of purchase 25%
Invoices paid in the first month after purchase 70%
Invoices paid in the second month after purchase 5%
Purchases for July to September are budgeted as follows:
July $250,000
August $300,000
September $280,000
For suppliers paid in the month of purchase, a settlement discount of 5% is received.
What is the amount budgeted to be paid to suppliers in September?
$278,500
$280,000
$289,000
$292,500
In which of the following circumstances is the use of a participative budgeting process appropriate?
(i) In decentralised organisations
(ii) When acceptance of the budget as fair and equitable is essential
(iii) When an organisation's different units act autonomously
All of (i), (ii) and (iii)
(ii) and (iii) only
(i) and (ii) only
(iii) only
Which of the following best describes a controllable cost?
A cost which can be easily forecast and is therefore readily controllable using budgetary control techniques
A cost which can be specifically identified with a particular cost object
A cost which is easily controlled because it is not affected by fluctuations in the level of activity
A cost which can be influenced by its budget holder
Which of the following best describes the advantage of a balanced scorecard approach?
The balanced scorecard approach enables organisations that are struggling financially to emphasise other areas
The balanced scorecard approach enables organisations to consider all areas of performance relevant to achieving their strategic goals
The balanced scorecard approach enables organisations to more easily benchmark their performance against others
The balanced scorecard approach enables organisations to demonstrate their ethical credentials
The balanced scorecard measures performance from four perspectives. What are they?
Customer satisfaction, growth, financial stability and process efficiency
Customer retention, growth, financial stability and process efficiency
Customer satisfaction, growth, financial success and process effectiveness
Customer satisfaction, growth, financial success and process efficiency
In not for profit businesses and state-run entities, a value-for-money audit can be used to measure performance. It covers three key areas: economy, efficiency and effectiveness. Which of the following could be used to describe effectiveness in this context?
Avoiding waste of inputs
Achieving agreed targets
Achieving a given level of profit
Obtaining suitable quality inputs at the lowest price
Qual Co is keen to increase the use they make of non-financial performance measures in their overall performance measurement activities. In particular, they are keen to improve customer retention and so want to focus on the quality of service they provide to their customers.
Which of the following measures would be most appropriate as a measure of service quality?
(i) Number of customer complaints
(ii) Number of repeat orders as a proportion of total orders
(iii) Sales volume growth
(i) and (ii)
(i), (ii) and (iii)
(i) and (iii)
(ii) and (iii)
Which of the following would be suitable for measuring resource utilisation?
(i) Efficiency
(ii) Productivity
(iii) Relative market share
(i) and (ii) only
(ii) and (iii) only
(i) and (iii) only
(i), (ii) and (iii)
Balance Co is looking to introduce a balanced scorecard and is finalising the measures to use for the 'innovation and learning' perspective.
Which one of the following is not relevant for this perspective?
Number of new products introduced
Number of ideas from staff
Percentage of sales from new products
Level of refunds given
Which TWO of the following performance measures would be helpful for a service industry company?
(a) Net profit margins
(b) Standard costs and variance analysis
(c) Employee absentee rates
(d) Number of defective units
(a) & (c)
(b) & (c)
(a) & (b)
(b) & (d)
