BA2 Progress Test 1

Which of the following is NOT part of the role of CIMA?

• Offering a continuing education scheme to its members

• Ensuring that each member complies with CIMA's regulations

• Issuing a code of ethics

• Upholding public confidence in management accounting

What is the purpose of management information?

• Planning only

• Planning and control only

• Planning, control and decision making only

• Planning, control, decision making and research and development

Management accounting and financial accounting analyse data and information in different ways. For each of the following features. Which of the following features are relevant to FINANCIAL accounting?

• Information focuses on the needs of internal management

• Information can be presented in any format

• Information relates to both the future and the past

• Information is specified by law

Which of the following statements is true?

• Strategic tasks are highly structured

• Operational tasks are short term in timescale

• Tactical information is mostly external

• Operational plans are implemented by top level management

Which of the following items might be a suitable cost unit within the accounts payable department of a company?

1 Postage cost

2 Invoice processed

3 Supplier account

• Item 1 only

• Item 2 only

• Item 3 only

• Items 2 and 3 only

• Items 1 and 3 only

A company makes chairs and tables. Which of the following is NOT a direct cost?

• Metal used for the legs of a chair

• Royalty fee to table designers

• Hourly wage for production employees

• Salary of Production Facility Supervisor

• None of the Above

ZK has been asked to quote a price for a special job that must be completed within one week. General fixed overheads are estimated at 10% of total production cost. The job requires a total of 100 skilled labour hours and 50 unskilled labour hours. The current employees are paid a guaranteed minimum wage of $525 for skilled workers and $280 for unskilled workers for a 35-hour week. Currently, skilled labour has spare capacity amounting to 75 labour hours each week and unskilled labour has spare capacity amounting to 100 labour hours each week. Additional skilled workers and unskilled workers can be employed and paid by the hour at rates based on the wages paid to the current workers.

What is the total relevant cost to ZK of using skilled and unskilled labour on this job?

• $0

• $375

• $775

• $1,540

B Co has recorded the following data in the two most recent periods. Total cost of is $13,500 for 700 units and $18,300 for 1,100 units

What is the best estimate of the company's fixed costs per period?

• $13,500

• $13,200

• $5,100

• $4,800

A hotel has recorded that the laundry costs incurred were $570 when 340 guests stayed for one night. They know that the fixed laundry cost is $400 per night. What is the variable laundry cost per guest night (to the nearest cent, do not use the $ sign)?

DP Co is preparing its estimate of distribution costs for the next period. Based on previous experience, a linear relationship has been identified between sales volume and distribution costs. The following information has been collected concerning distribution costs.

for 22,000 units the cost was $58,600 and for 34,000 units the cost was $73,000

What would be the estimated distribution costs for a sales volume of 28,000 units?

(Do not use commas or fullstops to separate your numbers)