ACCA MA F2 Exam kit PDF

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Question BankACCAManagement Accounting (MA)From September 2020ii Introduction ACCA MA Question BankNo part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior ...

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Question Bank ACCA Management Accounting (MA) From September 2020

ii I n tr od u ction

No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of First Intuition Ltd. Any unauthorised reproduction or distribution in any form is strictly prohibited as breach of copyright and may be punishable by law. We are grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions and model answers. Additional comments and guidance have been prepared by First Intuition Ltd. © First Intuition Ltd, 2020 ARPIL 2020 RELEASE

ACCA MA Quest ion Bank

A CCA MA Quest ion Ba nk

I n tr od u ction

How to use thi s Question Ba nk

1 QUESTION PRACTICE IS KEY TO SUCCESS This Question Bank has been written to help you pass Paper MA Management Accounting.

Targeted question practice In the first section there are banks of questions based around each chapter of the Course Notes. The number of questions reflects the weighting of the topic to the syllabus. You should attempt to do all the questions before attempting the mock assessments at the end.

Do the practice exam and the mock assessments The importance of question practice cannot be underestimated and you should attempt the mocks under assessment conditions. For this paper you have two hours to answer 35 questions in section A and all three questions in section B. It is vital you stick to the time allocation and answer every question. The types of question that may be included are as follows:

Multiple Choice

Number Entry

You are required to choose one answer from a list of options by clicking on the appropriate radio button You are required to select more than one response from the options provided by clicking the appropriate tick boxes You are required to select a response to a number of related statements by clicking on the radio button which corresponds to the appropriate response for each statement You are required to key in a numerical response to the question

Gapfill

You are required to enter answers into blank areas

Hot Spot

You are required to choose one or more answers by clicking on the appropriate hotspot area/ areas on an image

Multiple Response Multiple Response Matching

Each of the above types of question are included in this Question Bank.

OT

MTQ

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iv I n t r od u ction

ACCA MA Q uest ion Ba nk

Contents Topic

Number of questions

Q

Page ref A

30 1-2 3 4-9 10-12 13-30

1 1 1 2 3

119 119 119 120 120

8

123

Chapter 1: Management accounting and information Objective test questions Accounting for management Planning, decision-making and control Data and information Sampling Presenting information

Chapter 2: Statistical techniques Objective test questions Statistical techniques

21 1-21

Chapter 3: Summarising and analysing data Objective test questions

30

Expected values

1-11

14

126

Averages and distributions

12-30

17

128

30 1-19 10-27 28 29 30

22 24 28 28 28

133 134 136 136 136

30 1-30

29

137

7 1-7

34

142

30 1-30

36

144

18 1-18

44

148

48

152

Chapter 4: Costing Objective test questions Cost classification Cost behaviour Cost coding Cost measurement Management of business units

Chapter 5: Accounting for materials Objective test questions Accounting for materials

Chapter 6: Accounting for labour Objective test questions Accounting for labour

Chapter 7: Accounting for overheads Objective test questions Accounting for overheads

Chapter 8: Absorption and marginal costing Objective test questions Absorption and marginal costing

Chapter 9: Process costing Objective test questions Process costing

30 1-30

A CCA MA Quest ion Ba nk

Topic

I n tr od u ction

Number of questions

Q

A

29 1-8 9-13 14-19

55 57 58

159 161 161

59 59 59 59

163 163 163 163

61 62

165 165

64 67

167 169

68

169

16 1-16

70

170

18 1-18

73

173

77 78

176 177

80 82 87

178 179 182

89 94

184 188

94

188

Page ref

Chapter 10: Other costing techniques Objective test questions Job and batch costing Service and operation costing Alternative cost accounting approaches

Chapter 11: Nature and purpose of budgeting Objective test questions Nature and purpose of budgeting Budgetary control and reporting Behavioural aspects of budgeting Flexible budgets Multi task questions 1 Alanowl 2 Worsley Ltd

9 1-2 3 4 5-9

Chapter 12: Budget preparation Objective test questions Budget preparation Capital budgeting Multi task question 1 Moonstar

17 1-16 17

Chapter 13: Discounted cash flow Objective test questions Discounted cash flow

Chapter 14: Investment appraisal Objective test questions Investment appraisal Multi task questions 1 Maurice Ltd 2 Edrich Ltd

Chapter 15: Material and labour variances Objective test questions Standard costing systems Variance calculations Causes of variances

