ACCA F2考试真题

财经网络教育领导品牌_________________________________________________________________ ACCA考试《F2管理会计》在线测试61.2The Managerial Process of Planning , Decision Making and ControlInformation for management is likely to be used for planning, control and decision making objectives: An objective is the aim or goal of an organization. A strategy is a possible course of action that might enable an organization or an individual to achieve its objective.Planning:· Planning involved the following two factors:Establishing the objectivesSelecting appropriate strategy to achieve those objectives· The link between structure and strategy ( understanding)1). Structure follows strategy: organizations develop strategies in order to cope with the changes in structure of an organization2) Strategy follows structure: the strategy of an organization is determined or influenced by the structure of the organization.· Planning can be either short-term (tactical planning) or long-term (strategic-planning) Planning hierarchyAt a strategic level, senior managers formulate long-term objectives and plans, and seek proper strategy to achieve these long-term goals.At a tactical level, senior managers make short-term plans for the efficient and effective use of an organization’s resources.e.g. annual plans or budgetsAt an operational level, managers take day-to-day decisions about what to do next and who to deal with problems arise参与ACCA考试的考生可按照复习计划有效进行，另外高顿网校官网ACCA考试辅导高清课程已经开通，还可索取ACCA考试通关宝典，针对性地讲解、训练、答疑、模考，对学习过程进行全程跟踪、分析、指导，可以帮助考生全面提升复习备考效果。

2005年12月ACCAF2考试真题（上海交大ACCA）3 A company manufactures a single product with a variablecost per unit of ￡22. The contribution to sales ratio is 45%.Monthly fixed costs are ￡198,000.What is the breakeven point (in units)?A4,950B9,000C11,000D20,0004An organisation has the following total costs at two activity levels:Activity level (units)17,00022,000T otal costs (￡)140,000170,000Variable cost per unit is constant in this range of activity and there is a step up of ￡5,000 in the total fixed costs when activity exceeds 18,000 units.What is the total cost at an activity level of 20,000 units?A￡155,000B￡158,000C￡160,000D￡163,0005The following statements relate to financial accounting or to cost and management accounting:(i)The main users of financial accounting information are external to an organisation.(ii)Cost accounting is part of financial accounting and establishes costs incurred by an organisation.(iii)Management accounting is used to aid planning, control and decision making.Which of the statements are correct?A(i) and (ii) onlyB(i) and (iii) onlyC(ii) and (iii) onlyD(i), (ii) and (iii)6The following terms relate to computers:(i)Application package(ii)Operating system(iii)SpreadsheetWhich of the above terms are examples of computer software?A(i) and (ii) onlyB(i) and (iii) onlyC(ii) and (iii) onlyD(i), (ii) and (iii)7An organisation’s stock records for las t month show the following transactions in respect of one item:Date Receipts Issues Stock(units)(units)(units)1st3005th10020013th60080020th30050028th200300The opening stock was valued at a total cost of ￡9,300 and all receipts on the 13th were purchased at a cost of ￡33 per unit.The organisation uses the weighted average method of valuation and calculates a new weighted average after each stores receipt.What was the total value of the closing stock?A￡9,500B￡9,700C￡9,750D￡9,9008 A company uses 9,000 units of a component per annum. The component has a purchase price of ￡40 per unit and the cost of placing an order is ￡160. The annual holding cost of one component is equal to 8% of its purchase price.What is the Economic Order Quantity (to the nearest unit) of the component?A530B671C949D1,3429 A company determines its order quantity for a component using the Economic Order Quantity (EOQ) model.What would be the effects on the EOQ and the total annual ordering cost of an increase in the annual cost of holding one unit of the component in stock?EOQ Total annual ordering costA Lower HigherB Higher LowerC Lower No effectD Higher No effect10Consider the following statements:(i)Job costing is only applicable to service organisations.(ii)Batch costing can be used when a number of identical products are manufactured together to go into finished stock.Is each statement TRUE or FALSE?Statement (i)Statement (ii)A False FalseB False T rueC T rue T rueD T rue False11An organisation absorbs overheads on a machine hour basis. The planned level of activity for last month was 30,000 machine hours with a total overhead cost of ￡247,500. Actual results showed that 28,000 machine hours were recorded with a total overhead cost of ￡238,000.What was the total under absorption of overheads last month?A￡7,000B￡7,500C￡9,500D￡16,50012The following information relates to a manufacturing company for next period:Units￡Production14,000Fixed production costs63,000Sales12,000Fixed selling costs12,000Using absorption costing the profit for next period has been calculated as ￡36,000.What would the profit for next period be using marginal costing?A￡25,000B￡27,000C￡45,000D￡47,00013Information relating to two processes (F and G) was as follows:Process Normal loss as Input Output% of input litres litresF865,00058,900G537,50035,700For each process, was there an abnormal loss or an abnormal gain?Process F Process GA Abnormal gain Abnormal gainB Abnormal gain Abnormal lossC Abnormal loss Abnormal gainD Abnormal loss Abnormal loss14Last month 27,000 direct labour hours were worked at an actual cost of ￡236,385 and the standard direct labour hours of production were 29,880. The standard direct labour cost per hour was ￡8·50.What was the labour efficiency variance?A￡17,595 AdverseB￡17,595 FavourableC￡24,480 AdverseD￡24,480 Favourable15Last month a company’s budgeted sales were 5,000 units. The standard selling price was ￡6 per unit with a standard contribution to sales ratio of 60%. Actual sales were 4,650 units with a total revenue of ￡30,225What were the favourable sales price and adverse sales volume contribution variances?Sales price Sales volume contribution￡￡A2,3251,260B2,5001,260C2,3252,100D2,5002,10016Which of the following is an initial requirement of amanagement control system?A Establishing the standard to be achievedB Measuring the actual performanceC Setting organisational objectivesD T aking appropriate corrective action17Which one of the following would be classified as indirect labour?A Assembly workers on a car production lineB Bricklayers in a house building companyC Machinists in a factory producing clothesD Forklift truck drivers in the stores of an engineering company18The following statements relate to the calculation of the regression line y = a + bx using the information on the formulae sheet at the end of this examination paper:(i)n represents the number of pairs of data items used(ii)(∑x)2is calculated by multiplying ∑x by ∑x(iii)∑xy is calculated by multiplying ∑x by ∑yWhich statements are correct?A(i) and (ii) onlyB(i) and (iii) onlyC(ii) and (iii) onlyD(i), (ii) and (iii)19The 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)?A36%B40%C60%D64%20The following statements relate to relevant cost concepts in decision making:(i)Materials can never have an opportunity cost whereas labour can.(ii)The annual depreciation charge is not a relevant cost.(iii)Fixed costs would have a relevant cost element if a decision causes a change in their total expenditureWhich statements are correct?A(i) and (ii) onlyB(i) and (iii) onlyC(ii) and (iii) onlyD(i), (ii) and (iii)21 A company is evaluating a project that requires 4,000 kg of a material that is used regularly in normal production.2,500 kg of the material, purchased last month at a total cost of ￡20,000, are in stock. Since last month the price of the material has increased by 21/2%.What is the total relevant cost of the material for the project?A￡12,300B￡20,500C￡32,300D￡32,80022In a process where there are no work-in-progress stocks, two joint products (J and K) are created. Information (in units) relating to last month is as follows:Product Sales Opening stock of Closing stock offinished goods finished goodsJ6,000100300K4,000400200Joint production costs last month were ￡110,000 and these were apportioned to joint products based on the number of units produced.What were the joint production costs apportioned to product J for last month?A￡63,800B￡64,000C￡66,000D￡68,20023 A company manufactures two products (L and M) using the same material and labour. It holds no stocks. Information about the variable costs and maximum demands are as follows:Product L Product M￡/unit￡/unitMaterial (￡4 per litre)1319Labour (￡7 per hour)3528Units UnitsMaximum monthly demand6,0008,000Each month 50,000 litres of material and 60,000 labour hours are available.Which one of the following statements is correct?A Material is a limiting factor but labour is not a limiting factor.B Material is not a limiting factor but labour is a limiting factor.C Neither material nor labour is a limiting factor.D Both material and labour are limiting factors.The following information relates to questions 24 and 25:A company has established the following selling price, costs and revenue equations for one of its products:Selling price (￡ per unit) = 50 –0·025QMarginal revenue (￡ per unit) = 50 –0·05QT otal costs per month (￡) = 2,000 + 15QQ represents the number of units produced and sold per month.24At what selling price will monthly profits be maximised?A￡15·00B￡17·50C￡25·00D￡32·5025What would be the monthly profit if the selling price per unit was set at ￡20?A￡1,000B￡4,000C￡6,000D￡12,000(50 marks)Section B – ALL FIVE questions are compulsory and MUST be attempted.1Pointdextre Ltd, which manufactures and sells a single product, is currently producing and selling 102,000 units per month, which represents 85% of its full capacity. T otal monthly costs are ￡619,000 but at full capacity these would be ￡700,000. T otal fixed costs would remain unchanged at all activity levels up to full capacity. The normal selling price of the product results in a contribution to sales ratio of 40%.A new customer has offered to take a monthly delivery of 15,000 units at a price per unit 20% below the normalselling price. If this new business is accepted, existing sales are expected to fall by one unit for every six units sold to this new customer.Required:(a)For the current production and sales level, calculate:(i)the variable cost per unit;(ii)the total monthly fixed costs;(iii)the selling price per unit;(iv)the contribution per unit.(6 marks)(b)Calculate the net increase or decrease in monthly profit which would result from acceptance of the newbusiness.(4 marks)(c)In the context of decision making, explain the term ‘opportunity cost’ and illustrate your answer by reference to Pointdextre Ltd.