The implementation of an ideally standards costing system to a manufacturing organisation is likely to:

a. produce favourable materials usage variances

b. increase product sales

c. be a de-motivating factor for direct Labour employees

d. reduce fixed production overheads

2. Which ONE of the following transactions will NOT impact on the working capital position of a business?

a. Wages paid by bank

b. the depreciation of fixed assets

c. the purchase of goods for resale (inventory) on credit terms

d. a credit customer receipt deposited into the business bank account

3. In order to effectively analyse a business sub-system, the internal auditor will require:

a. A detailed understanding of the system inputs, processes and outputs, and knowledge of the expected output information and quality criteria

b. experience of working to tight deadlines and the clear understanding of the limitations and constraints implicit in systems design development

c. a clearly defined (documented and communicated) objective with a detailed examination, evaluation and assessment before the commencement of system operations

d. the successful completion offer three year academic degree in a financial subject and, in addition, a minimum of two years practical (supervised) experience

4. Complete this statement:

The data element of a business financial information system is ................ asset.

a. An easily replaceable an unimportant

b. Expensive and unimportant

c. Fragile and unimportant

d. Fragile and expensive

2

CRN:35565

5. An operational feasibility examination is:

a. the feasibility of the project

b. the inspection of the project technology ensuring it is acceptable to the

business employees

c. an inspection into the benefits and drawbacks of a system design to the

current and future operations of the business

d. (b) and (c)

6. The data below is that of Williams Ltd, a small UK manufacturing organisation.

Sales

Cost of sales Gross profit

Gross profit margin:

34,000 (17,680) 16,320 48.00%

30,000 (15,300) 14,700 49.00%

33,000 (16,500) 16,500 50.00%

This year Last Year This year Actual Actual Budget

CRN:35565

With reference to the data provided, which ONE of the following statements is TRUE?

a. The value for cost of sales (have budgeted an actual) is always greater then

(or equal to) 50% of the sales value.

b. The budgeted gross profit margin for this year was lower than the actual result, and the actual (absolute) gross profit value for this year is more than 25,000 higher than that achieved last year.

c. The budget for this year indicated an increase in profits compared to last years actual results but this years actual profits fell short of formal expectation.

d. The actual sales value for this year is less than that expected for this year but greater than the actual sales value for last year.

3

7. The most recent year-end working capital position of Clipper Ltd is shown below:

Current assets:

Inventory

Trade receivables

Bank account ?

Current liabilities:

Trade payables

Bank overdraft ?

If the current ratio of Clipper Ltd, at its year-end is 2:1. The closing bank balance of the business, therefore, is:

a. 500 in credit (current asset)

b. 500 overdrawn (current liability) c. 4,750 overdrawn (current liability) d. 7,750 in credit (current asset)

8. A manufacturing organisation uses an activity-based costing (ABC) system for indirect production overhead cost recovery. The table below shows the overhead recovery basis and values:

4,000 11,200

8,000

CRN:35565

Activity:

Total cost

Cost driver:

Cost driver: (Period volume)

Activity cost: (Recovery rate)

Set up costs 2,700 Quality control 36,000 Depreciation 17,600

Set ups

Inspection events Machine hours Materials movements Labour hours

90 30 1,800 20 2,200 8 4,500 5

750 10

Raw materials storage Other costs

Total overhead costs:

22,500 7,500 86,300

A recent contract (Job A100) had prime costs of 1,300. Activity cost driver consumption was:

Set-ups 1 Inspection events 15 Machine hours 30 Materials movements 80

Labour hours

25

4

The total (full) production cost of Job A100, therefore, was:

a. 1,220 b. 1,300 c. 2,520 d. 2,550

9. Examine the budgeted series of capital investment project cash flows shown below:

Year 0 (capital investment) Year 1 Cash inflow

Year 2 Cash inflow

Year 3 Cash inflow

Year 4 Cash inflow Year 5 Cash inflow

Total cash flows:

The payback period for the project is:

a. 3 years and 180 days

b. 3 years and 280 days

c. 4 years and 80 days

d. 3 years and 8 months

(60,000)

