Which of the following are advantages of using spreadsheets?

 
(1 They help accountants to perform calculations quickly and easily
)
(2 They enable data to be manipulated and numerical information to be analysed
)
(3 They remove the risk of errors in financial analysis
)
1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
What is an organisation chart designed to show? 
Directions of responsibility
Main items of expenditure
Coding structure
Aim of the organisation

What is meant by the classification of costs by behaviour?

Classification of costs as material, labour and other expenses
Classification of costs as prime costs and overheads
Classification according to how costs change with activity
Classification according to whether costs are direct or indirect
What is a cost unit?
The cost per unit of a product or service
A number of different products combined together for cost analysis
A unit of a product or service which has costs attached to it
A section of the business where a manager is only responsible for costs
Forecast sales and production of product P in the next period are 6,000 units and 5,800
units respectively. 50 litres of material M are used per 100 units of product P. Inventory
of material M is planned to be reduced by 60 litres in the next period. 
What quantity of material M needs to be purchased in the next period?
2,940 litres
3,060 litres
2,960 litres
 2,840 litres
Which accounts need to be charged for factory wages used in production?
Wages control, work in progress and production overhead
Creditors and wages control
Wages control, production overhead and bank
Work in progress and finished goods
A direct operative in a production cost centre worked for 41 hours in week 6. The basic week is
38 hours and the basic rate of pay is $12 per hour. Extra hours are worked to meet the general
needs of the business and are paid at a premium of 20% above the basic rate. 
How much of the direct operative's gross wages in week 6 would be charged as a direct
cost?
$499.20
$492.00
$535.20
$456.00
A company has two divisions: North and South. The accountant is preparing a sales report
totalling sales from both divisions. The spreadsheet includes three worksheets: "Total", "North"
and "South". The layout of the spreadsheet is the same for each worksheet. 
 

What formula will be used in cell C3 on the 'Total' spreadsheet to show the company's total
sales for Product 1 in January?
=North!C3+South!C3
=North!C3:South!C3
=NorthC3+SouthC3
 =!NorthC3+!SouthC3
The management accountant is trying to display a large amount of data in a spreadsheet but
finding it difficult to prevent the column and row headings from scrolling off the screen. She
wants to 'freeze' the first four rows and the first three columns (shaded below) using the freeze
panes function:
 

Where should the management accountant position the cell pointer when she clicks the
'Freeze panes' function in order to freeze the first four rows and the first three columns as
illustrated?
In cell C4
In cell D4
In cell D5
In cell C5
\Inthe cost coding system of Company A each digit of a code represents a
classification, with each digit further to the right representing a smaller subset than the
previous digit.
What type of coding system is Company A using?
Mnemonic
Block
Sequential
Hierarchical
Which of the following would occur in a production environment where process costing is
used?
(1 Continuous production process
)
(2 Output of one process may become the input of the next process
)
(3 Output is always a single product
)
3 only
1 and 2 only
1, 2 and 3
1 and 3 only
Which of the following is/are advantages of using spreadsheets?
(1 They are suitable for holding very large volumes of data
)
(2 They enable data to be manipulated easily
)
(3 They enable complex 'what if' analysis to be performed quickly
)
(4 Large spreadsheets are unlikely to contain any critical errors
)
1 and 4 only
2 only
2 and 3 only
1, 2, 3 and 4
Which of the following correctly describes the range of cells below? 

F4:C8
 C4:F4
C8:F4
C4:F8
The image below shows the 'Circular References' error message shown in a spreadsheet status
bar. 
 

What could cause a circular reference error? 

