1. Regression analysis is being used to find the line of best fit (y=a + bx) from eleven pairs of data. The calculations have produced the following information: EX=440, y=330, EX2 =17,986, Zy2 =10,366 and Exy =13,467 What is the value of 'a' in the equation for the line of best fit to 2 decimal places. Select one: a. 0.63 b. 0.69 c. 2.3 d. 5.33 2.The following data relate to two output levels of a department: Machine hours 17,000 18,500 Overheads $246,500 $251,750 The variable overhead rate per hour is $3.50. The amount of fixed overheads is: Select one: a. $59,500 b. $187,000 c. $5250 d. $246,500 3Based on the data given above, what is the amount of overhead under-over-absorbed? Select one: a. $2550 under-absorbed b. $2529 over-absorbed c. $2550 over-absorbed d. $7460 under-absorbed The value of purchases made by the retailer during the budget period is expected to be Select one a. $69,900 b. $74, 100 c. $85,900 d. $90,100 The value of purchases made by the retailer during the budget period is expected to be Select one: a. $69,900 b. $74, 100 c. $85,900 d. $90,100 A company produces and sells a single product whose variable cost is $6 per unit. Fixed costs have been absorbed over the normal level of activity of 200,000. The current selling price is $10 per unit. How much profit is made under marginal costing if the company sells 250,000 units? Select one: a. $500,000 b. $600,000 c. $900,000 d. $1,000,000 Which of the following is correct? Select one: a. Qualitative data is generally non-numerical information b. Information can only be extracted from external sources c. Operational information gives details of long-term plans only. Which of the following would be best described as a short-term tactical plan? Select one a. Reviewing cost variances and investigate as appropriate b. Comparing actual market share to budget c. Lowing the selling price by 15% d. Monitoring actual sales to budget Prime cost is: Select one: a. all costs incurred in manufacturing a product b. the total of direct costs c. the material cost of a product d. the cost of operating a department W. Ltd makes leather purses. It has drawn up the following budget for its next financial period: Selling price per unit $11.60 Variable production cost per unit $3.40 Sales Commission $5% of selling price Fixed production costs $430,500 Fixed selling and administration cost $198,150 Sales 90,000 units The margin of safety represents Select one: a. 5.6% of budgeted sales b. 8.3% of budgeted sales c. 11.6% of budgeted sales d. 14.8% of budgeted sales A company has calculated its margin of safety as 20% on budgeted sales and budgeted sales are 5000unit per month. What would be the budgeted fixed costs if the budgeted contribution was $25 per unit? Select one: a. $100,000 b. $125,000 c. $150,000 d. $160,000 A machine operator is paid $10.20 per hour and has a normal working week of 35hours. Overtime is paid at the basic rate plus 50%. If in week7, the machine operator worked 42hours, the overtime premium paid to the operator would be: Select one: a. $25.20 b. $107.10 c. $71.40 d. $35.70 A hospital's records show that the cost of carrying out health checks in the last five accounting periods have been as follows: Period No. of Patients seen Total cost $ 1 650 17,125 2 940 17,800 3 1260 18,650 4 990 17,980 5 1150 18,360 Using the high-low method and ignoring inflation, the estimated cost of carrying out health checks on 850 patients in period 6 is Select one: a. $17,515 b. $17,570 c. $17,625 d. $17,680 When preparing a production budget, the quantity to be produced equals Select one: a. Sales quantity + opening stock + closing stock b. Sales quantity - opening stock + closing stock c. Sales quantity - opening stock - closing stock d. Sales quantity + opening stock - closing stock A company has established the following information for the costs and revenues at an activity Select one: a. $15,500 b. $16,250 c. $16,500 d. $17,750 Fixed costs are conventionally deemed to be Select one: a. constant per unit of output b. constant in total when production volume changes c. outside the control of management d. those unaffected by inflation relates to the stock cost: Purchase price: $15 per item Carriage costs: $50 per order Ordering costs: $5 per order Storage costs: 10% of purchase price plus $0.20 per unit per annum Annual demand is 4000 units. What is the EOQ to the nearest whole unit? Select one: a. 509 units b. 170 units C. 485 units d. 153 units Which one of the following sentences does not explain the distinction between financial accounts and management accounts? Select one: a. Financial accounts are primarily for external users