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Ma1 Mock Exam 02

Student Name ______________________

Score _________

All fifty questions are compulsory and MUST be attempted

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[Link] of the following would be classified as external information for a business?
A Sales analysis reports prepared by area sales managers

B
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Employee details on the payroll database
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C A report on consumer attitudes prepared by a market research
company
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D A safety conformance report prepared by the business safety officer

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2. What is the correct cost accounting entry in an interlocking system for the
payment of wages?
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A
Dr Bank account Cr Wages control account
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B
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Dr Cost ledger control account Cr Wages control account

C
Dr Wages control account Cr Bank account

D
Dr Wages control account Cr Cost ledger control
account
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3. In which department is a purchase order usually prepared?

A Dispatch department of the supplying
organisation

B Goods received department of the buying

organisation

C Purchasing department of the buying

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organisation

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D Inventory stores department of the buying
organisation

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4.

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Which of the following may be used as classifications for raw materials used
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in product manufacture?
(1) Direct cost
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(2) Functional cost

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(3) Variable cost

A 1, 2 and 3
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B 2 and 3 only

C 1 and 3 only
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D 1 and 2 only
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5.
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The responsibilities of the manager of a business division include decisions relating

to non-current assets.
What type of responsibility centre is described above?
A Cost centre

B Investment
centre

C Revenue centre

D Profit centre

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6.
Each unit of product P requires 1.6 kg of material M. A purchase order is to be

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placed for material M sufficient to provide for the manufacture of product P for the
next two months and for 520 kg or material M to remain in inventory at the end of
month 2.

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460 kg of material M is in inventory at the beginning of month 1 and manufacture of
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product P will be as follows:
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Month 1 400 units

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Month 2 560 units

What is the size of the purchase order that must be placed for material M?
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A 1,536 kg

B 1,476 kg
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C 1,480 kg

D 1,596 kg
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7. A piecework scheme of labour remuneration applies to all direct workers in

a factory. The scheme for each individual is as follows:

Up to 250 units produced in a week 14 per unit

Between 251 and 300 units produced in a week 17 per unit

Over 300 units produced in a week 20 per unit

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Only the additional units produced qualify for the higher rates. Units that fail

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inspection do not qualify for any payment.

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Direct worker X produced 320 units in week 4 but 30 units failed inspection.
What wages were paid to direct worker X in week 4?

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A $6,400

B $4,750
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C $4,930
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D $4,180
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8. A factory cost centre absorbs overhead on the basis of machine hours. In a

period the budgeted overhead costs and budgeted activity in the cost centre
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were $144,000 and 4,100 machine hours respectively. Actual overhead costs
and actual activity in the period were both below budget at $142,600 and
3,950 machine hours respectively.
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What was the predetermined overhead absorption rate per machine hour (to
the nearest $0.01)?
Ed

A $35.12

B $36.46

C $36.10

D $34.78
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9. A trainee accountant is reviewing some spreadsheets, and he has asked you to

look at the following:

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What is being highlighted about the entry for October?

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A The formula used to calculate the monthly total is different to the formulas
used in other months
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B The figure has recently been deleted

C That it is a precedent for the total

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D That it contains a circular reference

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10. When using Excel spreadsheets which of the following can be

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protected?
(1) Individual cells
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(2) A range of cells within a worksheet

(3) An entire worksheet

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A 1 and 2 only

B 1 and 3 only

C 2 and 3 only

D 1, 2 and 3
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11. Which of the following statement(s) regarding weighted average methods

of raw material pricing is/are TRUE?
(1) The periodic weighted average method requires the recalculation of the
issue price after each issue is made

(2) Fluctuations in issue price are reduced if the cumulative, rather than the
periodic, weighted average method is used

A Both statements are false

B Statement 1 is false and statement 2 is true

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C Statement 1 is true and statement 2 is false

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D Both statements are true

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12. ABC Co made the following purchases of material X:
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Units Price ($)

1 January 20X1 500 1.50

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1 February 20X1 1,000 2.00

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1 March 20X1 750 2.50

1 April 20X1 500 1.50

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1 May 20X1 1,500 2.00

1 June 20X1 750 3.00

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On 1 July 20X1 the company used 2,000 units of material X.