(2 marks)(12 marks)2Partlet Ltd makes a product that passes through two manufacturing processes. A normal loss equal to 8% of the raw material input occurs in Process I but no loss occurs in Process II. Losses have no realisable value.All the raw material required to make the product is input at the start of Process I. The output from Process I each month is input into Process II in the same month. Work in progress occurs in Process II only.Information for last month for each process is as follows:Process IRaw material input50,000 litres at a cost of ￡365,000Conversion costs￡256,000Output to Process II47,000 litresProcess IIOpening work in progress5,000 litres (40% complete for conversion costs) valued at ￡80,000Conversion costs￡392,000Closing work in progress2,000 litres (50% complete for conversion costs)Required:(a)Prepare the Process I account for last month.(5 marks)(b)Calculate in respect of Process II for last month:(i)the value of the completed output; and(ii)the value of closing work in progress.(5 marks)(c)If the losses in Process I were toxic and the company incurred costs in safely disposing of them, state how the disposal costs associated with the normal loss would have been recorded in the Process I account. No calculations are required.(2 marks)(12 marks)3JWW Ltd manufactures two products, X and Y, and any quantities produced can be sold for ￡60 per unit and ￡25 per unit respectively. Variable costs of the two products are: X Y￡ per unit￡ per unitMaterials (at ￡5 per kg)155Labour (at ￡6 per hour)243Other variable costs65––––––T otal4513––––––Next month only 4,200 kg of material and 3,000 labour hours will be available.The company holds no stocks and aims to maximise itsprofits each month.Required:(a)State the objective function and constraints in a form suitable for solving by linear programming.(5 marks)(b)Determine the optimal production plan for next month (in units).(4 marks)(9 marks)4Ploverleigh Ltd, which manufactures a single product, uses standard absorption costing. The standard product cost per unit is as follows:￡Direct materials11Direct labour24Fixed production overhead18Budgeted and actual production for last month were 12,000 units and 12,500 units respectively. The actual costs incurred last month were:￡Direct materials142,700Direct labour291,300Fixed production overhead230,800Required:(a)Prepare a statement that reconciles the standard cost of actual production with its actual cost for last monthand highlights the total variance for each of the three cost elements.(4 marks)(b)Provide a breakdown of the total fixed production overhead variance in your statement in (a) by calculating two sub variances.(2 marks)(c)If Ploverleigh Ltd uses standard marginal costing instead of standard absorption costing, explain how ANDwhy any of the three total variances calculated in (a) would be different and state clearly which, if any, of the variances would remain unchanged. No calculations are required.(3 marks)(9 marks)5Sangazure Ltd manufactures many different products in a factory that has two production cost centres (T and W) and several service cost centres.The total budgeted overhead costs (after the allocation, apportionment and reapportionment of service cost centre costs), and other information for production cost centres T and W are as follows:Cost centre Budgeted Basis of overhead Budgeted activity overheads absorptionT￡780,000Machine hours16,250 machine hoursW￡173,400Direct labour hours14,450 direct labour hoursRequired:(a)Calculate the overhead absorption rates for cost centres T and W.(2 marks)The prime cost of product PP, one of the products made by Sangazure Ltd, is as follows:￡ per unitDirect material10Direct labour:Cost centre T14Cost centre W21One unit of product PP takes 35 minutes of machine time in cost centre T. The direct labour in cost centre T is paid ￡7 per hour and ￡6 per hour in cost centre W.(b)Calculate the total production cost for one unit of PP.(3 marks)(c)Briefly explain why service cost centre costs need to be reapportioned to production cost centres. Whichmethod of reapportionment fully recognises the work that service cost centres do for each other?(3 marks)(8 marks)Formulae SheetEnd of Question Paper。

管理会计（F2）选择题题库---2016一、单项选择题1.The sales manager has prepared a manpower plan to ensurethat sales quotas for the forthing year are achieved. This is an example of what type of planning? （B）A Strategic planningB Tactical planningC Operational planningD Corporate planning 2．Which of the following statements is correct? （B ）A Management accounting systems provide information for use in fulfilling legal requirementsB Management accounting systems provide information for theuse of decision-makers within an organisationC Management accounting systems provide information for use by shareholdersD Management accounting systems provide information for use by tax authorities3．Which of the following would be data rather than information?（B）A Sales increase/decrease per product in last quarterB Total sales value per productC Sales made per salesman as a percentage of total salesD Sales staff mission as a percentage of total sales 4．Which of the following would be classed as indirect labour? （ B ）A Assembly workers in a pany manufacturing televisionsB A stores assistant in a factory storeC Plasterers in a construction panyD A consultant in a firm of management consultants5．A pany makes chairs and tables. Which of the following items would be treated as an indirect cost?（D ）A Wood used to make a chairB Metal used for the legs of a chairC Fabric to cover the seat of a chairD The salary of the sales director of the pany6．Which of the following best describes a controllable cost? （C ）A A cost which arises from a decision already taken, whichcannot, in the short run, be changed.B A cost for which the behaviour pattern can be easily analysedto facilitate valid budgetary control parisons.C A cost which can be influenced by its budget holder.D A specific cost of an activity or business which would beavoided if the activity or business did not exist.7．Which of the following best describes a period cost? （A ）A cost that relates to a time period which is deducted as expenses for the period and is notincluded in the inventory valuation.B A cost that can be easily allocated to a particular period, without the need for arbitraryapportionment between periods.C A cost that is identified with a unit produced during theperiod, and is included in the value of inventory. The costis treated as an expense for the period when the inventory is actually sold.D A cost that is incurred regularly every period, eg every month or quarter.8．Fixed costs are conventionally deemed to be which of the following? （D ）A Constant per unit of outputB Outside the control of managementC Easily controlledD Constant in total when production volume changes9．．Which one of the above graphs illustrates the costs described A linear variable cost – when the vertical axis represents cost incurred. （B ）A Graph 1B Graph 2C Graph 4D Graph 5 Which one of the above graphs illustrates the costs described A fixed cost – when the vertical axis represents cost incurred. （A ）A Graph 1B Graph 2C Graph 3D Graph 6 Which one of the above graphs illustrates the costs described A linear variable cost – when the vertical axis represents cost per unit. （A ）A Graph 1B Graph 2C Graph 3D Graph 6 Which one of the above graphs illustrates the costs described A semi-variable cost – when the vertical axis represents cost incurred. （C ）A Graph 1B Graph 2C Graph 4D Graph 5 Which one of the above graphs illustrates the costs describedA step fixed cost – when the vertical axis represents cost incurred. （A ）A Graph 3B Graph 4C Graph 5D Graph 610．A production worker is paid a salary of $650 per month, plus an extra 5 cents for each unit produced during the month.How is this type of labour cost best described? （D ）A A variable costB A fixed costC A step costD A semi-variable cost11．A total cost is described as staying the same over a certain activity range and then increasing but remaining stable overa revised activity range in the short term.What type of cost is this? （D ）A A fixed costB A variable costC A semi-variable costD A stepped fixed cost12．What is the economic batch quantity used to establish?Optimal （C ）A reorder quantityB recorder levelC order quantityD inventory level for production 13．A pany determines its order quantity for a raw material by using the Economic Order Quantity (EOQ) model. What would be the effects on the EOQ and the total annual holding cost ofa decrease in the cost of ordering a batch of raw material?（D ）EOQ Total annual holding costA Higher LowerB Higher HigherC Lower HigherD Lower Lower14．Over-absorbed overheads occur when （A ）A Absorbed overheads exceed actual overheadsB Absorbed overheads exceed budgeted overheadsC Actual overheads exceed absorbed overheadsD Actual overheads exceed budgeted overheads 15．Budgeted overheads $690,480 Budgeted machine hours 15,344Actual machine hours 14,128 Actual overheads $679,550Based on the data above, what is the machine hour absorption rate (to the nearest $)?（B ）A 44 per machine hourB 45 per machine hourC 48 per machine hourD 49 per machine hour16. Absorption costing is concerned with which of the following? （D ）A Direct materialsB Direct labourC Fixed costsD Variable and fixed costs17. The following statements have been made about life cycle costing.(1) Life cycle costing can be applied to products with a short life cycle.(2) Product life cycle costing is not well-suited for use within budgetary control systems.Which of the above statements is/are true? （ D ）A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 218 . The following statements have been made about target costing.(1) Target costing makes the business look at what petitorsare offering at an early stage in the new productdevelopment process.(2) Cost control is emphasised at the new product design stage so any engineering changes must happen before production starts.Which of the above statements is/are true? （ D ）A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 219. The following statements have been made about targetcosting.(1) Target costing is inappropriate for a new product that has no existing market.(2) It may be acceptable for a target cost for a new product tobe exceeded during the growth stage of its life cycle.Which of the above statements is/are true? （B ）A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 220. The following statements have been made about throughput accounting.(1) When throughput accounting (TA) is used, the aim should be to have sufficient inventories to overe bottlenecks in production.(2) Throughput accounting is based on the assumption that in the short run, most factory costs, other than materials, are fixed.Which of the above statements is/are true? （B ）A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 221. The following statements have been made about activity based costing.;’’(1) Implementation of ABC is unlikely to be cost-effective whenvariable production costs are a low proportion of totalproduction costs.(2) In a system of ABC, for costs that vary with production levels, the most suitable cost driver is likely to be direct labour hours or machine hours.Which of the above statements is/are true? ( B )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 222. In the theory of constraints and throughput accounting, whichof the following methods may be used to elevate theperformance of a binding constraint? ( C )(1) Acquire more of the resource that is the binding constraint.