40 1-9 10-36 37-40

Chapter 16: Other variances Objective test questions

27

Variance calculations Causes of variances Multi task question

1-25 26-27

1 Cuddlyfud

v

vi I n tr od u ction

Topic

ACCA MA Q uest ion Ba nk

Number of questions

Q

A

3 1 2-3

96 96

189 189

97 99 100 102

189 190 191 193

104 104

193 193

109 110

198 198

112 112 112 113 113 113 113 114

200 200 200 200 201 201 201 201

114 116 117

201 202 203

205

217

Page ref

Chapter 17: Variance review and control Objective test questions Reconciliation of budgeted and actual profit Cost control and reduction Multi task questions 1 Henry 2 Edted 3 Wakeuup 4 Harvey hedge

Chapter 18: Financial performance measures Objective test questions Performance measurement overview Financial measures

30 1-2 3-30

Multi task questions 1 Oldted 2 Loxwood Foods

Chapter 19: Non-financial performance measures and performance reporting 1 Objective test questions Non-financial measures Balanced scorecard Activity, efficiency and capacity ratios Process and job performance measurement Non-profit seeking and public sector organisations Manufacturing and service businesses Benchmarking Performance reports Multi task questions 1 Fuzzy Limited 2 Broadbridge Clinics Ltd 3 Sydney Darwin Limited

10 1 2 3-5 6 7 8 9 10

Practice exam Full exam

Formulae and tables

227

Mock exams Full exams to practise are provided. Question practice, under assessment conditions, is vital to passing this exam.

A CCA MA Quest ion Ba nk

I n tr od u ction

ACCA Specimen paper It is vital that you try the computer based specimen exam on the ACCA website. The specimen uses the software that you will meet in your real exam and you must be familiar with it. You will find it on the ACCA website: www.accaglobal.com The ACCA also provide some additional constructed response questions. We strongly suggest you attempt these.

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ACCA MA Que st ion Ba nk

ACCA MA

1: M an ag e m e n t accou n tin g an d in f or m ation

Chapter 1: Manag ement accounting and informa tion

Objective test questions Accounting for management 1

The following statements relate to management accounts: I II III

They are used to aid planning, control and decision making They must be produced in a prescribed format There is a legal requirement for most companies to produce them annually

Which of the above statements are true?     2

I only I and III I, II and III II and III

Cost accounting and management accounting are items which are interchangeable. Is this answer TRUE or FALSE?  

True False

Planning, decision-making and control 3

Management accounts may be I II III

a historical record a future planning tool provided in non-monetary format

Which of the above statements are true?    

II only II and III I and II I and II and III

Data and information 4

Figures relating to a training organisation are as follows: % of first time students who passed final exam)

98%

Increase in % of students passing first time since last sitting

2%

Does the figure provide the training organisation with data or information? Data

Information

% of first time students who passed final exams





Increase in % of students passing first time since last sitting





1

2 1: M an ag e m e n t accou n tin g an d in f or m ation 5

Which TWO of the following are limitations of management information in providing guidance for managerial decision making?    

6

It is usually based on what has happened in the past It does not take account of external factors effecting the business It is not set out in a legally prescribed format It may be stated in monetary and non-monetary terms

Which of the following types of business is LEAST likely to use big data analytics to analyse the product or service mix it offers?    

7

A sports equipment shop A travel agent A local bus company A bank

Are the following internal or external information sources?

Lists of potential customers Current exchange rate Weekly sales figures Inflation rate

8

Internal

External

 

 

 

 

Which THREE of the following are limitations of information found on the internet?    

9

ACCA MA

The information may not be tailored for the exact purpose for which it is required There is so much information that there is a danger of information overload The information is cheap and easy to acquire The source of the information may not be reliable

Which of the following statements are correct? I II III

Strategic information is mainly used by senior management in an organisation Productivity measurements are examples of tactical information Operational information is required frequently by its main users

Select one:   

I, II and III I and II I and III

Sampling 10

A sample is acquired by taking every nth item in the sampling frame. This is an example of    

Random sampling Systematic sampling Cluster sampling Quota sampling

ACCA MA

1: M an ag e m e n t accou n tin g an d in f or m ation

11

Which of the following BEST describes cluster sampling?    

12

The sampling frame is divided into non overlapping groups and random units are selected from each group The population is divided into groups and then all units within randomly selected groups are taken A sample of ‘X’ units is taken from the sampling frame The population is divided into groups and then a number of the units within these groups are selected at random

Identify the sampling method being used in each of the cases below. Stratified Random

Multistage

Systematic

A number of UK universities are selected and then all girls in the selected university are selected







10 children are randomly chosen from each year group in a School







Every 100th person to enter a supermarket is selected on a given day







Presenting information 13

Which section of a report sets out the purpose of the report?    

Contents Terms of reference Recommendations Appendices

Use the following information to answer the next six questions. The following information relates to the free newspapers that a sample of 200 people read in the city of Leochester. Post News Chronicle Press

14

Men surveyed 23 41 13 17 94

Women surveyed 24 34 23 25 106

Which is the most popular newspaper amongst women?    