Using the first-in first-out (FIFO) method of inventory valuation, what is the
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value of the 2,000 units of inventory used on 1 July 20X1?

A $6,000

B $4,750

C $4,000

D $3,000
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[Link] Co uses process costing for product Alpha.

Production began on 1 September and there was no work-in-progress brought

forward. During the production period 600 kg of raw material were input to the
process and 200 kg of the finished product were output from the process.

At the end of the period work-in-progress was 80% complete with respect to
materials and 60% complete with respect to conversion costs.

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During the production process no losses occurred.

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What are the equivalent units for materials at the end of the production
period?

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A 600 kg

B 520 kg

C 560 kg
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D 440 kg
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14. A member of the sales team is compiling a spreadsheet to show the value of
discounts given to a customer, as follows:
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ba
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Which of the following formulae could be entered into cell C6 and then copied
down to give the correct discount figures for all the months under review?
A =$B6*$B3

B =B6*B$3

C =B6*$B3
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D =B$6*B$3

15. Liz wishes to create an Excel formula which multiplies the contents of cell A1
with the total contents of cells B1, B2, B3, B4 and B5.
Which of the following shows a formula Liz could use?
A A1*SUM(B1:B5

B =A1*AVERAGE(B1:B5)

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C =A1*SUM(B1:B5)

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D =A1*B1+B2+B3+B4+B
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16. Which of the following is the most appropriate formula to enter
into cell B6?

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A =B8/1.8

B =B8-B4

C =B4*B11

D =B4+20
%
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17. The following relate to computer data processing:

(1) It involves transactions being grouped and stored prior to processing

(2) It involves transactions being input and processed as they occur

(3) It is quicker than manual data processing

(4) A system will not always be up-to-date

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Which of the above is/are true of real time computer data processing?

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A 2 and 3

B 2 only

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C 1, 3 and 4

D 1 and 4
only

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18. Which, if any, of the following are ADVANTAGES of having a centralised
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office function?
(1) Junior managers have more opportunities to take on
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responsibility

(2) Expensive equipment can be used more economically

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A 1 only

B Neither 1 nor 2
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C Both 1 and 2

D 2 only
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19. Which of the following is MOST likely to be a task of the accounts

department?
A Setting the sales budget

B Paying suppliers' invoices

C Negotiating prices and discounts with suppliers

D Establishing procedures for hiring staff

20. Which of the following is NOT a requirement of useful management

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information?

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Complete

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Cost beneficial

Timely

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Budgeted
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21. The following information is provided for component X:
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(1) 2,400 units are in the stores

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(2) 6,700 units are on order

(3) 1,600 units are scheduled for use

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What is the amount of 'free' inventory?

A 10,700 units
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B 7,500 units

C 2,400 units
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D 800 units
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22. A company manufactures motor vehicles. In the accounts' coding system, the
code for a particular vehicle model is Ve/26 and the code for the passenger door in
that model is Ve/26/12.
Using the same coding structure, which of the following could represent the
code for the panel in the passenger door of that particular vehicle model?
A Ve/29

B Ve/26/12/0
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C Ve/26/15

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D Ve/27/12

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23. The following information shows the power costs and supervision costs incurred

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by an organisation at different levels of capacity utilisation.

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Capacity utilisation 70% 80% 90% 100%

Power ($'000) 36 39 42 45
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Supervision ($'000) 23 25 25 25
What cost behavioural classifications can be identified?
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A
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Power: variable Supervision: stepped-fixed

B
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Power: variable Supervision: fixed

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C
Power: semi-variable Supervision: stepped-fixed
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D
Power: semi-variable Supervision: fixed

24. .A business has a net (operating) profit margin of 12.0% and asset turnover of 1.4
times.
What is the return on capital employed?
A 16.80%
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B 8.60%

C 11.70%

D 13.40%

25. In a cost accounting system, what would be the entry for the issue of
INDIRECT materials to a production cost centre?
A
Dr Production overhead account Cr Raw materials account

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Dr Raw materials account Cr Production overhead account

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C
Dr Work in progress account Cr Raw materials account
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D
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Dr Raw materials account Cr Work in progress account

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26. An employee has a normal working week of 40 hours paid at a basic rate of
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$10 per hour. Hours in excess of normal are paid at a premium of 30%.
ba

In a particular week the employee worked for 44 hours. Tax is payable at 20% of
gross wages and benefit contributions for the employee for the week were as
follows:
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Employee 25

Employer 37

The employee's net pay for the week was $336.60.

