Variable overhead is budgeted as GHC10,000 for a budgeted output level 2,500 units. Actual variable overheads for actual output level 2,200 units is GHC9,500. What is the budget variance?

Select one:

a. GHC500 Adverse

b. GHC500 Favourable

c. GHC700 Adverse

d. GHC700 Favourable

Question 2

I am a contemporary management accounting practice that can lead to a radical change in how business is conducted. I aim at creating a seamless business process that enhances effectiveness, efficiency, and economy. Who am I?

Select one:

a. Continous Improvement

b. Business process re-engineering

c. Benchmarking

d. Kaizen Costing

Question 3

Direct cost, less material cost is known as

Select one:

a. Variable Cost

b. Fixed Cost

c. Relevant Cost

d. Conversion Cost

Question 4

Edmund Construction Ventures rented a shop for its operation. Under the rental agreement, Bishop ventures made rental payment for 5 years, expiring 2024. For decision making purposes in 2020, Bishop Construction Ventures will consider rent paid in advance as:

Select one:

a. Relevant Cost

b. Committed Cost

c. Sunk Cost

d. Variable Cost

Question 5

The behavoural tendency wherein budget preparers could incorporate excessive amounts in budget lines so as to reduce pressure of high meeting budget target or in order to spend such surpluses is known as

Select one:

a. Budget puffing

b. Budget hyping

c. Budget slacking

d. Budget spending

Question 6

Savoiur leather works produces and sell footwear.Budgeted Direct Cost for the year to December 31, 2019 was GHC3,000. This cost relates to a budgeted activity level of 750 pair of shoes. Actual results for the year under review recorded direct cost of GHC2,500, for 550 pair of shoes. The direct cost variance for the year under review will be

Select one:

a. GHC500 Favourable

b. GHC500 Adverse

c. GHC300 Adverse

d. GHC300 Favourable

Question 7

Dominic Mechanical ventures received an order for repair of a vehicle. Total cost of material and labour to execute the order is GHC5,000. The client however, is willing and able to pay only GHC4,800. The managing director, surprisingly accepted to execute the order despite the loss-making position. He explained that he has a material worth GHC1,500 in stock which otherwise would have been redundant. He intends to use this material for the job. The MD is applying principles of

Select one:

a. Target Costing

b. Break even Analysis

c. Absorption Costing

d. Relevant Costing

Question 8

I am technically defined as "an item that is being costed"?

Select one:

a. Cost Centre

b. Cost control

c. Cost Unit

d. Unit Cost

Question 9

In break-even analysis, the gap between quantitative units to break even and budgeted level of output is known as:

Select one:

a. Break-even point in units

b. Margin of safety

c. Target unit gap

d. Target profit gap

Question 10

The rate at which employees leave an organization during the course of the year is known as:

Select one:

a. Labour Productivity

b. Labour Turnover

c. Labour retention rate

d. Employee resignation rate

Question 11

All are assumptions of break-even analysis except

Select one:

a. The behaviour of total revenue is linear within a relevant range

b. The behaviour of total cost is linear over the relevant range

c. Fixed cost is constant over the relevant range

d. Efficiency of production process and workers is variable

Question 12

I am an indispensable document in any budgeting cycle. Among other things, I provide the assumptions that should guide budget imputs. I also set out priority areas for the budget. Who am i?

Select one:

a. Budget manual

b. Budget assumptions book

c. Budget Framework

d. Budget Circular

Question 13

Kwaku Frimpong works produces and sell footwear.Budgeted revenue for the year to December 31,2019 was GHC15,000.This revenue is for a budgeted activity level of 750 pair of shoes. Actual results for the year under review recorded revenue of GHC10,500, for 550 pair of shoes. The revenue variance for the year under review will be

Select one:

a. GHC500 Adverse

b. GHC500 Favourable

c. GHC4,500 Favourable

d. GHC4,500 Adverse

Question 14

Consider the following two statements:Statement 1: Management accounting information is meant for external use only. Statement 2: Management accounting relies on both quantitative and qualitative information

Select one:

a. Both Statements are true

b. Both Statements are false

c. Statement 1 is true and statemnt 2 is false

d. Statement 1 is false and statement 2 is true

Question 15

Francis Ltd manufactures classroom furniture. Total cost in year 1 when output was 2,000 furniture set was GHC50,000; total cost was GHC60,000 when output was 2,500. In year 3, output level was 1,000 and associated cost was 30,000. Maximum capacity for Furnisoft Ltd is 6,000 furniture set. What will be the total cost for a planned activity level of 4,000 furniture set?

