CA1

Question 1
"A company uses the Economic Order Quantity (EOQ) model to establish reorder quantities.
The following information relates to the forthcoming period:
Order costs = 25 per order
Holding costs = 10% of purchase price
Annual demand = 20,000 units
Purchase price = 40 per unit
EOQ = 500 units
No safety inventory is held.
What are the total annual costs of inventory (i.e. the total purchase cost plus total order
cost plus total holding cost)?"

Response: 802,000

Correct answer: 802,000

Score: 1 out of 1 Yes

Question 2
"The following data relate to the overhead expenditure of contract cleaners at two activity levels:
Square metres cleaned 12,750 15,100
Overheads 73,950 83,585
Using the high‐low method, what is the estimate of the overhead cost if 16,200 square metres are to be cleaned?"

Response: 88,095

Correct answer: 88,095

Score: 1 out of 1 Yes

Question 3
"When gathering information on a potential client you can use both internal sources of
information and external sources of information.
Which of the following would be classified as externally generated information?"

Response: Supplier references

Correct answer: Supplier references

Score: 1 out of 1 Yes

Question 4
Which of the following describes a purchase order?

Response: Issued by the purchasing department, sent to the supplier requesting materials

Correct answer: Issued by the purchasing department, sent to the supplier requesting materials

Score: 1 out of 1 Yes

Question 5
"An organisation 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?"
Response: 1.25

Correct answer: 1.25

Score: 1 out of 1 Yes

Question 6
Which of the following would be classified as data?

Response: Number of purchase requisitions

Correct answer: Number of purchase requisitions

Score: 1 out of 1 Yes

Question 7
Which of the following is usually classed as a step cost?

Response: Supervisor’s wages

Correct answer: Supervisor’s wages

Score: 1 out of 1 Yes

Question 8
Which one of the following statements is correct?

Response: Information is obtained by processing data

Correct answer: Information is obtained by processing data

Score: 1 out of 1 Yes

Question 9
Which of the following are included in the cost of holding inventory?

Response: Rental payments on storage space

Correct answer: Rental payments on storage space

Score: 1 out of 1 Yes

Question 10
"A kitchen fitting company receives an invoice for sub‐contractors who were used to connect the gas supply to a co
oker installed in a new kitchen.
How would this invoice be classified?"

Response: Direct expenses

Correct answer: Direct expenses

Score: 1 out of 1 Yes

Question 11
Which of the following are included in the prime cost of a product?

Response: Direct material

Correct answer: Direct material

Score: 1 out of 1 Yes

Question 12
In the year ended 31 August 20X4, Aplus’ records show closing inventory of 1,000 units compared to 950 units of o
pening inventory. Which of the following statements is true assuming that prices have fallen throughout the year?

Response: Closing inventory and profit are lower using FIFO rather than AVCO

Correct answer: Closing inventory and profit are lower using FIFO rather than AVCO

Score: 1 out of 1 Yes

Question 13
"A company incurs the following costs at various activity levels:
Total cost Activity level in 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?"

Response: 30

Correct answer: 30

Score: 1 out of 1 Yes

Question 14
"Which one of the following is an example of internal information for the wages
department of a large company?"

Response: The company’s employees’ schedule of hours worked

Correct answer: The company’s employees’ schedule of hours worked

Score: 1 out of 1 Yes

Question 15
Which of the following describes ‘Information’?

Response: Data that has been processed in such a way that it has a meaning to the person who receives it, who may t
hen use it to improve the quality of decision making

Correct answer: Data that has been processed in such a way that it has a meaning to the person who receives it, who
may then use it to improve the quality of decision making

Score: 1 out of 1 Yes

Question 16
"Your firm values inventory using the weighted average cost method. At 1 October 20X8, there were 60 units in inv
entory valued at 12 each. On 8 October, 40 units were purchased for 15 each, and a further 50 units were purchased f
or 18 each on 14 October. On 21 October, 75 units were sold for 1,200.
What was the value of closing inventory at 31 October 20X8?"

Response: 1110

Correct answer: 1110

Score: 1 out of 1 Yes

Question 17
"The purchase price of an inventory item is 42 per unit. In each three‐month period the usage of the item is 2,000 un
its. The annual holding costs associated with one unit is 5% of its purchase price. The EOQ is 185 units.
What is the cost of placing an order (to 2 decimal places)?"

Response: 4.49

Correct answer: 4.49

Score: 1 out of 1 Yes

Question 18
What is a support department in an organisation for which costs are collected called?

Response: A cost centre

Correct answer: A cost centre

Score: 1 out of 1 Yes

Question 19
"A large store selling office furniture stocks a popular chair for which the following
information is available:
Annual demand: 4,000 chairs
Maximum inventory: 75 chairs
Lead time: 5 days
Re‐order quantity: 100 chairs
What is the average inventory level?"

Response: 50 chairs

Correct answer: 50 chairs

Score: 1 out of 1 Yes

Question 20
"Which of the following will be completed by a production department requiring new
materials to be obtained from suppliers?"

Response: Purchase requisition note

Correct answer: Purchase requisition note

Score: 1 out of 1 Yes

Question 21
Which of the following costs would NOT be classified as a production overhead cost in a food processing company
?

Response: The cost of ingredients

Correct answer: The cost of ingredients

Score: 1 out of 1 Yes

Question 22
Which of the following describes Cost centres?

Response: Functions or locations for which costs are ascertained

Correct answer: Functions or locations for which costs are ascertained

Score: 1 out of 1 Yes

Question 23
Which of the following statements is correct?

Response: To make an issue from stores authorisation should be required

Correct answer: To make an issue from stores authorisation should be required

Score: 1 out of 1 Yes

Question 24
Which of the following describes Secondary data?

Response: Data collected for another purpose

Correct answer: Data collected for another purpose

Score: 1 out of 1 Yes

Question 25
"When gathering information you would use both internal sources of information and
external sources of information.
Which of the following are examples of internal information?"

Response: Sales representatives’ knowledge.

Correct answer: Sales representatives’ knowledge.

Score: 1 out of 1 Yes

Question 26
Which of the following is NOT CORRECT?

Response: "Cost accounting can be used for inventory valuation to meet the requirements of internal reporting only"

Correct answer: "Cost accounting can be used for inventory valuation to meet the requirements of internal reporting
only"
Score: 1 out of 1 Yes

Question 27
"Which of the following only contains essential features of useful management
information?"

