ACCA F2练习题2012(题)

F2 MANAGEMENT ACCOUNTING-Q

1. A firm which bottles shampoo selects some filled bottles for examination. The procedure used is that two random numbers, x and y, are chosen. Starting at the xth bottle filled, every bottle at an interval of y is then chosen for examination.

This type of sampling is known as:

A Multi-stage

B Random

C Systematic

D Stratified

2. The following statements relate to responsibility center:

(i) Return on capital employed is a suitable measure of performance in both profit and investment centers.

(ii) Cost centers are found in manufacturing organizations but not in service organizations.

(iii) The manager of a revenue center is responsible for both sales and costs in a part of an

organization.

Which of the statements are incorrect?

A (i) and (ii)

B (ii) and (iii)

C (i) and (iii)

D All of them

3. A pie chart is being produced to represent the sales from different regional offices of a business:

$000

North 125

North West 180

East 241

South 691

South East 147

Total 1,384

What would be the angle of the East divisions section on the pie chart (to the nearest whole degree)?

A 63°

B 33°

C 180°

D 580

4.Which of the following is not a type of benchmarking?

A Internal

B Strategic

C International

D Functional

5.K Class has calculated the following indicators: (i)Return on capital employed (ii)Training costs as a percentage of total costs

Which of the balanced scorecard perspectives would these measures relate to?

(i) (ii)

A Financial Financial

B Financial Internal

C Internal Learning and growth

D Financial Learning and growth

6. A government body uses measures based upon the ‘three Es’ to t he measure value for money generated by a publicly funded hospital. It considers the most important performance measure to be ‘cost per successfully treated patient’.

W hich of the three E’s best describes the above measure?

A Economy

B Effectiveness

C Efficiency

D Externality

6.The diagram represents the behaviour of a cost item as the level of output changes: Which ONE of the following situations is described by the graph?

A Discounts are received on additional purchases of material when certain quantities are purchased.

B Employees are paid a guaranteed weekly wage, together with bonuses for higher levels of production.

C A license is purchased from the government that allows unlimited production.

D Additional space is rented to cope with the need to increase production

8.The following production and total cost information relates to a single product organization for the last three months:

Month production units total costs

1 1200 66,600

2 900 58,200

3 1400 68200

The variable cost per unit is constant up to a production level of 2,000 units per month but a step up of $6,000 in the monthly total fixed cost occurs when production reaches 1,100 units per month. What is the total cost for a month when 1,000 units are produced?

A $54,200

B $55,000

C $59,000

D $60,200

9.Which of the following will be completed by a production department requiring new materials to be obtained from suppliers?

A A purchase order

B A delivery note

C A purchase requisition

D A goods received note

The following information applies to questions 10, 11 and 12

Point uses the economic order quantity (EOQ) model to establish the reorder quantity for raw material Y. The company holds no buffer inventory. Information relating to raw material Y is as follows:

48,000 units Annual usage

$80 per unit Purchase price

$120 per order Ordering costs

10% of the purchase price Annual holding cost

10.The EOQ for raw material Y is:

A 438

B 800

C 1,200

D 3,795

11.The total annual cost of purchasing, ordering and holding inventory of raw material Y is：

A $3,849,600

B $3,850,400

C $3,853,600

D $3,854,400

12.The supplier has offered Point a discount of 1% on the purchase price if each order placed is for 2,000 units.

The total annual saving to Point of accepting this offer is :

A $29,280

B $30,080

C $37,200

D $38,000

13.Which of the following are included in the cost of holding inventory?

