School of Business & Management Abbottabad
MA1 MOCK 3
Total Mark: 100 Passing Marks:60 Time Allowed: 2 Hours
1) Which of the following describes a file in computerised accounting?
An item of data about a particular record
A collection of similar records
A group of fields
A record of similar items of data
2) Is each of the following an aspect of centralisation or decentralisation of office
functions?
(1) Specialised staff
(2) Duplication of activities
(3) Economies of scale
(4) Standardisation of systems
Centralisation: 1, 3 and 4 Decentralisation: 2
Centralisation: 2 and 3 Decentralisation: 1 and 4
Centralisation: 4 Decentralisation: 1, 2 and
3
Centralisation: 1 and 4 Decentralisation: 2 and 3
3) In spreadsheet formulas which signs represent multiplication and division?
x and /
* and /
÷ and x
* and ÷
4) Zed Co uses process costing for product Alpha. Production began on 1 September
and there is no wastage in the process. It was estimated initially that the
percentage completion of work in progress (WIP) was 80%. Subsequent checking
found that this was incorrect and the percentage completion of WIP had been
overstated.
When the error is corrected how will the total value of WIP and cost per unit of
finished output be affected?
Total Value of WIP: Decrease Cost per unit: Decrease
Total Value of WIP: Increase Cost per unit: Decrease
Total Value of WIP: Decrease Cost per unit: Increase
Total Value of WIP: Increase Cost per unit: Increase
Question 5
6) Which of the following would NOT be a service cost centre in a manufacturing
business?
Marketing
Machining
Dispatch
Materials store
7) What formula calculates the production volume ratio?
Actual hours / Budgeted hours
Standard hours of actual output / Budgeted hours
Standard hours of actual output / Actual hours
Budgeted hours / Standard hours of actual output
8) The prime cost of a product is $8.60 per unit. Overheads attributed to the product
are as follows:
$
Variable overhead 1.90 per unit
Fixed overhead 39,000 per period
Output in the period is 5,600 units.
What are the total costs of the product in the period?
$58,800
$49,640
$87,160
$97,800
9) The following statements are about filtering in spreadsheets:
(1) A filtered range displays only the rows that meet the criteria you specify for a
column
(2) Filtering reorders the rows
Are the statements true or false?
Statement 1 is true and statement 2 is false
Both statements are false
Statement 1 is false and statement 2 is true
Both statements are true
Question-10
11) In a large organisation which of the following personnel would MOST likely be
responsible for following up overdue payments from customers?
Management accountant
Credit controller
Trainee accountant
Purchasing manager
Question-12
13) Which of the following is the correct double entry for a purchase of materials on
credit?
Dr Purchases Cr Receivables
Dr Receivables Cr Purchases
Dr Purchases Cr Payables
Dr Payables Cr Purchases
14) You are trying to find the total of a column of figures on a spreadsheet, but the
relevant cell only displays a series of hashes as below:
Total ####
What has caused this error?
There is a circular reference within the cells being totalled up
The cell width is too narrow to display the total fully
Some of the entries in the column are alphabetic (words) rather than
numeric (numbers)
One of the entries in the column has accidentally been divided by '0'
15) When considering spreadsheets, graphs and charts which of the following is
correct?
The graph or chart should always be clearly labelled so the user understands
what is being shown
The graph or chart should always be presented using landscape rather than
portrait orientation
Spreadsheets should always contain cross references to other spreadsheets
Gridlines should always be used when presenting spreadsheets
16) Ryan has created a spreadsheet which has different worksheets for December
and January. He wants to link the contents of cell A3 on the January worksheet to
cell B3 on the December worksheet (so that the January A3 cell shows the contents
of the December B3 cell).
What should Ryan do to achieve this link?
Select cell A3 on the January worksheet, type = and then select cell B3 in
the December worksheet
Select cell A3 on the January worksheet, type =B3 and then select cell B3
in the December worksheet
Select cell B3 on the December worksheet, type =A3 and then select cell
A3 in the January worksheet
Select cell B3 on the December worksheet, type = and then select cell A3
in the January worksheet
17) The following information was available for process X during April:
Number of units entering the process at 1 April: 3,500
Number of units leaving the process at 30 April: 2,000
Non-completed units are all 75% complete at 30 April for direct materials, direct
labour and overhead.
What is the number of equivalent units produced in April?
3,500
1,125
3,125
1,500
18) The following information relates to the production department of Bind Co for
the month of March
Material X (kg) Material Y (kg)
Opening 0 0
inventory
Closing 25 15
inventory
Purchases 100 kg = $12,500 75 kg = $15,000
Product A was produced using 20 kg of material X and 15 kg of material Y.
