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Which of the following is NOT CORRECT?
Cost accounting can be used for inventory valuation to meet the requirement of internal reporting only
Management accounting provides appropriate information for decision making, planning, control and performance evaluation
Routine information can be used for both short-term and long-run decisions
Financial accounting information can be used for internal reporting purposes
Which of the following would be included in the financial accounts but may be excluded from the cost accounts?
Direct material costs
Depreciation of storeroom handling equipment
Bank interest and charges
Factory manager’s salary
An investment centre is best defined as :
A centre within an enterprise with responsibilities for revenues, costs and capital investment, and whose performance is measured by its return on capital employed
A centre within an enterprise with responsibilities for revenues and costs, and whose performance is measured by its profitability
A centre within an enterprise where costs are collected before being analysed further
A centre within an enterprise whose performance is the responsibility of a specific manager
Which of the following may be included in the cost accounts but excluded from them financial accounts?
Deprecation of equipment
Factory manager’s salary
Which of the following are necessary features of useful management information?
Clear to the user
Detailed and completely accurate
Provided whatever the cost
Relevant for purpose
Cost centres are:
units of product or service for which costs are ascertained
amounts of expenditure attributable to various activities
functions or locations for which costs are ascertained and related to cost units
a section of an organisation for which budgets are prepared and control exercised
The management accounting of X has written report assessing the cost savings that could be made if the company were to invest in new technology.
In which area will the report primarily aid the management of X?
Which of the following are characteristics of management accounting information?
Non-financial as well as financial
Used by all stakeholders
Concerned with cost control only
Not legally required
Primes cost comprises:
all variable costs
direct labour and direct material only
direct labour, direct material and direct expense
direct labour, direct material and production overhead
A semi-variable cost is one that :
increase in direct proportion to output
remains constant irrespective of the level of output
contains an element of both fixed variable costs
increases throughout the year
Which of the cost listed below is NOT a fixed cost?
Depreciation – based on straight-line method
Materials used in production
Production overhead comprises:
variable overheads only
indirect labour, indirect material and indirect expenses related to production activity
indirect expenses only
indirect labour and material related to the production activity
A direct cost is:
a cost which cannot be influenced by its budget holder
expenditure which can be economically identified with a specific cost unit
cost which needs to be apportioned to a cost centre
the highest proportion of the total cost of the if a product
The following graph represents which type of cost?
The following picture relate to the overheads expenditure of contract cleaners at two activity levels.
Using the high-low method, what is the estimate of the overhead cost if 16,200 square metres are to be cleaned?
Which description best fits the cost curve?
Direct material cost per unit
Fixed production cost per unit
Direct labour cost per unit
Variable production cost per unit
A particular cost is classifies as being “semi-variable”
If activity increase by 10% what will happen to the cost per unit?
Reduces but not in proportion to the change in activity
Reduces in proportion to the change in activity
Which of the following would be regarded as a stepped-fixed cost in the operation of a motor vehicle?
Hire purchase payments
Which TWO of the following cost units?
A car manufactured in a car factory
A person employed as a hairdresser
An accounts department at a software company
A pizza sold by a pizza restaurant
A small engineering company that makes generator specifically to customers' own design has had to purchase some special tools for a particular job. The tools will have no further use after work has been completed and will be scrapped.
How should the cost of these tools be treated?
As a fixed production overheads
As indirect expenses
A variable production overheads