10,000 12,000 15,000 30,000 30,000 37,000

CRN:35565

10. The present value of 5,000 receivable in 6 years time discounted at 8% is (to the nearest 1):

a. 30,000 b. 23,115 c. 5,000 d. 3,150

END OF SECTION A

CRN:35565 Financial and Management Information Systems (75% of module mark) Section A - Multiple choice questions (ALL questions from this section must be attempted. Each question is worth 1 mark) 1. The implementation of an "ideally standards" costing system to a manufacturing organisation is likely to: a. produce favourable materials usage variances b. increase product sales C. be a de motivating factor for direct Labour employees d. reduce fixed production overheads 2. Which ONE of the following transactions will NOT impact on the working capital position of a business? a Wages paid by bank b. the depreciation of fixed assets the purchase of goods for resale (inventory) on credit terms d. a credit customer receipt deposited into the business bank account 3. In order to effectively analyse a business sub-system, the internal auditor will require: a. A detailed understanding of the system inputs, processes and outputs, and knowledge of the expected output information and quality criteria b. experience of working to tight deadlines and the clear understanding of the limitations and constraints implicit in systems design development c. a clearly defined (documented and communicated) objective with a detailed examination, evaluation and assessment before the commencement of system operations d. the successful completion offer three year academic degree in a financial subject and, in addition, a minimum of two years practical (supervised) experience asset 4. Complete this statement: "The data element of a business financial information system i a. An easily replaceable an unimportant b. Expensive and unimportant c. Fragile and unimportant d. Fragile and expensive CRN:35565 5. An operational feasibility examination is: a. the feasibility of the project b. the inspection of the project technology ensuring it is acceptable to the business employees c. an inspection into the benefits and drawbacks of a system design to the current and future operations of the business d. (b) and (c) 6. The data below is that of Williams Lid, a small UK manufacturing organisation. Sales Cost of sales Gross profit Gross profit margin: This year Last Year Actual Actual E 34,000 30,000 (17,680) (15,300) 16,320 14,700 48.00% 49.00% This year Budget 33,000 (16,500) 16,500 50.00% With reference to the data providedwhich ONE of the following statements is TRUE? a. The value for cost of sales (have budgeted an actual) is always greater then (or equal to) 50% of the sales value. b. The budgeted gross profit margin for this year was lower than the actual result, and the actual (absolute) gross profit value for this year is more than 25,000 higher than that achieved last year. C. The budget for this year indicated an increase in profits compared to last year's actual results but this year's actual profits fell short of formal expectation. d. The actual sales value for this year is less than that expected for this year but greater than the actual sales value for last year. CRN:35565 7. The most recent year-end working capital position of Clipper Ltd is shown below: Current assets: Inventory 4,000 Trade receivables 11,200 Bank account ? Current liabilities: Trade payables 8,000 Bank overdraft ? If the current ratio of Clipper Ltd, at its year-end is 2:1. The closing bank balance of the business, therefore, is a. 500 in credit (current asset) b. 500 overdrawn (current liability) C. 4,750 overdrawn (current liability) d. 7.750 in credit (current asset) 8. A manufacturing organisation uses an activity-based costing (ABC) system for indirect production overhead cost recovery. The table below shows the overhead recovery basis and values Cost Total Activity driver: cost: Activity: cost Cost driver (Period (Recovery volume) rate) E Set-up costs 2,700 Set-ups 90 Quality control 36,000 Inspection events 1,800 Depreciation 17,600 Machine hours 2.200 8 Raw materials storage 22,500 Materials movements 4,500 Other costs 7.500 Labour hours 750 10 Total overhead costs: 86,300 30 20 5 A recent contract (Job A100) had prime costs of 1,300. Activity cost driver consumption was: Set-ups 1 Inspection events 15 Machine hours 30 Materials movements 80 Labour hours 25 CRN:35565 The total (full) production cost of Job A100, therefore, was: a. 1,220 b. 1,300 C. 2,520 d. 2,550 9. Examine the budgeted series of capital investment project cash flows shown below: Year (capital investment) (60,000) Year 1 Cash inflow 10.000 Year 2 Cash inflow 12.000 Year 3 Cash inflow 15,000 Year 4 Cash inflow 30,000 Year 5 Cash inflow 30,000 Total cash flows: 37,000 The payback period for the project is: a. 3 years and 180 days b. 3 years and 280 days c. 4 years and 80 days d. 3 years and 8 months 10. The present value of 