(2) Improve the efficiency of usage of the resource that is the binding constraint.A 1 onlyB 2 onlyC 1 and 2D Neither 1 nor 223. The following statements have been made about life cycle costing.(1) Life cycle costing is more useful for planning than for control purposes.(2) Most of the life cycle costs for a product are determined bydecisions taken in the early stage of a product’s life cycle.Which of the above statements is/are true? ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 224. The following statements have been made about activity based costing.(1) Activity based costs are not the same as relevant costs forthe purpose of short-run decision-making.(2) Activity based costing is a form of absorption costing. Which of the above statements is/are true? ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 225. The following statements have been made about activity based costing.(1) In a system of ABC, apportionment of some overhead costsmay need to be done on an arbitrary basis.(2) The costs of introducing and maintaining an activity basedcosting system may exceed the benefits of such a costing system.Which of the above statements is/are true? ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 226. The following statements have been made about targetcosting.(1) Target costing ensures that new product developmentcosts are recovered in the target price for the product.(2) A cost gap is the difference between the target price and the target cost.Which of the above statements is/are true? ( C )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 227. In which of the following ways might financial returns beimproved over the life cycle of a product? ( C )( 1) Maximising the breakeven time.(2) Minimising the time to market.(3) Minimising the length of the life cycle.A 1 and 2 onlyB 1 and 3 onlyC 2 onlyD 2 and 3 only28. The following statements have been made about target costing.(1) Target costing is not well-suited for services that have a large fixed cost base.(2) Costs may be reduced in target costing by removingproduct features that do not add value.Which of the above statements is/are true? ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 229. The following statements have been made about activity based costing.(1) Activity based costs are not the same as relevant costs forthe purpose of short-run decision-making(2) Activity based costing is a form of absorption costingWhich of the above statements is/are true? ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 230. The following statements have been made about target costing.(1) A target cost gap is the difference between the target costfor a product and its projected cost.(2) Products should not be manufactured if there is a target cost gap.Which of the above statements is/are true? (A )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 231. The following statements have been made about throughput accounting.(1) Inventory has no value and should be valued at $0.(2) Efficiency is maximised by utilising direct labour time and machine time to full capacity.Which of the above statements is/are true? (C )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 232. The following statements have been made about activity based costing.(1) In the short run, all the overhead costs for an activity vary with the amount of the cost driver for the activity.(2) A cost driver is an activity based cost.Which of the above statements is/are true? (C )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 233. The following statements have been made about target costing.(1) The value of target costing depends on having reliable estimates of sales demand.(2) Target costing may be applied to services that are providedfree of charge to customers, such as costs of call centrehandling.Which of the above statements is/are true? (A )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 234. The following statements have been made about life cycle costing.(1) An important use of life cycle costing is to decide whetherto go ahead with the development of a new product. (2) Life cycle costing encourages management to find asuitable balance between investment costs and operatingexpenses.Which of the above statements is/are true? (D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 235. The following statements have been made about traditionalabsorption costing and activity based costing.(1) Traditional absorption costing may be used to set prices forproducts, but activity based costing may not.(2) Traditional absorption costing tends to allocate too manyoverhead costs to low-volume products and not enoughoverheads to high-volume products.Which of the above statements is/are true? (C )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 236. For which one of the following reasons would the choice ofpenetration pricing be unsuitable for a product during the initial stage of its life cycle? (B )A To discourage new entrants to the marketB To increase the length of the initial stage of the life cycleC To achieve economies of scaleD To set a price for a product that has a high price elasticity of demand37. The following statements have been made about the use ofex pected values for decision-making under conditions of uncertainty.(1) Expected values are used to support a risk-averse attitude to decision-making.(2) Expected values are more valuable as a guide to decision-making where they refer to outeswhich will occur many times over.Which of the above statements is/are true? ( B )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 238. Which of the following statements about relevant costing is/are correct? ( C )(1) An opportunity cost is defined as the relevant cost of taking a business opportunity.(2) Business decisions should be taken on the basis of whether they improve profit or reducecosts.A 1 only is correctB 2 only is correctC Neither 1 nor 2 is correctD Both 1 and 2 are correct39. In which one of the following circumstances would the choice of a market skimming pricing policy be unsuitable for a product during the initial stage of its life cycle? ( C )A The product is protected by a patentB Expected demand and the price sensitivity of customers for the new product are unknownC When the product is expected to have a long life cycleD To maximise short-term profitability40. The following statements have been made about relevant costing.(1) Sunk costs can never be a relevant cost for the purpose of decision-making.(2) If a pany charges the minimum price for a product or service, based on relevant costs, it willnot improve its overall profitability.Which of the above statements is/are true? ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 241. The following statements have been made about full cost plus pricing.(1) Charging prices at full cost plus a fixed margin for profit will ensure that the business willmake a profit in each period.(2) Full cost plus pricing can lead to under- and over-pricing of productsWhich of the above statements is/are true? ( B )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 242. A pany wishes to decide on a selling price for a new product, and wants to choose the price thatwill provide the most satisfactory weekly total contribution. Weekly sales of each product will depend on the price charge and also on customers’ response to the new product. Thefollowing pay-off table has been prepared( C )A P1B P2C P3D P443. The constraints in a linear programming problem are as follows:3x + 4.8y 120,000 (Grade A labour hours)5x + 4y 160,000 (Grade B labour hours)x 30,000 (Sales demand product X)y 20,000 (Sales demand Product Y)x, y ≥ 0The objective function is to maximise total contribution: 20x + 30y. A graph of the constraints is as followsWhere is the optimal solution to the linear programming problem? （C）A Point AB Point BC Point CD Point D44. A decision tree is a way of representing decision choices in the form of a diagram. It is usualfor decision trees to include probabilities of different outes.The following statements have been made about decision trees.(1) Each possible oute from a decision is given an expected value.(2) Each possible oute is shown as a branch on a decision tree.Which of the above statements is/are true? ( B )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 245.The following statements have been made about cost plus pricing.(1) A price in excess of full cost per unit will ensure that a pany will cover all its costs and makea profit.(2) Cost plus pricing is an appropriate pricing strategy when jobs are carried out to customerspecifications.Which of the above statements is/are true? ( B )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 246. The following statements have been made about solving linear programming problems forbudgeting purposes.(1) Slack occurs when less than the maximum available of a limited resource is required.(2) When the linear programming problem includes a constraint for minimum sales demand fora product, there may be a surplus for sales demand in the optimal solution.Which of the above statements is/are true? ( D )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 247. The following statements have been made about decision-making under conditions ofuncertainty.(1) Expected value is a more reliable basis for decision-making where the situation and oute willoccur many times than for a one-off decision.(2) A risk-averse decision maker avoids all risks in decision-making.Which of the above statements is/are true? ( A )A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 248. Which method of pricing is most easily applied when two or more markets for the product orservice can be kept entirely separate from each other? ( A )A Price discriminationB Product line pricingC SkimmingD Volume discounting50. Which of the following statements about decision trees is/are correct? ( B )(1) A decision tree can be used to identify the preferred decision choice using the minimax regretdecision rule.(2) A decision tree is likely to present a simplified representation of reality.A 1 only is correctB 2 only is correctC Neither 1 nor 2 is correctD Both 1 and 2 are correct51. A pany makes and sells four products. Direct labour hours are a scarce resource, but the pany is able to sub-contract production of any products to external suppliers. The following information is relevant（A ）A W, Y, X then ZB W, Z, X then YC X, Z, W then YD Z, X, Y then W52. A benefit sacrificed by taking one course of action instead of the most profitable alternativecourse of action is known as: （A ）A An incremental costB An opportunity costC A relevant costD A sunk cost53. The following decision tree shows four decision options: 1, 2, 3 and 4Using the expected value rule, which choice should be made so as to optimise the expected benefit? （D ）A Choice 1B Choice 2C Choice 3D Choice 454. Good information should have certain qualities. Which of the following are qualities of good information? 