ACC313 TMA

A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead…

 

One of these is the foundation on which other budgets are built…

 

A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead…

 

The primary purpose of a cash budget is to:…

 

A company makes a single product with a sales price of N10 and a marginal cost of N6. Fixed costs are N60,000 per annum. The Units for a target Profit of N20,000 is:….

 

A company makes a single product with a sales price of N10 and a marginal cost of N6. Fixed costs are N60,000 per annum. If the taxation rate is 40%, how many units will be needed to be sold to make an after tax profit of N20,000..

 

The budget committee comprises of the following except:…

 

Under which sampling method does every member of the target population has an equal chance of being in the sample?…

 

A company makes a single product with a sales price of N10 and a marginal cost of N6. Fixed costs are N60,000 per annum. The Units for a target Profit of N20,000 is:…

 

Under which sampling method does every member of the target population has an equal chance of being in the sample?…

 

In management accounting, some of the nonroutine decisions an accountant must make include all of the following except:….

 

Which of these is a relevant cost, a manager would consider when making a decision:….

 

A company makes a single product with a sales price of N10 and a marginal cost of N6. Fixed costs are N60,000 per annum. If the taxation rate is 40%, how many units will be needed to be sold to make an after tax profit of N20,000

 

A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead….

 

A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead…

 

A project requires an initial outlay of N2.8m. with a life span of 5 years. Depreciation is at the rate of 20%. The cash profit from the project is expected to be N900,000, N970,000, N950,000, N830,000 and N790,000 for years 1 to 5 respectively. Thec………….

 

One of these statements is not true. Budget participation:….

 

 

The importance of budgetary control includes all of the following except……

 

A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labou 1 Manufacturing Overhead…

 

One of these is the foundation on which other budgets are built….

 

One of these statements is true…

 

 

The principal budget factor is also known as:

 

The budget committee comprises of the following except:

 

Which of these is a relevant cost, a manager would consider when making a decision:

 

Under which sampling method does every member of the target population has an equal chance of being in the sample?

 

For a cost to be relevant to a decision, one of these conditions must be met….

 

A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead…

 

The following budgeted information relates to a manufacturing company for next period: Production (Units)14,000 Fixed production costs N63,000 Sales (Units)12,000 Fixe selling costs N12,000 The normal level of activity is 14,000 units per period….

 

A company makes a single product with a sales price of N10 and a marginal cost of N6. Fixed costs are N60,000 per annum. The Units for a target Profit of N20,000 is:

 

Under which sampling method does every member of the target population has an equal chance of being in the sample?

 

A project requires an initial outlay of N2.8m. with a life span of 5 years. Depreciation is at the rate of 20%. The cash profit from the project is expected to be N900,000, N970,000, N950,000, N830,000 and N790,000 for years 1 to 5 respectively. The

 

A master budget is:

 

A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead…

 

One of these statements is not true. Budget participation:…

 

Which of these is a relevant cost, a manager would consider when making a decision:…

 

 

One of these is the foundation on which other budgets are built…

 

A company makes a single product with a sales price of N10 and a marginal cost of N6. Fixed costs are N60,000 per annum. If the taxation rate is 40%, how many units will be needed to be sold to make an after tax profit of N20,000

 

The primary purpose of a cash budget is to:

 

A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labou 1 Manufacturing Overhead…

 

A company makes a single product with a sales price of N10 and a marginal cost of N6. Fixed costs are N60,000 per annum. The Units for a target Profit of N20,000 is:

 

Under which sampling method does every member of the target population has an equal chance of being in the sample?…

 

The budget committee comprises of the following except:

 

A company makes a single product with a sales price of N10 and a marginal cost of N6. Fixed costs are N60,000 per annum. If the taxation rate is 40%, how many units will be needed to be sold to make an after tax profit of N20,000

..

