F2 (MA/FMA) – Chapter 10a – PART D – CBE MCQs – ACCA

These are ACCA F2 (MA/FMA) Management Accounting MCQs for Part-D of the Syllabus “Budgeting”.

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 10a – Budgeting and Syllabus Area Part-D “Budgeting”.

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

INFORMATION ABOUT THESE CBE MCQs Test/Quiz

Course: ACCA – Associations of Chartered Certified Accountants
Fundamental Level: Knowledge, FIA – Foundation in Accounting
Subject: Management Accounting
Paper: F2 – MA/FMA
Chapter: Budgeting
Chapter Number: 10a of the Practice and Exam Kit
Syllabus Area: D – Budgeting
Questions Type: CBE MCQs
Exam Section Type: Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part D of the Syllabus; Budgeting 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 Quiz. 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 seem correct/ or incorrect to you, 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 10a - Part A - MCQs

Course: ACCA - FIA
Subject:
F2 (MA/FMA) Management Accounting
Chapter: 10a - Budgeting
Syllabus Area: D - Budgeting
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

  1. If you are using mobile, turn on the mobile rotation and solve the MCQs on wide screen for better experience.

REQUEST

  1. Please rate the quiz and give us feedback once you completed the quiz.
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1 / 14

What does the statement 'sales is the principal budget factor' mean?

2 / 14

The standard cost card for a company’s only product is given below:

$ per unit
Selling price 118
Direct labour 4 hours at $20 per hour 80
Direct material 3 kg at $7 per hour 21
Fixed production overhead 5
Profit 12

For a period, budgeted production and sales were 8,000 units, whilst actual production and sales were 6,000 units.

What is the flexed budget profit?

3 / 14

Budgeted costs and revenues for an output level of 4,000 units are given below. It is known that after an output level of 5,000 units there is a step up in fixed costs of $1,000:

$ per unit
Selling price 30
Variable cost 18
Fixed cost 4
Profit   8  

What is the flexed budget profit at an output level of 6,000 units?

4 / 14

  A B C D F G
1 Jan Feb Mar Apr May
2 Sales 15,000 13,400 16,100 17,200 15,300
3 Cost of sales 11,090 10,060 12,040 13,000 11,100
4 Gross profit 3,910 3,340 4,060 4,200 4,200
5 Expenses 1,500 1,500 1,500 1,500 1,500
6 Net profit 2,410 1,840 2,560 2,700 2,700
7
8 Net profit %

What would be the formula for March net profit?

5 / 14

  A B C D F G
1 Jan Feb Mar Apr May
2 Sales 15,000 13,400 16,100 17,200 15,300
3 Cost of sales 11,090 10,060 12,040 13,000 11,100
4 Gross profit 3,910 3,340 4,060 4,200 4,200
5 Expenses 1,500 1,500 1,500 1,500 1,500
6 Net profit 2,410 1,840 2,560 2,700 2,700
7
8 Net profit %

The formula =C2-C3 will give the contents of which cell in the drop down list?

6 / 14

QT Co manufactures a single product and an extract from their flexed budget for production costs is as follows.

Activity level
Customer 80% 90%
$ $
Direct material 2,400 2,700
Labour 2,120 2,160
Production overhead 4,060 4,080
8,580 8,940

What would the total production cost allowance be in a budget flexed at the 83% level of activity? (to the nearest $)

7 / 14

Which of the following may be considered to be objectives of budgeting?

  1. Co-ordination
  2. Communication
  3. Expansion
  4. Resource allocation

8 / 14

Misty Co's budgetary control report for last month is as follows:

Fixed budget Flexed budget Actual results
$ $ $
Direct costs 61,100 64,155 67,130
Production overhead 55,000 56,700 54,950
Other overhead 10,000 10,000 11,500
126,100 130,855 133,580

What was the volume variance for last month?

9 / 14

The following spreadsheet shows the calculation of a company’s profit.

A B
1 $
2 Sales revenue 20,000
3 Variable production costs 5,000
4 Fixed production costs 3,000
5 Gross profit 12,000
6 Variable selling costs 1,000
7 Fixed selling costs    500
8 Profit 10,000

Which formula would calculate contribution?

10 / 14

A company manufactures a single product. In a computer spreadsheet the cells F1 to F12 contain the budgeted monthly sales units for the twelve months of next year in sequence, with January sales in cell F1 and finishing with December sales in F12. The company policy is for the closing inventory of finished goods each month to be 10% of the budgeted sales units for the following month.

Which of the following formulae will generate the budgeted production (in units) for March next year?

11 / 14

Which of these statements is untrue?

12 / 14

The following spreadsheet shows a profit centre's variances against budget for a period. Some figures have been omitted (omitted figures are labelled ????).

A B C D E
1 Fixed budget Flexed budget Actual Variance
2 Sales/production units 1,200 1,500 1,500 300
3 $ $ $  $
4 Sales revenue 60,000 75,000  74,000 -1,000
5 Direct material 21,600      ??? 24,000      ???
6 Direct labour 14,400 18,000 22,000 -4,000
7 Contribution 24,000      ??? 28,000      ???
8 Fixed costs 17,000 17,000 16,500     500
9 Profit   7,000 13,000 11,500       na

What figure should appear in cell E5?

13 / 14

Misty Co's budgetary control report for last month is as follows:

Fixed budget Flexed budget Actual results
$ $ $
Direct costs 61,100 64,155 67,130
Production overhead 55,000 56,700 54,950
Other overhead 10,000 10,000 11,500
126,100 130,855 133,580

What was the expenditure variance for last month?

14 / 14

  A B C D F G
1 Jan Feb Mar Apr May
2 Sales 15,000 13,400 16,100 17,200 15,300
3 Cost of sales 11,090 10,060 12,040 13,000 11,100
4 Gross profit 3,910 3,340 4,060 4,200 4,200
5 Expenses 1,500 1,500 1,500 1,500 1,500
6 Net profit 2,410 1,840 2,560 2,700 2,700
7
8 Net profit %

What would be the formula for March net profit?

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