F2 (MA/FMA) – Chapter 03b – PART A – CBE MCQs – ACCA

These are ACCA F2 (MA/FMA) Management Accounting MCQs for Part-A of the Syllabus “The nature, source and purpose of management information”.

These MCQs are designed in a way that students could better understand the exam format and get used to practice online. This approach will reduce exam stress and enable students to prepare better.

We request the students, Not to solve the MCQs until they have learned and finished the entire F2 (MA/FMA) Management Accounting Chapter 3b – Cost behaviour and Syllabus Area Part-A “The nature, source and purpose of management information”.

All the questions are compulsory, so do not skip any.

INFORMATION ABOUT THESE MCQs Test

Course: ACCA – Associations of Chartered Certified Accountants
Fundamental Level: Knowledge, FIA – Foundation in Accounting
Subject: Management Accounting
Paper: F2 – MA/FMA
Chapter: Cost behaviour
Chapter Number: 03b of the Practice and Exam Kit
Syllabus Area: A – The nature, source and purpose of management information
Questions Type: CBE MCQs
Exam Section Type: Section A

Number of the Questions

These Multiple Choice Questions (MCQs) contains 20 Questions that covers the Syllabus Area Part A of the Syllabus; The nature, source and purpose of management information of ACCA F2 (MA/FMA) Management Accounting Module.

Time

These multiple-choice questions (MCQs) are not timed, allowing students to solve them without feeling any pressure and to pay proper attention to the questions.

Result

Students can see their result at the end of the test. They can also be able to see the number of correct and wrong questions. Moreover, the explanation of wrong questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seems to you correct/ or incorrect, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)“.
Drop down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.


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F2 - Chapter 3b - Part A - MCQs

Course: ACCA - FIA
Subject:
F2 (MA/FMA) Management Accounting
Chapter: 3b - Cost behaviour
Syllabus Area: A - The nature, source and purpose of management information
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

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REQUEST

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1 / 20

An organization manufactures a single product. The total cost of making 4,000 units is $20,000 and the total cost of making 20,000 units is $40,000. Within this range of activity the total fixed costs remain unchanged.

What is the variable cost per unit of the product (to 2 dp)?

$ _____

2 / 20

The following shows the total overhead costs for given levels of a company's total output.

Cost Output
$ Units
4,000 1,000
7,000 2,000
10,000 3,000
9,500 4,000

A step up in fixed costs of $500 occurs at an output level of 3,500 units.

What would be the variable overhead cost per unit (to the nearest $0.01) using the high-low technique?

3 / 20

When total purchases of raw material exceed 30,000 units in any one period then all units purchased, including the initial 30,000, are invoiced at a lower cost per unit.

Which of the following graphs is consistent with the behaviour of the total materials cost in a period?

3b.16 F2 (MA/FMA) - Chapter 03b - PART A - CBE MCQs - ACCA Business Students Platform

4 / 20

The following diagram represents the behaviour of one element of cost:

3b.14 copy F2 (MA/FMA) - Chapter 03b - PART A - CBE MCQs - ACCA Business Students Platform

Which of the following statements is consistent with the above diagram?

5 / 20

3b.3 to 3b.7 F2 (MA/FMA) - Chapter 03b - PART A - CBE MCQs - ACCA Business Students Platform

Which one of the above graphs illustrates the costs described below!
"A step fixed cost – when the vertical axis represents cost incurred."

6 / 20

3b.3 to 3b.7 F2 (MA/FMA) - Chapter 03b - PART A - CBE MCQs - ACCA Business Students Platform

Which one of the above graphs illustrates the costs described below!
"A linear variable cost – when the vertical axis represents cost per unit."

7 / 20

3b.3 to 3b.7 F2 (MA/FMA) - Chapter 03b - PART A - CBE MCQs - ACCA Business Students Platform

Which one of the above graphs illustrates the costs described below!
"A linear variable cost – when the vertical axis represents cost incurred."

8 / 20

A company incurs the following costs at various activity levels:

Total cost Activity level
$ Units
250,000   5,000
312,500   7,500
400,000 10,000

Using the high-low method what is the variable cost per unit? (to the nearest whole number)

$________

9 / 20

What type of cost is supervisor salary costs, where one supervisor is needed for every ten employees added to the staff?

10 / 20

A total cost is described as staying the same over a certain activity range and then increasing but remaining stable over a revised activity range in the short term.

What type of cost is this?

11 / 20

The following information for advertising and sales has been established over the past six months:

Month Sales revenue Advertising expenditure
$'000 $'000
1 155 3
2 125 2.5
3 200 6
4 175 5.5
5 150 4.5
6 225 6.5

Using the high-low method which of the following is the correct equation for linking advertising and sales from the above data?

12 / 20

Fixed costs are conventionally deemed to be which of the following?

13 / 20

The following data relate to the overhead expenditure of a contract cleaners at two activity levels.

Square metres cleaned 13,500 15,950
Overheads $84,865 $97,850

What is the estimate of the overheads if 18,300 square metres are to be cleaned?

$_________

14 / 20

The following observations of output and cost have been made:

Output Cost
Units $
  8,000 39,400
20,000 68,000

It is known that at output levels above 15,000 units, variable cost per unit drops by $1 per unit for all subsequent units produced.

What is the variable cost for each unit of output above 15,000 units?

15 / 20

A company has recorded the following data in the two most recent periods.

Total costs of production Volume of production
$ Units
13,500 700
18,300 1,100

What is the best estimate of the company's fixed costs per period?

$________

16 / 20

3b.3 to 3b.7 F2 (MA/FMA) - Chapter 03b - PART A - CBE MCQs - ACCA Business Students Platform

Which one of the above graphs illustrates the costs described below!
"A fixed cost – when the vertical axis represents cost incurred."

17 / 20

3b.3 to 3b.7 F2 (MA/FMA) - Chapter 03b - PART A - CBE MCQs - ACCA Business Students Platform

Which one of the above graphs illustrates the costs described below!
"A semi-variable cost – when the vertical axis represents cost incurred."

18 / 20

A production worker is paid a salary of $650 per month, plus an extra 5 cents for each unit produced during the month.

How is this type of labour cost best described?

19 / 20

The total cost of production for two levels of activity is as follows:

Level 1 Level 2
Production (units) 3,000 5,000
Total cost ($) 6,750 9,250

The variable production cost per unit and the total fixed production cost both remain constant in the range of activity shown.

What is the level of fixed costs? (to the nearest whole number)

$_______

20 / 20

A company has prepared flexed budgets at two activity levels. The cost per unit of three costs is given below. All three costs behave in a linear manner with respect to activity.

 Activity level (units)
10,000 15,000
Cost
X $3.0 per unit $2.0 per unit
Y $1.0 per unit $1.0 per unit
Z $3.5 per unit $3.0 per unit

Is each of the costs variable, semi-variable or fixed?

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