 

One of these is the foundation on which other budgets are built…

 

A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead…

 

One of these statements is not true. Budget participation:

 

The following budgeted information relate to a manufacturing company for next period: Production (Units)14,000 Fixed production costs N63,000 Sales (Units)12,000 Fixed selling costs N12,000 The normal level of activity is 14,000 units per period…

 

In management accounting, some of the nonroutine decisions an accountant must make include all of the following except:…

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Q1 Under which sampling method does every member of the target population has an equal chance of being in the sample?
Stratified sampling
Random sampling
Systematic sampling
Cluster sampling

Q2 The following budgeted information relates to a manufacturing company for next period: Production (Units)14,000 Fixed production costs N63,000 Sales (Units)12,000 Fixed selling costs N12,000 The normal level of activity is 14,000 units per period. Using absorption costing the profit for next period has been calculated as N36,000 What would be the profit for next period using marginal costing?
N25,000
N27,000
N45,000
N47,000

Q3 A project requires an initial outlay of N2.8m. with a life span of 5 years. Depreciation is at the rate of 20%. The cash profit from the project is expected to be N900,000, N970,000, N950,000, N830,000 and N790,000 for years 1 to 5 respectively. The company??s cost of capital is 18%. What is the payback period of the project?
2 years 10 months
2 years 8 months
3 years
4 years

Q4 A company makes a single product with a sales price of N10 and a marginal cost of N6. Fixed costs are N60,000 per annum. If the taxation rate is 40%, how many units will be needed to be sold to make an after tax profit of N20,000
20000
30000
23333
33333

Q5 A company makes a single product with a sales price of N10 and a marginal cost of N6. Fixed costs are N60,000 per annum. The Units for a target Profit of N20,000 is:
10,000 units
15,000 units
20,000 units
25,000 units

Q6 The budget committee comprises of the following except:
Chief Executive Officer
Departmental heads
Board of Directors
Functional heads

Q7 The primary purpose of a cash budget is to:
Ensure that the organization has enough case during the budget period
Enable management to know the cash implications of policy decisions and the budgeted trading activities
Ensure that excess cash is invested
All of the above

Q8 In management accounting, some of the non-routine decisions an accountant must make include all of the following except:
To make or buy a component
To accept or reject an order
To shut down a product line or continue
To select absorption costing or marginal costing approach

Q9 A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead 3 Selling price per unit is N10. Other fixed overheads is N20,000If half of the manufacturing overhead is fixed, what would be the profit from 15,000 activity level?
N117,500
N60,000
N112,500
N40,000

Q10 A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead 3 Selling price per unit is N10. Other fixed overheads is N20,000If half of the manufacturing overhead is fixed, what would be the total variable cost?
N60,000
N120,000
N100,000
N90,000

Q11 A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead 3 Selling price per unit is N10. Other fixed overheads is N20,000What is the profit from this activity?
N30,000
N120,000
N60,000
N80,000

Q12 A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead 3 Selling price per unit is N10. Other fixed overheads is N20,000How much is the total marginal cost?
N60,000
N120,000
N140,000
N200,000

Q13 One of these statements is true
The opportunity cost is the benefit chosen among several alternatives
A sunk cost is also known as a future cost
A limiting factor is a scarce resource that limits the activity of an organization
Relevant costs is a cash flow that can be ignored

Q14 The principal budget factor is also known as:
Relevant cost
Opportunity cost
Limiting factor
Irrelevant cost

Q15 One of these is the foundation on which other budgets are built
Cash budget
Production budget
Sales budget
Manufacturing overhead budget

Q16 The importance of budgetary control includes all of the following except
It establishes responsibilities of line managers and units
Compares actual with budgeted performance
It results in rigid adoption of budget figures or targets
It ensures the achievement maximum profitability

Q17 A master budget is:
The budget prepared by top management
A summary of quantitative expectations regarding future cash flows, net profit and financial status of the organisation
Sub set of sales budget
Total overhead budget

Q18 One of these statements is not true. Budget participation:
Promotes commitment
Reduces information asymmetry
Motivates subordinates
Saves time during preparation

Q19 For a cost to be relevant to a decision, one of these conditions must be met
It must make a difference between two alternative decisions
The cost has already been incurred
The cost is inevitable
It must be historical cost

Q20 Which of these is a relevant cost, a manager would consider when making a decision:
Sunk Cost
Depreciation
Futuristic
Common Cost

Q21 Temiyemi is currently considering an investment that gives a positive net present value of N3664 at 15%. At a discount rate of 20%, it has a negative NPV of N21,451. What is the IRR of this investment?
0.1575
0.16
0.193
0.199