(i) the cost of insurance

(ii)rental payment of storage space

(iii)the cost of placing a order

A (i) and (ii)

B (i) and (iii)

C (ii) and (iii)

D (i), (ii) and (iii)

14.If the direct labor costs in a manufacturing company are $95,000 in March, the costs would be recorded in the cost ledger as:

A Debit Work-in-progress $95,000, Credit Wages and salaries $95,000

B Debit Wages and salaries $95,000, Credit Bank $95,000

C Debit Wages and salaries $95,000, Credit Work-in-progress $95,000

D Debit Bank $95,000, Credit Wages and salaries $95,000

15.A direct labor employee works a standard 37 hour week and is paid a basic rate of $15 per hour. Overtime is paid at time and a half. In a week when 40 hours were worked and a Bonus of $20 was paid, what was the direct labor cost?

A $555

B $600

C $622.50

D $642.50

16.A cost centre has an overhead absorption rate of $4.25 per machine hour, based on

a budgeted activity level of 12,400 machine hours.

In the period covered by the budget, actual machine hours worked were 2% more than the budgeted hours and the actual overhead expenditure incurred in the cost center was $56,389.

What was the total over or under absorption of overheads in the cost center for the period?

A $1,054 over absorbed

B $2,635 under absorbed

C $3,689 over absorbed

D $3,689 under absorbed

17.The management accountant’s report shows that fixed production overheads were over-absorbed in the last accounting period. The combination that is certain to lead to this situation is:

A Production volume is lower than budget and actual expenditure is higher than budget

B production volume is higher than budget and actual expenditure is higher than budget

C production volume and actual cost are as budgeted

D production volume is higher than budget and actual expenditure is lower than budget.

18.A law firm recovers overheads on chargeable consulting hours. Budgeted overheads were $615,000 and actual consulting hours were 32,150. Overheads were under-recovered by $35,000.

If actual overheads were $694,075, the budgeted overhead absorption rate per hour is (to 2 decimal places):

A $20.21

B $20.50

C $21.59

D $22.68

https://www.wendangku.net/doc/1415643706.html,st month a manufacturing company’s profit was $2,000, calculated using absorption costing principles. If marginal costing principles had been used, a loss of $3,000 would have occurred. The company’s fixed production cost is $2 per unit. Sales last month were 10,000 units.

What was last month’s production (in units)?

A 7,500

B 9,500

C 10,500

D 12,500

The following data are for questions 20 and 21.

The budget for Bright’s first month of trading, producing and selling boats was as follows: $

Variable production cost of boats 45

Fixed production cost 30

Production cost of 750 boats 75

Closing inventory of 250 boats (25)

Production cost of 500 sold 50

Variable selling cost 5

Fixed selling cost 25

80

Profit 10

Sales revenue 90

The budget has been produced using an absorption costing system.

20.If a marginal costing system were used, the budgeted profit would be:

A $22,500 lower

B $10,000 lower

C $10,000 higher

D $22,500 higher

21.Assume that at the end of the first month unit variable costs and fixed costs and selling price for the month were in line with the budget and any inventory was valued at the same unit cost as in the above budget.

However, if production was actually 700 and sales 600, what would be the reported profit using absorption costing?

A $9,000

B $12,000

C $14,000

D $15,000

22.For a product that has a positive unit contribution, which of the following events would tend to increase total contribution by the greatest amount:

A 10% decrease in variable cost.

B 10% increase in selling price.

C 10% increase in volume sold.

D 15% decrease in total fixed costs

23.A company uses process costing to value output. During the last month the following information was recorded:

Output: 2800kg valued at $7.5/kg

Normal loss: 300kg which has a scrap value of $3/kg

Actual gain: 100kg

What was the value of the input?

A $22,650

B $21,900

C $21,600

D $21,150

24.Vare produces various inks at its Normanton factory. Production details for Process 1 are as follows:

Opening work-in-progress, 1 April 400 units60% complete

Closing work-in-progress, 30 April 600 units20% complete

Units started 1,000

Units finished 800

The degree of completion quoted relates to labour and overhead costs. Three-quarters of the materials are added at the start of the process and the remaining quarter added when the process is 50% complete. The company uses the FIFO method of cost allocation.

