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In an integrated cost and financial accounting system, the accounting entries for the purchase of raw material on credit would be:
Each finished carton of product P contains 15 litres of liquid L. During the production process there is an unavoidable loss of 20% of the liquid input. The standard price of liquid L is $2 per litre.
The standard ingredient cost for liquid L shown on the standard cost card for one carton of product P will be
Refer to the exhibit.
T operates a process costing system. Data is available for Process A for the month of July.
Inputs for the month:
Normal losses are 15% of input and can be sold for $6 per kg. Actual output was 2,600 kg. There is no opening or closing work in progress for the period.
What is the value of the output from the process in the month?
Refer to the exhibit.
The budget for product Sentra for the month of August is given below:
Which one of the following is a characteristic of strategic financial information?
Refer to the Exhibit.
The following details have been extracted from the receivables collection records of SBC:
The amount budgeted to be received in September from credit sales is, to the nearest £000:
Refer to the exhibit.
The following data are available for last period for the x-ray department of a local hospital:
The x-ray department cost per patient for last period was (to the nearest $0.01) is:
Refer to the exhibit.
SP, a manufacturing company, uses a standard costing system. The standard variable production overhead cost is based on the following budgeted figures for the year:
During the month of September, 5,300 actual hours were worked and 5,600 standard hours of output were produced. Total variable production overhead costs in September were $8,600.
What was the total variable production overhead variance in September?
Refer to the Exhibit.
A company operates a batch costing system.
Production overhead costs are absorbed into the cost of batches using a direct labour hour rate. Other overhead costs are absorbed at a rate of 20% of total production cost. The company adds a mark-up of 10% to total cost in order to derive its selling prices.
Budgeted production overheads for the period are $44,000 and the budgeted level of activity is 8,800 direct labour hours.
The following data are available for batch number 309:
The required selling price per unit (to two decimal places) is:
Eton Ltd. operates a manufacturing process that produces product A. Information for this process last month is as follows:
(a) Opening work in progress - 2,500 kg valued at £2,000 for direct material and £1,500 for labour and overheads.
(b) Materials input - 25,000 kg at £2.10 per kg.
(c) Labour - £10,000
(d) Overheads - £5,000
(e) Output during the month - 20,000 kg.
(f) There were 7,500 units of closing work in progress which was complete as to materials and 30% complete as to conversion.
(g) Normal loss for the month was 3% of input and all losses have a scrap value of £1 per kg.
What was the average cost per kg of finished output during the month?
Refer to the exhibit.
Data for October's budget for product Quest for the month of October are given below:
Each unit of Quest requires 6kg of raw materials. Strict quality control procedures are applied to the manufacturing process and normal rejection levels are 5% of finished units.
The raw materials purchases budget for the month of October is:
Which one of the following is NOT one of the five stated fundamental principles of CIMA's code of ethics?
The wages of a machine operator who is paid a guaranteed minimum wage plus a bonus for each unit produced would be described as A.
Which one of the following is an example of operational management information?
The management accountant has completed the appraisal of an investment in new office equipment.
It has now been discovered that the cost of capital used in the appraisal should have been higher.
What will be the effect on the calculated net present value (NPV) and the payback period?
In a manufacturing company which produces a range of products, the production manager's salary would be classified as A.
The staffing policy for a supermarket is to have one cashier station open for every forecasted 20 customers per hour. Cashiers are hired by the hour as and when required, and do not perform any other duties.
The cost of the cashiers in relation to the number of customers would be classified as which type of cost?
Which of the following is NOT a characteristic of useful operational level information?
Which of the following would NOT be an appropriate performance measure for a profit centre manager?
In responsibility accounting, costs and revenues are grouped according to:
A company has three production departments X, Y and Z, and one service department.
The service department’s overhead has been apportioned to the production departments in the ratio 3:2:5. As a result of this apportionment, $2,070 was given to Department Y.
What is the amount of service department overhead that would have been apportioned to Department Z? Give your answer to the nearest dollar.
A company absorbs production overhead using a direct labour hour rate. Data for the latest period are as follows:
What is the overhead absorption rate per direct labour hour? Give your answer to one decimal place.
A company uses standard absorption costing. Budgeted and actual data for the latest period are as follows.
What was the production overhead absorption rate per unit?
Which of the following would NOT require taking into account the time value of money?
In order for the information in a management accounting report to be authoritative its contents must be:
A company is appraising two projects. Both projects are for five years. Details of the two projects are as follows.
Based on the above information, which of the following statements is correct?
Which of the following statements relating to risk and uncertainty is correct?
A small airport’s management accountant has prepared the following management report on the performance of its four retail outlets.
Which retail outlet has the highest contribution per square metre?
A management accountant has forecast the following cash inflows from four potential projects.
All four projects require the same initial investment and will last for four years. They all result in a positive net present value but only one of the projects can be undertaken.
Which project should be selected?
An organisation’s management report contains the following data:
Which division has the highest operating margin percentage?
The following data relate to the latest period.
A statement is to be prepared that reconciles the difference between the flexible budget profit and the actual profit.
Which TWO of the following will appear on this statement? (Choose two.)
Data for the latest period for a company which makes and sells a single product are as follows:
There were no budgeted or actual changes in inventories during the period.
The sales volume contribution variance for the period was:
In a manufacturing company which produces a range of products, the cost of a royalty payment made to the product designer would be classified as A.
Refer to the exhibit.
The budgetary control report for the latest period shows the following. Variances in brackets are adverse.
The sales volume contribution variance for the period was
RJD Ltd is preparing the production cost budget for the forthcoming year and has found that there is a linear relationship between production volume and production costs.
They have found that a production volume of 1,600 units corresponds to production costs of £40000 and that a production volume of 3,200 units corresponds to production costs of £48,000.
What would be the production costs for a production volume of 4,000 units?
Refer to the exhibit.
The management accountant has completed the appraisal of a project which is forecast to generate the following cash flows.
It has now been discovered that the cash inflow in year 3 has been overestimated.
What will be the effect on the calculated net present value (NPV) and the payback period?
How does Beyond budgeting help to resolve the weaknesses of traditional budgeting? (Select ALL that apply.)
A profit margin of 20% of sales is the same as a profit on total cost of:
Give your answer to 2 decimal places.
Which of the following are not examples of intangible and nonfinancial factors in decision making? (Select ALL that apply.)
Refer to the exhibit.
A company budgeted to provide 700 units of service last period for a budgeted variable overhead cost of $29,400. During the period a total of 790 units of service were provided and the variable overhead cost incurred was $29,660.
For effective control of variable overhead cost which two figures should be compared in the budgetary control statement?
Refer to the exhibit.
Xpert Ltd uses a standard costing system and therefore values all inventory at standard cost. During period 7, the price paid for material 'Z' was £2 per kg more than the standard price.
The following information for material 'Z' relates to period 7:
What was the material price variance for 'Z' in period 7?
Refer to the exhibit.
The following budget and actual data are available for last period.
The sales price variance for last period was
A company provides its managers with monthly budgetary control reports. Which ONE of the following types of financial information is this?
A manufacturing company has four production departments. Overheads have been apportioned between them as follows:
It takes each department 4 hours, 4 hours, 2 hours and 3 hours respectively to produce the company's only product. The company recovers costs on the basis of labour hours. They plan to produce 6,000 units
What will the overhead absorption rate per unit be in £'s?
Select the correct answer from the choices below