Q22 Kokoro Enterprises wish to buy a new sewing machine which is expected to increase productivity. The initial net cash outlay is N15,600. The cash flows associated with the acquisition of the new sewing machine are as follows: Year: (1) Cashflow 6,610 Year: (2) Cashflow 5,650 Year: (3) Cashflow 4,690 Year: (4) Cashflow 4,630 Year: (5) Cashflow 3.670 Assuming the required rate of return is 10%. What is the profitability index?
0.26
0.2
0.37
0.41

Q23 Kokoro Enterprises wish to buy a new sewing machine which is expected to increase productivity. The initial net cash outlay is N15,600. The cash flows associated with the acquisition of the new sewing machine are as follows: Year: (1) Cashflow 6,610 Year: (2) Cashflow 5,650 Year: (3) Cashflow 4,690 Year: (4) Cashflow 4,630 Year: (5) Cashflow 3.670 Assuming the required rate of return is 10%. What is the Net Present Value for this project?
N6,042
N3,670
N4,042
N6,142

Q24 Which of following methods uses income instead of cash flow in investment appraisal?
Payback Period
Accounting rate of Return
Internal Rate of Return
Net Present Value

Q25 A Local Authority is preparing a cash budget for its refuse disposal department. Which of the following items would NOT be included in the cash budget?
Capital cost of new collection vehicle
Depreciation of the refuse incinerator
Operatives�?? wages
Cost of Izal products

Q26 In ??make or buy?? decision, it is profitable to buy from outside only when the supplier??s price is below the firm??s own
Fixed Cost
Variable Cost
Total Cost
Prime Cost

Q27 Lagos State Waste Management Authority (LAWMA) is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget?
Capital cost of a new collection vehicle
Depreciation of the machinery
Operatives wages
Fuel for the collection Vehicles

Q28 The following statements relate to the participation of junior management in setting budgets: 1. It speeds up the setting of budgets 2. It increases the motivation of junior managers 3. It reduces the level of budget padding Which statements are true?
1 only
2 only
2 and 3 only
1, 2 and 3

Q29 Which TWO of the following are MOST likely to influence the motivation of budget holders?. (1) The contents of the budget manual (2) The extent of participation in budget setting (3) The level of difficulty at which budgets are set (4) the structure of the budget committee
1 and 2
2 and 3
3 and 4
1 and 4

Q30 Following information is available of XYZ Limited for quarter ended June, 2013. Fixed cost N5,00,000 Variable cost N10 per unit Selling price N15 per unit Output level 1,50,000 units What will be amount of profit earned during the quarter using the marginal costing technique?
N2,50,000
N10,00,000
N5,00,000
N17,50,000

Q31 The use of the balanced scorecard rather than a profit-based measure is likely to help solve the following problems: (1) Subjectivity (2) Short-termism Which is/are true?
1 only
2 only
Both 1 and 2
Neither 1 nor 2

Q32 A company manufactures high-quality china plates, which are hand-painted. It has a budgeted overhead of N20,000, taking 150 machine hours and 800 direct labour hours each plate uses N3 of direct materials, 0.25 labour hours at N10 per hour and 0.2 machine hours. What is the cost of a plate?
N32.17
N30.50
N10.50
N11.75

Q33 A company had an under recovery of overheads of N200,000 with a budgeted overhead of N1,000,000. If its estimated overhead hours were 20,000 and its actual overhead hours were 22,000, calculate the actual overhead cost
220000
N1,000,000
N940,000
N1,300,000

Q34 A business absorbs overheads on a direct labour hourly basis, which were budgeted at 2,500 labour hours with overheads of N56,500. Actual results were 2,350 hours with actual overheads of N54,050. Calculate the over or under recovery.
N940 under recovery
N1,000 over recovery
N940 over recovery
N1,000 under recovery

Q35 The following statements have been made about value analysis. (1) It seeks the lowest cost method of achieving a desired function (2) It always results in inferior products (3) It ignores esteem value Which is/are true ?
1 only
2 only
3 only
1 and 3 only

Q36 Which of the following budgets will typically be prepared first:
Sales budget
cash budget
manufacturing overhead budget
master budget

