Answer script- Interim Mock Examination March 2022, Management Accounting

1 T1 and T3
2 A- Setting a cost by subtracting a desired profit margin from a competitive market price
3 Process F abnormal loss, Process G abnormal gain
4 A & B-Statement 1 & 2
5 C- effectiveness
6 C- Both statements are true
7 D- I,ii and iii
8 D- Graph D
9 D- $13
10 $880
11 C & D- 0 and -0.94
12 C- $2840
13 D- Based on operational information with some interpretation applied
14 D- $128,500
15 A- the mission gives managers focus for setting objectives
16 Process F abnormal loss, Process G abnormal gain
17 D- I,ii and iii
18 A- the mission gives managers focus for setting objectives
19 D- $128,500
20 EOQ- lower, Annual holding cost- lower
21 A- 19,910
22 True, True
23 25%
24 B- piece-rate
25 Absorption costing Month 1- $200, month 2- $3,200. Marginal costing Month 1- ($400), month 2- $4,40
26 B- 1 and 2 only
27 D- 75%
28 C- Quantified short term targets the organization seeks to achieve
29 $180
30 A- Under-absorbed by $3,875
31 C & D- No strict rules govern the way in which the information is presented, It may be presented in mon
32 C- Forklift truck drivers in the stores of an engineering company
33 36%
34 D- 68,200
35 949 units

36 8.a.2 Material Conv costs

100% 50 EU 50% 25EU

8.a.3 Nil
8.a.4 D- ii and iii only
8.a.5 B- The same as good production
8.a.11 D- 9,985 units

37 7.a.26 D- $75,467
 7.b.1 D- Impossible to calculate without more information
7.b.2 B- $3,600 higher
7.b.4 A- $45,400
7.b.5 D- 48,400

38 5.3 1,710 units

5.4 C- 2,860 units
5.5 163
5.6 D- I, ii and iii
5.7 C- order quantity
It may be presented in monetary or non-monetary terms