Becker question bank 17 ACCA F2 SQB Web PDF

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(ii)

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STUDY QUESTION BANK – MANAGEMENT ACCOUNTING (F2/FMA) CONTENTS Question

Page

Formulae Sheet Present Value Table Annuity Table

Answer Marks

Date worked

(vi) (vii) (viii)

ACCOUNTING FOR MANAGEMENT 1 2

Sigma Management information functions

1 1

1001 1002

10 7

1 1

1002 1003

12 7

1 2 2

1004 1005 1006

10 10 9

3

1006

12

5 5

1007 1008

12 14

6 6 7 7 8

1009 1010 1011 1011 1013

13 7 6 22 14

9 10 10 11

1014 1015 1015 1016

10 7 11 20

13 14 15 15 16 17

1017 1018 1019 1020 1022 1022

15 20 20 15 8 18

SOURCES OF DATA 3 4

Sample selection Public opinion

COST CLASSIFICATION 5 6 7 8

John Pirelli Classification of costs Cost behaviour MCQ Test – Cost classifications, concepts and terminology

PRESENTING INFORMATION 9 10

Supermarket Sales force

ACCOUNTING FOR MATERIALS 11 12 13 14 15

Material H Hamco Alter Inventory control policy MCQ Test – Materials

ACCOUNTING FOR LABOUR 16 17 18 19

Three employees Direct and indirect labour Three components MCQ Test – Labour

ACCOUNTING FOR OVERHEADS 20 21 22 23 24 25

Fixed overheads Four departments Fibre Seattle Sangazure (ACCA D05) MCQ Test – Overheads

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(iii)

MANAGEMENT ACCOUNTING (F2/FMA) – STUDY QUESTION BANK Question

Page

Answer Marks

Date worked

ABSORPTION AND MARGINAL COSTING 26 27 28 29 30 31

Eagle Stoney Perfume Ochela Pinafore (ACCA J06) MCQ Test – MC v AC

20 21 21 22 24 24

1024 1025 1026 1029 1030 1031

10 14 25 16 10 16

27 28

1033 1033

10 10

28 29 29 30 30 31 32 32 33 34 34

1034 1035 1036 1036 1038 1039 1039 1041 1041 1042 1043

8 11 6 15 11 15 12 11 14 9 14

Telmat

37

1044

16

Planning and control cycle Setting budgets Behavioural arguments

37 37 37

1046 1046 1047

6 9 6

38 38 39 39 40 40 40 41

1048 1050 1052 1053 1054 1055 1056 1057

20 20 10 10 10 11 10 8

JOB, BATCH AND SERVICE COSTING 32 33

Printing (ACCA D94) Public transport

PROCESS COSTING 34 35 36 37 38 39 40 41 42 43 44

Chemical X Needles Phoenix Insulation blocks Oasis Fairfax Pine Furnival Four joint products Corcoran (ACCA J06) MCQ Test – Process Costing

ALTERNATIVE COSTING PRINCIPLES 45 BUDGETING 46 47 48

STATISTICAL TECHNIQUES 49 50 51 52 53 54 55 56

(iv)

Bayern Tomkins Josephine (ACCA J06) Components of a time series Trendy Sales William Price indexes Cost level index

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STUDY QUESTION BANK – MANAGEMENT ACCOUNTING (F2/FMA) Question

Page

Answer Marks

Date worked

BUDGET PREPARATION 57 58 59 60 61 62

Principal budget factor Darling Peter Black Tibbett XYZ MCQ Test – Budgeting

41 41 42 43 44 45

1057 1058 1060 1062 1064 1065

4 23 20 20 15 10

FLEXIBLE BUDGETS, BUDGETARY CONTROL AND REPORTING 63 64

Flexible Solo

46 47

1066 1066

5 12

47 10 49 50 51 52 52 53

1067

10

1069 1070 1072 1073 1074 1075

15 25 9 10 10 22

56 57 57 58 58 59 59 60

1076 1081 1081 1082 1083 1083 1084 1085

30 4 12 9 9 12 16 18

61 62 63 63 63 64 64 64 68 68 68

1086 1087 1088 1089 1090 1091 1092 1093 1094 1095 1096

9 11 10 8 11 14 5 24 10 10 9

STANDARD COSTING AND VARIANCE ANALYSIS 65 66 67 68 69 70 71 72

Coledale (ACCA J04) Oakapple (ACCA D04) 48 1068 Omaha Product Alpha Ploverleigh Deadeye (ACCA J06) Product RYX MCQ Test – Variance Analysis