What was the employee's gross pay for the week?
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A $492.00

B $498.25

C $478.32

D $452.00

27. Budgeted production overheads, allocated and apportioned to the four cost
centres in a factory for a period, are as follows:

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Production cost centres Service cost centres

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PCC1 ($) PCC2 ($) Stores ($) Maintenance ($)

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28,600 21,800 6,200 8,160

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Material requisitions and maintenance hours in the period are budgeted to be as
follows:
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Material requisitions Maintenance hours
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PCC1 300 80
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PCC2 200 90
What is the total budgeted overhead in PCC2 after re-apportionment of service
cost centre overheads?
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A. $36,160

B $35,400
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C $29,360

D $28,600
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28. Jane works for XYZ Co. She has created a spreadsheet which lists contact
details for all XYZ Co's clients.
Which spreadsheet functions should Jane use to display details for all clients
based in the South region in alphabetical order?
A Filtering and ranking

B Ranking and linking

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C Filtering and sorting

D Sorting and ranking

29. What, in the use of spreadsheets, is known as a cell?

A The formatting of numbers

B The intersection of a row and a column

C The formula placed in a particular

location

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D A workspace divided into rows and
columns

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30. At the end of its financial year, a manufacturing company has the following

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materials held in inventory:
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(1) 100 toy cars which are complete but require packaging prior to being sold or
dispatched
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(2) One ton of plastic which will be moulded into various products
Pr

Which of the following is the correct classification for the toy cars and the
plastic?
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A Toy cars are finished goods and the plastic is work in

progress

B Toy cars are finished goods and the plastic is raw

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material

C Both the toy cars and the plastic are work in progress
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D Toy cars are work in progress and the plastic is raw

material

31. Which of the following items would be included in a job cost separately?
(1) Cost of sales

(2) Direct labour

(3) Selling overhead

(4) Profit
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A 1 only

B 2 and 3 only

C 1, 3 and 4 only

D 2, 3 and 4

32. Daz Co uses process costing and a number of separate processes:

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(1) Process Alpha has losses of 5% of input

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(2) Process Beta has losses of 3% of input

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Both processes have the same inputs.
Which of the following statements is/are true in relation to these processes?

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(1) The Alpha total process cost is the same as the Beta total process cost
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(2) The Alpha cost per unit is higher than the Beta cost per unit
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Both statement 1 and statement 2

Statement 2 only
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Statement 1 only

Neither statement 1 nor statement

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2
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33. Which of the following is/are the MAIN benefits of spreadsheets to the
work of management accountants?
(1) The ability to embed files produced using word processing software
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(2) Linking of spreadsheets so that changes in data automatically feed from one
page to another

(3) The facility to perform 'what if' calculations

A 2 and 3 only

B 1, 2 and 3

C 3 only
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D 1 and 2 only

34. The following statements are about documentation for direct materials
requests:

(1) A materials requisition is completed after materials have been received by the
production department

(2) The buyer prepares a purchase order to ask for goods to be supplied

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Are the statements true or false?
A Both statements are true

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B Statement 1 is false and statement 2 is true

C Statement 1 is true and statement 2 is false

D Both statements are false

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35. There is an error in cell J3 of this spreadsheet:
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Which of the following formulae could have caused this error?

A =I3/H3
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B =I3/H2

C =I3/H4
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D =I3/I3
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36. Which of the following statement(s) about information is/are TRUE?

