1.

A haulage operator transported 470 tonnes of goods in a period over a total distance of 5,600 kilometres (km).Costs incurred in the period totalled $3,579,520.

What was the cost per tonne per km in the period (to two decimal places)?
$________

a)

$1.36

b)

$1.46

c)

$1.37

d)

$1.33

2.

The following items are in the cost accounts of a business for a period:

The under-absorbed fixed production overheads are to be included in the calculation of gross profit for the period.

What s the gross profit for the period?

$ ____________

a)

$113340

b)

$114450

c)

$225540

d)

$112230

3.

Which TWO of the following are characteristics of continuous data?

a)

They are measured rather than counted

b)

They have a finite number of possible values within a range

c)

They have clear spaces between values

d)

They must be quantitative

4.

Which of the following are features of process costing?
(1) Valuation of closing work in progress
(2) Loss in process due fo wastage

(3) Output from one process becomes the input for the next

a)

1 and 2 only

b)

2 and 3 only

c)

1 and 3 only

d)

2 only

5.

The management accountant of a manufacturing business has calculated the following performance indicators using data concerning direct labour hours.

Capacity ratio 83.6%

Efficiency ratio 104.8%

What is the production volume ratio (to one decimal place)?

__________

a)

85.5%

b)

85.6%

c)

87.6%

d)

84.6%

6.

The standard cost of a product shows :

During a period 600 units were produced and 4,200 hours were worked at a total labour cost of $50,400.

What was the labour rate variance for the period

a)

$9,000 Favourable

b)

$9,000 Adverse

c)

$12,600 Adverse

d)

$12,600 Favourable

7.

Are the following statements regarding the setting of budgets true or false?

1) Expectations budgets are useful for resource planning

2) Aspirations budgets are useful for motivational purposes

a)

both statements are true

b)

both statements are false

c)

statement 1 is true statement 2 is false

d)

statement 2 is true statement 1 is false

8.

Which of the following are features of process costing?

1.valuation of closing work in progress

2. Loss in process due of wastage
3.Output from one process becomes the input for the next

a)

1 and 2 only

b)

2 and 2 Only

c)

1 and 3 only

d)

1 , 2 and 3

9.

A company purchases a product at a cost of $10 per unit The annual demand for the product is 20,000 units. The annual holding cost per unit is $1.60 and the cost of placing an order is $40.

What is the optimal reorder quantity (in units)?

a)

1000

b)

2000

c)

2001

d)

2002

10.

A line of best fit has been established for the trend of sales in a business over four quarters, where Year 1 Quarter 1 =

1. Year 1 Quarter 2 = 2 and so on. The equation of the line is.

Total sales units = 6.300 + (30 × quarter number)

What are the forecast sales units for the first quarter of Year 2 using the additive model?______________units

a)

6064units

b)

6465units

c)

6460 units

d)

6560units

11.

Elephant Co makes bespoke items of wooden furniture which it sells to shops throughout its home country. It sources the wood from forests in its home country. Elephant Co only employs experienced craft workers in production, who are paid a premium for their skills.

Which one of the following policies by government will have an impact on operating costs that the company should consider when measuring performance?

a)

Increase in corporation taxation

b)

Increase in energy tax

c)

Increase in subsidies for employing school leavers in production

d)

Increase in import tax on wood

12.

The following statements relate to value analysis.

(1) Value analysis aims to eliminate unnecessary costs

(2) Value analysis should not result in the reduction of a product's functionality.
Which statements are correct?

a)

2 only

b)

neither 1 or 2

c)

Both 1 and 2

d)

1 only

13.

The following ratios have been budgeted for an investment centre with net assets of $1.2m:

Net asset turnover - 3.6 times

Gross profit margin - 36.5%

Non-production costs to sales - 27.9%

What is the budgeted operating profit for the investment centre?

a)

$ 371,520

b)

$ 28,667

c)

$118,667

d)

$ 427,200

14.