Q37 Which of the following methods is a measure of liquidity and not a measure of profitability?
NPV
ARR
IRR
PBP

Q38 The Max Company has developed the following standards for one product:. Direct Materials:   15kgs x N8 per kg Direct Labour         4 hours x 12 per hour Variable manufacturing overhead:   4 hours x N7 per hour The results for the period were: 500units produced using 7800kg. Materials purchased; N74,568 : Direct Labour used was 2200 hours. Direct labour cost N27,940 The direct labour efficiency variance would be:
N3,140 favourable
N3,140 unfavourable
N2,400 unfavourable
N3,600 unfavourable

Q39 The Max Company has developed the following standards for one product:. Direct Materials:    15kgs x N8 per kg Direct Labour 4 hours x 12 per hour Variable manufacturing overhead:   4 hours x N7 per hour The results for the period were: 500units produced using 7800kg. Materials purchased; N74,568 : Direct LabourN used was 2200 hours. Direct labour cost N27,940 The direct labour rate variance would be;
N400 favourable
N1540 unfavourable
N460 favourable
N400 unfavourable

Q40 The Max Company has developed the following standards for one product:. Direct Materials:   15kgs x N8 per kg Direct Labour  4 hours x 12 per hour Variable manufacturing overhead:   4 hours x N7 per hour The results for the period were: 500units produced using 7800kg. Materials purchased; N74,568 : Direct Labour used was 2200 hours. Direct labour cost N27,940 The direct materials usage variance would be:
N2,400 favourable
N2,400 unfavourable
N20,000 favourable
N20,000 unfavourable

Q41 The Max Company has developed the following standards for one product:. Direct Materials:   15kgs x N8 per kg Direct Labour  4 hours x 12 per hour Variable manufacturing overhead:   4 hours x N7 per hour The results for the period were: 500units produced using 7800kg. Materials purchased; N74,568 : Direct Labour used was 2200 hours. Direct labour cost N27,940 The direct materials price variance would be:
N 5,000 favourable
N12,168 unfavourable
N 25,000 unfavourable
N 25,000 favourable

Q42 The Max Company has developed the following standards for one product:. Direct Materials:      15kgs x N8 per kg Direct Labour          4 hours x 12 per hour Variable manufacturing overhead:   4 hours x N7 per hour The results for the period were: 500units produced using 7800kg. Materials purchased; N74,568 : Direct Labour used was 2200 hours. Direct labour cost N27,940 The variable standard cost per unit would be:
N76
N148
N168
N196

Q43 During October, 20,000 direct labour hours were worked a cost of N10 per hour. If the direct materials rate variance for October is N8,000 unfavourable, the actual cost per direct labour hour must be:
N10.00
N10.40
N9.60
None of the above

Q44 During April, 10,000 units were produced. The standard material allowed per unit was 4 kgs at a standard cost of N6.00 there was an unfavourable usage variance of N15,000 for April quantity of material used must be
9,375 pounds
10,625 pounds
37,500 pounds
42,500 pounds

Q45 One of the major characteristics of a good information is that the information must be:
Prepared daily
Prepared monthly
Prepared quarterly
Timeliness

Q46 Management accounting is mainly concerned with providing information to:
Government agencies such as the Inland Revenue
Shareholders
Managers within the firm
Trade Unions on behalf of the workers

Q47 An income statement prepared using the contribution margin format classifies costs by:
Function
Behaviour
Amount
Relevance

Q48 In ??make or buy?? decision, it is profitable to buy from outside only when the supplier??s price is below the firm??s own ________
Fixed Cost
Variable Cost
Total Cost
Prime Cost

Q49 Lagos State Waste Management Authority (LAWMA) is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget?
Capital cost of a new collection vehicle
Depreciation of the machinery
Operatives wages
Fuel for the collection Vehicles

Q50 The following statements relate to the participation of junior management in setting budgets:1. It speeds up the setting of budgets. 2. It increases the motivation of junior managers. 3. It reduces the level of budget padding. Which statements are true?
1 only
2 only
2 and 3 only
1, 2 and 3

Q51 The philosophy in which the management works to improve value chain of the products to exceed customer expectations is classified as
quality
management chain
customer chain
cost chain