Response: Understandable, accurate, relevant for its purpose

Correct answer: Understandable, accurate, relevant for its purpose

Score: 1 out of 1 Yes

Question 28
"Reginald is the manager of production department M in a factory which has ten other
production departments.
He receives monthly information that compares planned and actual expenditure for
department M. After department M, all production goes into other factory departments to
be completed prior to being dispatched to customers. Decisions involving capital
expenditure in department M are not taken by Reginald.
Which of the following describes Reginald’s role in department M?"

Response: A profit centre manager

Correct answer: A profit centre manager

Score: 1 out of 1 Yes

Question 29
"A manufacturing company uses 28,000 components at an even rate during the year. Each order placed with the sup
plier of the components is for 1,500 components, which is the economic order quantity. The company holds a buffer
inventory of 700 components. The annual cost of holding one component in inventory is 3.
What is the total annual cost of holding inventory of the component?"

Response: 4350

Correct answer: 4350

Score: 1 out of 1 Yes

Question 30
Which of the following is most likely to be used as a cost unit for a hospital ward?

Response: Patient days

Correct answer: Patient days

Score: 1 out of 1

CA 2

Question 1
What is the definition of a semi-variable cost?

Response: It contains an element of both fixed and variable cost

Correct answer: It contains an element of both fixed and variable cost

Score: 1 out of 1 Yes

Question 2
What is a standard hour?

Response: The amount of work expected to be completed in an hour

Correct answer: The amount of work expected to be completed in an hour

Score: 1 out of 1 Yes

Question 3
"Amdico Ltd makes photograph albums. At the start of March it had 5,000 albums, which were 50% complete. It st
arted work in March on another 15,000 albums. At the end of March it had 4,500 albums, which were 50% complete
. During March it incurred costs of 65,000. It had costs brought forward from February of 6,000. Amdico uses the w
eighted average method of spreading costs.
What is the cost per album of March production?"

Response: 4

Correct answer: 4

Score: 1 out of 1 Yes

Question 4
"Burgess operates a continuous process into which 3,000 units of material costing 9,000 was input in a period.
Conversion costs for this period were 11,970 and losses, which have a scrap value of 1.50, are expected at a rate of 1
0% of input. There was no opening or closing WIP and output for the period was 2,900 units.
What was the output valuation?"

Response: 22,040

Correct answer: 22,040

Score: 1 out of 1 Yes

Question 5
"The demand for a product is 12,500 units for a three-month period. Each unit of product has a purchase price of 15
and ordering costs are 20 per order placed.
The annual holding cost of one unit of the product is 10% of its purchase price.
What is the Economic Order Quantity (to the nearest unit)?"

Response: 1,155

Correct answer: 1,155

Score: 1 out of 1 Yes

Question 6
"A law firm recovers overheads on chargeable consulting hours. Budgeted overheads were
615,000 and actual consulting hours were 32,150. Overheads were under‐recovered by
35,000. Actual overheads were 694,075.
What is the budgeted overhead absorption rate per hour (to 2 decimal places)?"

Response: 20.5

Correct answer: 20.5

Score: 1 out of 1 Yes

Question 7
In process costing what is an equivalent unit?

Response: An effective whole unit representing the varying degrees of completion of work

Correct answer: An effective whole unit representing the varying degrees of completion of work

Score: 1 out of 1 Yes

Question 8
What is cost apportionment?

Response: "The division of costs amongst two or more cost centres in proportion to the estimated benefit received, u
sing a proxy, e.g. Square metres"

Correct answer: "The division of costs amongst two or more cost centres in proportion to the estimated benefit recei
ved, using a proxy, e.g. Square metres"

Score: 1 out of 1 Yes

Question 9
Which of the following relates to the cost of replacing (rather than retaining) labour due to high employee turnover?

Response: Suffering the learning curve effect

Correct answer: Suffering the learning curve effect

Score: 1 out of 1 Yes

Question 10
"A finishing department absorbs production overheads using a direct labour hour basis.
Budgeted production overheads for the year just ended were 268,800 for the department,
and actual production overhead costs were 245,600.
If actual labour hours worked were 45,000 and production overheads were over‐
absorbed by 6,400, what was the overhead absorption rate per labour hour?"

Response: 5.6

Correct answer: 5.6

Score: 1 out of 1 Yes

Question 11
What does a prime cost comprise of?

Response: Direct labour, direct material and direct expense

Correct answer: Direct labour, direct material and direct expense

Score: 1 out of 1 Yes

Question 12
"A manufacturing firm is very busy and overtime is being worked.
What would the amount of overtime premium contained in direct wages normally be
classed as?"

Response: Factory overheads

Correct answer: Factory overheads

Score: 1 out of 1 Yes

Question 13
"At 1 January a company employed 5,250 employees. Due to expansion the number of
employees increased to 5,680 by 31 December. During the year 360 staff left the
company and were replaced. What was the labour turnover rate?"

Response: 6.60%

Correct answer: 6.60%

Score: 1 out of 1 Yes

Question 14
Which one of the following groups of workers would be classified as indirect labour?

Response: Maintenance workers in a shoe factory

Correct answer: Maintenance workers in a shoe factory

Score: 1 out of 1 Yes

Question 15
Which of the following individuals is usually responsible for preparing a delivery note?

Response: Supplier

Correct answer: Supplier

Score: 1 out of 1 Yes

Question 16
Which of the following is a direct expense?

Response: Special tools for job 721

Correct answer: Special tools for job 721

Score: 1 out of 1 Yes

Question 17
 "A cost centre has an overhead absorption rate of 4.25 per machine hour, based on a
budgeted activity level of 12,400 machine hours.
In the period covered by the budget, actual machine hours worked were 2% more than the
budgeted hours and the actual overhead expenditure incurred in the cost centre was
56,389.
What was the total over or under absorption of overheads in the cost centre for the
period?"

Response: 2,635 under absorbed

Correct answer: 2,635 under absorbed

Score: 1 out of 1 Yes

Question 18
What do production overheads comprise of?

Response: Indirect labour, indirect material and indirect expenses related to production activity

Correct answer: Indirect labour, indirect material and indirect expenses related to production activity

Score: 1 out of 1 Yes

Question 19
What is the full production cost per unit of a manufactured product?