The equivalent units of production for materials in the period are:

A 1,250

B 1,000

C 850

D 680

25.In process costing, if an abnormal loss arises the process account is generally:

A debited with the scrap value of the abnormal loss units

B debited with the full production cost of the abnormal loss units

C credited with the scrap value of the abnormal loss units

D credited with the full production cost of the abnormal loss units

26.X uses process costing. In Process 3 the normal loss is 4% of total input.

Last period the input from Process 2 was 8,500 kg and additional material of 4,250 kg was added to process 3.

Actual output to finished goods was 12,700 kg.

There was no opening or closing work-in-progress in the period.

The abnormal gain or loss in kg for period 3 was:

A 460 kg gain

B 460 kg loss

C 290 kg gain

D 290 kg loss

27.Which of the following are features of service organizations?

(i)High levels of inventory

(ii)High proportion of fixed costs

(iii)Difficulty in identifying suitable cost units

A (i) and (ii) only

B (i) and (iii) only

C (ii) and (iii) only

D All of these

28.Which ONE of the following is an advantage of Activity Based Costing?

A It provides more accurate product costs

B It is simple to apply

C It is a form of marginal costing and so is relevant to decision making

D It is particularly useful when fixed overheads are very low

29. As an indirect result of purchase of under-standard materials, are the materials usage variance and labor efficiency variance likely to be adverse or favorable

Materials usage Labor efficiency

A Favorable Favorable

B Adverse Favorable

C Favorable Adverse

D Adverse Adverse

30. A company operates a standard absorption costing system. The standard fixed production overhead rate is $15 per hour.

The following data relate to last month:

Actual hours worked 5500

Budgeted hours 5000

Standard hours for actual production 4800

What was the fixed production overhead capacity variance?

A$7,500 adverse

B$7,500 favourable

C$10,500 adverse

D$10,500 favourable

31. Which of the following could be the cause of an adverse sales volume variance for garden furniture.

(i)The company offers discounts on sales prices in order to maintain business.

(ii)Poor weather leads to a reduction in sales.

(iii)A strike in the factory causes a shortage of finished goods.

A (i) and (ii) only

B (i) and (iii) only

C (ii) and (iii) only

D all above

32. An extract from the standard cost card for product CJ is as follows:

Direct labour (0.5 hours × $12) $6

710 units of CJ were produced in the period and staff worked 378 hours at a total cost of $4,725. Of these hours 20 were lost due to a material shortage.

The labour efficiency variance is:

A$516 favourable

B$36 favourable

C$36 adverse

D$516 adverse

33. A flexible budget is:

A a budget for semi-variable overhead costs only;

B a budget which, by recognising different cost behaviour patterns, is designed to change as volume of activity changes;

C a budget for a twelve month period which includes planned revenues, expenses, assets and liabilities;

D a budget which is prepared for a rolling period which is reviewed monthly, and updated accordingly

34. Which of the following statements are true about IRRs?

(i)IRR considers the time value of money

(ii)if the IRR exceeds the companies cost of capital the NPV at the company’s cost ofcapital should be positive

(iii)it is possible for one investment to have 2 IRRs

A (i) only

B (i) and (ii) only

C (ii) and (iii) only

D (i), (ii) and (iii)

35. A company is considering an investment of $400,000 in new machinery. The machinery is expected to yield incremental profits over the next five years as follows:

Year Profit ($)

1 175,000

2 225,000

3 340,000

4 165,000

5 125,000

Thereafter, no incremental profits are expected and the machinery will be sold. It is company policy to depreciate machinery on a straight line basis over the life of the asset. The machinery is expected to have a value of $50,000 at the end of year 5. Calculate the payback period of the investment in this machinery to the nearest 0.1 years.

A 0.9 years

B 1.3 years

C 1.5 years

D 1.9 years

36. Performance standards that have remained unchanged over a long period of time are known as:

A deal standards

B current standards

C basic standards

D Attainable standards

37. A company has determined that the net present value of an investment project is $17,706 when using a 10% discount rate and $(4,317) when using a discount rate of 15%. Calculate the internal rate of return of the project to the nearest 1%.