Q52 All of the following are characteristics of managerial accounting, except:
Reports are used primarily by insiders rather than by persons outside of the business entity
Its purpose is to assist managers in planning and controlling business operations
Information must be developed in conformity with generally accepted accounting principles
Information may be tailored to assist in specific managerial decisions

Q53 In comparatively big organizations, the primary responsibility for approval of budgets and administration of budgeting process is normally entrusted to:
Board of directors
Top management
Budget committee
Budgeting process manager

Q54 The discounting rate at which present value of inflows equate that of outflow is known as:
NPV
DPBP
IRR
PBP

Q55 Relevant information for decision making________
Can include sunk cost
Usually includes historical cost
Is incremental to the decision in hand
Includes all of the above

Q56 A project has a net cash flow of N10,000,000 per annum for the next four years. If the applicable cost of capital for the project is 15%, then the NPV of the project is:
22830
25000
30000
28550

Q57 Which of the following statements is true about capital investment appraisal?
Payback period does not take account of time value of money
Net present value method uses profits as base for discounting to obtain the NPV values of the projects
Internal rate of return is the cost of capital charged by the banks
The discount factor used for project evaluation is the rediscount bank rate

Q58 Assumptions in basic Discounted Cash Flow appraisal include the following EXCEPT:
uncertainty does not exist
inflation does not exist
the appropriate discount rate to use is not known
a perfect capital market exists

Q59 Which of the following is usually prepared before the direct materials purchases budgets?
Production budget
Cash budget
Pro forma income statement
Pro forma balance sheet

Q60 The volume variance provides information to management:
Utilization of Plant Facilities
Cost Control
Performance for Evaluation Purpose
All of the above

Q61 Yield variance can only be obtained by decomposing —————-
Direct Labour Variance
Direct Material Variance
Variable Overhead Variance
Fixed Overhead Variance

Q62 Percentage of employees leaving in one year is part of evaluation in ?��?��?��?��?��?��?��?��?��?. Perspective of Balanced Score Card
Financial
Customer
Internal process
Learning and growth

Q63 Financial Perspective of Balanced Score Card include all the following except
Share price
Return on Assets
Credit rating
Brand Recognition

Q64 Which of this is not true of Just-in-time philosophy
It seeks to reduce holding costs
Seeks to eliminate of chances of products becoming obsolete
Provides healthy feedback information on quality of service
It is a management approach that increase efficiency in business processes

Q65 An integrated information system that supports all functional areas of a business is
Integrated Business Information Systems
Enterprise Resource Planning System
Business to Business (B2B) System
Integrated Personnel and Payroll Information System

Q66 The most useful standard for control purpose is ?��?��?��?��?��?��?��?.. Standard
Current
practical
ideal
basic

Q67 Decomposition of total deference between pre-determined estimates and actual result is called ?��?��?��?��?
Standard
variance analysis
standard costing
management by exception

Q68 ABC Co has a manufacturing capacity of 10,000 units. The flexed production cost budget of the company is as follows: Capacity 60% 100% Total production costs N11,280 N15,120 What is the budgeted total production cost if it operates at 85% capacity?
N13,680
N12,852
N14,025
N12,340

Q69 A company uses an overhead absorption rate of N3·50 per machine hour, based on 32,000 budgeted machine hours for the period. During the same period the actual total overhead expenditure amounted to N108,875 and 30,000 machine hours were recorded on actual production. By how much was the total overhead under or over absorbed for the period?
Under absorbed by N3,875
Under absorbed by N7,000
Over absorbed by N3,875
Over absorbed by N7,000

Q70 Information relating to two processes (F and G) was as follows: Process Normal loss as Input Output . % of input (litres) (litres) F 8 65,000 58,900 G 5 37,500 35,700 For each process, was there an abnormal loss or an abnormal gain? Process F Process G
Abnormal gain Abnormal gain
Abnormal gain Abnormal loss
Abnormal loss Abnormal gain
Abnormal loss Abnormal loss

Q71 Which of the following statements relating to management information are true? 1.It is produced for parties external to the organization. 2.There is usually a legal requirement for the information to be produced. 3. No strict rules govern the way in which the information is presented. 4.It may be presented in monetary or non-monetary terms
1 and 2
3 and 4
1 and 3
2 and 4