1 plete 2 Extensive 3 Relevant 4 Accurate （B ）A 1, 2 and 3B 1, 3 and 4C 2 and 4D All of them55．Over which of the following is the manager of a profit centre likely to have control? （D ）(i) Selling (ii) Controllable costs(iii) Apportioned head office costs (iv) Capital investment in the centreA All of the aboveB (i), (ii) and (iii)C (i), (ii) and (iv)D (i) and (ii)56. Which of the following statements is/are true about group bonus schemes? （C ）(i) Group bonus schemes are appropriate when increased output depends on a number of peopleall making extra effort(ii) With a group bonus scheme, it is easier to award each individual's performance(iii) Non-production employees can be rewarded as part of a group incentive schemeA (i) onlyB (i) and (ii) onlyC (i) and (iii) onlyD (ii) and (iii) only57．Factory overheads can be absorbed by which of the following methods? （A ）(i) Direct labour hours (ii) Machine hours(iii) As a percentage of prime cost (iv) $x per unitA (i), (ii), (iii) and (iv)B (i) and (ii) onlyC (i), (ii) and (iii) onlyD (ii), (iii) and (iv) only58. Which of the following would be the most appropriate basis for apportioning machineryinsurance costs to cost centres within a factory? （C ）A The number of machines in each cost centreB The floor area occupied by the machinery in each cost centreC The value of the machinery in each cost centreD The operating hours of the machinery in each cost centre59. Consider the following statements, regarding the reapportionment of service cost centreoverheads to production cost centres, where reciprocal services exist:(1). The direct method results in costs being reapportioned between service cost centres(2). If the direct method is used, the order in which the service cost centre overheads arereapportioned is irrelevant(3). The step down method results in costs being reapportioned between service cost centres(4). If the step down method is used, the order in which the service cost centre overheads arereapportioned is irrelevantWhich statement(s) is/are correct? ( D )A (1), (2) and (4)B (1), (3) and (4)C (2) onlyD (2) and (3)60. Which of the following are acceptable bases for absorbing production overheads? ( C )(i) Direct labour hours (ii) Machine hours(iii) As a percentage of the prime cost (iv) Per unitA Methods (i) and (ii) onlyB Methods (iii) and (iv) onlyC Methods (i), (ii), (iii) and (iv)D Methods (i), (ii) or (iii) only61. When paring the profits reported under absorption costing and marginal costing during a periodwhen the level of inventory increased, which of the following is true? （ B ）A Absorption costing profits will be higher and closing inventory valuations lower than thoseunder marginal costing.B Absorption costing profits will be higher and closing inventory valuations higher than thoseunder marginal costing.C Marginal costing profits will be higher and closing inventory valuations lower than those underabsorption costing.D Marginal costing profits will be higher and closing inventory valuations higher than those underabsorption costing.62．When paring the profits reported under absorption costing and marginal costing during a period when the level of inventory increased, which of the following is true? （ B ）A Absorption costing profits will be higher and closing inventory valuations lower than those undermarginal costing.B Absorption costing profits will be higher and closing inventory valuations higher than those undermarginal costing.C Marginal costing profits will be higher and closing inventory valuations lower than those underabsorption costing.D Marginal costing profits will be higher and closing inventory valuations higher than those underabsorption costing.。

23An organisation has the following total costs at three activity levels:Activity level (units)8,00012,00015,000T otal cost£204,000£250,000£274,000Variable cost per unit is constant within this activity range and there is a step up of 10% in the total fixed costs when the activity level exceeds 11,000 units.What is the total cost at an activity level of 10,000 units?A£220,000B£224,000C£227,000D£234,0004An organisation manufactures and sells a single product which has a variable cost of £24 per unit and a contribution to sales ratio of 40%. T otal monthly fixed costs are £720,000.What is the monthly breakeven point (in units)?A18,000B20,000C30,000D45,0005The following statements refer to qualities of good information:(i)It should be communicated to the right person.(ii)It should always be completely accurate before it is used.(iii)It should be understandable by the recipient.Which of the above statements are correct?A(i) and (ii) onlyB(i) and (iii) onlyC(ii) and (iii) onlyD(i), (ii) and (iii)6 A company is considering the launch of a new product at a high initial selling price.Which of the following statements is correct?A This is an example of strategic planning involving the application of penetration pricing.B This is an example of operational planning involving the application of penetration pricing.C This is an example of strategic planning involving the application of price skimming.D This is an example of operational planning involving the application of price skimming.3[P.T.O.7The following statements relate to an organisation’s management information system:(i)It is used only by top and middle management to aid in strategic and tactical decision-making.(ii)It generates both financial and non-financial information.(iii)It often uses a database system.Which of the above statements are correct?A(i) and (ii) onlyB(i) and (iii) onlyC(ii) and (iii) onlyD(i), (ii) and (iii)8Regression analysis is being used to find the line of best fit (y = a + bx) from five pairs of data. The calculations have produced the following information:Σx = 129Σy = 890Σxy = 23,091Σx2= 3,433Σy2= 29,929What is the value of ‘a’ in the equation for the line of best fit (to the nearest whole number)?A146B152C210D2459Which of the following is a feasible value for a correlation coefficient?A+1·2B0C–1·2D–2·010The following data relate to material J for last month:£Opening stock300 kg valued at3,300Purchases:4th400 kg for4,80018th500 kg for6,500Issues:13th600 kg25th300 kgUsing the LIFO valuation method, what was the value of the closing stock for last month?A£3,300B£3,500C£3,700D£3,900411 A jobbing company operates a premium bonus scheme for its employees of 75% of the time saved compared withthe standard time allowance for a job, at the normal hourly rate. The data relating to Job 1206 completed by an employee is as follows:Allowed time for Job 1206 4 hoursTime taken to complete Job 1206 3 hoursNormal hourly rate of pay£8What is the total pay of the employee for Job 1206?A£24B£30C£32D£3812 A paint manufacturer has a number of departments. Each department is located in a separate building on the samefactory site. In the mixing department the basic raw materials are mixed together in very large vessels. These are then moved on to the colour adding department where paints of different colours are created in these vessels. In the next department – the pouring department – the paint is poured from these vessels into litre sized tins. The tins then go on to the labelling department prior to going on to the finished goods department.The following statements relate to the paint manufacturer:(i)The mixing department is a cost centre.(ii) A suitable cost unit for the colour adding department is a litre tin of paint.(iii)The pouring department is a profit centre.Which statement or statements is/are correct?A(i) onlyB(i) and (ii) onlyC(i) and (iii) onlyD(ii) and (iii) only13The following statements relate to spreadsheets:(i) A spreadsheet consists of records and files.(ii)Most spreadsheets have a facility to allow data within them to be displayed graphically.(iii) A spreadsheet could be used to prepare a budgeted profit and loss account.(iv) A spreadsheet is the most suitable software for storing large volumes of data.Which of the above statements are correct?A(i) and (ii) onlyB(i), (iii) and (iv) onlyC(ii) and (iii) onlyD(iii) and (iv) only5[P.T.O.14 A company uses absorption costing with a predetermined hourly overhead absorption rate. The following situationshave both occurred:(i)Actual overhead expenditure exceeded planned expenditure; and(ii)Actual hours worked were less than the planned hours.Which of the following statements is correct?A Situation (i) would cause overheads to be over absorbed and situation (ii) would cause overheads to be underabsorbed.B Situation (i) would cause overheads to be under absorbed and situation (ii) would cause overheads to be overabsorbed.C Both situations would cause overheads to be over absorbed.D Both situations would cause overheads to be under absorbed.15 A company operates a job costing system. Job 812 requires £60 of direct materials, £40 of direct labour and £20 ofdirect expenses. Direct labour is paid £8 per hour. Production overheads are absorbed at a rate of £16 per direct labour hour and non-production overheads are absorbed at a rate of 60% of prime cost.What is the total cost of Job 812?A£240B£260C£272D£32016At the end of manufacturing in Process I, product K can be sold for £10 per litre. Alternatively product K could be further processed into product KK in Process II at an additional cost of £1 per litre input into this process. Process II is an existing process with spare capacity in which a loss of 10% of the input volume occurs. At the end of the further processing, product KK could be sold for £12 per litre.Which of the following statements is correct in respect of 9,000 litres of product K?A Further processing into product KK would increase profits by £9,000.B Further processing into product KK would increase profits by £8,100.C Further processing into product KK would decrease profits by £900.D Further processing into product KK would decrease profits by £1,800.The following information relates to questions 17 and 18:The standard direct material cost for a product is £50 per unit (12·5 kg at £4 per kg). Last month the actual amount paid for 45,600 kg of material purchased and used was £173,280 and the direct material usage variance was £15,200 adverse.17What was the direct material price variance last month?A£8,800 AdverseB£8,800 FavourableC£9,120 AdverseD£9,120 Favourable618What was the actual production last month?A3,344 unitsB3,520 unitsC3,952 unitsD4,160 units19Equipment owned by a company has a net book value of £1,800 and has been idle for some months. It could now be used on a six months contract which is being considered. If not used on this contract, the equipment would be sold now for a net amount of £2,000. After use on the contract, the equipment would have no saleable value and would be dismantled. The cost of dismantling and disposing of it would be £800.What is the total relevant cost of the equipment to the contract?A£1,200B£1,800C£2,000D£2,80020 A contract is under consideration which requires 800 labour hours to complete. There are 450 hours of spare labourcapacity for which the workers are still being paid the normal rate of pay. The remaining hours required for