1. The following budgeted information relates to a manufacturing company for the upcoming period;
What is the Fixed Cost for the period?
2. Under which sampling method does each member of the target population have an equal chance of being in the sample?
3. RFS PLC sells one product, which uses 2 KG of raw material per unit. The budgeted data for the upcoming period is as follows;
Opening Inventory of Finished Goods
Closing inventory of Finished Goods
Opening Inventory of Raw Materials
Closing Inventory of Raw Materials
What is the budgeted raw material purchases for the upcoming period (in KG)?
4. EFS PLC has a capital employed of $1,800,000. For the past period, a net profit of $150,000 has been earned. What is the return on capital employed?
5. What is the manager of a cost centre mostly responsible for?
6. “Management accounts are prepared whenever required, whilst financial accounts are prepared annually.” – This statement is;
7. Identify which of the following is a source of primary data
8. MC Fast Food Packaging PLC produces 4 main products. The management requires information on the revenue generated by each of these products in the past year, on a monthly basis. Which of the following is the most suitable chart or diagram based on the management requirement?
9. The total budgeted expenditure for the period has been allocated to different types of expenditure and presented in a pie chart. Distribution expenses cover 75°. The total budget is $1,500,000. What is the budgeted expenditure for Marketing expenses?
10. Which of the following is usually a stepped cost?
11. Depreciation of Office Furniture falls under which category?
12. “The monthly charges for telephone usage is $30 for 1000 free minutes plus an additional $0.45 per additional calling minute consumed.” This statement relates to;
13. Which of the following will be completed by a purchasing department when placing orders for inventory from suppliers?
14. Which of the following is a potential threat of holding too much inventory?
15. Which of the following Inventory valuation methods is accepted by IAS?
18. The cost for rent is $400,000 per annum for a total of 500 sq.ft. Jerry decides to rent out 100 sq.ft. On top of the cost of the rent, he decides to have a profit margin of 40%. What will be the price of the rental?
19. Which of the following is a service sector business?
22. Which three of the following make up the 3E’s?
A . Economy
23. An investment centre has a profit of $400,000 and controllable assets of $5,000,000. The notional cost of capital is 10%. What is the residual income for this centre?
25. Due to poor wages being paid, many staff at Kaylot Ltd had left their jobs. Newer staff were hired, despite them being low skilled and less experienced. What will happen as a result of this with regards to the variances on labour rate?
27. Which of the following is an advantage of bottom up budgeting?
28. Company B had a revenue of $650,000 in the previous month. If the underlying trend was $700,000 and the seasonal factor is 0.92, what is the seasonally adjusted figure for last month’s revenue, assuming a multiplicative model for seasonal adjustment?
29. Which of the following can be considered for the costing of the services offered by a construction company?
30. A plastic producing process has a normal wastage of 5% of input. In a period, there was an input of 500kg of material and an abnormal wastage of 30kg. What was the quantity of production?
31. The revenue and cost summary for Company BF is shown in the following diagram.
There had been a fire at a warehouse in a specific year, which caused damage to a huge amount of inventory of sales goods. Based on the information in the diagram, in which year did the fire occur?
32. “Information needs to be presented at the correct time to make the best use of it.” This statement is;
33. Which of the following is a reason for labour turnover?
34. A cost centre has an OAR of $5 per hour for a budgeted level of 2000 hours. However, for the period, the actual hours was 10% higher than budgeted and the actual overhead was $17000. The OH was:
1. Huang PLC sells imported rice. The following information is available;
Total Sales consists of cash and credit sales. 10% of sales are made in cash, whilst 70% of sales are paid in the following month and 95% of the remainder is settled in 2 months. The remaining 5% is treated as irrecoverable debts.A. Calculate the amount of cash to be received in February.
D. Huang’s Marketing team has noticed that customers tend to purchase new products from multiple rice brands and devised a strategy to change its packaging design once in every 12 months. The development of a new packaging starts 3 months prior to its introduction. So based on the product life cycle, the last 3 months before a new packaging is introduced is known as what stage?
2. The following is an extract from the financial statements for Moddy’s Private Limited.
Year 2005 2004
Revenue $200,000 $120,000
Gross Profit $120,000 $70,000
Net Profit $30,000 ($12,000)
Current Assets $50,000 $20,000
Current Liabilities $30,000 $10,000
Closing Inventory $20,000 $6,000
Non-Current Liabilities $100,000 $140,000
Equity consists of 100,000 shares of $2 each.
F. It has been noted that the there was a net loss for the period of 2004. Which of the following assumptions could be a reason for the loss?
3. Remo Limited is a construction company and takes up jobs for customers in the locality. The information below relates to a room renovation for a customer Jonas.
500 tiles @ $4 per tile
100Kg Cement @ $90 per 50KG bag
10KG Tile Grout @ $16 per KG
40 Hours skilled labour @ $25 per hour
Fixed Production Overheads are absorbed at $30 per Labour Hour
Remo adds a 25% mark up to price all services.
C. What would be the most suitable measure of the quality of work provided to Jonas?
D. What would be the impact on the price if there was a 25% profit margin rather than a 25% mark up?
E. What is the most threatening disadvantage to Remo of using low skilled labour on the job from a management accounting perspective?