Q72 Which of the following BEST describes target costing?
Setting a cost by subtracting a desired profit margin from a competitive market price
Setting a price by adding a desired profit margin to a production cost
Setting a cost for the use in the calculation of variances
Setting a selling price for the company to aim for in the long run

Q73 The purchase price of an item of inventory is N25 per unit. In each three month period the usage of the item is 20,000 units. The annual holding costs associated with one unit equate to 6% of its purchase price. The cost of placing an order for the item is N20. What is the Economic Order Quantity (EOQ) for the inventory item to the nearest whole unit?
730
894
1461
1633

Q74 Which of the following BEST describes a flexible budget?
A budget which shows variable production costs only
A monthly budget which is changed to reflect the number of days in the month
A budget which shows sales revenue and costs at different levels of activity
A budget that is updated halfway through the year to incorporate the actual results for the first half of the year

Q75 The following statements relate to the advantages that linear regression analysis has over the high low method in the analysis of cost behavior: 1. the reliability of the analysis can be statistically tested 2. it takes into account all of the data 3. it assumes linear cost behavior Which statements are true?
1 only
1 and 2 only
2 and 3 only
1, 2 and 3

Q76 A company always 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 Annual holding cost
Higher Lower
Higher Higher
Lower Higher
Lower Lower

Q77 Using an interest rate of 10% per year the net present value (NPV) of a project has been correctly calculated as N50. If the interest rate is increased by 1% the NPV of the project falls by N20. What is the internal rate of return (IRR) of the project?
7·5%
11·7%
12·5%
20·0%

Q78 The following statements relate to the participation of junior management in setting budgets: 1. It speeds up the setting of budgets 2. It increases the motivation of junior managers 3. It reduces the level of budget padding. Which statements are true?
1 only
2 only
2 and 3 only
1, 2 and 3

Q79 Which of the following are benefits of budgeting? 1. It helps coordinate the activities of different departments 2. It fulfills legal reporting obligations 3. It establishes a system of control 4. It is a starting point for strategic planning
1 and 4 only
1 and 3 only
2 and 3 only
2 and 4 only

Q80 A Company manufactures and sells one product which requires 8 kg of raw material in its manufacture. The budgeted data relating to the next period are as follows: Sales (UNITS)19,000 Opening inventory of finished goods (UNITS)4,000 Closing inventory of finished goods (UNITS)3,000 Opening inventory of raw materials KG50,000 Closing inventory of raw materials KG53,000 What is the budgeted raw material purchases for next period (in kg)?
141000
147000
157000
163000

Q1 Material usauge variance can be sub-divided into _______ variances.
price and quantity
fixed and variable
investment and mix
mix and yield

Q2 Tayo purchased 19000kgs raw materials at N11 per unit.The standard price is N10 per unit. What is the material price variance ?
N21000
N10800
N18000
N19000

Q3 _______ reveals the extent to which the original standard would be at fault.
planning variances
operational variances
functional variances
strategic variances

Q4 Planning variances can be caused by which of the following?
customer
inflation
production
sales

Q5 Variances that are controllable by management can be described as
planning variances
operational variances
functional variances
strategic variances

Q6 What is Ex- Post as planning variance concept?
not foreseen during budget
avoided during budget
expected during budget
seen during budget

Q7 Variances that are not within the control of management can best be described as
planning variances
operational variances
functional variances
strategic variances

Q8 Which of the following is based on perfect operating conditions whereby there are no wastages, inefficiencies, idle-time, and breakdown of machines?
ideal standards
Basic standards
current standards
attainable standards

Q9 Actual hours worked divided by budgeted hours multiplied by 1000 is equal to
capacity ratio
efficiency ratio
activity ratio
investment ratio

Q10 Standard hours equivilent of actual production/actual hours workedx 100 is equal to
efficiency ratio
capacity ratio
activity ratio
investment ratio

Q11 Capacity ratio multiplied by efficiency ratio is equal to
investment ratio
liquidity ratio
activity ratio
sales ratio

Q12 Which of the following is based on current conditions of service or production?
ideal standards
Basic standards
current standards
attainable standards