the contract can be found either by overtime working paid at 50% above the normal rate of pay or by diverting labour from the manufacture of product OT. If the contract is undertaken and labour is diverted, then sales of product OT will be lost.Product OT takes seven labour hours per unit to manufacture and makes a contribution of £14 per unit. The normal rate of pay for labour is £8 per hour.What is the total relevant labour cost to the contract?A£3,500B£4,200C£4,500D£4,900The following information relates to questions 21 and 22:In the following price, revenue and cost functions, which have been established by an organisation for one of its products, Q represents the number of units produced and sold per week:Price (£ per unit) = 50 – 0·025QMarginal revenue (£ per unit) = 50 – 0·05QT otal weekly cost = 1,000 + 15Q21What price per unit should be set in order to maximise weekly profit?A£15·00B£17·50C£25·00D£32·5022What would the weekly total contribution be if the price of the product was set at £20 per unit?A£2,000B£3,000C£5,000D£6,0007[P.T.O.8Section B – ALL FIVE questions are compulsory and MUST be attempted.1Fairfax Ltd manufactures a single product which has a standard selling price of £22 per unit. It operates a standard marginal costing system. The standard variable production cost is £9 per unit. Budgeted annual production is 360,000 units and budgeted non-production costs of £1,152,000 per annum are all fixed.The following data relate to last month:Budget Actualunits unitsProduction30,00033,000Sales32,00034,000Last month the budgeted profit was £200,000 and the actual total sales revenue was £731,000.Required:(a)Calculate the sales price and sales volume contribution variances for last month showing clearly whethereach variance is favourable or adverse.(4 marks)(b)Explain how the two variances calculated in (a) could be interrelated.(3 marks)(c)Calculate the BUDGETED profit for last month assuming that the company was using absorption costing.(4 marks)(11 marks)2Point Ltd uses the economic order quantity (EOQ) model to establish the reorder quantity for raw material Y. The company holds no buffer stock. Information relating to raw material Y is as follows:Annual usage48,000 unitsPurchase price£80 per unitOrdering costs£120 per orderAnnual holding costs10% of the purchase priceRequired:(a)Calculate:(i)the EOQ for raw material Y, and(ii)the total annual cost of purchasing, ordering and holding stocks of raw material Y.(4 marks) The supplier has offered Point Ltd a discount of 1% on the purchase price if each order placed is for 2,000 units.(b)Calculate the total annual saving to Point Ltd of accepting this offer.(3 marks)(c)List FOUR examples of holding costs.(2 marks)(9 marks)9[P.T.O.3Merryl Ltd manufactures four components (E, F, G and H) which are incorporated into different products made by the company. All the components are manufactured using the same general purpose machinery. The following production cost and machine hour data are available:E F G HVariable production cost (£ per unit)32273435Fixed production cost (£ per unit)614816General purpose machine hours per unit5678The fixed production costs represent a share of factory-wide costs that have been related to the individual components by using a direct labour hour rate. There are no fixed costs which can be specifically related to individual components.From next month the company’s monthly manufacturing requirements are for 2,000 units of each component. The maximum number of machine hours available for component manufacture is 35,000 per month.The company can purchase any quantity of each component from Sergeant Ltd at the following unit prices next month:E F G H£48£51£55£63Merryl Ltd aims to minimise its monthly costs.Required:(a)Calculate the shortfall in general purpose machine hours next month.(2 marks)(b)Determine how many units of which components should be purchased from Sergeant Ltd next month.(4 marks)(c)Briefly explain THREE other factors that the management of Merryl Ltd should consider before making a finaldecision to buy in components from Sergeant Ltd for next month.(3 marks)(9 marks)4Yeomen Ltd uses process costing and the FIFO method of valuation. The following information for last month relates to Process G, where all the material is added at the beginning of the process:Opening work-in-progress:2,000 litres (30% complete in respect of conversion costs) valued in total at£24,600 (£16,500 for direct materials; £8,100 for conversion).Costs incurred:Direct materials£99,600 for 12,500 litres of inputConversion£155,250Normal loss:8% of input in the period. All losses, which are incurred evenly throughout theprocess, can be sold for £3 per litre.Actual output:10,000 litres were transferred from Process G to the finished goods warehouse.Closing work-in-progress:3,000 litres (45% complete in respect of conversion costs).Required:(a)Prepare the Process G Account for last month in £ and litres.(10 marks)(b)Identify TWO types of organisation where it would be appropriate to use service (operation) costing. For eachone suggest a suitable unit cost measure.(2 marks)(12 marks)105Phoebe Ltd manufactures many different products which pass through two production cost centres (P1 and P2).There are also two service cost centres (S1 and S2) in the factory. The following information has been extracted from the budget for the coming year:P1P2S1S2Allocated and apportionedproduction overheads£477,550£404,250£132,000£96,000Number of employees30651015T otal machine hours68,00011,400T otal direct labour hours4,00014,000Service cost centre S1 costs are reapportioned to all other cost centres based on the number of employees. Service cost centre S2 only does work for P1 and P2 and its costs are reapportioned to these centres in the ratio 5:3 respectively.Required:(a)Calculate:(i)the machine hour absorption rate for cost centre P1, and(ii)the direct labour hour absorption rate for cost centre P2.(6 marks)(b)Explain the difference between production overheads that have been ‘allocated’ and those which have been‘apportioned’ to cost centres. Explain why some manufacturing companies are able to allocate electric power costs to production cost centres, whereas others can only apportion them.(3 marks)(9 marks)11[P.T.O.12Formulae Sheet End of Question Paper。

F2Management AccountingMock Exam(2015)Part A:ALL35questions are compulsory and MUST be attempted1A company operates a job costing system.Job001requires$60of direct materials,$40of direct labor and$20of direct expenses.Direct labor is paid$8per hour.Production overheads are absorbed at a rate of$16per direct labor hour and non-production overheads are absorbed at a rate of60%of prime costWhat is the total cost of Job001?A$240B$260C$272D$3202Which of the following statements,about establishing the trend of a time series,is/are TRUE?(1)Where the time series is approximately linear,the line of best fit can be estimated on ascatter graph(2)Where the time series is not approximately linear,moving averages can be calculated.A1onlyB2onlyC Both1and2D Neither1nor23It has been estimated that each service cost center does work for the other cost centers in the following proportions:Production Production Service Service1212 Overhead$90,000$85,000$40,000$30,000 Percentage of S130%40%30% Percentage of S240%50%10%1.The business uses the direct method of apportionment.After the reapportionment ofservice to production departments,the total overhead for P1is$_________(to thenearest whole$)2.The business uses the step down method of apportionment.After the reapportionment ofservice to production departments,the total overhead for P1is$__________(to thenearest whole$)4.L 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 process1$18100002$25200003$20200004(by-product)$23500Total joint costs were$277000.What was the unit cost valuation for product3using the sales revenue basis for allocating joint costs assuming that the revenue receivable from the by-product is deducted from the joint costs?A$4.7B$4.8C$5.0D$5.15A manufacturing firm planned to manufacture and sell100,000units of product during the year at a variable cost per unit of$4.00and a fixed cost per unit$2.00.The firm fell short of its goal and only manufactured80,000units at a total incurred cost of$515,000. The firm’s manufacturing variance wasA$85,000favorableB$35,000adverseC$5,000favorableD$5,000adverse6A company determines its order quantity for a component using EOQ model.What would be the effects on the EOQ and the total annual ordering cost of a decrease in the annual cost of holding one unit of the component in stock?EOQ Total annual ordering costA Lower No effectB Higher No effectC Lower HigherD Higher Lower7The following information is available regarding the fixed overhead costs and output of the two production departments of a firm.Department A BAllocated or apportioned fixed overhead$70,000$100,000Total cost of direct materials used$140,000$100,000Total productive labor hours5,00010,000A particular product has the following variable cost.$MaterialsDepartment A4kg@$3per kg12Department B2kg@$3per kg6LaborDepartment A1/2hour@$10per hour5Department B 1.5hour@$10per hour15Variable overheads1hour@$5per hour5_____43If fixed overheads are absorbed on the basis of departmental material cost,the fixed overhead cost per unit is:A$5.8B$12C$10D$218ABC plc is currently preparing its cash budget for the year to31December20x4.An extract from its sales budget for the same year shows the following sales values:$March60,000April70,000May55,000June65,00040%of its sales are expected to be for cash.Of its credit sales,70%are expected to pay in the month after sale and take a2%discount;27%are expected to pay in the second month after the sale,and the remaining3%are expected to be bad debts.The value of sales receipts to be shown in the cash budget for May20x4isA$60,532B$61,120C$66,532D$86,6209In a time series analysis,the addictive model is used to forecast sales and the following seasonal variation apply:Quarter1234SV170130-230?The actual sales for the first two quarters of20x5were:Quarter1:$900Quarter2:$670What is the seasonal variation for the fourth quarter?A200B250C-150D-70The trend line for sales between Quarter1and Quarter2is___________(increased or decreased).10A company uses the WA method of inventory valuation which makes a product in two processes.The following data is available for process1in the last period.Opening work in process of1,000units was valued as follows:Material$12,000;Labor$6,000;Overhead$7,450Unit added and costs incurred during the period:Material$30,000(2,500units);Labor$16,750;Overhead$7,450The completion degrees of closing wip of500units:Material100%;Labor60%;Overhead40%1How many equivalent units are used when calculating the cost per unit in relation to labor? _________EUS2The value of the units transferred to process2was(to nearest$)$_____________11A company produces and sells a single product whose variable cost is$6per unit. Fixed costs have been absorbed over the normal level of activity of200,000units and have been calculated as$2per unit.The current selling