A formula dividing a number by zero
A formula referring to a cell containing text
A formula which includes a reference to its own cell address
A formula which does not separate cell references correctly
Which of the following statements reflect attributes of real time processing in a computer
data processing environment?
(1 Control over the input of data is facilitated
)
(2 It is suitable for internal regular tasks
)
(3 Transactions are input and processed immediately
)
(4 Up-to-date information is always available
)
1, 3 and 4
2 and 3
3 and 4 only
1 and 2
Which of the following are usual tasks carried out by the accounts department in a large
business? 
(1 Preparation of the payroll
)
(2 Payment of suppliers invoice
)
(3 Quality control of finished product
)
(4 Deciding on selling prices
)
2, 3 and 4
2 and 3 only
1 and 4
1 and 2
Which of the following would MOST likely influence the content of a management
information report?
The information requirements of the recipient of the report
Whether the information is from internal or external sources
The cost of obtaining the necessary information
The degree of accuracy of the information within the report
Management needs information to make choices between alternatives. 
Which purpose of management information is the above statement an illustration of?
Planning
Reporting
Control
Decision-making
A trainee accountant working in an accountancy practice carries out a variety of work for several
clients in a period. 
What document may be used by the trainee to record the analysis of hours worked?
Clock card
Timesheet
Payroll extract
Employee record card
Which of the following statement(s) about coding is/are CORRECT?
(1 A code is a system of words, letters, figures or symbols used to represent other items
)
(2 Authorisation of transactions is not required if codes are used
)
(3 Costs are coded to facilitate their entry into the accounting records
)
1 only
2 only
1 and 3
2 and 3
Telecommunication costs incurred by a business each month are made up of a standing charge
plus an additional amount according to the volume of communications. 
How would the telecommunication costs be classified?
Variable cost
Stepped cost
Semi-variable cost
Fixed cost
Which of the following correctly states the activities of a responsibility centre?
An investment centre is responsible for revenues and capital investment only
A profit centre is responsible for revenues only
A profit centre is responsible for costs and revenues only
An investment centre is responsible for costs and capital investment only
The following information relates to a division of a business for a period: 
 
Sales revenue $420,000
Capital employed $260,000
Net profit margin 10%
Cost of capital 8%
 
What is the residual income of the division?
2%
$21,200
$3,200
$7,600
Which of the following statements would be TRUE if raw materials prices were rising?
 Under LIFO production costs would be lower than under FIFO
LIFO would give a lower closing inventory valuation than FIFO
Periodic weighted average would give a lower closing inventory valuation than the
cumulative weighted average pricing method
FIFO would give a lower profit figure than LIFO 
The packaging section in a warehouse operates a piecework payment system as follows: 
 
Units packed Piecework rate 
per unit ($)
1 to 5,000 0.04
5,001 to 8,000 0.05
8,001 and above 0.06
 
Only additional units packed, over the previous threshold, are paid at the higher rates. 
If 8,340 units are packed, what are the wages?
$420.40
$367.00
$500.40
$370.40
Which of the following costs would MOST appropriately be apportioned to cost centres on
the basis of floor space occupied?
Machine depreciation 
Indirect material
Indirect labour
Heat and light
Central costs in a business are shared to each cost centre.
What term is used for such costs sharing?
Absorption
Apportionment
Allocation
Re-apportionment
As part of the purchasing cycle, what is the correct order in which the following documents
would be processed?
 Purchase order, purchase requisition, invoice, goods received note
Purchase requisition, purchase order, invoice, goods received note
Purchase order, purchase requisition, goods received note, invoice
Purchase requisition, purchase order, goods received note, invoice
Which of the following identifies a row of cells in a spreadsheet?
A5 - B6
A1 - G1
A1 - Z10
A1 - A20
Which of the following correctly describes the calculation of unit cost of production using
batch costing?
Cost of sale divided by units in the batch
Full production cost divided by the number of units in the batch
Direct cost divided by the number of batches produced
Prime cost divided by the number of batches produced
A company uses a single process for which the following information is available:
 
Processing cost per input unit  $3
Quantity of input units  1,800
Units lost in the production process  15%
 
What is the cost per unit of output for this process?
$3.33
$3.53
$3.00
$2.55
What is a spreadsheet file with multiple sheets often referred to as?
Database
Worksheet
Workbook
Document
Which of the following would NOT be a task of a trainee accountant?
 Calculate materials cost
Authorising invoices
Value inventory
Estimate product profitability
Which of the following is an advantage of having centralised rather than de-
centralised business administration?
Administration under control of local management
Economy in terms of space and cost
Self-sufficient local offices
Systems tailored to individual requirements 
What is the double-entry for the purchase of raw materials on credit in an integrated
accounting system?
Dr Purchase ledger control Cr Raw materials control

Dr Raw materials control Cr Payables control

Dr Cost ledger control Cr Purchase ledger control

Dr Payables control Cr Raw materials control

What document is required to authorise an issue of raw material from stores?