Response: Prime cost plus production overhead cost per unit

Correct answer: Prime cost plus production overhead cost per unit

Score: 1 out of 1 Yes

Question 20
"Tan Products Ltd makes one highly desirable fashion item, the Croissant handbag. The following cost information
is available.
Per handbag

Direct materials (leather, thread, fastenings, linings) 100

Direct labour 75
Direct expenses 40
Workroom expenses – fixed 10
Workroom expenses – variable 15
Administration costs – fixed 20
Administration costs – variable 30
––––
290
––––
What is the prime cost for each handbag?"

Response: 215

Correct answer: 215

Score: 1 out of 1 Yes

Question 21
"A job is budgeted to require 3,300 productive hours after incurring 25% idle time.
If the total labour cost budgeted for the job is Rs36, 300, what is the labour cost per hour?"

Response: 8.25

Correct answer: 8.25

Score: 1 out of 1 Yes

Question 22
"Welham plc manufactures two types of tractor: the Rugged and the Terrain. It buys in most components for assemb
ly, but it does manufacture crankshafts for the Rugged, and cockpits for both the Rugged and the Terrain. There is n
o external market for the crankshafts or the cockpits.
Which of the following would be appropriate cost units for Welham plc?"

Response: The Rugged, the Terrain, the cockpits and the crankshafts

Correct answer: The Rugged, the Terrain, the cockpits and the crankshafts

Score: 1 out of 1 Yes

Question 23
"Which of the following is least relevant to the simple economic order quantity model for
inventory?"

Response: Safety inventory

Correct answer: Safety inventory

Score: 1 out of 1 Yes

Question 24
"A management consultancy recovers overheads on chargeable consulting hours. Budgeted overheads were 615,000
and actual consulting hours were 32,150. Overheads were under-recovered by 35,000.
If actual overheads were 694,075 what was the budgeted overhead absorption rate per hour?"

Response: 20.5

Correct answer: 20.5

Score: 1 out of 1 Yes

Question 25
"H&H employed on average 55 employees during the year. There had been 8 leavers all of
whom were replaced. What was the company’s labour turnover ratio?"

Response: 14.55%

Correct answer: 14.55%

Score: 1 out of 1 Yes

Question 26
Which of the following methods of remuneration is not an incentive‐based scheme?
Response: Day rate

Correct answer: Day rate

Score: 1 out of 1 Yes

Question 27
For operational purposes, which of the following cost units would be most useful for a company operating a fleet of
delivery vehicles?

Response: Cost per tonne mile

Correct answer: Cost per tonne mile

Score: 1 out of 1 Yes

Question 28
Which one of the following statements is incorrect?

Response: In process costing, but not job costing, the cost of normal loss will be incorporated into normal product co
sts

Correct answer: In process costing, but not job costing, the cost of normal loss will be incorporated into normal prod
uct costs

Score: 1 out of 1 Yes

Question 29
"A direct labour employee works a standard 37 hour week and is paid a basic rate of 15
per hour. Overtime is paid at time and a half. In a week when 40 hours were worked and
a bonus of 20 was paid, what was the direct labour cost?"

Response: 600

Correct answer: 600

Score: 1 out of 1 Yes

Question 30
Which of the costs listed below is not a fixed cost?

Response: Materials used in production

Correct answer: Materials used in production

Score: 1 out of 1 Yes

Question 31
"Job 2 was completed in the period and consists of 5,000 delegate places at a promotional launch for a new product.
The agency adds 75% to total production costs to reach a selling price.
What is the ticket price of each delegate place at the launch?"

Response: 16.38
Correct answer: 16.38

Score: 1 out of 1 Yes

Question 32
Which of the following best describes direct costs?

Response: Costs which can be economically identified with a single cost unit

Correct answer: Costs which can be economically identified with a single cost unit

Score: 1 out of 1 Yes

Question 33
"A job requires 2,400 actual labour hours for completion and it is anticipated that there will be 20% idle time.
If the wage rate is 10 per hour, what is the budgeted labour cost for the job?"

Response: 30,000

Correct answer: 30,000

Score: 1 out of 1 Yes

Question 34
Which of the following would be the most useful cost unit when running a hospital?

Response: Cost per inpatient hour

Correct answer: Cost per inpatient hour

Score: 1 out of 1 Yes

Question 35
When do over‐absorbed overheads occur?

Response: Absorbed overheads exceed actual overheads

Correct answer: Absorbed overheads exceed actual overheads

Score: 1 out of 1 Yes

Question 36
"A firm absorbs overheads on labour hours. In one period 11,500 hours were worked, actual
overheads were 138,000 and there was 23,000 over‐absorption.
What was the overhead absorption rate per hour (to 2 decimal places)?"

Response: 14

Correct answer: 14

Score: 1 out of 1 Yes

Question 37
Which department would normally be responsible for completing a standard purchase requisition for goods in a serv
ice organisation?
Response: The department that requires the goods

Correct answer: The department that requires the goods

Score: 1 out of 1 Yes

Question 38
"The management accountant’s report shows that fixed production overheads were over‐
absorbed in the last accounting period. What is the combination that is certain to lead to
this situation?"

Response: "Production volume is higher than budget and actual expenditure is lower than budget"

Correct answer: "Production volume is higher than budget and actual expenditure is lower than budget"

Score: 1 out of 1 Yes

Question 39
"A company has over absorbed fixed production overheads for the period by 6,000. The fixed production overhead
absorption rate was 8 per unit and is based on the normal level of activity of 5,000 units. Actual production was 4,50
0 units.
What was the actual fixed production overheads incurred for the period?"

Response: 30,000

Correct answer: 30,000

Score: 1 out of 1 Yes

Question 40
"A company operates a job costing system. Job number 1012 requires Rs45 of direct materials and Rs30 of direct la
bour. Direct labour is paid at the rate of Rs7.50 per hour. Production overheads are absorbed at a rate of Rs12.50 per
direct labour hour and non-production overheads are absorbed at a rate of 60% of prime cost.
What is the total cost of job number 1012?"

Response: 170

Correct answer: 170

Score: 1 out of 1 Yes

Question 41
"A company operates a job costing system. Job 812 requires Rs 60 of direct materials, Rs 40 of direct labour and Rs
20 of direct expenses. Direct labour is paid Rs 8 per hour. Production overheads are absorbed at a rate of Rs 16 per
direct labour hour and non-production overheads are absorbed at a rate of 60% of prime cost.
What is the total cost of Job 812?"