5,000 receivable in 6 years' time discounted at 8% is (to the nearest 1): a. 30,000 b. 23,115 C. 5,000 d. 3,150 END OF SECTION A Total for section A = 10 marks CRN:35565 Financial and Management Information Systems (75% of module mark) Section A - Multiple choice questions (ALL questions from this section must be attempted. Each question is worth 1 mark) 1. The implementation of an "ideally standards" costing system to a manufacturing organisation is likely to: a. produce favourable materials usage variances b. increase product sales C. be a de motivating factor for direct Labour employees d. reduce fixed production overheads 2. Which ONE of the following transactions will NOT impact on the working capital position of a business? a Wages paid by bank b. the depreciation of fixed assets the purchase of goods for resale (inventory) on credit terms d. a credit customer receipt deposited into the business bank account 3. In order to effectively analyse a business sub-system, the internal auditor will require: a. A detailed understanding of the system inputs, processes and outputs, and knowledge of the expected output information and quality criteria b. experience of working to tight deadlines and the clear understanding of the limitations and constraints implicit in systems design development c. a clearly defined (documented and communicated) objective with a detailed examination, evaluation and assessment before the commencement of system operations d. the successful completion offer three year academic degree in a financial subject and, in addition, a minimum of two years practical (supervised) experience asset 4. Complete this statement: "The data element of a business financial information system i a. An easily replaceable an unimportant b. Expensive and unimportant c. Fragile and unimportant d. Fragile and expensive CRN:35565 5. An operational feasibility examination is: a. the feasibility of the project b. the inspection of the project technology ensuring it is acceptable to the business employees c. an inspection into the benefits and drawbacks of a system design to the current and future operations of the business d. (b) and (c) 6. The data below is that of Williams Lid, a small UK manufacturing organisation. Sales Cost of sales Gross profit Gross profit margin: This year Last Year Actual Actual E 34,000 30,000 (17,680) (15,300) 16,320 14,700 48.00% 49.00% This year Budget 33,000 (16,500) 16,500 50.00% With reference to the data providedwhich ONE of the following statements is TRUE? a. The value for cost of sales (have budgeted an actual) is always greater then (or equal to) 50% of the sales value. b. The budgeted gross profit margin for this year was lower than the actual result, and the actual (absolute) gross profit value for this year is more than 25,000 higher than that achieved last year. C. The budget for this year indicated an increase in profits compared to last year's actual results but this year's actual profits fell short of formal expectation. d. The actual sales value for this year is less than that expected for this year but greater than the actual sales value for last year. CRN:35565 7. The most recent year-end working capital position of Clipper Ltd is shown below: Current assets: Inventory 4,000 Trade receivables 11,200 Bank account ? Current liabilities: Trade payables 8,000 Bank overdraft ? If the current ratio of Clipper Ltd, at its year-end is 2:1. The closing bank balance of the business, therefore, is a. 500 in credit (current asset) b. 500 overdrawn (current liability) C. 4,750 overdrawn (current liability) d. 7.750 in credit (current asset) 8. A manufacturing organisation uses an activity-based costing (ABC) system for indirect production overhead cost recovery. The table below shows the overhead recovery basis and values Cost Total Activity driver: cost: Activity: cost Cost driver (Period (Recovery volume) rate) E Set-up costs 2,700 Set-ups 90 Quality control 36,000 Inspection events 1,800 Depreciation 17,600 Machine hours 2.200 8 Raw materials storage 22,500 Materials movements 4,500 Other costs 7.500 Labour hours 750 10 Total overhead costs: 86,300 30 20 5 A recent contract (Job A100) had prime costs of 1,300. Activity cost driver consumption was: Set-ups 1 Inspection events 15 Machine hours 30 Materials movements 80 Labour hours 25 CRN:35565 The total (full) production cost of Job A100, therefore, was: a. 1,220 b. 1,300 C. 2,520 d. 2,550 9. Examine the budgeted series of capital investment project cash flows shown below: Year (capital investment) (60,000) Year 1 Cash inflow 10.000 Year 2 Cash inflow 12.000 Year 3 Cash inflow 15,000 Year 4 Cash inflow 30,000 Year 5 Cash inflow 30,000 Total cash flows: 37,000 The payback period for the project is: a. 3 years and 180 days b. 3 years and 280 days c. 4 years and 80 days d. 3 years and 8 months 10. The present value of 5,000 receivable in 6 years' time discounted at 8% is (to the nearest 1): a. 30,000 b. 23,115 C. 5,000 d. 3,150 END OF SECTION A Total for section A = 10 marks CRN:35565 Financial and Management Information Systems (75% of module mark) Section A - Multiple choice questions (ALL questions from this section must be attempted. Each question is worth 1 mark) 1. The implementation of an "ideally standards" costing system to a manufacturing organisation is likely to: a. produce favourable materials usage variances b. increase product sales C. be a de motivating factor for direct Labour employees d. reduce fixed production overheads 2. Which ONE of the following transactions will NOT impact on the working capital position of a business? a Wages paid by bank b. the depreciation of fixed assets the purchase of goods for resale (inventory) on credit terms d. a credit customer receipt deposited into the business bank account 3. In order to effectively analyse a business sub-system, the internal auditor will require: a. A detailed understanding of the system inputs, processes and outputs, and knowledge of the expected output information and quality criteria b. experience of working to tight deadlines and the clear understanding of the limitations and constraints implicit in systems design development c. a clearly defined (documented and communicated) objective with a detailed examination, evaluation and assessment before the commencement of system operations d. the successful completion offer three year academic degree in a financial subject and, in addition, a minimum of two years practical (supervised) experience asset 4. Complete this statement: "The data element of a business financial information system i a. An easily replaceable an unimportant b. Expensive and unimportant c. Fragile and unimportant d. Fragile and expensive CRN:35565 5. An operational feasibility examination is: a. the feasibility of the project b. the inspection of the project technology ensuring it is acceptable to the business employees c. an inspection into the benefits and drawbacks of a system design to the current and future operations of the business d. (b) and (c) 6. The data below is that of Williams Lid, a small UK manufacturing organisation. Sales Cost of sales Gross profit Gross profit margin: This year Last Year Actual Actual E 34,000 30,000 (17,680) (15,300) 16,320 14,700 48.00% 49.00% This year Budget 33,000 (16,500) 16,500 50.00% With reference to the data providedwhich ONE of the following statements is TRUE? a. The value for cost of sales (have budgeted an actual) is always greater then (or equal to) 50% of the sales value. b. The budgeted gross profit margin for this year was lower than the actual result, and the actual (absolute) gross profit value for this year is more than 25,000 higher than that achieved last year. C. The budget for this year indicated an increase in profits compared to last year's actual results but this year's actual profits fell short of formal expectation. d. The actual sales value for this year is less than that expected for this year but greater than the actual sales value for last year. CRN:35565 7. The most recent year-end working capital position of Clipper Ltd is shown below: Current assets: Inventory 4,000 Trade receivables 11,200 Bank account ? Current liabilities: Trade payables 8,000 Bank overdraft ? If the current ratio of Clipper Ltd, at its year-end is 2:1. The closing bank balance of the business, therefore, is a. 500 in credit (current asset) b. 500 overdrawn (current liability) C. 4,750 overdrawn (current liability) d. 7.750 in credit (current asset) 8. A manufacturing organisation uses an activity-based costing (ABC) system for indirect production overhead cost recovery. The table below shows the overhead recovery basis and values Cost Total Activity driver: cost: Activity: cost Cost driver (Period (Recovery volume) rate) E Set-up costs 2,700 Set-ups 90 Quality control 36,000 Inspection events 1,800 Depreciation 17,600 Machine hours 2.200 8 Raw materials storage 22,500 Materials movements 4,500 Other costs 7.500 Labour hours 750 10 Total overhead costs: 86,300 30 20 5 A recent contract (Job A100) had prime costs of 1,300. Activity cost driver consumption was: Set-ups 1 Inspection events 15 Machine hours 30 Materials movements 80 Labour hours 25 CRN:35565 The total (full) production cost of Job A100, therefore, was: a. 1,220 b. 1,300 C. 2,520 d. 2,550 9. Examine the budgeted series of capital investment project cash flows shown below: Year (capital investment) (60,000) Year 1 Cash inflow 10.000 Year 2 Cash inflow 12.000 Year 3 Cash inflow 15,000 Year 4 Cash inflow 30,000 Year 5 Cash inflow 30,000 Total cash flows: 37,000 The payback period for the project is: a. 3 years and 180 days b. 3 years and 280 days c. 4 years and 80 days d. 3 years and 8 months 10. The present value of 5,000 receivable in 6 years' time discounted at 8% is (to the nearest 1): a. 30,000 b. 23,115 C. 5,000 d. 