A 13%

B 14%

C 15%

D 16%

38. CC Company is considering an investment of $300,000 which will earn a contribution of $40,000 each year for 10 years at today’s prices. The company’s cost of capital is 11% per annum.

Calculate the net present value of the project:

A ($64,440)

B $23,556

C $64,440

D $235,560

39. The principal budget factor for a footwear retailer is:

A The cost item taking the largest share of total expenditure.

B The product line contributing the largest amount to sales revenue.

C The product line contributing the largest amount to business profits.

D The constraint that is expected to limit the retailer’s activities during the budget period

40. A process has a normal loss of 10% and budgeted output is 4,500 litres for the period.

Opening inventory of raw material is 600 litres and is expected to increase by 20% by the end of the period. The material usage budget is:

A 4,500 litres

B 5,000 litres

C 5,133 litres

D 5,120 litres

41. Put the stages of the product life cycle in the correct order:

(i)Growth

(ii)Decline

(iii)Maturity

(iv)Development

(v)Introduction

A (i), (v), (iii), (iv), (ii)

B (v), (iv), (i), (iii), (ii)

C (iv), (v), (i), (iii), (ii)

D (iv), (i), (iv), (iii), (ii)

42. Which of the following correlation coefficients indicates the weakest relationship between two variables?

A + 1.0

B + 0.4

C – 0.6

D – 1.0

43. The correlation coefficient (r) for measuring the connection between two variables (x and y) has been calculated as 0.6.

How much of the variation in the dependent variable (y) is explained by the variation in the independent variable (x).

A 36%

B 40%

C 60%

D 64%

44. Charleville operates a continuous process producing three products and one by-product.

Output from the process for a month was as follows:

Product Selling price per unit Units of output from process

1 $18 10000

2 $25 20000

3 $20 20000

4 (by-product) $2 3500

Total joint costs were $277,000.

What was the unit cost valuation for product 3 using the sales revenue basis for allocating joint costs assuming that the revenue receivable from the by-product is deducted from the joint costs?

A $4.70

B $4.80

C $5.00

D $5.10

45. In the context of quality costs, customer compensation costs and test equipment running costs would be classified as:

Customer compensation costs Test equipment running cost

A internal failure cost prevention cost

B internal failure cost appraisal cost

C external failure cost appraisal cost

D external failure cost prevention cost

46. The selling price of product K is set at $450 for each unit.

If the company requires a return of 20% in the coming year on product K, the target cost for each unit for the coming year is:

A $300

B $360

C $400

D $450

47. Regression analysis is being used to find the line of best fit (y = a + bx) from eleven pairs of data. The calculations have produced the following information:

Σx = 440, Σy = 330, Σx 2 = 17,986, Σy 2 = 10,366 and Σxy = 13,467.

What is the value of ‘b’ in the equation for the line of best fit (to 2 decimal places)?

A 0.63

B 0.69

C 2.33

D 5.33

48. A time series model of sales volume has the following trend and additive seasonal variation.

Trend Y = 5,000 + 4,000 X

Where Y = quarterly sales volume in units.

X = the quarter number (Where the first quarter of 2009 = quarter 17, the second quarter of 2009 = quarter 18 etc).

Quarter seasonal variation

First +3000

Second +1000

Third -1500

Fourth -2500

What would be the time series forecast of sales units for the third quarter of 2010?

A 79,500

B 95,500

C 97,000

D 98,500

The following information applies to questions 49 and 50.

A company records the following information concerning a product:

Standard time allowed per unit 16 munites

Actual output in period 720 units

Actual hours worked 180

Budgeted hours 185

49. What is the labour efficiency ratio?

A 93.75%

B 97.3%

C 102.5%

D 106.7%

50. What is the labour capacity ratio?

A 102.8%

B 99.4%

C 98.6%

D 97.3%