Response: Rs 272

Correct answer: Rs 272

Score: 1 out of 1 Yes

Question 42
"A jobbing enterprise calculates the prices of its jobs by adding overheads to the prime cost and adding 30% to total
costs. Job number 256 was sold for 1,690 and incurred overheads of 694.
What was the prime cost of the job?"

Response: 606

Correct answer: 606

Score: 1 out of 1 Yes

Question 43
If a company is using the first-in, first-out method for material issues at a time when material prices are rising this w
ill mean which of the following?

Response: Production costs will be lower and profits will be higher than if the last-in, first-out method had been used

Correct answer: Production costs will be lower and profits will be higher than if the last-in, first-out method had bee
n used

Score: 1 out of 1 Yes

Question 44
"Bowen plc has estimated that its overheads will be 250,000 next year if it handles 1,000,000 calls, and 280,000 if it
handles 1,250,000 calls.
What will its overheads be if it handles 1,100,000 calls?"

Response: 262,000

Correct answer: 262,000

Score: 1 out of 1 Yes

Question 45
What is an overhead absorption rate used for?

Response: Charge overheads to products

Correct answer: Charge overheads to products

Score: 1 out of 1

CA 3

Question 1
A proportional random sample is taken from several well defined groups. What is this form of sampling known as?
Response: Stratified sampling
Question 2
The following data is to be presented in a pie chart:
Shirt sales for the London store
Red 50
Pink 45
Blue 90
Green 20
Black 100
White 200
What angle would the section be for the blue shirts?
Response
: 64°
Question 3
A job requires 2,400 actual labour hours for completion but it is anticipated that idle time will be 20% of the totaltim
e required. If the wage rate is Rs 10 per hour, what is the budgeted labour cost for the job, including the cost ofthe id
le time?
Response
: Rs 30,000
Question 4
If a population is very large but opinions need to be sourced in the most efficient way from the entirety of a coupleof
groups, which method of sampling would be the most appropriate?
Response
: Random
Question 5
A process has the follow information relating to it for a particular period:
Input units 10,000 litres
CWIP 3,000 litres
CWIP degrees of completion
Material 100%
Conversion 60%
Material cost Rs 90,000
Conversion cost Rs 52,800
What is the value of the completed output (there are no losses in the process)?
Response
: Rs 125,000
Question 6
The following data relates to two activity levels of an outpatients' department in a hospital:
Number of consultations by patients 9,000 11,500
Overheads Rs 169,750 Rs 189,125
What is the variable cost per consultation?
Response
: Is approximately Rs 7.75
Question 7
A business is preparing its production budget for the year ahead for product A998. It is estimated that 100,000units o
f A998 can be sold in the year and the opening inventory is currently 14,000 units. The inventory level is tobe reduce
d by 40% by the end of the year. How many units of A998 need to be produced?
Response
: 94,400
Question 8
A company operates a standard marginal costing system. Last month actual fixed overhead expenditure was 2%belo
w budget and the fixed overhead expenditure variance was Rs 1,250. What was the actual fixed overheadexpenditure
for last month?
Response
: Rs 61,250
Question 9
The following details are available for a company:
Budgeted Actual
Expenditure Rs 176,400 Rs 250,400
Machine hours 4,000 5,000
Labour hours 3,600 5,400
What are the overheads if the company absorbs using labour hours?
Response
: Over‐absorbed by Rs 14,200
Question 10
What is a flexible budget?
Response
: A budget which, by recognizing different cost behaviour patterns, is designed to change as volume ofactivity chang
es
Question 11
A component has a reorder quantity of 2,000 units. The demand varies between 100 units and 500 units per week.Th
e lead time is steady at two weeks. What is the reorder level to ensure that stock outs are avoided?
Response
: 1,500 units
Question 12
A company makes a single product. The following details are from the cost card for the product:
Direct labour 10 hours at Rs 5 per hour
Variable overhead 10 hours at Rs 1.50 per hour
The actual results for the last period are:
500 units produced
Labour 4,800 hours
Variable overheads Rs 7,700
What is the variable overhead expenditure variances?
Response
: Rs 300 A
Question 13
When is service costing used?
Response
: When overhead absorption is straightforward
Question 14
Which of the following is most likely to be used as a cost unit for a hospital ward?
Response
: Patient days
Question 15
An extract from the standard cost card for product CJ is as follows: Direct labour (0.5 hours × Rs 12) Rs 6 710units
of CJ were produced in the period and staff worked 378 hours at a total cost of Rs 4,725. Of these hours 20were lost
due to a material shortage. What is the labour efficiency variance?
Response
: Rs 36 adverse
Question 16
QR has budgeted to produce 4,000 units in January. Actual production was 3,700 units with fixed productionoverhea
ds of Rs 10,300. The standard fixed overhead cost per unit was 1.5 hours at Rs 2.40 per hour. 5,800 actualproduction
hours were worked. What was the fixed overhead volume variance?
Response
: Rs 1,080 adverse
Question 17
Which of the following statements are false about a continuous budget?
Response
: Always prepared for a full year in advance
Question 18
Information required by a business can be sourced both internally and externally. Which of the following is abenefit
of internally sourced information?
Response
: Information can be accessed easily
Question 19
A company makes three products, X, Y and Z. The following information is available:
XYZ
Budgeted production (units) 200 400 300
Machine hours per unit 5 6 2
Variable overheads Rs 2.30 per machine hour
Fixed overheads Rs 0.75 per machine hour
What is the overhead budget?
Response
: Rs 12,200
Question 20
You are putting together a price quote for a potential customer. To do so, you need to calculate the labour costs ofthe
workers involved in the job. You have estimated that the job will take 210 labour hours of work. However, 20%of t
he total labour hours worked is always idle time. If the wage rate is Rs 7.50 per hour, what will be the totallabour co
st of the job?
Response
: Rs 1,890.00
Question 21
The following information relates to labour costs for the past month:
Budget Labour rate Rs 10 per hour
Production time 15,000 hours
Time per unit 3 hours
Production units 5,000 units
Actual Wages paid Rs 176,000
Production 5,500 units
Total hours worked 14,000 hours
There was no idle time.
What is the labour rate variance?
Response
: Rs 36,000 adverse
Question 22
A company manufacturing a single product has the following costs at two different activity levels:
Activity level (units) 15,000 25,000
Total costs (Rs ) 94,500 151,500
Variable costs are constant at all activity levels, but fixed costs increase by Rs 2,000 every
10,000 units.
What are the fixed costs at an activity level of 5,000 units?
Response
: Rs 10,000
Question 23
A company uses components at the rate of 300 units per month, which are bought in at a cost of Rs 1.12 each fromth
e supplier. It costs Rs 17.50 each time to place an order, regardless of the quantity ordered. The supplier offers a4%
discount on the purchase price for order quantities of 1,000 items or more. The current EOQ is 750 units. Thetotal ho
lding cost is 20% per annum of the value of inventory held. What is the change in total cost to the companyof movin
g to an order quantity of 1,000 units?
Response
: Rs 158 saving
Question 24
The annual demand for an item produced by Fish Ltd is 10,000 units. The cost of placing an order is Rs 320 andthe c
ost of holding an item in stock for one year is Rs 60. What is the economic order quantity to the nearest unit?
Response
: 327
Question 25
FGH has the following budgeted and actual data: Budgeted fixed overhead cost Rs 120,000 Budgeted production(un
its) 20,000 Actual fixed overhead cost Rs 115,000 Actual production (units) 21,000 What is the fixed overheadvolu
me variance?
Response
: Is Rs 6,000 favourable
Question 26
A sample is taken in such a way that every member of the population has an equal chance of being selected. Whattyp
e of sampling is this?
Response
: Random sampling
Question 27
What are performance standards that allow for efficient but not perfect operating conditions known as?
Response
: Basic standards