CAPITAL BUDGETING AND DISCOUNTED CASH FLOWS 73 74 75 76 77 78 79 80

Compounding and discounting Despatch Alternative machines Net present value Internal rate of return Gerrard Elvira MCQ Test – Capital budgeting and DCFs

PERFORMANCE MEASUREMENT 81 82 83 84 85 86 87 88 89 90 91

Types of measures Falco Public sector Define terms Divisional assessment Two-Minds Tenby Bus Company MCQ Test – Performance evaluation Balanced Scorecard Benchmarking Homeland Schools

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(v)

MANAGEMENT ACCOUNTING (F2/FMA) – STUDY QUESTION BANK Formulae Sheet Regression analysis y = a + bx a =

n

n

 xy   x y n  x  ( x ) n xy   x y n x   x n y   y  n

b =

r =

 y  b x 2

2

2

2

2

2

Economic order quantity =

2Co D Ch

Economic batch quantity =

(vi)

2C o D D C h (1 ) R

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STUDY QUESTION BANK – MANAGEMENT ACCOUNTING (F2/FMA) Present Value Table  Present value of 1, ie (1  r ) n

where

= =

r n

discount rate number of periods until payment Discount rate (r)

Periods (n)

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

1 2 3 4 5

0.990 0.980 0.971 0.961 0.951

0.980 0.961 0.942 0.924 0.906

0.971 0.943 0.915 0.888 0.863

0.962 0.925 0.889 0.855 0.822

0.952 0.907 0.864 0.823 0.784

0.943 0.890 0.840 0.792 0.747

0.935 0.873 0.816 0.763 0.713

0.926 0.857 0.794 0.735 0.681

0.917 0.842 0.772 0.708 0.650

0.909 0.826 0.751 0.683 0.621

6 7 8 9 10

0.942 0.933 0.923 0.914 0.905

0.888 0.871 0.853 0.837 0.820

0.837 0.813 0.789 0.766 0.744

0.790 0.760 0.731 0.703 0.676

0.746 0.711 0.677 0.645 0.614

0.705 0.665 0.627 0.592 0.558

0.666 0.623 0.582 0.544 0.508

0.630 0.583 0.540 0.500 0.463

0.596 0.547 0.502 0.460 0.422

0.564 6 0.513 7 0.467 8 0.424 9 0.386 10

11 12 13 14 15

0.896 0.887 0.879 0.870 0.861

0.804 0.788 0.773 0.758 0.743

0.722 0.701 0.681 0.661 0.642

0.650 0.625 0.601 0.577 0.555

0.585 0.557 0.530 0.505 0.481

0.527 0.497 0.469 0.442 0.417

0.475 0.444 0.415 0.388 0.362

0.429 0.397 0.368 0.340 0.315

0.388 0.356 0.326 0.299 0.275

0.350 0.319 0.290 0.263 0.239

11%

12%

13%

14%

15%

16%

17%

18%

