Q1 Nigerian Adjusted profit in special businesses is derived as : Adjusted Profit Ratio x Nigerian Income Adjusted profit Ratio x Global Income Ratio of the Nigerian Income to the Global Income Nigerian Profit Over Global adjusted profit TO PREPARE …
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 …
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 …
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 …
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 …
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 …
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 …
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 …
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 …
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 …
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 …
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 …