An investment project requires a single initial investment. Net cash inflows from the project are expected to be $75,000 per annum for six years. There will not be any residual value at the end of the project.

The net present value of the project, discounted at 12% per annum, is a positive value of $62,200. The annuity factor for six years at 12% is 4.111.

What is the initial investment in the project?

a)

$ 308,325

b)

$ 246,125

c)

$370,525

d)

$387,800

15.

6,200 units of a company's single product were manufactured last period in 1,920 hours. This compares with a budget of 6,500 units in 1,950 hours.

What was the labour efficiency ratio?

a)

98.5%

b)

96.9%

c)

95.4%

d)

103.2%

16.

Process costing is used in the following industnes.
Is this true or false?
True False

1 . Oil refining
2 . Road construction

a)

1 . True

2 . False

b)

1 . True

2 .True

c)

1 . False

2 . False

d)

1. False

2 .True

17.

Which of the following is/are key performance indicator(s) of an organisation?

(1) Financial success

(2) Revenue growth

(3) Return on capital employed

a)

1,2 and 3

b)

3 only

c)

2 and 3 only

d)

1 only

18.

Total costs incurred have been recorded over a period of four years, along with the cost inflation index (Year 0 = 100):
What are the total costs in Year 4 adjusted to Year 1 prices (to the nearest hundred $)?

a)

$275,600

b)

$293,500

c)

$264,000

d)

$289,400

19.

A company produced 20,000 kg of a product in a period, costing $100,000. During the period 75% of the production of the product was sold at a mark up of 20%.There were no opening inventories.

What was the gross profit for the period?
$____________

a)

$15000

b)

$14000

c)

$15001

d)

$15002

20.

Which of the following is/are key performance indicator(s) of an organisation?

1. Financial success

2 . Revenue growth
3 . Return on capital employed

a)

1,2 and 3

b)

3 only

c)

2 and 3 only

d)

1 only

21.

Taurus co uses a costing system which separates total overhead cost pools and charges overheads to products by allocating the costs on the basis of cost drivers.

Which of the following costing system is used by Taurus Co?

a)

Life cycle costing

b)

Absorption costing

c)

Target costing

d)

Activity based costing

22.

Which managerial process (es) is/are used at the end of a financial period, when actual results are compared with the budget and action taken ?

(1) Planning

(2) Decision making

(3) Control

a)

3 only

b)

2 only

c)

1 and 2

d)

2 and 3

23.

A firm monitors labour activity.
The following information relates to last period What is the labour efficiency ratio for last period?

a)

120.00%

b)

80.00%

c)

125.00%

d)

83.33%

24.

Students across a wide range of countries sit accountancy exams. A questionnaire is sent to a selected number of students. They are selected by randomly picking a number of students from each country, in proportion to the total number of students who have sat the examination in that country.
What type of sampling is this?

a)

Systematic

b)

Multi-stage

c)

Cluster

d)

Stratified

25.

Lobster Co has prepared the following flexed budget for product B at two activity levels.
What is the total cost under a flexed budget for a 75% activity level for product B? $___________

a)

$8036

b)

$8035

c)

$8037

d)

$8038

26.

manager has requested information to show how factory cost changes according to the number of units produced so that he can estimate the cost for different levels of output.
Which TWO of the following are the most suitable formats for presenting this information?

a)

Scattergraph

b)

Multiple bar chart

c)

Pie chart

d)

Line graph

27.

firm uses standard absorption costing. The results for a recent period are as follows.
What was the budgeted profit for the period?

a)

$186,000

b)

$164.000

c)

$180,000

d)

$170,000

28.

Which of the following statements about the arithmetic mean of a population is true?

(1) It is sensitive to extreme values

(2) Its calculation requires data be ranked in order of size

(3) Itis of no use in other statistical calculations.

a)

1,2 and 3

b)

1 and 2 only

c)

2 and 3 only

d)

1 only

29.

Which of the following labour costs are examples of an indirect cost?