Q13 The function of normal operating circumstances that ensures some allowances are available for losses, wastages, and inadequacies can best be described as
ideal standards
Basic standards
current standards
attainable standards

Q14 What is the difference between standard fixed overhead elements of actual output and the standard fixed overhead in the budget?
Variable overhead
Fixed overhead volume variance
Marginal overhead
material cost variance

Q15 Predetermined variable overhead divided by predetermined standard hours is equal to _________
overhead absorption rate
post determined variable
average variable
material cost variance

Q16 Standard cost less actual cost will result in _________
material usage variance
material price lag
material yield cost
material cost variance

Q17 _________ remain unaltered over a long span of time and they may become outdated as a result of changes in technology, laws, and norms.
ideal standards
Basic standards
current standards
attainable standards

Q18 Performance standards setting are a function of _________ basic standard
four
eight
six
two

Q19 Zero-based budget can be described also as ________ based budgeting.
activity
result
decision
priority

Q20 ________ budget consolidates the position of all the functional budgets in the form of a budgeted trading & profit & loss account & a budgeted balance sheet.
Master
Operational
Strategic
Departmental

Q21 _______ budget is a summary of the expected cash inflows/ outflows over a given period of time.
Cash
Master
Flexible
Fixed

Q22 Activity based budgeting is also known as
Accounting for activities
Activity set budgeting
Activity based management
Activity cost management

Q23 Zero Based Budget is applied in ____ stages.
four
five
three
six

Q24 Zero Based Budget has the following advantages except
focus on value of money
time consuming
questioning attitude
lead to cost reduction

Q25 ________ budget is designed to change in accordance with the level of activity attained
Fixed
Cash
Flexible
overhead

Q26 A curve is referred to as a _________ in a situation whereby changes in the level of output brings about a uniform change in the gradient of the cost function.
parabola
curvitude
linear
non-linear

Q27 The _______ cost curve establishes the relationship between output and variable cost as that of a curved line on a graph.
concave
convex
linear
non-linear

Q28 Contribution Margin =
Average fixed cost/ contribution margin ratio
marginal fixed cost /contribution marginal
Total fixed cost/contribution margin ratio
Targeted fixede cost/ contribution margin ratio

Q29 In situation where each extra unit of output causes a more than proportionate increase in cost can be referred to as
concave
convex
linear
non-linear

Q30 Any cost that is useful for decision making is referred to as — cost product
overhead
product
absorption
relevant

Q31 _______ costing is a useful technique for studying the effects of changes in volume and types of output in a multi-products.
Absorption
Differential
Marginal
Historical

Q32 In situation where each extra unit of output causes a less than proportionate increase in cost can be referred to as
concave
convex
linear
non-linear

Q33 A break down of maintenance packaging unit of Uzuh Ltd cost shows there is a fixed element of N5000 per month and variable element related to hours amounting to N6.00 per machine hour.What is expected cost for a month when planned activity level is 3000machine/hrs
N23,000
20000
25000
15000

Q34 A break down of maintenance packaging unit of Uzuh Ltd cost shows there is a fixed element of N5000 per month and variable element related to hours amounting to N6.00 per machine hour.What is the expected cost for a month when planned activity level is 2500machine/hrs
N23,000
N20,000
N21,000
N15,000

Q35 A cost incurred for an accounting period and which within certain output limits tend to be unaffected by fluctuations in the level of activity is
stepped fixed
semiveriable
fixed cost
variable cost

Q36 Planning covering periods longer than one year but within 10years is —
business
functional
operational
strategic

Q37 SWOT is performed at — stage
current
continuous
appraisal
objective

Q38 Developing a strategy can also be known as
appraisal stage
cooperate stage
continuous stage
fastrack stage

Q39 The first stage of corporate planning is to
determine programmes
create units
distribute responsibilities
determine objective

Q40 Corporate planning involves — stages
two
four
six
eight

Q41 There are … broad categories of product costing methods
two
three
four
five

Q42 In order to save time, a company may decide to value any by- product output at —- price
comparative
function
service
standard

Q43 Cost per service unit is —–
Total cost per period/no. of service units supplied in the period.
average costper period/average service
total cost per period/average service
marginal cost per period/average standard

Q44 Discarded substances having no value is known as
waste
scrap
miscellaneous
split-off