price is$10per unit.How much profit is made under marginal costing if the company sells250,000units?A$500,000B$600,000C$900,000D$1,000,00012A company can make1,000units of a product for$12material per unit and2hours per unit for labor.The product sells for$22per unit.Employees are paid at$15per hour and are currently employed on the production of another product that takes3 hours of labor in which generates a contribution of$12/unit.Extra employees cannot be recruited and would have been transferred from current work.What is the total relevant cost if the company proceed with the new product?A-28,000B-13,000C-32,000D-20,00013The budgeted contribution for H Co for Jun was$290,000.The following variances occurred during the month.Fixed O/H expenditure variance6,475FTotal direct labor variance11,323FTotal variable overhead variance21,655ASelling price variance21,875FFixed overhead volume12,500ASales volume variance36,250ATotal direct materials variance6,335AWhat was the actual contribution for the month?A252,923B258,948C321,052D327,07714A company uses an overhead absorption rate of$3·50per machine hour,based on 32,000budgeted machine hours for the period.During the same period the actual total overhead expenditure amounted to$108,875and30,000machine hours were recorded on actual production.By how much was the total overhead under or over absorbed for the period?A Under absorbed by$3,875B Under absorbed by$7,000C Over absorbed by$3,875D Over absorbed by$7,00015In a transport business,unit costs are calculated per tonne/kilometer.The following data is available:Average load(tonnes)Average distance(kilometers)Number of journeys 44010560126658Total costs were$34,295.What was the cost per tonne/kilometer(to two decimal places of$)?A$0.46B$1.34C$4.12D$13.8616A company has a capital employed of$200,000.It has a cost of capital of12%per year.Its residual income is$36,000.What is the company’s return on investment?A30%B12%C18%D22%17What is Fisher’s ideal index?Laspeyre index150Corresponding Paasche index138.24A12.00B16.98C144.00D288.2418The following information is available for H co for the month of JuneBudgeted Hours2,750standard hoursStandard hours produced2,812standard hoursActual hours worked3,000Calculate the efficiency ratio:A94%B102%C107%D109%19Two products G and H are created from a joint process.G can be sold immediately after split-off.H requires further processing into product HH before it is in a saleable condition. There are no opening inventories and no work in progress of products G,H or HH.The following data are available for last period:$Total joint production costs350,000Further processing costs of product H66,000Product Production Closingunits inventoryG420,00020,000HH330,00030,000Using the physical unit method for apportioning joint production costs,what was the cost value of the closing inventory of product HH for last period?A$16,640B$18,625C$20,000D$21,60020A company operates a process costing system using the FIFO system of valuation. No losses occur in the process.The following data relate to last month:UnitsOpening wip200with total value of$1,530Input to the process1,000Completed production1,040Last month the cost per equivalent unit of production was$20and the degree of completion of the wip was40%throughout the month.What was the value(at cost)of last month’s closing work in progress?A$1224B$1280C$1836D$192021There is a normal loss of5%of the material input into a chemical process. During a given period,a company needs to produce840kg of W.And the company did produce840kg of W,although there was an abnormal loss of3%of material input into the process.The input should be____________kg of material during the month(to the nearest kg).22.A company manufactures a single product.Unit cost are:$/UnitVariable product14.75Fixed production8.10Variable selling 2.40Fixed selling 5.35400,000units of the product were manufactured in a period,during which394,000 units were sold.There was no inventory of the product at the beginning of the period.Using marginal costing,what is the total value of the finished goods inventory at the end of the period:___________(to the nearest$)Using absorption costing,what is the total value of the finished goods inventory at the end of the period:_____________(to the nearest$)23The following data relates to a wage index for a company:Year Wages per week Index01$27511706$315157What were the06weekly wages at01prices(to the nearest$)?A$201B$235C$275D$36924What document shows the amount due to a supplier for goods bought?A Purchase invoiceB Purchase requisitionC Goods received noteD Purchase order25.A company has following information in a record;Cost Output4,0001,0007,0002,00010,0003,0009,5004,000A step up in fixed costs of$500occurs at an output level of3,500unitsWhat would be the variable overhead cost per unit using high low method?A1.67B1.83C2.75D3.0026.A company uses standard absorption costing to value inventory.Its fixed overhead absorption rate is$12per labour hour and each unit of production should take four labour hours.In a recent period when there was no opening inventory of finished goods,20,000units were produced using100,000labour hours.18,000units were sold.The actual profit was$464,000.What profit would have been earned under a standard marginal costing system? A$368,000B$440,000C$344,000D$560,00027.Which two items in the following list relate to the term‘by product’?(1)Has low sales value relative to joint products(2)Accounted for by crediting the NRV(net realizable)value to work in progressaccount(3)Equivalent units of output are less than the actual good units of output(4)Charged with a share of joint production costsA1&2B1&3C2&4D3&428.The NPV of an investment at12%is$25,000and at20%is-$7,000.What is the IRR?A6%B12%C15%D18%29.A project has an initial investment of$60,000.The present value of the expected net cash inflows from the machine over its useful life are:Discounted rate Present value of cash flow10%$64,60015%$58,20020%$52,100What is the IRR of this investment?A Below10%B Between10%and15%C Between15%and20%D Over20%30.How much should be invested now(to the nearest$)to receive$24,000per annum in perpetuity if the annual rate of interest is5%A$210440B$18720C$22000D$48000031.An investor has the choice between two investments.Investment Easy offers interest of4%per year compounded semi-annually for a period of three years. Investment Difficult offers one interest payment of20%at the end of its four-year life.What is the annual effective interest rate offered by the two investments?Easy DifficultA 4.00% 4.66%B 4.00% 5.00%C 4.04% 4.66%D 4.04% 5.00%32.Tom Ltd’s material price variance for the month of Jan was$1,000F and usage variance was$200FThe standard material usage per unit is3kg,and the standard material price is$2 per kg.500units were produced in the period.Opening stocks of raw materials were100kg and closing stock300kg.Material purchases in the period were:A1200kg B1400kg C1600kg D1800kg33.An education authority is considering the implementation of a CCTV security system in one of its schools.Details of the proposed project are as follows:Life of project5yearsInitial cost$75000Annual savings:$30,000for5year with immediately effectDiscounted Rate:15%Calculate NPV of this project:$___________34.A company is considering an investment of$400000in new machinery.The machinery is expected to yield incremental profits over the next five years as follows:Year Profits($)11750002225000334000041650005125000Thereafter,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$50000at the end of year5Calculate the payback period of the investment in this machinery to the nearest0.1 year.A0.9year B1.3years C1.5years D1.9years35.What is the name given to a code in which the level of detail increase in a logical way as you work through the code?A sequenceB HierarchicalC FacetedD BlockPart B:All Three Questions to be attempt:1.Luca Co uses a standard marginal costing system to control its costs and revenues. The following variances have been calculated for one of its products for May2013. Variance Favorable Adverse$$Sales volume contribution3,950Sales price4,500Direct material price270Direct material usage180Direct labour rate1,100Direct labour effi ciency200Variable overhead expenditure750Variable overhead effi ciency600Fixed overhead expenditure1,350––––––––––––6,9505,950––––––––––––The following information is also available for May2013.Budgeted sales and production500units Budgeted profit$14,500Budgeted fixed costs$25,000Required:(a)Using the above information prepare a marginal costing based profit reconciliationstatement for May2013.(i)Budgeted contribution;$____________(1mark) (ii)Standard contribution for actual sales volume;$______________(1mark) (iii)Actual contribution;$______________(1mark) (iv)Actual fixed costs;$______________(2mark) (v)Actual profit.$_______________(1mark)(b)Which factors should not be considered in deciding whether or not to investigate avariance?（2mark）A Possible interdependence of variancesB The inherent variability of the cost or revenueC Top management’s delegationD Reliability of the figures(c)Which of the following would help to explain a favorable direct labor rate variance?(2mark)(1)Employees were of a lower grade than standard(2)The standard hourly rate pay day was set unrealistically high(3)A pay increase which had been anticipated in the budget was not awardedA All of themB(1)and(2)C(2)and(3)D(1)and(3)2.Cab Co owns and runs350taxis and had sales of$10million in the last year.Cab Co is considering introducing a new computerised taxi tracking system.The expected costs and benefits of the new computerised tracking system are as follows: (i)The system would cost$2,100,000to implement.(ii)Depreciation would be provided at$420,000per annum.(iii)$75,000has already been spent on staff training in order to evaluate the potential of the new system.Further training costs of$425,000would be required in the first year if the new system is implemented.(iv)Sales are expected to rise to$11million in Year1if the new system is implemented, thereafter increasing by5%per annum.If the new system is not implemented,sales would be expected to increase by$200,000per annum.(v)Despite increased sales,savings in vehicle running costs are expected as a result of the new system.These are estimated at1%of total sales.(vi)Six new members of staff would be recruited to manage the new system at a total cost of $120,000per annum.(vii)Cab Co would have to take out a maintenance contract for the new system at a cost of $75,000per annum for five years.(viii)Interest on money borrowed to finance the project would cost$150,000per annum. (ix)Cab Co’s cost of capital is10%per annum.Required:(a)State whether each of the following items are relevant or irrelevant cashflows for a net present value(NPV)evaluation of whether to introduce the computerised tracking system.