Select one:

a. GHC120,000

b. GHC100,000

c. GHC96,000

d. GHC90,000

Question 16

Davidson leather works produces and sell footwear. Budgeted Fixed Cost for the year to December 31, 2019 was GHC5,000. This cost relates to a budgeted activity level of 750 pair of shoes. Actual results for the year under review recorded Fixed cost of GHC6,500, for 550 pair of shoes. The Fixed expenditure variance for the year under review is

Select one:

a. GHC1,500 Favourable

b. GHC1,500 Adverse

c. GHC2,833 Adverse

d. GHC2,833 Favourable

Question 17

Team Vero bakery intends to make a profit of GHC30,000 for the next accounting period. The companys direct cost per loaf of bread is GHC8.00. Variable non production overhead per unit is GHC2.00. Period cost is estimated as GHC5,000; and a loaf of bread is sells at GHC15.00.How many loaves of bread should the company sell to achieve the target profit (assume no tax)?

Select one:

a. 714 loaves

b. 1,000 loaves

c. 5,000 loaves

d. 7,000 loaves

Question 18

Which of the following is often regarded as a principal budget factor?

Select one:

a. Production volume

b. Master Budget

c. Sales volume

d. Overheads

Question 19

I am a budgeting approach that seeks to build broad-base consensus from my stakeholders. Through effective budget hearing procedures, I am able to capture justified input of my stake holders. Who am i?

Select one:

a. Zero based budgeting style

b. Top-to-bottom budgeting style

c. Flexed Budgeting style

d. Negotiated budgeting style

Question 20

Mama Cee saloon is a start- up saloon. The saloons direct cost per service unit is Ghc25. Period cost is estimated as GHC10,000. Selling price for each service unit is 40.00. How many service units should Comfort hair saloon render for the saloon to break even (assume no tax)?

Select one:

a. 250 loaves

b. 400 service units

c. 500 service units

d. 667 service units

Question 21

Naomi sells standardized shoes. She expect to make annual after tax profit of GHC30,000. She sells a pair of shoe for GHC250. She pays her online marketer a commission of 10% of each shoe sold. The cost of a pair of shoe is GHC145. She pays annual period cost of GHC10,000. How many pair of of shoes should she sell to meet her profit target? (Assume tax rate of 25%)

Select one:

a. 600 pair of shoes

b. 625 pair of shoes

c. 650 pair of shoes

d. 675 pair of shoes

Question 22

Consider the following two statements:Statement 1: Cost volume profit analysis is a decision model that applies principles of absorption costing. Statement 2: In cost volume profit analysis, it is assumed that production and sales level are at par

Select one:

a. Both Statements are true

b. Both Statements are false

c. Statement 1 is true and statement 2 is false

d. Statement 1 is false and statement 2 is true

Question 23

Hajia Banda Ltd budgeted its total overhead for a month as GHC10,000, and budgeted output level as 5,000 units. Actual production for the period is 4,000 units and total overhead cost amounted to GHC16,000. Overhead absorption rate (OAR) for the period is

Select one:

a. GHC2.00

b. GHC2.50

c. GHC3.00

d. GHC4.00

Question 24

Select the only true statement among the following options

Select one:

a. Management accounting information relies mainly on financial accounting

b. Management accounting information is prepared annually to meet legal requirements

c. Management accounting reports are expected to conform to International Financial reporting standards

d. Management accounting provides information for planning, decision making, performance management and control

Question 25

Which of the following is not a component of a master budget?

Select one:

a. Budgeted Statement of Profit and Loss

b. Sales Budget

c. Budgeted Statement of financial position

d. Cash Budget

Question 26

In budgeting, the principal budget factor is that variable that provides a ceiling for the overall organisational bottomline. The most commonest principal budget factor is

Select one:

a. Fixed capacity

b. Sales volume

c. Selling price

d. Unit cost

Question 27

Question text

The type of budget prepared to enable comparative analysis for various scenarios of budgeted activity level is known as

Select one:

a. Zero based budget

b. Incremental budget

c. Flexed Budget

d. Programmed based budget

Question 28

I am a performance management system that combines both financial and non-financial performance in my assessment of performance. My performance areas are financial, customer, internal and innovation and learning. What am I?

Select one:

a. Total Performance Management

b. Return of Capital Employed

c. Balanced Score Card

d. Balanced Performance Card

Frankico Ltd produces and sell bottled water. Standardized market price for a bottle of water is GHC1.50. Frankico needs to make a standard margin of 20%. What is the target cost gap if Frankico Ltd currently produce a bottle of water at GHC1.30 ?

Select one:

a. GHC0.10

b. GHC0.20

c. GHC1.20

d. GHC1.30