(1) Bonus payments

(2) Cost of idle time of direct workers

(3) Cost of idle time of indirect workers

a)

1,2 and 3

b)

2 and 3 only

c)

3 only

d)

1 and 3 only

30.

6,200 units of a company's single product were manufactured last period in 1,920 hours.
This compares with a budget of 6,500 units in 1,950 hours.

What was the labour efficiency ratio?

a)

98.5%

b)

96.9%

c)

95.4%

d)

103.2%

31.

Production of a batch of 500 units of product P8 requires:
40kg of material M1 : 6 litres of material M2 : 12 hours of grade 1 direct labour and 6 hours of grade 2 direct labour.
Production overheads are absorbed at a rate of $18.50 per direct labour hour.
What is the standard production cost per unit of P8 (to two decimal places)?

$____________

a)

$1.91

b)

$1.92

c)

$1.96

d)

$1.98

32.

company sells 4,000 bottles of olive oil each year and demand for the product is even throughout the year. The olive oil, which costs $5 per bottle, is purchased from an overseas supplier. The cost of placing each order is $500 and the cost of holding one bottle of olive oil for a year is $2.
What is the economic order quantity (to the nearest whole unit)?

a)

1414 units

b)

1441 units

c)

1442 units

d)

1443 units

33.

The table shows the annual salary range for the 15 employees of Pirate Co:
What is the mean annual salary for an employee of Pirate Co (to the nearest $'000)?

$_____

a)

$22000

b)

$33000

c)

$21000

d)

$23000

34.

The Following Statements relate to responsibility Accounting:

(1)An Area Of responsibility may be Structured as a cost centre,a revenue centre, a profit centre or an investment centre
(2) Costs are categorised as being either controllable or non- controllable
(3) The concept of responsibility accounting cannot be applied in variance reporting
Which of the above statements are TRUE?

a)

1 and 3 only

b)

2 and 3 only

c)

1 and 2 only

d)

1,2,and 3

35.

Which Two of the following are advantages of continuous inventory counting compared with periodic inventory counts?
(1) Bin cards and inventory ledger accounts are updated for each receipt and issue of inventory as it occurs
(2) Control over inventory levels is improved

(3) The balance on the stores ledger account represents the inventory on hand

(4)The disruption of an annual inventory count is avoided

a)

1 and 2

b)

1, 2,3 4

c)

2 and 3

d)

2 and 4

36.

Which Two of the following documents are used to record the receipt or issue of material inventories into and out of stores?

a)

Purchase order

b)

Materials requisition

c)

Goods received note

d)

Materials transfer note

37.

What is the correct sequence for the following stages in the budgeting process?
(1) Identify principle budget factor
(2) Prepare cost and revenue budgets

(3) Form budget committee
(4) Produce master budget

a)

1,2,3,4

b)

2,3,4,1

c)

3,1,2,4

d)

2,4,1,3

38.

The management accountant of a manufacturing business has calculated the following performance indicators using data concerning direct labour hours.

Capacity ratio. 83.6%

Efficiency ratio. 104.8%
What is the production volume ratio (to one decimal place)?

a)

87.63%

b)

87.62%

c)

87.64%

d)

87.65%

MA (New Mock 2023 - 5)

Total questions: 38

Worksheet time: 2hrs 40mins

What is the correct sequence for the following stages in the budgeting process?
(1) Identify principle budget factor
(2) Prepare cost and revenue budgets

(3) Form budget committee
(4) Produce master budget

Similar Resources on Wayground

MA (New Mock 2023 - 5)

Total questions: 38

Worksheet time: 2hrs 40mins

What is the correct sequence for the following stages in the budgeting process?(1) Identify principle budget factor(2) Prepare cost and revenue budgets

(3) Form budget committee(4) Produce master budget

Similar Resources on Wayground

What is the correct sequence for the following stages in the budgeting process?
(1) Identify principle budget factor
(2) Prepare cost and revenue budgets

(3) Form budget committee
(4) Produce master budget