19%

20%

1 2 3 4 5

0.901 0.812 0.731 0.659 0.593

0.893 0.797 0.712 0.636 0.567

0.885 0.783 0.693 0.613 0.543

0.877 0.769 0.675 0.592 0.519

0.870 0.756 0.658 0.572 0.497

0.862 0.743 0.641 0.552 0.476

0.855 0.731 0.624 0.534 0.456

0.847 0.718 0.609 0.516 0.437

0.840 0.706 0.593 0.499 0.419

0.833 0.694 0.579 0.482 0.402

6 7 8 9 10

0.535 0.482 0.434 0.391 0.352

0.507 0.452 0.404 0.361 0.322

0.480 0.425 0.376 0.333 0.295

0.456 0.400 0.351 0.308 0.270

0.432 0.376 0.327 0.284 0.247

0.410 0.354 0.305 0.263 0.227

0.390 0.333 0.285 0.243 0.208

0.370 0.314 0.266 0.225 0.191

0.352 0.296 0.249 0.209 0.176

0.335 6 0.279 7 0.233 8 0.194 9 0.162 10

11 12 13 14 15

0.317 0.286 0.258 0.232 0.209

0.287 0.257 0.229 0.205 0.183

0.261 0.231 0.204 0.181 0.160

0.237 0.208 0.182 0.160 0.140

0.215 0.187 0.163 0.141 0.123

0.195 0.168 0.145 0.125 0.108

0.178 0.152 0.130 0.111 0.095

0.162 0.137 0.116 0.099 0.084

0.148 0.124 0.104 0.088 0.074

0.135 0.112 0.093 0.078 0.065

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(vii)

MANAGEMENT ACCOUNTING (F2/FMA) – STUDY QUESTION BANK Annuity Table Present value of an annuity of 1, ie

where

= =

r n

1  (1  r ) n r

interest rate number of periods Discount rate (r)

Periods (n)

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

1 2 3 4 5

0.990 1.970 2.941 3.902 4.853

0.980 1.942 2.884 3.808 4.713

0.971 1.913 2.829 3.717 4.580

0.962 1.886 2.775 3.630 4.452

0.952 1.859 2.723 3.546 4.329

0.943 1.833 2.673 3.465 4.212

0.935 1.808 2.624 3.387 4.100

0.926 1.783 2.577 3.312 3.993

0.917 1.759 2.531 3.240 3.890

0.909 1.736 2.487 3.170 3.791

6 7 8 9 10

5.795 6.728 7.652 8.566 9.471

5.601 6.472 7.325 8.162 8.983

5.417 6.230 7.020 7.786 8.530

5.242 6.002 6.733 7.435 8.111

5.076 5.786 6.463 7.108 7.722

4.917 5.582 6.210 6.802 7.360

4.767 5.389 5.971 6.515 7.024

4.623 5.206 5.747 6.247 6.710

4.486 5.033 5.535 5.995 6.418

4.355 6 4.868 7 5.335 8 5.759 9 6.145 10

11 12 13 14 15

10.370 11.260 12.130 13.000 13.870

9.787 9.253 8.760 8.306 10.580 9.954 9.385 8.863 11.350 10.630 9.986 9.394 12.110 11.300 10.560 9.899 12.850 11.940 11.120 10.380