(1) Information is data that has been processed in such a way as to be

meaningful to the recipient

(2) The purpose of management information is to assist the efficient and

effective management of resources

A Neither statement 1 nor

statement 2

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B Statement 2 only

C Statement 1 only

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D Both statement 1 and statement
2

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37. Which of the following statement(s) concerning the use of codes

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is/are TRUE?
(1) The classification of costs is simplified

(2) Electronic data processing is facilitated

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A Both statement 1 and statement

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B Statement 1 only
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C Statement 2 only

D Neither statement 1 nor

statement 2
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38. A bonus scheme operates in a factory. The bonus is calculated as:

[(time allowed - time taken) / 3] x basic rate per hour

Basic pay in the factory is $10 per hour and time allowed is one hour for the
production of 20 units. An employee produced 820 units in 35 hours.
What were the employee's total earnings?
A $350

B $370

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C $400

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D $410

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39. The following statements relate to absorption and marginal costing:

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(1) Absorption costing profit will always be higher than marginal costing profit in
any period when inventory is increasing
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(2) Inventory valuations will always be greater if absorption costing rather than
marginal costing is used
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Which of the statement(s) is/are TRUE?

A Statement 1 only

B Both statement 1 and statement

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C Statement 2 only
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D Neither statement 1 nor

statement 2
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40. Which of the following may be used to measure performance in a

profit centre?
(1) Net (operating) profit margin

(2) Residual income

(3) Return on capital employed

(4) Asset turnover

A 1 and 4 only

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B 1 only

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C 1, 2, 3 and 4

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D 2, 3 and 4
only

41. What is a cost unit?

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A A basis for cost classification

B The unit cost of direct materials and direct labour

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C The cost per unit of output

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D A unit of output in relation to which costs are

ascertained
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42. A company manufactures product Z. A team of six direct workers

currently manufactures five units of the product in one hour. Each worker is
paid at $8 per hour.
If productivity (output per hour) reduces by 10%, what will be the direct
labour cost per unit of product Z (to two decimal places)?
A $8.64

B $9.60

C $10.67

D $10.56

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43. For direct workers, how are overtime premiums and idle time costs
normally accounted for?
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A
Overtime premiums: Indirect cost Idle time: Indirect cost
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B
Overtime premiums: Indirect cost Idle time: Direct cost
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C
Overtime premiums: Direct cost Idle time: Indirect cost
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D
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Overtime premiums: Direct cost Idle time: Direct cost

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44. Would each of the following be classified as a direct or an indirect cost?

(1) The parts used by a vehicle mechanic in the repair of a car for a customer

(2) The salary of a factory manager

(3) The wages of a factory maintenance department

A
1, 2 and 3 are direct No indirect costs
costs

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B
1 and 2 are direct 3 is an indirect cost

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costs

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C
1 is a direct cost 2 and 3 are indirect costs
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D
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No direct costs 1, 2 and 3 are indirect costs

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45. Which of the following documents would form part of the

purchasing system?
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(1) Purchase invoice

(2) Goods received note

(3) Purchase requisition

A 2 and 3 only

B 1, 2 and 3

C 1 and 2 only
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D 1 and 3 only

46. Which of the following can be the contents of a

spreadsheet cell?
(1) Formula

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(2) Text

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(3) Value

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A 1 and 2 only

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B 1 and 3 only

C 2 and 3 only
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D 1, 2 and 3
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47. Which of the following would use

process costing?
(1) Education provision
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(2) Accounts preparation

(3) Soft drink production

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(4) Oil refining

A 1 only

B 1 and 2

C 3 only

D 3 and 4
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48. In a spreadsheet, which menu options should be selected in order to save

a copy of the current worksheet whilst leaving the original document intact?
A File and Save

B Insert and Save

C File and Save As

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D Insert and Save As

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49.
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A company has two production cost centres, M and L. M absorbs overheads on the
basis of machine hours and L absorbs overheads on the basis of labour hours. The
following information is available for the next period:
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Cost centre M L
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Allocated and apportioned production overheads $400,000 $600,000

Direct labour hours 50,000 150,000

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Machine hours 80,000 30,000

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Job ABC will require four machine hours and three labour hours in each of the two
production cost centres.
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How much production overhead will be absorbed by job ABC?

A $32

B $44

C $31

D $64
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50. Which of the following statements relating to management

accounts are TRUE?
(1) They have a standard format

(2) They are prepared for internal use

A Both statement 1 and statement

2

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B Statement 1 only

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C Statement 2 only

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D Neither statement 1 nor
statement 2

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