and management accounts are primarily for internal users b. Financial accounts are normally produced annually and management accounts are normally produced monthly c. Financial accounts are more accurate than management accounts d. Financial accounts are audited by an external auditor and management accounts do not normally have external audit The following statements refer to strategic planning: (i) It is concerned with quantifiable and qualitative matters, (ii) It is mainly undertaken by middle management in an organisation. (iii) It is concerned predominantly with the long term which of the statements are correct? Select one: a. (i) and (ii) only b. (i) and (iii) only c. (ii) and (iii) only d. (i), (ii) and (iii) Mplc makes a single product which it sells for $16 per unit. Fixed costs are $76,800 per month and the product has a contribution to sales ratio of 40%. In period when actual sales were $224,000 M ple's margin of safety in units was Select one: a. 2,000 b. 6,000 c. 8,000 d. 12,000 e. 14,000 A company incurs the following costs at various activity levels: Select one: a. $25 b. $30 c. $35 d. $40 Alex has established the following information regarding fixed overheads for the coming month: Select one: a. $16 b. $18 c. $36 d. $60 Based on the above data , what is the maximum level of stocks possible? Select one: a. 1750 b. 5210 c. 3460 d. 2860 If actual output is lower than budgeted output, which of the following costs would you expect to be lower than the original budget? Select one: a. Total fixed costs b. Total variable costs c. Variable costs per unit d. Fixed costs per unit If E Ltd changes to the weighted average method of stock valuation, the effect on closing stock value and on profit compared with the FIFO method will be Select one: a. Higher closing stock value and higher gross profit b. Lower closing stock value and higher gross profit c. Lower closing stock value and lower gross profit d. Higher closing stock value and lower gross profit A company has the following budget for the next month: Select one: a. 20 900 kg b. 21 100 kg c. 21 500 kg d. 21 700 kg The main purpose of budgeting are: (i) to give authority to spend (ii) to control expenditure (iii) to aid decision making Select one: a. (i) only b. (i) and (ii) only c. (ii) only d. (i), (ii) and (iii) W. Ltd makes leather purses. It has drawn up the following budget for its next financial period: Selling price per unit $11.60 Variable production cost per unit $3.40 Sales Commission $5% of selling price Fixed production costs $430,500 Fixed selling and administration cost $198,150 Sales 90,000 units The marketing manager has indicated that an increase in the selling price to $12.25 per unit would not affect the number of units sold, provided that the sales commission is increased to 8% of the selling price. The changes will cause the break-even point (to the nearest whole number ) to be Select one: a. 71,033 units b. 76,016 units c. 79,879 units d. 87,070 units Which ONE of the following costs could NOT be classified as a production overhead cost in a food processing company? Select one: a. The cost of renting the factory building b. The salary of the factory manager c. The cost of ingredients d. The depreciation of equipment located in the materials store A company wishes to make a profit of $150,000. It has fixed costs of $75,000 with a C/S ratio of 0.75 and a selling price of $10 per unit. How many units would the company need to sell in order to achieve the required level of profit Select one: a. 10,000 units b. 15,000 units c. 22,500 units d. 30,000 units The effect of using the LIFO method of stock valuation rather than FIFO in a period of rising prices is: Select one: a. to report higher profits and a higher value of closing stock b. to report higher profits and a lower value of closing stock c. to report lower profits and a higher value of closing stock d. to report lower profits and a lower value of closing stock A company has established a budgeted sales revenue for the coming period of $500,000 with an associat contribution of $275,000. Fixed production costs are $137,500 and selling costs are$27,500. What is the break-even sales revenue ? Select one: a. $75,625 b. $90,750 c. $250,000 d. $300,000 BDL plc is currently preparing its cash budget for the year to 31 March 2003. An extract from its sales budget for the same year shows the following sales values: $ March 60,000 April 70,000 May 55,000 June 65,000 40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in the month after sales and take a 2% discount; 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales receipts to be shown in the cash budget