Which TWO of the following are characteristics of Management Accounts? (Choose two.)A . Governed by rules and regulationsB . Provide information to managersC . Provide information needed by shareholdersD . Internally focusedE . Statutory requirement View Answer Answer: BE...
Continue readingWhich of the following is NOT a valid purpose of budgeting?
Which of the following is NOT a valid purpose of budgeting?A . To communicate targets to managers.B . To comply with financial reporting requirements.C . To coordinate the different activities of an organisation.D . To authorise managers to incur expenditure. View Answer Answer: D Explanation: Reference: https://www.acowtancy.com/textbook/acca-pm/budgetary-systems/budgetary-systems/notes...
Continue readingWhat was the production overhead absorption rate per unit?
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?A . $21B . $27C . $35D . $29 View Answer Answer: C...
Continue readingWhich of the following is a relevant cost?
Which of the following is a relevant cost?A . A sunk costB . A committed costC . An incremental costD . A historical cost View Answer Answer: C Explanation: Reference: https://www.acowtancy.com/textbook/cima-p1-2015/c1-relevant-costing/concept-of-relevantcosting/notes...
Continue readingWhich of the following statements about batch costing is true?
Which of the following statements about batch costing is true?A . Batch costing must use absorption costing.B . The cost of a batch is found by multiplying the cost of one unit by the number of units in the batch.C . Batch costing must use marginal costing.D . The cost of a unit is...
Continue readingThe following data are available for a company that produces and sells a single product.
The following data are available for a company that produces and sells a single product. – The company’s opening finished goods inventory was 2,500 units. – The fixed overhead absorption rate is $8.00 per unit. – The profit calculated using marginal costing is $16,000. – The profit calculated using absorption costing and valuing its...
Continue readingWhich of the following would NOT be an appropriate performance measure for a profit centre manager?
Which of the following would NOT be an appropriate performance measure for a profit centre manager?A . Return on capital employedB . Contribution per unitC . Sales price varianceD . Gross margin View Answer Answer: B...
Continue readingIn a company that manufactures many different products on the same production line, which TWO of the following would NOT be classified as indirect production costs? (Choose two.)
In a company that manufactures many different products on the same production line, which TWO of the following would NOT be classified as indirect production costs? (Choose two.)A . Salary paid to the factory manager.B . Factory rent.C . Maintenance costs for the company’s only production line.D . Commissions paid to the sales team.E...
Continue readingWhat year-to-date contribution to sales ratio (C/S ratio) would be reported at the end of month 10?
The year-to-date results at the end of month 9 included sales revenue of $3,600,000 and variable costs of $2,100,000. During month 10, sales revenue was $450,000 and variable costs were $270,000. What year-to-date contribution to sales ratio (C/S ratio) would be reported at the end of month 10?A . 58,5%B . 70,9%C . 41,5%D...
Continue readingWhich retail outlet has the highest contribution per square metre?
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 . Outlet AB . Outlet BC . Outlet CD . Outlet D View Answer Answer: C...
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