F2- MANAGEMENT ACCOUNTING

1. If an assembly line supervisor is paid a salary of $100 each week and and additional $0.10 for every unit of production made in the week, this wage could be described as

• A. A semi-variable cost

• B. Afixed cost

• C. Avariable cost

• D. Astep cost

2. What is the "lead time" in inventory control?

• A. The time between placing an order with a supplier, and the inventory becoming available for use

• B. The time between placing an order with a supplier, and the time purchasing department receiving inventory

• C. The time inventory be used from maximum inventory level to minimum inventory level

• D. The time inventory be used from production department making a request to purchasing department placing an order

3. Which of the following is the best describe of "EOQ"?

• A. The economic order quantity (EOQ) is the order quantity which minimises inventory purchasing costs

• B. The economic order quantity (EOQ) is the order quantity which minimises inventory ordering costs

• C. The economic order quantity (EOQ) is the order quantity which minimises inventory holding costs

• D. The economic order quantity (EOQ) is the order quantity which minimises inventory costs!

4. Which statement as follow is the best describe about overtime premium?

• A. Overtime premium is the whole of the payments for overtime hours

• B. Overtime premium is the extra rate per hour which is paid, not the whole of the payment for overtime hours

• C. Overtime premium is the basic rate which is paid for overtime hours

• D. Overtime premium is the extra rate per hour which is paid for specific job

5. Re-apportionment is a stage, in that

• A. Overhead is allocated to one cost centre

• B. Overhead is shared to more than one cost centre

• C. Overhead is shared from service centres to production centres

• D. Overhead is shared from production centres to service centres

6. What is one of principles of marginal costing?

• A. Period fixed costs are the same, for any volume of sales and production

• B. Period variable costs are the same, for any volume of sales and production

• C. Fixed costs are not the same at different levels of activity

• D. Variable costs per unit are not the same at different levels of activity

7. In a process account, how are abnormal gains valued?

• A. At their scrap value

• B. The same as goods production

• C. At the cost of raw materials

• D. The same as normal losses

8. ABC systems assign overheads to:

• A. Each major activity

• B. Each function

• C. Each department

• D. Each cost centre

9. Which stage of a product life is aimed by target costing?

• A. Development and design stage

• B. Introduction stage

• C. Growth stage

• D. Maturity stage

10. The statement "a plan of what the organization is aiming to achieve and what it has set as a target whereas a forecast is an estimate of what is likely to occur in the future" is the term of!

• A. Budget

• B. Fixed Budget

• C. Flexed Budget

• D. Flexible Budget