for May 2002 is: Select one: a. $38,532 b. $39,120 C. $60,532 d. $64,220 Which of the following statements is correct? Select one: a. A stores ledger account will be updated from a goods received note only b. A stores requisition will only detail the type of product required by a customer c. The term 'lead time' is best used to describe the time between receiving an order and paying for it d. To make an issue from stores authorization should be required Which of the following would be classed as indirect labour? Select one: a. assembly workers in a company manufacturing television b. a stores assistant in a factory store c. plasterers in a construction company d. an audit clerk in a firm of auditors A direct cost is cost which Select one: a. is incurred as a direct consequence of a decision b. can be economically identified with the item being costed c. the material cost of a product d. the cost of operating a department All of the following may be cost objects except: Select one: a. a cost centre b. a customer c. a manager d. a product A company absorbs overheads on machine hours which were budgeted at 11,250 with overheads of $258,750. Actual results were 10,980 hours with overheads of $254692. Overheads were: Select one a. Under-absorbed by $4058 b. Over-absorbed by $4058 c. Under-absorbed by $2152 d. Over-absorbed by $2152 The cash which the retailer expects to receive from customers during the budget period amounts to Select one: a. $88,000 b. $151,900 c. $157,900 d. $168,100 The following relate to procedures for materials: (1) check the goods received note, (2) Raise a stores requisition note, (3) Update the stores ledger account for the purchase, (4) Raise a purchase order. Which would be the correct order of the above when in the process of purchasing and using materials Select one: a. 4,2,1,3 b. 2,1,3,4 c. 4,1,3,2 d. 1,4,3,2 Cost centres are Select one: a. Units of product or service for which costs are ascertained b. amounts of expenditure attributable to various activities c. Functions or locations for which costs are ascertained d. a section of an organisation for which budgets are prepared and control exercised. based on the data given above, what is the labour hour overhead absorption rate? Select one: a. $18.76 per hour b. $17.20 per hour c. $18.44 per hour d. $17.50 per hour 1. Regression analysis is being used to find the line of best fit (y=a + bx) from eleven pairs of data. The calculations have produced the following information: EX=440, y=330, EX2 =17,986, Zy2 =10,366 and Exy =13,467 What is the value of 'a' in the equation for the line of best fit to 2 decimal places. Select one: a. 0.63 b. 0.69 c. 2.3 d. 5.33 2.The following data relate to two output levels of a department: Machine hours 17,000 18,500 Overheads $246,500 $251,750 The variable overhead rate per hour is $3.50. The amount of fixed overheads is: Select one: a. $59,500 b. $187,000 c. $5250 d. $246,500 3Based on the data given above, what is the amount of overhead under-over-absorbed? Select one: a. $2550 under-absorbed b. $2529 over-absorbed c. $2550 over-absorbed d. $7460 under-absorbed The value of purchases made by the retailer during the budget period is expected to be Select one a. $69,900 b. $74, 100 c. $85,900 d. $90,100 The value of purchases made by the retailer during the budget period is expected to be Select one: a. $69,900 b. $74, 100 c. $85,900 d. $90,100 A company produces and sells a single product whose variable cost is $6 per unit. Fixed costs have been absorbed over the normal level of activity of 200,000. The current selling price is $10 per unit. How much profit is made under marginal costing if the company sells 250,000 units? Select one: a. $500,000 b. $600,000 c. $900,000 d. $1,000,000 Which of the following is correct? Select one: a. Qualitative data is generally non-numerical information b. Information can only be extracted from external sources c. Operational information gives details of long-term plans only. Which of the following would be best described as a short-term tactical plan? Select one a. Reviewing cost variances and investigate as appropriate b. Comparing actual market share to budget c. Lowing the selling price by 15% d. Monitoring actual sales to budget Prime cost is: Select one: a. all costs incurred in manufacturing a product b. the total of direct costs c. the material cost of a product d. the cost of operating a department W. Ltd makes leather purses. It has drawn up the following budget for its next financial period: Selling price per unit $11.60 Variable production cost per unit $3.40 Sales Commission $5% of selling price Fixed production costs $430,500 