Question 28
A veterinarian should take on average 20 minutes to stitch a dog's wound. In one day the veterinarian stitched 5dogs
taking 1 hour in total. What is the efficiency ratio for the veterinarian?
Response
: 167%
Question 29
DRF’s projected revenue for 20X9 is Rs 28,000 per month. All sales are on credit. Receivables’ accounts aresettled
50% in the month of sale, 45% in the following month, and 5% are written off as irrecoverable debts aftertwo month
s. What are the budgeted cash collections for March?
Response
: Rs 24,500
Question 30
A training company runs courses for students that vary in length between one day and four weeks. The size ofclasses
varies between 5 students and 40 students. The company wants to set a price for its courses based on amarkup on co
st. What would be the most appropriate basis for measuring costs?
Response
: Cost per student per day
Question 31
What are performance standards that have remained unchanged over a long period of time known as?
Response
: Basic standards
Question 32
What would be the principal budget factor for a footwear retailer?
Response
: The constraint that is expected to limit the retailer’s activities during the budget period
Question 33
A process has a normal loss of 10% and budgeted output is 4,500 litres for the period. Opening inventory of rawmat
erial is 600 litres and is expected to increase by 20% by the end of the period.
What is the material usage budget?
Response
: 5,000 litres
Question 34
A company makes 2 products, X and Y, which are sold in the ratio 1:2. The selling prices are Rs 50 and Rs 100respe
ctively. The company wants to earn Rs 100,000 over the next period. What should the sales budget be?
Response
: X - 400 units and Y - 800 units
Question 35
Which of the following is not a purpose of budgeting?
Response
: Planning
Question 36
A company budgeted to make 30,000 units of a product P. Each unit was expected to take 4 hours to make andbudge
ted fixed overhead expenditure was Rs 840,000. Actual production of product P in the period was 32,000units, whic
h took 123,000 hours to make. Actual fixed overhead expenditure was Rs 885,600. What was the fixedoverhead cap
acity variance for the period?
Response
: Rs 21,000 favourable
Question 37
Which of the following would NOT be classified as a production overhead in a food processing company?
Response
: The cost of ingredients
Question 38
Michel has the following results. 10,080 hours actually worked and paid costing Rs 8,770 If the rate variance is Rs7
06 adverse, the efficiency variance Rs 256 favourable, and 5,000 units were produced, what is the standardproductio
n time per unit?
Response
: 2.08 hours
Question 39
A company has a two‐month receivables’ cycle. It receives in cash 45% of the total gross sales value in the monthof
invoicing. Irrecoverable debts are 20% of total gross sales value and there is a 10% discount for settlingaccounts wit
hin 30 days. What proportion of the first month’s sales will be received as cash in the second month?
Response
: 25%
Question 40
Which of the following is a direct expense?
Response
: Rent, wages and insurance of a factory.
Question 41
Caz currently pays its direct production workers on a time basis, at a rate of Rs 8.20 an hour. In an effort toimprove
productivity, Caz is introducing a bonus based on (time taken ÷ time allowed) × time saved × rate perhour. The stan
dard time allowed for a worker in the assembly department to perform this particular operation oncehas been agreed
at 45 minutes. In the first week of operation, an employee worked for a total of 45 hours andperformed 99 operations
. What were the gross wages for this employee for that week?
Response
: Rs 369.10
Question 42
What distinguishes absorption costing from marginal costing?
Response
: Product costs include both prime cost and production overhead
Question 43
What is the formula to calculate the material usage budget?
Response
: Production budget multiplied by the standard material quantity per unit
Question 44
Company Q orders inventory items from a local supplier. The following information is also available:
Demand = 5,000 units per quarter
Holding cost = Rs 0.192 per unit per year
Deliver cost per order = Rs 30
Maximum room available for inventory = 6,000 units
What is the EOQ?
Response
: 2500
Question 45
A company operates a standard absorption costing system. The standard fixed production overhead rate is Rs 15per
hour. The following data relate to last month:
Actual hours worked 5,500
Budgeted hours 5,000
Standard hours for actual production 4,800
What was the fixed production overhead capacity variance?
Response
: Rs 7,500 favourable
Question 46
Which of the following is a building firm who constructs extensions to private houses most likely to use?
Response
: Service Costing
Question 47
M plc makes a single product which has a budgeted production cost of Rs 38. This includes a fixed cost of Rs 6 peru
nit based upon budgeted production of 15,000 units per month. In October actual production was 9,000 units andSal
es were 10,500 units. The actual profit for the period was Rs 44,000 prepared on a Marginal Costing basis.What wou
ld the profit be if the statement was prepared using Absorption Costing?
Response
: Rs 45,000
Question 48
A company manufactures a single product. Production and sales quantities for a period were:
Production Sales
Budget 100,000 units 102,000 units
Actual 97,000 units 96,000 units
The fixed production overhead absorption rate is Rs 1.40 per unit.
If marginal costing had been used instead of absorption costing how the profit would for the period have differed?
Response
: Rs 1,400 more using marginal costing
Question 49
What is a purpose of a flexible budget?
Response
: To control resource efficiency
Question 50
A company uses standard absorption costing. The following data relate to last month: Budget Actual Sales andprodu
ction (units) 1,000 900 Standard Actual Rs Selling price per unit 50 52 Total production cost per unit 39 40What wa
s the adverse sales volume profit variance last month?
Response
: Rs 1100 A
Question 51
In December a firm recorded a profit of Rs 25,000 using marginal costing principles. The opening inventory inDece
mber was 20,000 units; the inventory level had increased by 10% at the end of the month. The fixed overhead
absorption rate was Rs 0.50 per unit. What is the profit using absorption costing?
Response
: Rs 27,000
Question 52
A company budgets to make 3,000 units of product ERT in 600 hours. Actual output was 2,800 units of ERT whicht
ook 650 hours. What is the labour efficiency ratio, to the nearest percent?
Response
: 86%
Question 53
A company has a higher than expected staff turnover and as a result staff are less experienced than expected. As anin
direct result of this, are the labour rate variance and material usage variance likely to be adverse or favourable?
Response
: Labour rate - Favourable and Material usage - Adverse
Question 54
What is the formula to calculate the production budget?
Response
: Sales budget – opening inventory + closing inventory
Question 55
Under absorption costing the sales volume variance is calculated by multiplying the difference in sales volumesmulti
plied by?
Response
: Standard profit per unit
Question 56
A transport company has a cost accounting system for measuring the costs of the services it provides. Thecompany p
rovides train services throughout the southern region of the country.
Which of the following would be the most appropriate cost unit for measuring operating costs, in a way that costsof i
ts various services can be usefully compared?
Response
: Cost per passenger
Question 57
What is the name of the part of an organization which generates revenues and for which costs are also collected?
Response
: A profit centre
Question 58
A business uses marginal costing to calculate variances. If they were to use absorption costing the current methodof
calculating the sales volume variance would be?
Response
: Different but not able to say higher or lower
Question 59
Kiveton Cleaning Services supplies its employees with protective clothing. One such item is protective gloves.Recor
ds from the stores department for January showed:
1 Jan Opening inventory 150 pairs @ Rs 2 each
7 Jan Purchases 40 pairs @ Rs 1.90
15 Jan Issues 30 pairs
29 Jan Issues 35 pairs
What is the value of the closing inventory if the FIFO method is used?
Response
: Rs 246
Question 60
What is a fixed budget?
Response
: A budget for a single level of activity