3,150 END OF SECTION A Total for section A = 10 marks CRN:35565 Financial and Management Information Systems (75% of module mark) Section A - Multiple choice questions (ALL questions from this section must be attempted. Each question is worth 1 mark) 1. The implementation of an "ideally standards" costing system to a manufacturing organisation is likely to: a. produce favourable materials usage variances b. increase product sales C. be a de motivating factor for direct Labour employees d. reduce fixed production overheads 2. Which ONE of the following transactions will NOT impact on the working capital position of a business? a Wages paid by bank b. the depreciation of fixed assets the purchase of goods for resale (inventory) on credit terms d. a credit customer receipt deposited into the business bank account 3. In order to effectively analyse a business sub-system, the internal auditor will require: a. A detailed understanding of the system inputs, processes and outputs, and knowledge of the expected output information and quality criteria b. experience of working to tight deadlines and the clear understanding of the limitations and constraints implicit in systems design development c. a clearly defined (documented and communicated) objective with a detailed examination, evaluation and assessment before the commencement of system operations d. the successful completion offer three year academic degree in a financial subject and, in addition, a minimum of two years practical (supervised) experience asset 4. Complete this statement: "The data element of a business financial information system i a. An easily replaceable an unimportant b. Expensive and unimportant c. Fragile and unimportant d. Fragile and expensive CRN:35565 5. An operational feasibility examination is: a. the feasibility of the project b. the inspection of the project technology ensuring it is acceptable to the business employees c. an inspection into the benefits and drawbacks of a system design to the current and future operations of the business d. (b) and (c) 6. The data below is that of Williams Lid, a small UK manufacturing organisation. Sales Cost of sales Gross profit Gross profit margin: This year Last Year Actual Actual E 34,000 30,000 (17,680) (15,300) 16,320 14,700 48.00% 49.00% This year Budget 33,000 (16,500) 16,500 50.00% With reference to the data providedwhich ONE of the following statements is TRUE? a. The value for cost of sales (have budgeted an actual) is always greater then (or equal to) 50% of the sales value. b. The budgeted gross profit margin for this year was lower than the actual result, and the actual (absolute) gross profit value for this year is more than 25,000 higher than that achieved last year. C. The budget for this year indicated an increase in profits compared to last year's actual results but this year's actual profits fell short of formal expectation. d. The actual sales value for this year is less than that expected for this year but greater than the actual sales value for last year. CRN:35565 7. The most recent year-end working capital position of Clipper Ltd is shown below: Current assets: Inventory 4,000 Trade receivables 11,200 Bank account ? Current liabilities: Trade payables 8,000 Bank overdraft ? If the current ratio of Clipper Ltd, at its year-end is 2:1. The closing bank balance of the business, therefore, is a. 500 in credit (current asset) b. 500 overdrawn (current liability) C. 4,750 overdrawn (current liability) d. 7.750 in credit (current asset) 8. A manufacturing organisation uses an activity-based costing (ABC) system for indirect production overhead cost recovery. The table below shows the overhead recovery basis and values Cost Total Activity driver: cost: Activity: cost Cost driver (Period (Recovery volume) rate) E Set-up costs 2,700 Set-ups 90 Quality control 36,000 Inspection events 1,800 Depreciation 17,600 Machine hours 2.200 8 Raw materials storage 22,500 Materials movements 4,500 Other costs 7.500 Labour hours 750 10 Total overhead costs: 86,300 30 20 5 A recent contract (Job A100) had prime costs of 1,300. Activity cost driver consumption was: Set-ups 1 Inspection events 15 Machine hours 30 Materials movements 80 Labour hours 25 CRN:35565 The total (full) production cost of Job A100, therefore, was: a. 1,220 b. 1,300 C. 2,520 d. 2,550 9. Examine the budgeted series of capital investment project cash flows shown below: Year (capital investment) (60,000) Year 1 Cash inflow 10.000 Year 2 Cash inflow 12.000 Year 3 Cash inflow 15,000 Year 4 Cash inflow 30,000 Year 5 Cash inflow 30,000 Total cash flows: 37,000 The payback period for the project is: a. 3 years and 180 days b. 3 years and 280 days c. 4 years and 80 days d. 3 years and 8 months 10. The present value of 5,000 receivable in 6 years' time discounted at 8% is (to the nearest 1): a. 30,000 b. 23,115 C. 5,000 d. 3,150 END OF SECTION A Total for section A = 10 marks