Fixed selling and administration cost $198,150 Sales 90,000 units The margin of safety represents Select one: a. 5.6% of budgeted sales b. 8.3% of budgeted sales c. 11.6% of budgeted sales d. 14.8% of budgeted sales A company has calculated its margin of safety as 20% on budgeted sales and budgeted sales are 5000unit per month. What would be the budgeted fixed costs if the budgeted contribution was $25 per unit? Select one: a. $100,000 b. $125,000 c. $150,000 d. $160,000 A machine operator is paid $10.20 per hour and has a normal working week of 35hours. Overtime is paid at the basic rate plus 50%. If in week7, the machine operator worked 42hours, the overtime premium paid to the operator would be: Select one: a. $25.20 b. $107.10 c. $71.40 d. $35.70 A hospital's records show that the cost of carrying out health checks in the last five accounting periods have been as follows: Period No. of Patients seen Total cost $ 1 650 17,125 2 940 17,800 3 1260 18,650 4 990 17,980 5 1150 18,360 Using the high-low method and ignoring inflation, the estimated cost of carrying out health checks on 850 patients in period 6 is Select one: a. $17,515 b. $17,570 c. $17,625 d. $17,680 When preparing a production budget, the quantity to be produced equals Select one: a. Sales quantity + opening stock + closing stock b. Sales quantity - opening stock + closing stock c. Sales quantity - opening stock - closing stock d. Sales quantity + opening stock - closing stock A company has established the following information for the costs and revenues at an activity Select one: a. $15,500 b. $16,250 c. $16,500 d. $17,750 Fixed costs are conventionally deemed to be Select one: a. constant per unit of output b. constant in total when production volume changes c. outside the control of management d. those unaffected by inflation relates to the stock cost: Purchase price: $15 per item Carriage costs: $50 per order Ordering costs: $5 per order Storage costs: 10% of purchase price plus $0.20 per unit per annum Annual demand is 4000 units. What is the EOQ to the nearest whole unit? Select one: a. 509 units b. 170 units C. 485 units d. 153 units Which one of the following sentences does not explain the distinction between financial accounts and management accounts? Select one: a. Financial accounts are primarily for external users and management accounts are primarily for internal users b. Financial accounts are normally produced annually and management accounts are normally produced monthly c. Financial accounts are more accurate than management accounts d. Financial accounts are audited by an external auditor and management accounts do not normally have external audit The following statements refer to strategic planning: (i) It is concerned with quantifiable and qualitative matters, (ii) It is mainly undertaken by middle management in an organisation. (iii) It is concerned predominantly with the long term which of the statements are correct? Select one: a. (i) and (ii) only b. (i) and (iii) only c. (ii) and (iii) only d. (i), (ii) and (iii) Mplc makes a single product which it sells for $16 per unit. Fixed costs are $76,800 per month and the product has a contribution to sales ratio of 40%. In period when actual sales were $224,000 M ple's margin of safety in units was Select one: a. 2,000 b. 6,000 c. 8,000 d. 12,000 e. 14,000 A company incurs the following costs at various activity levels: Select one: a. $25 b. $30 c. $35 d. $40 Alex has established the following information regarding fixed overheads for the coming month: Select one: a. $16 b. $18 c. $36 d. $60 Based on the above data , what is the maximum level of stocks possible? Select one: a. 1750 b. 5210 c. 3460 d. 2860 If actual output is lower than budgeted output, which of the following costs would you expect to be lower than the original budget? Select one: a. Total fixed costs b. Total variable costs c. Variable costs per unit d. Fixed costs per unit If E Ltd changes to the weighted average method of stock valuation, the effect on closing stock value and on profit compared with the FIFO method will be Select one: a. Higher closing stock value and higher gross profit b. Lower closing stock value and higher gross profit c. Lower closing stock value and lower gross profit d. Higher closing stock value and lower gross profit A company has the following budget for the next month: Select one: a. 20 900 kg b. 21 100 kg c. 21 500 kg d. 21 700 kg The main purpose of budgeting are: (i) to give authority to spend (ii) to control expenditure (iii) to aid decision making Select one: a. (i) only b. (i) and (ii) only c. (ii) only d. (i), (ii) and (iii) W. Ltd makes leather