Post News Chronicle Press

Total 47 75 36 42 200

3

4 1: M an ag e m e n t accou n tin g an d in f or m ation 15

ACCA MA

To the nearest whole per cent, what percentage of men read the Post? %

16

What number of women surveyed do not read the News or the Chronicle?

17

What percentage of people does not read the Press? %

18

To the nearest whole %, what percentage of the Chronicle’s readership is male? %

19

For which paper does the percentage of men and women reading the paper differ the most?    

Post News Chronicle Press

Use this diagram to answer the next four questions. The following graph shows the pass rates for the Tax and Law exams for an accountancy qualification: Tax 36% 38% 51% 41%

20X0 20X1 20X2 20X3

Law 61% 49% 55% 54%

70% 60% 50% 40% Tax 30%

Law

20% 10% 0% 20X0

20X1

20X2

20X3

ACCA MA

1: M an ag e m e n t accou n tin g an d in f or m ation

20

In which year was the difference in the percentage pass rate between the two papers the greatest?  20X0  20X1  20X2  20X3

21

For both papers combined, in what percentage of sittings was the pass rate over 50%? %

22

In how many years did the pass rate for Law fail to reach 60%? years

23

In which year was the pass rate for Tax the lowest?    

24

20X0 20X1 20X2 20X3

On a scattergraph illustrating fixed and variable cost, what does the figure a represent?    

Total cost Fixed cost Variable cost per unit Production

5

6 1: M an ag e m e n t accou n tin g an d in f or m ation

ACCA MA

Use this diagram to answer the next five questions. The following diagram illustrates the percentage of viewers for four popular television programmes that are broadcast at 8pm on Sunday evening. Assume that the number of male and female viewers is equal.

Women Stir Heward's Way Gently Gently Upton Castle Men

0%

25

80%

100%

Stir Heward’s Way Gently Gently Upton Castle

Stir Heward’s Way Gently Gently Upton Castle

The same television company broadcasts Heward’s Way and Gently Gently on different channels. Has it achieved a greater than 50% share of the male audience?  

28

60%

Which programme is least popular amongst women?    

27

40%

Which programme has the largest audience?    

26

20%

Yes No

Which programme has the least difference in viewer numbers between the male and female audience?    

Stir Heward’s Way Gently Gently Upton Castle

ACCA MA

1: M an ag e m e n t accou n tin g an d in f or m ation

29

Advertisers who advertised in the commercial breaks in Upton Castle hoped that it would achieve a 25% share of total audience. Did it achieve this figure? Yes No

  30

What type of chart is this?

5 4.5 4 3.5 3

Aye

2.5

Bea

2

Cee

1.5 1 0.5 0 Q1

   

Simple bar chart Multiple bar chart Component bar chart Ogive

Q2

Q3

Q4

7

8 2: S t at i s t i c al t e c h n i qu e s

ACCA MA

C ha p ter 2: Sta ti sti ca l tech n iq u e s

Objective test questions Statistical techniques 1

A price index was established at 20X1 with prices at $400 and the index at 100. By 20X4 the index stood at 110. Prices increased by 15% in 20X5 and by a further $12 in 20X6. What will be the level of the index at the end of 20X6 to one decimal place?

2

The linear regression equation for production costs for a business is: y = 122,000 + 5.3x, where x is the number of units If production is expected to be 105,000 units in the next quarter the anticipated production costs are: $

3

The following data has been collected about a company’s costs (y) in relation to its output (x) (x) 26 30 33 44 48 50 231

(y) 6,566 6,510 6,800 6,985 7,380 7,310 41,551

xy 170,716 195,300 224,400 307,340 354,240 365,500 1,617,496

x2 676 900 1,089 1,936 2,304 2,500 9,405

Calculate the correlation coefficient to 3 decimal places.

y2 43,112,356 42,380,100 46,240,000 48,790,225 54,464,400 53,436,100 288,423,181

ACCA MA

2: S t at i s t i c al t e c h n i qu e s

4

The following data has been observed in a time series: Year

Quarter

1

1

Sales $ 60,000

2

144,000

Moving average $

Centred moving average $

160,500 3

198,000 163,500

4

240,000

1

72,000

2

180,000

172,500 2

Complete the two missing figures for the four-point (centred) moving averages. 5

The sales of lawnmowers over the last year have been as follows: Q1 3,180 +180

Actual units sold Seasonal variation

Q2 3,530 +230

Q3 3,140 -460

Using an additive time series model and assuming the trend continues, the trend value for Q4 sales is closest to:     6

3,267 units 3,283 units 3,900 units 3,950 units

A company uses time series analysis and regression techniques to estimate future sales demand. Using these techniques, it has derived the following trend equation: y = 10,000 + 4,200x where y is the...