MCQ's

Question 1
Who benefits due to cost accounting systems?
Response: [none]
Correct answer: Management, workers, consumers and government
Question 2
For which period, the management carries out the management accounting?
Response: [none]
Correct answer: Future
Question 3
Which of these is known as any item for which costs are calculated separately?
Response: [none]
Correct answer: Cost object
Question 4
If compared to management accounting, how is the scope of cost accounting?
Response: [none]
Correct answer: Narrower
Question 5
What information does cost accounting provide?
Response: [none]
Correct answer: Impact of cost on business
Question 6
Who are the primary users of management accounting?
Response: [none]
Correct answer: Management board
Question 7
Under which category of cost, should grease and stationery be included?
Response: [none]
Correct answer: Indirect material
Question 8
What kind of relation exists between cost accounting and management accounting?
Response: [none]
Correct answer: Complimentary
Question 9
Cost accounting is used to ascertain and control which of the following?
Response: [none]
Correct answer: Cost
Question 10
Which of the following is not a goal of management accounting?
Response: [none]
Correct answer: Cost valuation
Score: 0 out of 1

2 Unit : Practice Multiple Choice Questions (MCQs)

Question 1
Which cost does not change in total with the change in production level, but changes per
unit?
Response: [none]
Correct answer: Fixed costs
Question 2
Which units are perpetually selected rigorously supported by the character of business
operations?
Response: [none]
Correct answer: Cost
Question 3
Which cost varies proportionately with the output level?
Response: [none]
Correct answer: Variable costs
Question 4
Which of the following costs imply the method of grouping costs in keeping with their
common characteristics?
Response: [none]
Correct answer: Classification
Question 5
What is the meaning of tender?
Response: [none]
Correct answer: Estimation of the selling price
Question 6
Which of the following is known as a cost which has characteristics of each fixed and variable
cost?
Response: [none]
Correct answer: Mixed costs
Question 7
Which of the following can be used to classify overhead costs?
Response: [none]
Correct answer: Indirect cost
Question 8
Which of the following is known as the response to asking for supply?
Response: [none]
Correct answer: Tender
Question 9
How many ways can be used to do cost classification?
Response: [none]
Correct answer: Many ways
Question 10
Which of the following cannot be classified as direct cost?
Response: [none]
Correct answer: Overhead
Score: 0 out of 1

03 Unit : Practice Multiple Choice Questions (MCQs)

Question 1
Which of these is known is the cost of the materials needed to produce a good or render
service?
Response: [none]
Correct answer: Material cost
Question 2
When a corporation purchases high-quality materials, the cost is expensive. If a corporation
purchases low-quality materials, then the cost will be lower. Which of the following option is
correct regarding the above statement?
Response: [none]
Correct answer: Conciliation for proper quality with price of material
Question 3
Which of the following does the accounting department at the firms use to calculate the
value of unsold inventory products while creating their financial accounts?
Response: [none]
Correct answer: Inventory valuation
Question 4
Which of the following is a strategy for managing assets and valuing them that prioritises the
sale, use or disposal of assets that were generated or acquired first?
Response: [none]
Correct answer: FIFO
Question 5
Which of the following is only feasible if the corporation keeps track of its stock, controls it
and employs various methods for gauging its degree of availability?
Response: [none]
Correct answer: Equilibrium in the stock of material
Question 6
A product received notice is created by the storekeeper if the delivery is acceptable. Which of
the following option is correct regarding the above statement?
Response: [none]
Correct answer: Goods Received Note (GRN)
Question 7
Transferring items from one manufacturing department to another is done using this
document. Which of the following option is correct regarding the above statement?
Response: [none]
Correct answer: Materials transfer note
Question 8
The goal of material record and control should also be to eliminate normal and abnormal
material waste and losses in production. Which of the following option is correct regarding
the above statement?
Response: [none]
Correct answer: To reduce the wastage and losses
Question 9
A buy order is created by the purchasing department and delivered to the supplier. Which of
the following option is correct regarding the above statement?
Response: [none]
Correct answer: Purchase order
Question 10
Which of the following method is applied to account for the varying levels of significance of
the values in a data collection?
Response: [none]
Correct answer: Weighted average method
Score: 0 out of 1

