Management and Cost Accounting MCQs

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Which statement regarding management accounting is true?






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If actual units produced are lower than the budgeted level of production which of the following actual costs would you expect to be lower than the bud...






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The following data relates to Lizard Ltd for last year :- Highest Lowest Monthly production cost £45,000 £31,000 Monthly machine hours 14,000 9,0...






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The following relates to two levels of output :- 10,000 units 15,000 units Total cost £22,000 £27,000 The actual value of fixed costs assuming li...






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Which of the following best describes a fixed cost?






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An example of a production overhead would be:-






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A semi variable cost would :-






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A company uses 9,000 units of a component per annum. The component has a purchase price of £40 per unit and the cost of placing an order is £160. Th...






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The purchase price of a stock item is £25 per unit. In each three month period the usage of the item is 20,000 units. The annual holding costs assoc...






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A company determines its order quantity for a component using the Economic Order Quantity (EOQ) model. What would be the effects on the EOQ and the t...






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Which of the following would not be classed as an overhead:






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A company has two production departments and two service departments with the following fixed overheads: Production Service Department W X Y Z Ove...






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The following details are available for a business: Machining Assembly Maintenance Administration area sq/m 5,000 6,000 2,000 1,200 no. of employee...






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Which of the following statements is not true:






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Overheads






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Absorption costing will be applied to which of the following cost elements:






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A company has the following details: Machining Assembly Total cost centre overhead £120,000 £180,000 Machine hours 15,000 9,000 Labour hours 2,0...






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A business has an overhead absorption rate of £1.50 per labour hour. Actual hours incurred were 2,150. At the end of the period actual overheads amou...






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Each unit of product P requires: 1.5 kgs of material @£8 per kg 3 hours of machining @£10 2 hours of labour for assembly and inspection @£8 Mac...






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A manufacturing company uses a machine hour rate to absorb production overheads, which were budgeted to be £130,500 for 9,000 machine hours. Actual o...