(i)Computerised tracking system investment of$2,100,000;(ii)Depreciation of$420,000in each of the five years;(iii)Staff training costs of$425,000;(iv)New staff total salary of$120,000per annum;(v)Staff training costs of$75,000;(vi)Interest cost of$150,000per annum.Note:The following mark allocation is provided as guidance for this requirement:(i)0·5marks(ii)1mark(iii)0·5marks(iv)1mark(v)1mark(vi)1mark(5marks)(b)Calculate the following values if the computerised tracking system is implemented.(i)Incremental sales in Year1;(ii)Savings in vehicle running costs in Year1;(iii)Present value of the maintenance costs over the life of the contract.Note:The following mark allocation is provided as guidance for this requirement:(i)1mark(ii)0·5marks(iii)1·5marks(3marks)(c)Cab Co wishes to maximise the wealth of its shareholders.It has correctly calculated the following measures forthe proposed computerised tracking system project:–The internal rate of return(IRR)is14%,–The return on average capital employed(ROCE)is20%and–The payback period is four years.Required:Which of the following is true?A The project is worthwhile because the IRR is a positive valueB The project is worthwhile because the IRR is greater than the cost of capitalC The project is not worthwhile because the IRR is less than the ROCED The project is not worthwhile because the payback is less than five years(2marks)(10marks)3.The directors of Donny Co are reviewing the performance of two of its divisions.The following information is available for the year ending31March2013.South division North division$000$000Sales50,0003,200 Operating profit700840Capital employed3,5004,000South division is a food retailer that sells low priced food from a number of stores that are rented on short-term contracts.North division sells luxury motor vehicles,which it manufactures in a fully automated production plant.Required:(a)Calculate the following performance measures for the two divisions:(i)Return on capital employed;(ii)Return on sales;(iii)Asset turnover(based upon capital employed);(iv)Residual income(using an imputed interest charge of12%per annum).(5marks) (b)Donny Co is seeking to be successful and outperform its competition by identifying a series critical success factors(CSFs)and Key performance indicators (KPIs).Please mark the following either CSF or KPI:CSF KPIStaff turnover(1)(2)Internal learning(1)(2) Technology leadership(1)(2)New products(1)(2)After-sales process(1)(2)ROI(1)(2)Quality(1)(2)Delivery Lead time(1)(2)Price(1)(2) Employees(1)(2)(5marks)Present Value TablePresent value of1i.e.(1+r)–nWhere r=discount raten=number of periods until paymentAnnuity TableWhere r=discount raten=number of periods。

ACCA F2Accounting ManagementMock testJun 2010Prepared by: Ben LeeWhich of the following is NOT correct?a) Management accounting provides appropriate information for decision-making, planning,control and performance evaluationb) Financial accounting information can be used for internal reporting purposesc) Cost accounting can be used for stock valuation to meet the requirements of internal reportingonly ( )1 marks Question 2Which department would normally be responsible for completing a standard purchase requisition for goods in a service organisation?a) The buying (purchasing) departmentb) The department that requires the goodsc) The goods inwards departmentd) The accounting department staff. ( )2 marks Question 3Which of the following would normally be carried out by higher level management?1 Day to day planning and control2 Defining the objectives of the business3 Making strategic decisionsa) 2 and 3b) 1, 2 and 3c) 1 and 32 ( )d) 1and2 marksA company has recorded its total cost for different levels of activity over the last five months as follows:Total($)(units)coastMonthActivitylevel7 300 17,5008 360 19,5009 400 20,50010 320 18,50011 280 17,000The equation for total cost is being calculated using regression analysis on the above data. The equation for total cost is of the general form ‘y = a + bx’ and the value of ‘b’ has been calculated correctly as $29.53.What is the value of ‘a’ (to the nearest $) in the total cost equation?a) 7,338b) 8,796c) 10,430d) 10,995( )2 marks Question 5Which of the following correlation coefficients indicates the weakest relationship between two variables?1.0a) +0.4b) +c) - 0.6( )2 marksConnie estimates the following probabilities of returns on an investment she has made depending on the behaviour of the economy,Estimated returnProbability %0.1013Boom8Normal 0.655Recession 0.25What is the expected return on Connie’s investment?a) 9.00%b) 8.67%c) 7.75%( )d) 8.00%2 marks Question 7There are 27,500 units of part number X35 on order with the suppliers and 16,250 units outstanding on existing customers’ orders.If the free inventory is 13,000 units, what is the physical inventory?a) 29,750b) 3,250c) 24,250( )d) 1,7502 marks Question 8Data relating to a particular stores item as follows:400usageunitsdailyAverageusage 520unitsdailyMaximum180unitsusageMinimumdailyLead time for replenishment of inventory 10 to 15 daysunitsquantity 8,000ReorderWhat is the reorder level (in units) which avoids stockouts (running out of i nventory)?a) 5,000b) 6,000c) 7,800d) 8,000( )2 marksAn organization’s stock records for last month show the following transactions in respect of one item:stockreceipts issuesDate(units)(units)(units)1st 3002005th 10080013th 60050020th 30028th 200300The opening stock was valued at a total cost of $9,300 and all receipts on the 13th were purchased at a cost of $33 per unit. The organization uses the weighted average method of valuation and calculates a new weighted average after each stores receipt. What was the total value of the closing stock?a) $9,500b) $9,700c) $9,990( )d) $9,7502 marks Question 10An employee is paid on a piecework basis. The basis of the piecework scheme is as follows:1 to 100 units - $0.20 per unit101 to 200 units - $0.30 per unit201 to 299 units - $0.40 per unitWith only the additional units qualifying for the higher rates. Rejected units do not qualify for payment. During a particular day the employee produced 210 units of which 17 were rejected as faulty. What did the employee earn for their day’s work?a) $47.90b) $54.00c) $57.90( )d) $63.002 marks Question 11A company operates a job costing system. Job number 605 requires $300 of direct materials and $400 of direct labour. Direct labour is paid at the rate of $8 per hour.Production overheads are absorbed at a rate of $26 per direct labour hour and non-production overheads are absorbed at a rate of 120% of prime cost.What is the total cost of job number 605?a) $2,000b) $2,400c) $2,840d) $4,400( )2 marksWhich of the following statements is correct?a) A stores ledger account will be updated from a goods received note onlyb) The term 'lead time' is best used to describe the time between receiving an order and paying foritc) Authorisation is required to make an issue from stores( )1 marks Question 13A company determines its order quantity for a raw material by using the Economic Order Quantity (EOQ) model.What would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material?EOQ Total annual holding costa) Higher Lowerb) Higher Higherc) Lower Higher( ) d) LowerLower2 marks Question 14Which one of the following groups of workers would be classified as indirect labour?a) Machinists in an organisation manufacturing clothesb) Bricklayers in a house building companyc) Maintenance workers in a shoe factory( )1 marksBalcombe has recorded the following costs over the last six months:Month Total cost$'000Units produced'0001 7432 72.75 1.753 73.2524 75 2.55 69.5 1.56 72.752a) Total cost = 65,000 + 3 x Quantityb) Total cost = 71,000 + 1 x Quantityc) Total cost = 61,250 + 5.5 x Quantityd) Total cost = 70,250 + 1.25 x Quantity( )2 marks Question 16Hill Limited sells a single product. In the coming month, it is planned that this product will generate a total revenue of $300,000 with a total contribution of $125,000. Fixed costs are $100,000 per month. What is the margin of safety?a) 20%b) 30%c) 40% ( )1 marksWhich points are the most likely to give the optimal solution? a) A and B only b) B, D and E only c) D and E only d) A, B and C only ( ) 2 marksQuestion 18A production department absorbs overhead using a machine hour basis. Overhead allocated to thedepartment in a period are $39,630 with a further $51,570 re-apportioned from the service departments in the factory. 480,000units of product are manufactured at 60 units per machine hour.What is the overhead absorption rate in the production department?Ans :$ _ per machine hour 2 marksTaree Limited uses linear programming to establish the optimal production plan for the production of its two products, A and U, given that it has the objective of minimising costs. The following graph has been established bearing in mind the various constraints of the business. The dotted area indicates the feasible region.The budgeted production level was 30,000 units and 29,000 units were actually manufactured. between budgetedexpenditure and 29,000 units at $5 per unit2 marks Question 20What is the main purpose of an overhead absorption rate? a) To control overheads b) To charge overheads to products c) To share out common costs to cost centres that benefit from them ( ) 1 marksQuestion 21Which of the following best describes joint products? a) Two or more products output from the same process which have significant sales value butwhich are indistinguishable up to the point of separation b) Two or more products output from a process which require further processing before beingcompleted and available for salec) Two or more products output from a process recognised by a relatively low sales valuecompared to the main output produced( ) 1 marksBumblebee Limited absorbs fixed overhead costs on a unit basis. For the year just ended,Bumblebee's fixed overhead expenditure was budgeted at $150,000 but was actually $148,000. a) Fixed overheads were over-absorbed by $3,000, being partly the difference between budgetedand actual expenditure and partly the production shortfall of 1,000 units b) Fixed overheads were under-absorbed by $5,000, being the difference c) Fixed overheads were under-absorbed by $5,000, being the difference between budgeted andactual production at $5 per unit d) Fixed overheads were under-absorbed by $3,000, being partly the difference between budgetedand actual expenditure and partly the production shortfall of 1,000 units ( )Profit for a period using marginal costing is $25,100, finished goods stock are:unitsOpening 3020unitsClosing 2630What is the profit using absorption costing where the fixed production overheads are applied at $8 per unit?Ans :___$ _2 marks Question 23Which of the following is correct?a) When considering limiting factors the products should always be ranked according tocontribution per unit soldb) If there is only one scarce resource linear programming should be usedc) In linear programming the point furthest from the origin will always be the point of profitmaximizationd) The slope of the objective function depends on the contributions of the products( )2 marks Question 24Which of the following would be considered to be an investment centre?a) Management has a sales team.b) Management has a sales team and are given a credit control function.c) Managers can purchase capital assets and are given a credit control function.