Product B was produced using the remaining amounts of material X and Y.
What is the direct material cost of product B for March?
$6,875
$22,000
$15,875
$21,375
19) Which of the following correctly describes work in progress?
Materials which are ready to enter the production process
Raw materials which have been subject to all elements of the production
process
Goods acquired from a supplier for incorporation into goods for sale
Intermediate stage between a manufacturer acquiring materials and the
production process being completed
20) What calculation will be carried out by the formula =100+C8/(D2+40) in a
spreadsheet cell?
The contents of cell C8 will be divided by the contents of cell D2 and then
140 will be added
The sum of 100 and the contents of cell C8 will be divided by the contents
of cell D2 and then 40 will be added
The contents of cell C8 will be divided by the sum of the contents of cell D2
and 40 and then 100 will be added
The sum of 100 and the contents of cell C8 will be divided by the sum of
the contents of cell D2 and 40
21) For which of the following is residual income an appropriate performance
measure?
A cost unit
A cost centre
A profit centre
An investment centre
22) Overheads in production cost centre X are absorbed on the basis of machine
hours using a predetermined rate. Budget and actual data for the cost centre for a
period are:
Budget ($) Actual ($)
Overheads 72,000 74,400
Machine hours 5,000 4,800
What is the amount of overheads absorbed in the period?
$71,424
$74,400
$77,500
$69,120
23) Differential piecework remuneration operates in an assembly department.
Details of the payment scheme are as follows:
Units assembled per week Piecework rate per unit ($)
up to 100 3.50
between 101 and 150 4.00
over 150 4.50
Only extra units assembled, over the previous threshold, qualify for the higher rate.
How much would be paid to a worker who assembled 160 units in a particular
week?
$645
$595
$570
$720
24) Employee X is paid $3.60 for each unit produced up to and including 100 units
per week and then $4.00 per unit for any additional production in each week.
Employee X has a guaranteed minimum wage of $300 per week. Employee X's
production over a three-week period was as follows:
Units
Week 1 95
Week 2 104
Week 3 80
What was employee X's total wage for the three-week period?
$1,006.00
$1,018.00
$1,046.00
$1,016.40
25) What is the cost accounting double entry to record the issue of indirect
production materials from stores?
Dr Materials Cr Work in progress
Dr Work in progress Cr Materials
Dr Production overheads Cr Materials
Dr Materials Cr Production overheads
26) Which of the following statements about data and information is/are true?
(1) Completed questionnaires as part of a market research survey are
examples of data
(2) Monthly management accounting reports resulting from the processing
of financial transactions are examples of information
Neither
statement
1 only
2 only
Both
statements
27) A company employs three chefs in its factory canteen.
How would the wages of the chefs be classified?
Direct labour
Direct expense
Indirect labour
Variable production overhead
28) A particular cost has been classified as a stepped-fixed cost.
What type of cost classification is being used?
Costs by behaviour
Controllable / uncontrollable costs
Direct / indirect costs
Costs by function
29) How is the amount of free inventory calculated?
Inventory on order - Inventory already requisitioned for use
Inventory on hand - Inventory already requisitioned for use
Inventory on hand + Inventory on order
Inventory on hand + Inventory on order - Inventory already requisitioned
for use
30) Which of the following are features of all useful management information?
(1) Completeness
(2) Reliability
(3) Timeliness
1, 2 and 3
2 and 3 only
1 and 2 only
1 and 3 only
31) What is the function of the sales day book?
To record cash received from customers
To describe features of products
To record transactions grouped by customer
To list the value of sales invoices
32)
33)
34) The following statements are about timesheets:
(1) A timesheet is likely to contain entries relating to numerous employees
(2) Timesheet information can be used to provide a basis for billing clients for
services provided
Are the statements true or false?
Both statements are true
Statement 1 is false and statement 2 is true
Both statements are false
Statement 1 is true and statement 2 is false
35) Sales representatives in a company are each paid a salary of $2,000 per month.
They also earn commission of 1% of the value of their sales.
What cost behavioural classification describes the sales representatives' earnings?
Variable
Semi-variable
Fixed
Stepped-fixed
36) Which of the following are disadvantages of using spreadsheets?
(1) Large spreadsheet models may contain errors
(2) Spreadsheet data may become corrupted
(3) Performing complex analysis using spreadsheets can be a slow and unreliable
process
(4) Spreadsheets are not suitable for management accounting
1 and 2 only
3 and 4
1, 2 and 3
1 and 4
37) Which of the following information is needed in order to calculate the unit cost
under batch costing?
