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CIMA BA2 - Fundamentals of management accounting

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Total 392 questions

The following list contains many different types of costs for a business. However, only four of them would be considered costs centres. Which four?

A.

Function

B.

Activity

C.

Service location

D.

Equipment

E.

Staff

F.

Operations

G.

Material

Xter Ltd produces product 'PZ'. The forecast sales for the forthcoming year are 50,000 units.

It is anticipated that there will be 10,000 units of opening inventory at the beginning of the year. However, management wishes to reduce this inventory by 30% by the end of next year.

The production budget for the forthcoming year will be

Overhead apportionment is best described as:

A.

The identification of costs specifically attributable to a particular cost centre

B.

The process of sharing costs amongst two or more cost centers

C.

The charging of overheads to cost units produced

D.

The identification of overhead cost variances

The direct labor rate variance is:

A.

The difference between the actual wages paid and the standard labor cost for the output produced

B.

The difference between the actual wages paid and what should have been paid for the hours worked

C.

The difference between the actual rate of efficiency and the standard rate of efficiency for direct labor

D.

The standard wage rate multiplied by the difference between the actual hours worked and the standard hours needed for the output produced

SP Limited operates an absorption costing system. It uses a predetermined overhead absorption rate based on machine hours. Budgeted factory overheads for the year were £1,080,000 but actual overhead incurred was £1,046,000. Budgeted machine hours were 120,000 and actual machine hours were 119,000.

Overheads for the period were.

A.

Under-absorbed by £25,000

B.

Under-absorbed by £9,000

C.

Over-absorbed by £25,000

D.

Over-absorbed by £9,000

Within a relevant range of output, the fixed cost per unit of a product will:

A.

Increase as total output increases

B.

Remain constant as total output increases

C.

Reduce as total output increases

D.

Impossible to tell without more information

Refer to the exhibit.

The budget for ORG for the month of September contained the following data:

During the month the actual number of units produced was 1,550. The management accounts showed a direct labour rate variance of $200 adverse and direct labour efficiency variance of $150 adverse.

The actual direct labour hours in the month was:

A.

1,312.5 hours

B.

1,125 hours

C.

1,200 hours

D.

1,012.5 hours

Refer to the exhibit.

The budgeted contribution for last month was $53,600. The variances reported were as follows:

The actual contribution for last month was:

Fixed costs can best be described as:

A.

Costs which are difficult to budget accurately

B.

Costs which remain constant, within a relevant range, when activity levels change

C.

Costs which never change

D.

Costs which are uncontrollable

In an integrated cost and financial accounting system, the accounting entries for the cost of production units completed in the period would be:

A.

Debit: Finished goods control accountCredit: Work in progress control account

B.

Debit: Work in progress control accountCredit: Finished goods control account

C.

Debit: Cost of sales accountCredit: Finished goods control account

D.

Debit: Finished goods control accountCredit: Cost of sales account