f2_d11_ppqa

Fundamentals Pilot Paper – Knowledge ModuleTime allowed: 2 hoursALL 50 questions are compulsory and MUST be attempted.Formulae Sheet, Present Value and Annuity Tables are on pages 16, 17 and 18

Do NOT open this paper until instructed by the supervisor.This question paper must not be removed from the examination hall.

Paper F2Management Accounting

Pilot Paper from December 2011 onwards

The Association of Chartered Certified AccountantsALL 50 questions are compulsory and MUST be attemptedPlease use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer toeach multiple choice question.Each question is worth 2 marks.

1A manufacturing company benchmarks the performance of its accounts receivable department with that of a leadingcredit card company.

What type of benchmarking is the company using?AInternal benchmarkingBCompetitive benchmarkingCFunctional benchmarkingDStrategic benchmarking

2Which of the following BEST describes target costing?ASetting a cost by subtracting a desired profit margin from a competitive market priceBSetting a price by adding a desired profit margin to a production costCSetting a cost for the use in the calculation of variancesDSetting a selling price for the company to aim for in the long run

3Information relating to two processes (F and G) was as follows:ProcessNormal loss asInputOutput% of input(litres)(litres)F865,00058,900G537,50035,700

For each process, was there an abnormal loss or an abnormal gain?Process FProcess GAAbnormal gainAbnormal gainBAbnormal gainAbnormal lossCAbnormal lossAbnormal gainDAbnormal lossAbnormal loss

4The following budgeted information relates to a manufacturing company for next period:Units$Production14,000Fixed production costs63,000Sales12,000Fixed selling costs12,000

The normal level of activity is 14,000 units per period.Using absorption costing the profit for next period has been calculated as $36,000.

What would be the profit for next period using marginal costing?A$25,000B$27,000C$45,000D$47,000

25A company has a budgeted material cost of $125,000 for the production of 25,000 units per month. Each unit isbudgeted to use 2 kg of material. The standard cost of material is $2·50 per kg. Actual materials in the month cost$136,000 for 27,000 units and 53,000 kg were purchased and used.

What was the adverse material price variance?A$1,000B$3,500C$7,500D$11,000

6Under which sampling method does every member of the target population have an equal chance of being in thesample?

AStratified samplingBRandom samplingCSystematic samplingDCluster sampling

7The following statements refer to spreadsheets:(1)A spreadsheet is the most suitable software for the storage of large volume of data(2)A spreadsheet could be used to produce a flexible budget(3)Most spreadsheets contain a facility to display the data within them in a graphical form

Which of these statements are correct?A1 and 2 onlyB1 and 3 onlyC2 and 3 onlyD1, 2 and 3

3[P.T.O.8Up to a given level of activity in each period the purchase price per unit of a raw material is constant. After that pointa lower price per unit applies both to further units purchased and also retrospectively to all units already purchased.

Which of the following graphs depicts the total cost of the raw materials for a period?

AGraph ABGraph BCGraph CDGraph D

9Which of the following are benefits of budgeting?1It helps coordinate the activities of different departments2It fulfils legal reporting obligations3It establishes a system of control4It is a starting point for strategic planning

A1 and 4 onlyB1 and 3 onlyC2 and 3 onlyD2 and 4 only

10The following statements relate to the participation of junior management in setting budgets:1.It speeds up the setting of budgets2.It increases the motivation of junior managers3.It reduces the level of budget padding

Which statements are true?A1 onlyB2 onlyC2 and 3 onlyD1, 2 and 3

$0A$

0B

$0C$0D

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