04 Unit : Practice Multiple Choice Questions (MCQs)

Question 1
Which among the following is employed to portion remuneration prices to the overall Ledger
Chart of Accounts?
Response: [none]
Correct answer: Labour accounting
Question 2
Which among the following is that the quantity of wages purchased operating on the far side
traditional operating hours as mere by Factories Act or by a mutual agreement between the
staff union and therefore the management?
Response: [none]
Correct answer: Overtime
Question 3
How do we calculate wages as per piece wages system?
Response: [none]
Correct answer: Rate per unit No. of units created
Question 4
Which among the following are considered part of overhead costs and are appropriately
distributed to the manufactured goods using factors such as machine hours and direct labour
hours?
Response: [none]
Correct answer: Indirect labour cost
Question 5
Which of these is magnitude relation tell us regarding how efficiently labour are operating
the efficiency magnitude relation is calculated on the idea what’s expected from labour and
the way is actual performance?
Response: [none]
Correct answer: Labour efficiency
Question 6
Which of the following is very important as a result of labour involving a high production cost
so the labour ought to be operating efficiently?
Response: [none]
Correct answer: Labour efficiency
Question 7
Which of these refers to the magnitude relation of the variety of workers who leave a
corporation through attrition, dismissal or resignation to the full variety of workers on the
payroll in this amount?
Response: [none]
Correct answer: Labour efficiency ratio
Question 8
Which of these refers to the magnitude relation of the variety of workers who leave a
corporation through attrition, dismissal or resignation to the full variety of workers on the
payroll in this amount?
Response: [none]
Correct answer: Labour efficiency ratio
Question 9
Which of the following is also known as shifting turnover?
Response: [none]
Correct answer: Labour turnover ratio
Question 10
Which of these is magnitude relation tell us regarding how efficiently labour are operating
the efficiency magnitude relation is calculated on the idea what’s expected from labour and
the way is actual performance?
Response: [none]
Correct answer: Labour efficiency
Question 11
Which of the following refers to the labour time purchased but not utilised on production?
Response: [none]
Correct answer: Idle time
Question 12
Which of the following is also known as shifting turnover?
Response: [none]
Correct answer: Labour turnover ratio
Question 13
Which among the following are considered part of overhead costs and are appropriately
distributed to the manufactured goods using factors such as machine hours and direct labour
hours?
Response: [none]
Correct answer: Indirect labour cost
Question 14
How do we calculate wages as per piece wages system?
Response: [none]
Correct answer: Rate per unit No. of units created
Question 15
Which of the following is very important as a result of labour involving a high production cost
so the labour ought to be operating efficiently?
Response: [none]
Correct answer: Labour efficiency
Question 16
Which among the following is employed to portion remuneration prices to the overall Ledger
Chart of Accounts?
Response: [none]
Correct answer: Labour accounting
Question 17
Which of the following refers to the labour time purchased but not utilised on production?
Response: [none]
Correct answer: Idle time
Question 18
Which among these utilisation is vital issue as a result of beneath utilisation of capacity that
could be a loss for the entity?
Response: [none]
Correct answer: Capacity
Question 19
Which among these utilisation is vital issue as a result of beneath utilisation of capacity that
could be a loss for the entity?
Response: [none]
Correct answer: Capacity
Question 20
Which among the following is that the quantity of wages purchased operating on the far side
traditional operating hours as mere by Factories Act or by a mutual agreement between the
staff union and therefore the management?
Response: [none]
Correct answer: Overtime
Score: 0 out of 1

5 Unit : Practice Multiple Choice Questions (MCQs)

Question 1
Which expenses (overheads) incurred regarding the distribution of the merchandise or
service area unit are classified as distribution overheads?
Response: [none]
Correct answer: Indirect
Question 2
Which of the following are incurred for a variety of units then cannot be known with a cost
unit?
Response: [none]
Correct answer: Costs
Question 3
Indirect refers to something that cannot be allocated but could instead be distributed to or
absorbed by value centres or which of the following?
Response: [none]
Correct answer: Value units
Question 4
Which of the following ought to set its semi-permanent product costs at levels that account
for each of its overhead costs and direct costs?
Response: [none]
Correct answer: Business
Question 5
Which of the following is additionally called “on value, burden or load”?
Response: [none]
Correct answer: Overhead
Question 6
Overhead absorption is outlined because of the allotment of overheads to which of these?
Response: [none]
Correct answer: Cost units
Question 7
A major consideration in choosing which of the following to be used could be thought of the
practical applicability of such a rate?
Response: [none]
Correct answer: Absorption rate
Question 8
Overheads could also be outlined as all indirect costs incurred for the assembly of products
or which of the following?
Response: [none]
Correct answer: Services
Question 9
Which methodology of allocation of service department costs do we tend to establish
equations and solve them to get the ultimate balances of production departments?
Response: [none]
Correct answer: Concurrent equation
Question 10
Which among the following methodology could be an accounting technique within which
costs of every service department are repeatedly allotted to production departments in
keeping with affordable percentages till the balance left in the commission department’s
columns reaches zero?
Response: [none]
Correct answer: Repeated distribution
Score: 0 out of 1

06 Unit : Practice Multiple Choice Questions (MCQs)

Question 1
The cost accounting technique during which variable cost is transferred completely, to the
product is understood as which of the following?
Response: [none]
Correct answer: Marginal costing
Question 2
Purpose at that the business will verify the ultimate product is named as which of the
following?
Response: [none]
Correct answer: Split-off point
Question 3
Which of the following may be merely outlined because the cash or resources related to a
sale / business dealing or the other activity?
Response: [none]
Correct answer: Costs
Question 4
What could be a methodology of cost accounting whereby value is compiled for employment
or work order?
Response: [none]
Correct answer: Job costing
Question 5
Which of the following cost is the initial and most significant objective of cost accounting?
Response: [none]
Correct answer: Scertainment
Question 6
Which cost is that the combination of variable costs?
Response: [none]
Correct answer: Marginal
Question 7
Which accounting is employed in variety drug industries, prepared created garment
industries, electronic elements manufacture, TV sets, radio etc.?
Response: [none]
Correct answer: Batch cost
Question 8
Which of the following term or in operation costing refers to the computation of the whole
operational cost incurred on every unit of the intangible product?
Response: [none]
Correct answer: Service costing
Question 9
Which of the following classifies overheads within the following 3 classes Production,
Administration and commercialism and Distribution?
Response: [none]
Correct answer: Absorption costing
Question 10
Which of the following incurs costs before a split-off purpose; it should assign them to
merchandise, beneath the dictates of each typically accepted accounting principles and
international money coverage standards?
Response: [none]
Correct answer: Corporation
Score: 0 out of 1

