mocks wrong qs

Question 1

qualities of good info

Answer 1

Accurate
Complete
Cost beneficial
User friendly/targeted
Relevant
Authoritative
Timely
Easy to use

Question 2

predetermined OAR qualities

Answer 2

• smooth out differences in unit costs caused by abnormally high or low activity levels
• allow full production costs to be recorded before they would be if actual overhead costs and activity were used instead
• cause the under or over-absorption of overhead costs

Question 3

expected values qualities

Answer 3

• calculated using weighted averages
• calculated as the sum of the probabilities multiplied by the outcomes
• a project with a negative expected value should be rejected
• is more appropriate where a decision is being repeated because it should ensure optimal decision making over the long-term

Question 4

payback period formula

Answer 4

Initial investment ÷ annual net cash inflow

Question 5

what are attainable standards

Answer 5

Attainable standards are attained if production is carried out efficiently and machines and materials are used properly.

Allowances are made for waste and inefficiencies

Question 6

absorption costing profit steps

Answer 6

1. Do full cost amount
2. Find how much overhead is under/over absorbed by (actual production x overhead absorption rate)
3. Sales revenue - (Full cost - over absorption or + under absorption)

Question 7

what costs come under relevant costs

Answer 7

• opportunity
• incremental
• avoidable

Question 8

flexed budget profit process

Answer 8

For flexed budget profit, work out total contribution then flex this figure to the actual figure and THEN take off fixed costs - fixed costs is always last thing you do

Question 9

what is the most appropriate basis for apportioning machinery repairs and maintenance costs to cost centres within a factory

Answer 9

operating hours of the machinery in each cost centre

Question 10

how to find standard deviation when given mean, the % and the numbers

Answer 10

1. Divide the % by 2 if the mean falls within the middle of the range
2. Using this figure calculated, find it in the tables and see which Z score corresponds with it
3. Input this Z score into the formula ( z = (x - mu) / sd ) to get the standard deviation

Question 11

max contribution earned method

Answer 11

1. Rank by greatest contribution per LF
2. Make all of the product with highest cont/LF by dividing the limiting factor amount by LF cost per unit to get number of units
3. Multiply no of units by cont/unit to get max contribution

Question 12

effects of reducing inventory for cash flow problems

Answer 12

reduces supplier orders and frees up cash to help with a cash shortage

Question 13

integrated systems features

Answer 13

• conform to statutory requirements
• reduce the number of account reconciliations
• aid provision of internal management information
• save time and administrative effort

Question 14

what is a control account

Answer 14

An account which records total cost as opposed to individual costs

Question 15

where does IRR fall

Answer 15

IRR is the the discount rate which gives a net present value of zero, so the range that it falls into is where it goes from a minus to a positive number

Question 16

which variances are recorded in WIP

Answer 16

Material usage variance
Variable overhead efficiency variance
Idle time variance