a True b. False 8 is data which can take on any value a secondary data b. primary data c. continuous data 9. Which of the following best constitute external source of data? (i) Government statistics. (11) The Financial Times. (iii) Data collected for a survey which was commissioned in order to determine whether the Company should launch a new product. (iv) Historical records of expenditure on light and heat in order to prepare current forecasts. a. i and is only b. i, ii and iii only c. i, ii, iii and iv 10. In which economic time does consumer demand increase? a. Boom b. Recession c. a&b above are identified with goods produced for resale. a. Production Costs b. Non-production costs c. Administrative costs 12. Indicate whether each event results in the incurrence of a production cost or a selling, distribution, administration or finance cost. Paid wages to production workers (ii) Paid advertising (iii) Purchased cars for sales staff (iv) Used general office supplies a. (1) production cost (in) finance (iii) selling (iv) administration b. (1) finance (ii) selling (iii) selling (iv) administration C. (i) production cost (ii) selling (iii) selling (iv) administration 13. The three major cost components of manufacturing a product are . direct materials, direct labour and factory overhead b. period costs, product costs and sunk costs c. indirect labour, indirect materials and fixed expenses 14. Identify whether the following costs are direct or indirect materials, labour or expenses. 1 2 i. Wages of factory production workers ii. Salaries of factory supervisors iii. Rent of a factory a. direct labour (ii) indirect labour (ii) indirect expense b. (1) indirect labour (ii) indirect labour (iii) indirect expense c. ) direct labour (ii) indirect labour (iii) direct expense 15. Electricity bill is classified as a variable cost b. semi-variable cost c. stepped fixed costs 16. For which of the following is a profit centre manager responsible? a Revenues only b. Costs and Revenues c. Costs, revenues and investments 17. The manager here will want the same information as the profit centre manager and in addition they will require quite detailed appraisals of possible investments and information regarding the results of investments already undertaken. a Revenue Centre b. Profit Centre c Investment Centre 18. When producing written reports, the management accountant needs to determine the type of document required and establish the user of the information. a. True b. False c. None of the above 19. Last year, a company made the following sales in each of its four stores which it has in different areas of the country Store 1 GhC30,000 Store 2 GhC25.000 Store 3 GhC70,000 Store 4 GhC75,000 Total GhC200,000 Using a pie chart to represent the proportion of sales which each store has made last year, What would be the angle of the section to represent the sales from store 3? a. 126 b. 130 c. 1150 20. The purpose of __ is to gain as much information as possible about the population by Observing only a small proportion of that population. a. Sampling b. Survey c. Research 21. Under which sampling method does every member of the target population have an equal chance of being in the sample? a Stratified sampling b. Random sampling c. Systematic sampling 22. Consider the linear function y = 2,000 + 40x. The line would cross the y axis at the point a 2000 b. 1000 c. 3000 23. The total costs of a business for a different level of output are as follows: Output (Units) Total costs (GhC) 200 30,000 1000 110,000 What are the fixed and variable elements of the total cost using the High-Low method? a VC/unit GhC60 FC C12,000 b. VC/unit GhC150 FC C11,000 c. VC / unit GhC100 FC 10,000 24. The correlation coefficient between advertising expenditure and sales revenue is calculated to be 0.85 Which of the following statements is true? a 85% of the variatioa:85% of the variation in sales revenue can be explained by the corresponding variation in advertising expenditure b. 72% of the variation in sales revenue can be explained by the corresponding variation in advertising expenditure c. Sales revenue will increase by 85% more than advertising expenditure will increase 25. Which of the following are feasible values for the correlation coefficient? a. +1.04 bo c. -0.94 . a and b only b and only a, bandc 26. Which of the following could be included in a time series based sales forecast? 1. Trend 2. Seasonal variation 3. Cyclical variation 4. Random fluctuation a. 3 only b. 1, 2 and 3 only c. 1, 2, 3 and 4 27. What is an average of the results of a fixed number of periods? a. moving average b. weighted average c. mean 28. Which of the following is an advantage of time series analysis? a. It is useful when forecasting data which has a regular seasonal pattern as may be the case with sales of certain products b. It is a complicated approach c. none of the choices 29.6,500 items were sold in 2012 compared with 6,000 in 2011. Calculate the simple quantity index for 2012 using 2011 as base year. a 109.15 b. 108.33 C105.64 30. Which of the following is not a limitation of product life cycle? a. It is only valid where the relationships involved are linear b. It is over-simplistic to assume that all products comply with a life cycle curve that follows the standard model shown above c. It is difficult for management to establish with precision the position of a product on its cycle curve