Q45 A chemical process has a normal wastage of 10% of input. In a period, 2500 kgs of materials were input and there was an abnormal loss of 75 kgs.What quantity of good production was achieved.
2250kg
2325kg
2175kg
2474kg

Q46 ______ method refers to manufacturing activities that are continous and the units of output are substantially uniform.
process costing
batch costing
Contract costing
project costing

Q47 Cost associated with stock can be classified into _______ groups.
one
two
three
four

Q48 _______ shows the breakdown of\r\neach finished product into sub-assemblies components and raw materials.
bill of material file
production list
material production list
project evaluation file

Q49 Cost accounting focuses on the analysis of — cost.
current
past
future
local

Q50 _________ is designed to enhance smooth production flow.
cost evaluation planning
investment evaluation planning
production evaluation planning
material requirement planning

Q51 The point of focus for cost relating to a particular activity in an activity-based costing system is
cost pools
cost driver
straight line
blank absorption

Q52 Predetermined overhead absorption rates are calculated as
Budgeted overhead for future period /budgeted units of base for future period
Budgeted future period/unit base
overhead/future period
Budget period/unit base

Q53 All are bases for absorption except
machine hours
units of output
% of prime cost
plant hire

Q54 Materials requirement planning entails all of the following except
material acquisition
material information
material production
material disposition

Q55 Labour turnover is
No. of employees that left & replaced/averageno.of employeesx100
average no. of employee/no. of employee left
replaced workers/average employees
replaced employees/total employees

Q56 _______ activity refers to activity which customers\r\nperceive as adding usefulness to the product or service they purchase.
value added
non-value added
opportunist
perceivable

Q57 Specific price can also be referred to as ______ price.
average
standard
unit
replacement

Q58 (Reorderlevel+ EOQ)- (minimum anticipated usage in minimum lead time)=
maximum level
minimum level
reorder level
forecast demand

Q59 Inventory control includes all except
recording of stock level
forecast future demands
deciding how many to order
apportionment

Q60 One of the attributes of JIT is
on time delivery
accurate estimation
quality components
materials requirement

Q61 Specific order costing includes the following except
jobcosting
contract costing
batch costing
work load costing

Q62 _______ activity relates to an activity where there is an opportunity to reduce cost without necessarily reducing the product’s service need to the customer.
value added
non-value added
investment sidelines
opportunist

Q63 _______ charges are intended to represent the diminition in the value of a fixed asset due to use or lapse of time.
depreciation
absorption
installation
production

Q64 A predetermined price fixed on the basis of a specification of a product or service can be referred to as ________ price.
specific
standard
unit
replacement

Q65 There are ______ main objectives of material pricing.
two
three
four
five

Q66 Maximum usage x maximum level time is equal to ________ level
lead
reorder
minimum
maximum

Q67 Carrying cost can be referred to as ________ cost.
ordering
holding
control
level

Q68 Value added time and non-valued added time can be referred to as
throughput time
Shallow time
storage time
Holding time

Q69 Material control involves the following procedure except
purchasing
reception
conversion
storage

Q70 What is the cost that is already incurred and irrelevant to decision making?
unavoidable
sunk
marginal
avoidable

Q71 ______ is a production or service location, function, activity or item of equipment for which costs are accummulated.
objects
unit
allocation
cost centre

Q72 Material, labour and expenses are identified as _______
direct cost
indirect cost
investment
cost centre

Q73 What is the amount of expenditure incurred on or attributable to a specific activity?
investment
cost
stock
project

Q74 Management control information is also known as _______
tactical information
operational information
level information
historical information

Q75 Communication to foster emotional and social support in an organisation can be termed ______ communication.
formal
informal
social
public

Q76 Information flow may be
Public/Private
formal/informal
Internal/external
vertically/horizontally

Q77 ________ communication is between people of the same hierarchical level in the organisation.
formal
informal
horizontal
vertical

Q78 A good MIS needs to inform _______ about the consumption of organisation’s resources.
technicians
labourers
managers
officers

Q79 Congruence is the function of harmonisation ______
Set
Goal
Pool
Future

Q80 Management accounting is a useful tool for cost _______
control
credit
topic
detail

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