7 Unit : Practice Multiple Choice Questions (MCQs)

Question 1
In general, which of the following relies on historical forecasts in order to make decisions
about the future?
Response: [none]
Correct answer: Planning
Question 2
Which of the following may need to comprehend the justification for the distinction between
actual profit and budgeted profit?
Response: [none]
Correct answer: Management
Question 3
Which of the following is one that can accommodate significantly different sales quantities?
Response: [none]
Correct answer: Flexible budget
Question 4
Which of the following is frequently a projection of overall sales that is broken down by
product teams, salespeople and geographic regions?
Response: [none]
Correct answer: Sales budget
Question 5
Which of the following is majorly a basic step in essentially achieving all of the money
attainment and by all the extension, reaching all of the money security and freedom?
Response: [none]
Correct answer: Budgeting
Question 6
The final integration of separate, budgets by the businessperson provides which of the
following?
Response: [none]
Correct answer: Purchase budget
Question 7
The quantity of money that will be spun off or required to fund operations should be derived
from which of the following?
Response: [none]
Correct answer: A properly established budget
Question 8
Which of the following relates to improvement within the quality of the merchandise or
analysis for brand spanking new merchandise?
Response: [none]
Correct answer: Analysis budget
Question 9
A financial statement that isn’t adjusted for changes in actual activity may be referred to as
which of the following?
Response: [none]
Correct answer: Fixed budget
Question 10
Which of the following is frequently a prediction of mounting asset expenditure together
with one of the sources of the capital budget?
Response: [none]
Correct answer: Capital budget
Score: 0 out of 1

08 Unit : Practice Multiple Choice Questions (MCQs)

Question 1
Due to the fact that manufacturers are unable to estimate exact costs in advance, standard
costing is the technique of which of the following during the production process?
Response: [none]
Correct answer: Estimating cost
Question 2
A variance report that reconciles the budget profit with the actual profit and provides
management with explanations for variations is presented under which costing system?
Response: [none]
Correct answer: Standard
Question 3
The difference between the actual and anticipated cost of labour is measured by which of the
following variance?
Response: [none]
Correct answer: Labour rate
Question 4
The ideal system for cost control, gauging efficiency and tracking development is known as
which of the following?
Response: [none]
Correct answer: Standard costing
Question 5
Which of the following is the correct formula for calculating standard cost?
Response: [none]
Correct answer: Direct labour + Materials cost + Manufacturing overhead
Question 6
Which of the following you discover is going to be employed in the report?
Response: [none]
Correct answer: Data
Question 7
The discrepancy between planned and actual numbers is the focus of which of the following
analysis?
Response: [none]
Correct answer: Variance
Question 8
Which of the following variance arises once the particular value related to a labour activity
varies (either higher or worse) from the expected quantity?
Response: [none]
Correct answer: Labour
Question 9
Which of the following variance is the distinction between the values at that a business
expects to sell its merchandise or services and what it really sells them for?
Response: [none]
Correct answer: Sales
Question 10
Which of the following variance is the discrepancy between the quantity of materials actually
utilised and the quantity anticipated to be used throughout the production process?
Response: [none]
Correct answer: Material quantity variance
09 Unit : Practice Multiple Choice Questions (MCQs)
Question 1
Which of the following may be a system underneath that an organisation plans beforehand
for the value points, product prices and margins that it needs to attain for a replacement
product?
Response: [none]
Correct answer: Target cost accounting
Question 2
Which of the following revenues increase and also the product begins to create a profit?
Response: [none]
Correct answer: Sales
Question 3
Management accounting is principally involved with provision of acceptable data for which of
the following control personnel at intervals associate organisation to assist them run the
organisation and to create higher selections?
Response: [none]
Correct answer: Social
Question 4
Which of the following accounting may be a trendy conception of accounting as a tool of
management?
Response: [none]
Correct answer: Management
Question 5
Which of the following is based on the idea that “products consume activities”?
Response: [none]
Correct answer: Activity based costing
Question 6
Which of the following costing systems are designed on the belief that product drives the
prices directly?
Response: [none]
Correct answer: Conventional
Question 7
Target cost accounting is a superb tool for coming up with a collection of merchandise that
has high levels of which of the following?
Response: [none]
Correct answer: Profitableness
Question 8
Which of the following cost accounting may be applied throughout the complete life cycle?
Response: [none]
Correct answer: Target
Question 9
Management accounting helps in analysing and recording money data which might be
utilised by a corporation to extend its potency along with which of the following?
Response: [none]
Correct answer: Productivity
Question 10
Which of the following is established in step four of the target cost accounting method?
Response: [none]
Correct answer: Target price gap

10 Unit : Practice Multiple Choice Questions (MCQs)

Question 1
Which of the following provides the investors with a sense that the business has enough cash
on hand to cover its costs and make its purchases?
Response: [none]
Correct answer: Cash flow
Question 2
Which of the following serve as benchmarks for businesses?
Response: [none]
Correct answer: Cash flow
Question 3
Owners designate which of the following to oversee the entity because they lack the time to
handle day-to-day operations of the business?
Response: [none]
Correct answer: Management
Question 4
Which of the following is not an attribute of financial statements?
Response: [none]
Correct answer: Quality
Question 5
The assets and liabilities listed on the balance sheet demonstrate which of the following?
Response: [none]
Correct answer: Company’s financial situation
Question 6
Which of the following includes specific investments of the company’s asset investments and
displays the financial status of the business?
Response: [none]
Correct answer: Balance sheet
Question 7
Which of the following cannot determine the nature of financial statements?
Response: [none]
Correct answer: Quality of transaction
Question 8
Which of the following is an accounting technique that uses monetary statements, like
balance sheets and financial gain statements, to achieve insights into a company’s financial
health?
Response: [none]
Correct answer: Ratio analysis
Question 9
The entity’s financial performance, including its revenue and expenses, are displayed in which
of the following?
Response: [none]
Correct answer: Income statement
Question 10
All transactions of a financial report is based on which of the following cost?
Response: [none]
Correct answer: Historical
Score: 0 out of 1