( )1 marks Question 25Flagston company uses a weighted-average process-costing system. Company records disclosed that the firm completed 100,000 units during the month and had 20,000 units in process at month-end, 25% complete. Conversion costs related to the beginning work-in-process inventory amounted to $105,000, and amounts incurred during the current month totaled $840,000. If conversion is incurred uniformly throughout manufacturing, Flagston’s equivalent-unit cost isa) $7.00b) $7.88c) $8.40d) $9.00( )2 marksWhich of the following is the proper sequence of events in an activity-based costing system?a) Identification of cost drivers, identification of cost pools, calculation of cost application rates,assignment of cost to products.b) Identification of cost pools, identification of cost drivers, calculation of cost application rates,assignment of cost to products.c) Assignment of cost to products, identification of cost pools, identification of cost drivers,calculation of cost application rates.( )1 marks Question 27Yang manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels foe each cost type are presented below.DC TypeTypeB TypeA Typeunits $4 $9 $4 $175,000units $4 $6 $3 $137,500Each of the cost types shown above is identified by behavior as:CB TypeTypeA TypeVariable Semi-variablea) FixedVariableSemi-variableb) FixedFixedc) Variable Semi-variabled) Variable FixedSemi-variable( )2 marksStone Limited uses an absorption costing system, and manufactures a single product, theHenge. Each unit of this product requires 12 labour hours to completeFor a particular accounting period, the normal level of activity was 30,000 units, although 34,500 units were produced. Fixed overheads are absorbed on a direct labour hour rate basis at a rate of $9 per direct labour hour.What was the under or over absorption of fixed overheads in the period?a) $40,500 under absorbedb) $40,500 over absorbedc) $486,000 over absorbedd) $54,000 over absorbed( )2 marks Question 29The following information relates to a process for last period.Materialunit $35equivalentcostperunit$22equivalentcostperConversion(Units5,000)inprogressClosingworkThere was no opening work in progress, and the closing work in progress was 50% complete. All material are introduced at the start of the process and conversion takes place evenly throughout the process. There were no losses.What was the value of the closing work in progress for last period?Ans :___$ ___2 marks Question 30The following information relates to a process for last period.Openingwork-in-progress:10,000UnitsConversion cost was 60% completedcompleted 28,000 UnitsClosing work in progress ( Units ) 8,000added $465,760costConversionThe closing work in progress was 80% complete as regards conversion costs, conversion takes place evenly throughout the process, and there were no losses.What was the conversion cost per unit for the period using FIFO method of valuation?Ans :___$ ___2 marksA factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total allocated and apportioned overhead for each is as follows:P Q X Y$95,000 $82,000 $46,000 $30,000It has been estimated that each service cost centre does work for the other cost centres in the following proportions:P Q X YPercentage of service cost centre X to 40 40 - 20Percentage of service cost centre Y to 30 60 10 -After the reapportionment of service cost centre costs has been carried out using a method that fully recognises the reciprocal service arrangments in the factory, what is the total overhead for production cost centre P?a) $122,400b) $124,716c) $126,000d) $127,000 ( )2 marks Question 32A company manufactures two products, X and Y, in a factory divided into two production cost centres, Primary and Finishing. The following budgeted data are available:CostPrimary FinishingCentreAllocated and apportioned fixedcosts $96,000 $82,500OverheadDirect labour minutes per unit:X 36 25- productY 48 35- productBudgeted production is 6,000 units of product X and 7,500 units of product Y. Fixed overhead costs are to be absorbed on a direct labour hour basis.What is the budgeted fixed overhead cost per unit for product Y?a) $11b) $12c) $14( )d) $152 marksA company produces and sells a single product whose variable cost is $6 per unit.Fixed costs have been absorbed over the normal level of activity of 200,000 units and have been calculated as $2 per unit. The current selling price is $10 per unit.How much profit is made under marginal costing if the company sells 250,000 units?a) $500,000b) $600,000c) $900,000( )d) $1,000,0002 marks Question 34Clayton Corporation, which adds materials at the beginning of production , uses a weighted-average process-costing system. Consider the data that follow.Number of Units Cost of MaterialsBeginning work in process 30,000 $22,200May 80,000 72,400inStarted85,000completedProductionEnding work in process 25,000The company’s cost per equivalent unit for materials is:a) $0.86b) $0.90c) $1.10d) $1.18( )2 marks Question 35An organisation manufactures a single product which is sold for $60 per unit. The organization’s total monthly fixed costs are $54,000 and it has a contribution to sales ratio of 40%. This month it plans to manufacture and sell 4,000 units.What is the organisation’s margin of safety this month (in units)?a) 1,500b) 1,750c) 2,250( )d) 2,5002 marksA company manufactures and sells a single product. The following data relate to a weekly output of 2,880 units:$ per unit $ per unitprice 80Sellingcosts:LessVariable production 30Other variable 10Fixed 25(65)Profit 15What is the weekly break-even point (in units)?a) 900b) 1,440c) 1,800( )d) 4,8002 marks Question 37A company is considering its option with regard to a machine which cost $60,000 f our years ago. If sold the machine would generate scrap proceeds of $75,000. If kept, this machine would generate net income of $90,000. The current replacement cost for this machine is $105,000.What is the relevant cost of the machine?a) $105,000b) $90,000c) $75,000d) $60,000 ( )2 marks Question 38A company is evaluating a project that requires 4,000 kg of a material that is used r egularly in normal production. 2,500 kg of the material, purchased last month at a total cost of $20,000, are in inventory. Since last month the price of the material has increased by 2.5 per cent.What is the total relevant cost of the material for the project?a) $12,300b) $20,500c) $32,300d) $32,800 ( )2 marksA contract is under consideration that requires 800 labour hours to complete. There are 450 hours of spare labour capacity for which the workers are still being paid the normal rate of pay. The remaining hours required for the contract can be found either by overtime working paid at 50% above the normal rate of pay or by diverting labour from the manufacture of product OT. If the contract is undertaken and labour is diverted, then sales of product OT will be lost. Product OT takes seven labour hours per unit to manufacture and makes a contribution of $14 per unit. The normal rate of pay for labour is $8 per hour.What is the total relevant labour cost to the contract?a) $3,500b) $4,200c) $4,500( )d) $4,9002 marks Use the following information to solve questions 40 - 41Nelson has a standard variable overhead rate of $4 per machine hour, and each unit produced has a standard time allowed of three hours. The company’s static budget was based on 50,000 units. Actual results for the year follow.: 45,000ActualproducedunitsActual machine hours worked : 120,000Actual variable overhead incurred : $500,000Question 40Nelson’s variable-overhead spending variance:favorablea) $40,000favorableb) $60,000favorablec) $20,000( )d) $50,000favorable2 marks Question 41Nelson’s variable-overhead efficiency variance is:favorablea) $40,000favorableb) $60,000favorablec) $20,000favorabled) $50,000( )2 marksAdverse material price variance cannot be caused by:a) market changes in demand and supply of materialb) poor quality raw materialsworkers.c) Unskilled( )1 marks Question 43Thomas recently completed 24,000 units of a product that was expected to consume five pounds of direct material per finished unit. The standard price of the direct material was $6 per pound. If the firm purchased and consumed 110,000 pounds in manufacturing (cost=$605,000), the direct-materials quantity variance would be figured as:Favourablea) $55,000Favourableb) $60,000Favourablec) $115,000Unfayourabled) $60,000( )2 marks Question 44Consider the following informationActual direct labor hours 34,500Standard direct labor hours 35,500cost$241,500labordirectTotal-actualDirect-labor efficiency variance, favorable $3,200The direct labor rate variance is:a) $17,250Ub) $20,700Uc) $20,700Fd) $21,000F( )2 marksA company requires 600 kg of raw material Z for a contract it is evaluating. It has 400 kg of material Z in inventory that was purchased last month. Since then the purchase price of material Z has risen by 8% to $27 per kg. Raw material Z is used regularly by the company in normal production.What is the total relevant cost of raw material Z to the contract?a) $15,336b) $15,400c) $16,200d) $17,496 ( )2 marks Question 46In a short-term decision-making context, which ONE of the following would be a relevant cost?a) Specific development costs already incurred.b) The cost of special material which will be purchased.c) Depreciation on existing foxed assets.( )1 marks Question 47Which of the following would depict the logical order for preparing (1)a production budget, (2)a cash budget, (3)a sales budget, and (4)a direct-labor budget?a) 1-3-4-2b) 2-3-1-4c) 3-1-4-2d) 3-1-2-4 ( )2 marksAdams Sporting Goods sells bicycles throughout the southeastern United States. The following datawere taken from the most recent quarterly sales forecast:Expected End-of-month Sales Target inventoryApril 1,400 units 315 unitsMay 1,575 units 412 unitsJune 1,650 units 425 unitsOn the basis of the information presented, how many bicycles should the company purchase in May?a) 1,478b) 1,562c) 1,575d) 1,672( )2 marksQuestion 49The following process account has been drawn up for the last month:Process accountUnits $ Units $Opening WIP 250 3,000 Normal loss 225 450Input: Output 4,100Materials 4,500 22,500 Abnormal Loss 275Labour 37,500 Closing WIP 150______ _______4,750 4,750====== =======Work in progress has the following level of completion:Material LabourOpening WIP 100% 40%Closing WIP 100% 30%The company uses the FIFO method for valuing the output from the process and all losses occurred at the end of the process. What were the equivalent units for labour?a) 4,380 unitsb) 4,270 unitsc) 4,320 unitsd) 4,420 units ( ) 2 marksPerth operates a process costing system. The process is expected to lose 25% of input and this can be sold for $8 per kg.Inputs for the month were:at a total cost of $52,500kgmaterials 3,500Directtheperiodfor$9,625labourDirectThere is no opening or closing work in progress in the period. Actual output was 2,800 kg.What is the valuation of the output?a) $44,100b) $49,700c) $58,800d) $56,525 ( )2 marks。