purses. It has drawn up the following budget for its next financial period: Selling price per unit $11.60 Variable production cost per unit $3.40 Sales Commission $5% of selling price Fixed production costs $430,500 Fixed selling and administration cost $198,150 Sales 90,000 units The marketing manager has indicated that an increase in the selling price to $12.25 per unit would not affect the number of units sold, provided that the sales commission is increased to 8% of the selling price. The changes will cause the break-even point (to the nearest whole number ) to be Select one: a. 71,033 units b. 76,016 units c. 79,879 units d. 87,070 units Which ONE of the following costs could NOT be classified as a production overhead cost in a food processing company? Select one: a. The cost of renting the factory building b. The salary of the factory manager c. The cost of ingredients d. The depreciation of equipment located in the materials store A company wishes to make a profit of $150,000. It has fixed costs of $75,000 with a C/S ratio of 0.75 and a selling price of $10 per unit. How many units would the company need to sell in order to achieve the required level of profit Select one: a. 10,000 units b. 15,000 units c. 22,500 units d. 30,000 units The effect of using the LIFO method of stock valuation rather than FIFO in a period of rising prices is: Select one: a. to report higher profits and a higher value of closing stock b. to report higher profits and a lower value of closing stock c. to report lower profits and a higher value of closing stock d. to report lower profits and a lower value of closing stock A company has established a budgeted sales revenue for the coming period of $500,000 with an associat contribution of $275,000. Fixed production costs are $137,500 and selling costs are$27,500. What is the break-even sales revenue ? Select one: a. $75,625 b. $90,750 c. $250,000 d. $300,000 BDL plc is currently preparing its cash budget for the year to 31 March 2003. An extract from its sales budget for the same year shows the following sales values: $ March 60,000 April 70,000 May 55,000 June 65,000 40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in the month after sales and take a 2% discount; 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales receipts to be shown in the cash budget for May 2002 is: Select one: a. $38,532 b. $39,120 C. $60,532 d. $64,220 Which of the following statements is correct? Select one: a. A stores ledger account will be updated from a goods received note only b. A stores requisition will only detail the type of product required by a customer c. The term 'lead time' is best used to describe the time between receiving an order and paying for it d. To make an issue from stores authorization should be required Which of the following would be classed as indirect labour? Select one: a. assembly workers in a company manufacturing television b. a stores assistant in a factory store c. plasterers in a construction company d. an audit clerk in a firm of auditors A direct cost is cost which Select one: a. is incurred as a direct consequence of a decision b. can be economically identified with the item being costed c. the material cost of a product d. the cost of operating a department All of the following may be cost objects except: Select one: a. a cost centre b. a customer c. a manager d. a product A company absorbs overheads on machine hours which were budgeted at 11,250 with overheads of $258,750. Actual results were 10,980 hours with overheads of $254692. Overheads were: Select one a. Under-absorbed by $4058 b. Over-absorbed by $4058 c. Under-absorbed by $2152 d. Over-absorbed by $2152 The cash which the retailer expects to receive from customers during the budget period amounts to Select one: a. $88,000 b. $151,900 c. $157,900 d. $168,100 The following relate to procedures for materials: (1) check the goods received note, (2) Raise a stores requisition note, (3) Update the stores ledger account for the purchase, (4) Raise a purchase order. Which would be the correct order of the above when in the process of purchasing and using materials Select one: a. 4,2,1,3 b. 2,1,3,4 c. 4,1,3,2 d. 1,4,3,2 Cost centres are Select one: a. Units of product or service for which costs are ascertained b. amounts of expenditure attributable to various activities c. Functions or locations for which costs are ascertained d. a section of an organisation for which budgets are prepared and control exercised. based on the data given above, what is the labour hour overhead absorption rate? Select one: a. $18.76 per hour b. $17.20 per hour c. $18.44 per hour d. $17.50 per hour