(1) Product mark up
(2) Production cost
(3) Number of units in a batch
(4) Total budgeted sales
2 and 3 only
1 and 4 only
2, 3, and 4 only
1, 2, 3 and 4
38) Which statement correctly describes the LIFO method of pricing issues of stores
items from inventory?
It uses the price of the newest items before older items
It is based on the average cost of the items
It uses the price of the oldest items before newer items
All items of inventory are valued at the current price
39) A company plans to use the following coding system to record the details of its
company vehicles:
1111 Company van, white, diesel engine, located in London
1221 Company van, red, petrol engine, located in London
2122 Company car, white, petrol engine, located in
Birmingham
Which type of coding system is being considered?
Hierarchical
Faceted
Mnemonic
Sequential
40) James has submitted a CV containing personal information and employment
history to apply for a job with Int Co.
Dab Co is a regular customer of Int Co and Int Co stores a large amount of
information on Dab Co such as its bank details and transaction history.
Jenny works for Dab Co's HR department. Her role involves collecting and reading
job applications for positions within her company and advising other departments
during the recruitment process.
Which of the following are classified as personal data users?
(1) Int Co
(2) James
(3) Dab Co
(4) Jenny
1 and 3
1 and 2
2 and 3
1 and 4
41) Each unit of product X requires 1.2 kg of material A. In May the company plans
to make 500 units of product X. There will be 200 kg of material A in inventory at
the end of April, and the company wishes to increase this inventory level by 50% by
the end of May. Material A is not used for any other product.
How many kg of material A should be ordered for delivery in May?
600 kg
500 kg
700 kg
400 kg
42) A firm currently produces 4,500 units per week at 90% efficiency. The direct
labour cost is $9,000.
What will be the direct labour cost per unit (to two decimal places of $) if efficiency
can be increased to 100%?
$1.82
$2.20
$1.80
$2.22
43) 20 direct workers and five indirect workers, who all work a basic week of 38
hours, are employed in a factory cost centre. Overtime, paid at 40% above the basic
rates, is worked as necessary to meet the general output requirements of the
factory.
Basic rates of pay are as follows:
$ per
hour
Direct workers 12.00
Indirect workers 9.50
During week six the direct workers were paid for 810 hours and the indirect
workers for 210 hours.
What amount is charged as indirect labour cost in week six?
$1,995
$2,071
$2,235
$2,311
44) Product X requires 1.2 litres of material Y for each unit manufactured.
Inventory of material Y is 1,260 litres at the beginning of a period. 3,300 units of
product X are to be manufactured during the period.
What is the purchase requirement for material Y in the period if inventory of 1,350
litres is to remain at the end of the period?
3,390 litres
3,210 litres
3,870 litres
4,050 litres
45) Summary financial results for Q Co for the last two years have been as follows:
Year 1 ($) Year 2 ($)
Sales revenue 100,000 140,000
Net profit 4,500 6,100
Capital employed 27,300 34,800
In terms of net profit margin and return on capital employed (ROCE) has the
profitability of Q Co increased or decreased from year 1 to year 2?
Net profit margin: Decreased ROCE: Decreased
Net profit margin: Increased ROCE: Increased
Net profit margin: Decreased ROCE: Increased
Net profit margin: Increased ROCE: Decreased
46) A company has calculated the following ratios for a period:
Asset turnover 3.6 times
Profit margin 5.0%
What is the return on capital employed (ROCE)?
1.40%
1.80%
13.90%
18.00%
47) Which of the following is a characteristic of the production operation whenever
job costing is applied?
Production is a continuous operation
There may be joint products from a single operation
The cost unit is continuously identifiable throughout production
Each cost unit will be produced on dedicated machinery
48) Which of the following are main purposes of cost coding?
(1) To enable a logical and systematic arrangement of costing
records
(2) To facilitate electronic data processing
(3) To provide confidentiality
(4) To share production costs between products
3 and 4 only
2 and 3 only
1 and 2 only
1, 2, 3 and 4
49) Documents used in the process of purchasing and using a consignment of raw
materials include materials requisition, purchase order, goods received note and
delivery note.
What is the correct sequence in which the documents will be prepared?
Purchase order, delivery note, goods received note, materials requisition
Purchase order, goods received note, delivery note, materials requisition
Materials requisition, purchase order, delivery note, goods received note
Delivery note, materials requisition, purchase order, goods received note
50) Which of the following is an example of external information for an
organisation?
Organisation structure
Financial reporting standards
Sales ledger records
Report of cost
