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WorksheetsMATS Lesson 1 - Starter
Total questions: 16
Worksheet time: 15mins
Which of the statements below is TRUE?
FIFO is a method of paying labour
Total fixed costs will change when activity levels change
Indirect costs cannot be directly identified to each unit
Direct costs cannot be directly identified to each unit
A characteristic of management accounting is?
Accurate to the nearest penny
May use estimates where appropriate
Provides information to external bodies (e.g. HMRC)
Produced end of year reports (profit and loss/statement of financial position)
An example a direct material in a farm shop is?
Egg trays for free range eggs
Telephone charges
Wages of the shop floor supervisor
Cost of heating
An example of a semi-variable cost is?
Salary of a shop worker
Factory rent
Salary of a director
Electricity with a daily fixed standing charge plus a usage charge per KwH
The correct calculation for a management account is?
Closing inventory + opening inventory = purchases
Opening inventory + purchases - closing inventory
Opening inventory + purchases + closing inventory
Purchases + closing inventory = manufacturing overheads
An example of indirect labour would be wages of a:
chef cooking meals in a restaurant
taxi driver providing taxi services
factory operative producing components
factory supervisor managing 50 staff
Using the information from the image, what will be the total gross wage due to employee "D Travis"
£463
£400
£342
£436
Which one is the fixed cost?
At 3000 units cost = £9000, at 12000 units cost = £36000
At 1200 units cost = £4 per unit, at 2400 units cost = £4800
Total overheads are £200,000. Machine hours used are budgeted to be 20,000 hours. The OAR is?
£100 per machine hour
£10.50 per machine hour
£1 per machine hour
£10 per machine hour
Inventory issued is valued at the most recent purchase price - this is a characteristic of
FIFO
LIFO
AVCO
FIFO stands for:
First in, last out
First in, first on
First in, first out
First in, first overboard
In the accounting profession, which valuation methods are generally accepted in accounting standards
FIFO & LIFO
LIFO & AVCO
None
FIFO & AVCO
Direct expenses (overheads) are usually rare. But, what would be the best example from the options below?
Office rent
Electricity (no KwH tracker)
Machinery leased for a specific job
Premises insurance (paid annually)
Using the FIFO method, what will be the value of issues at 22 July?
£2,440
£2,000
£2,040
£4,440
Using the FIFO method, what would be the value of inventory remaining on 27 July?
£14,110
£16,550
£4,200
£14,000
Using the AVCO method, what is the value of inventory remaining?
£10,000
£16,550
£20,234
£13,855
