MA (Mock 2)

Which TWO of the following cost classifications can be applied to the straight-line depreciation of office equipment?

• Period

• Production

• Indirect

• Variable

Purchase of raw materials on credit

• Dr. Cost ledge control
  Cr. Materials control

• Dr. Materials control
  Cr. Payables

• Dr. Materials control
  Cr. Cost ledge control

• Dr. Payables
  Cr. Materials control

Which of the following is likely to be preferred as the basic for production overhead absorption?

• Blanket rate per actual machine hour

• Blanket rate per unit of product

• Predetermined rates per $ of sales

• Predetermined rates per direct labour hour

What was the abnormal gain/loss?

• 285 kg abnormal gain

• 285 kg abnormal loss

• 330 kg abnormal gain

• 330 kg abnormal loss

Which of the following statements is true of service costing?

• A composite cost unit may be used

• Output is often tangible

• Indirect cost normally represent a small proportion of total costs

• The cost of direct materials tends to be high in relation to other cost

In the UK market which of the following types of investment is considered to carry the lowest risk?

• Equities

• Government stocks

• Certificates of deposit

• Local authority stocks

Using the flexed budget are the cost variances adverse or favourable ?

• Direct cost : Favourable
  Overheads: Adverse
  

• Direct costs: Adverse
  Overheads: Favourable

• Direct costs: Adverse
  Overheads: Adverse

• Direct costs: Favourable
  Overheads: Favourable

In a large business which of the following activities is most likely to be the responsibility of a trainee accountant?

• Interpreting cost variances

• Determining selling price strategy

• Making capital investment decisions

• Coding invoices

What should be included in product costs when valuing inventory using absorption costing?

• Direct material + Direct labour + Direct expenses only

• Direct cost + Variable production overheads only

• Prime costs + Production overheads + Non-production overheads

• Prime costs + Production overheads only

What is the amount written off as abnormal loss ( to the nearest $)?

• $170

• $193

• $177

• $202