MA - Mock (3) 2023

Z Co is evaluating a project which will generate cash flows of $2,600 each year in years four to eight. (The first amount will be received in four years from now.)

What is the present value of the project cash flows using a discount rate of 14%?  

• $12,061

• $6,822

• $6,024

• $4,485

The following bar chart shows the overhead expenses for a business for each quarter of 20X1

What was the reduction in overhead expenses between quarter three and quarter four?

• $12,00,000

• $800,000

• $400,000

• $40,000

Data relating to two processes (L and M) are as follows:

For each process, was there an abnormal gain or an abnormal loss?

1. Process M

2. Process L

• Process L -Abnormal loss

  Process M - Abnormal loss

• Process M -Abnormal loss

  Process L - Abnormal gain

• Process L -Abnormal loss

  Process M - Abnormal gain

• Process L -Abnormal gain

  Process M - Abnormal gain

The manager of the southern region of a catering company has specified weekly sales targets for each sales representative.

What type of objective are these targets?  

• Operational

• Tactical

• Non-operational

• Strategic

Product A uses 4 kg of material X and 7 kg of material Y at a standard price of $5 per kg and $6 per kg respectively. Product A needs two hours of skilled labour and one hour of semi-skilled labour at $10 per hour and $8 per hour respectively.

 

Production overhead is absorbed at $5 per labour hour. Selling and distribution costs are $3 per unit of product A.

What is the standard cost of production for product A?  

• $47

• $90

• $108

• $105

Is each of the following statements, which refer to documents used in the material procurement procedures of a company, true or false?  

1. All goods received notes are prepared in the goods inwards department

2. All purchase requisitions are prepared in the purchasing department and are then sent to the appropriate suppliers

• 1. False

  2. True

• 1. True

  2. False

• 1. True

  2. True

• 1. False

  2. False

The following information relates to a manufacturing company for next period:

 

Using absorption costing, the budgeted loss for the next period is $30,000.

What would be the budgeted loss for next period using marginal costing?  

• $52,000

• $50,000

• $10,000

• $8,000

For which TWO of the following production overhead costs would 'floor area occupied' be a suitable basis of apportionment?'

(a) Stationery

(b) Factory rent

(c) Equipment depreciation

(d) Heating

• (a) & (b)

• (b) & (d)

• (a) & (d)

• (b) & (c)

The following statements refer to attributes of good information:

 (1) The cost of producing information should be less than the benefit derived from it

(2) Information should be understandable to the managers who use it

(3) Information should always be 100% accurate before it is used

 

Which of the statements regarding the attributes of good information are TRUE?

• 1 and 3 only

• 1, 2 and 3

• 1 and 2 only

• 2 and 3 only

Budgeted production in a factory for next period is 4,800 units. Each unit requires five labour hours to make. Labour is paid $10 per hour. Idle time represents 20% of the total labour time.

What is the budgeted total labour cost for the next period?  

• $240,000

• $288,000

• $192,000

• $300,000