7.887 8.384 8.853 9.295 9.712

7.499 7.943 8.358 8.745 9.108

7.139 7.536 7.904 8.244 8.559

6.805 7.161 7.487 7.786 8.061

6.495 6.814 7.103 7.367 7.606

1 2 3 4 5

11 12 13 14 15

11%

12%

13%

14%

15%

16%

17%

18%

19%

20%

1 2 3 4 5

0.901 1.713 2.444 3.102 3.696

0.893 1.690 2.402 3.037 3.605

0.885 1.668 2.361 2.974 3.517

0.877 1.647 2.322 2.914 3.433

0.870 1.626 2.283 2.855 3.352

0.862 1.605 2.246 2.798 3.274

0.855 1.585 2.210 2.743 3.199

0.847 1.566 2.174 2.690 3.127

0.840 1.547 2.140 2.639 3.058

0.833 1.528 2.106 2.589 2.991

6 7 8 9 10

4.231 4.712 5.146 5.537 5.889

4.111 4.564 4.968 5.328 5.650

3.998 4.423 4.799 5.132 5.426

3.889 4.288 4.639 4.946 5.216

3.784 4.160 4.487 4.772 5.019

3.685 4.039 4.344 4.607 4.833

3.589 3.922 4.207 4.451 4.659

3.498 3.812 4.078 4.303 4.494

3.410 3.706 3.954 4.163 4.339

3.326 6 3.605 7 3.837 8 4.031 9 4.192 10

11 12 13 14 15

6.207 6.492 6.750 6.982 7.191

5.938 6.194 6.424 6.628 6.811

5.687 5.918 6.122 6.302 6.462

5.453 5.660 5.842 6.002 6.142

5.234 5.421 5.583 5.724 5.847

5.029 5.197 5.342 5.468 5.575

4.836 4.988 5.118 5.229 5.324

4.656 4.793 4.910 5.008 5.092

4.586 4.611 4.715 4.802 4.876

4.327 4.439 4.533 4.611 4.675

(viii)

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STUDY QUESTION BANK – MANAGEMENT ACCOUNTING (F2/FMA) Question 1 SIGMA The managing director of Sigma is concerned about the differences between the reports produced and records maintained by you, as management accountant, and by the company’s financial accountant. Required: Describe the differences between: (a) (b)

the statements of profit or loss produced; and the accounting records maintained by the two of you.

(6 marks) (4 marks) (10 marks)

Question 2 MANAGEMENT INFORMATION FUNCTIONS Outline the three main functions of management for which information must be provided. (7 marks) Question 3 SAMPLE SELECTION (a)

Briefly explain the terms: (i) (ii) (iii)

(b)

random sample; quota sample; cluster sample.

(6 marks)

Give TWO advantages and TWO disadvantages of simple random sample selection. (6 marks) (12 marks)

Question 4 PUBLIC OPINION To determine public opinion of the design of a new family car, on a particular day four interviewers stand in a busy pedestrian shopping area and each stop and question 50 people. Required: (a)

State the sampling method used and discuss its suitability in this situation. (5 marks)

(b)

Briefly describe a more suitable method for the situation.

(2 marks) (7 marks)

Question 5 JOHN PIRELLI John Pirelli has been running a small printing business for the past six months; his accounting records are limited to an analysed cash book, cheque book stubs and a file of invoices. Both he and his accountant are happy with this for the preparation of annual accounts for the tax authorities and the bank, but John Pirelli now wants more information for controlling the business. When talking to his accountant about setting up a suitable costing system, John Pirelli was clear about the difference between management and financial accounts. However, he became very confused over different categories of cost and has asked you for some clarification. ©2016DeVry/BeckerEducationalDevelopmentCorp.Allrightsreserved.



1

MANAGEMENT ACCOUNTING (F2/FMA) – STUDY QUESTION BANK Required: Explain the distinction between: (a) (b) (c) (d)

(2 marks) (3 marks) (2 marks) (3 marks)

direct and indirect costs; fixed and variable costs; production and non-production costs; and committed and discretionary costs.

(10 marks) Question 6 CLASSIFICATION OF COSTS (a)

Explain the terms fixed, variable and semi-variable costs.

(b)

Classify the following expenses under the headings in (a): (i) (ii) (iii) (iv) (v) (vi)

Telephone charges Factory insurance Legal expenses Social security (%) Rent of premises Light and heat

(vii) (viii) (ix) (x) (xi) (xii)

Direct materials Lift operator’s wages Machine servicing and repairs Foreman’s salary Contract cleaning services Casual labour (10 marks)

Question 7 COST BEHAVIOUR Required: On the axes provided, on which the vertical axis denotes cost and the horizontal axis the appropriate level of activity, show the following cost behaviour graphs: (a)

Fixed costs

(b)

Variable costs

(c)

Semi-variable costs

(d)

Annual rates bill

(e)

Direct labour cost

(f)

Annual telephone bill

(g)

Direct materials cost if bulk discount is offered on all purchases once the total purchased exceeds a certain level

(h)

Supervisory costs

(i)

Labour costs if staff are paid a fixed weekly wage for a 35-hour week and any additional production is completed in overtime, when staff are paid time and a half.

2

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