Goods received note
Bin card
Materials requisition
Purchase requisition
How is the contribution per unit calculated in marginal costing?
Selling price less total variable costs per unit
Selling price less total costs per unit
Selling price less total production costs per unit
Selling price less variable production costs per unit
A company absorbs indirect costs as follows: 
 
Production overheads $29.40 per machine hour worked
Selling and administration overheads 12% of total production costs
 
During a period 6,000 units of a product were manufactured in 1,000 machine hours. Direct costs
incurred in the manufacture of the product were:
 
Raw materials $18,600
Labour 1,800 hours at $15 per hour
 
What is the total cost per unit of the product?
$12.50
$14.00
$41.44
$37.00
The labour efficiency and capacity utilisation ratios in a period were 112% and 94%
respectively.
What was the production volume ratio in the period (to the nearest %)?
84%
119%
105%
106%
Materials inventory at the beginning of the month totalled $16,780. The following lists activity
during the month: 
 
$
Purchases of materials, all on credit $33,660
Issues of direct materials from inventory $29,010
Issues of indirect materials from inventory $1,980
Return of materials to suppliers $860
Return of materials to inventory following over-issue $620
 
What was the inventory of materials at the end of the month?
$19,690
$19,210
$19,450
$20,930
In month 2, the materials purchased by a manufacturing business totalled
$126,440.  The materials inventory at the end of month 2 was $75,770.  During month 2
the issues of direct materials to production were $114,960 and issues of indirect
materials were $7,590.
What was the balance on the materials control account at the beginning of month
2?
$56,700
$71,880
$94,840
$79,660
In a factory cost centre, direct operatives are paid $9 per hour.  Ten units of product A are
manufactured per direct operative hour.
If productivity improves by 10%, what will be the direct labour cost per unit of product A
(to two decimal places)?
$0.82
$0.81
$1.11
$0.90
Actual and budgeted figures for a manufacturing cost centre for a period are:
 
Actual Budget
Overhead costs $181,250 $150,000
Labour hours 75,000 72,000
 
Labour hours are used to absorb the overheads in the cost centre. 
What is the predetermined overhead absorption rate (to two decimal places)?
$2.52
$2.08
$2.00
$2.42
Jonah prepares the following information for material purchases: 
 
Sales  100 units
Opening inventory of finished goods  50 units
Closing inventory of finished goods  75 units
Materials per unit  3 kg
Labour hours per unit  4
Opening inventory of raw materials  300 kg
Closing inventory of raw materials  450 kg
 
What will be material purchases for Jonah?
650 kg
450 kg
75 kg
525 kg
Below is a schedule of expenses for Kathy prepared using a spreadsheet. 
 

Which formula would give the average monthly cost? 

=AVERAGE(B4/B9)
=SUM(B4:B9)
=SUM(B10/6)
=AVERAGE(B4:B9)
The formula = B5*B9 - D1/D2 appears in a spreadsheet cell. 
Which of the following is a way to re-write the formula in order to produce the same
result? 
[B5 x (B9 - D1)] ÷ D2
(B5 x B9) - (D1 ÷ D2)
B5 x [B9 - (D1 ÷ D2)]
[(B5 x B9) - D1] ÷ D2
The information below contrasts management accounting with financial accounting.
Management accounting Financial accounting
(1) Accounts presentation determined by (1) Accounts presentation determined by
standards management
(2) Accounts used both within a business (2) Accounts used within a business only
and externally
(3) Concerned both with past data and (3) Focused on past data
future data
(4) Concerned with financial information (4) Concerned with both financial and non-
only financial information
Which of the contrasts is/are TRUE?
3 only
1 and 2
2 and 4
1, 3 and 4
Lilly Co produced a single product called Bud using a single process.  No losses occur during the
process. 
 
During June 500 kg of raw material were input into the process at a total cost of
$8,000.  Conversion costs during the month amounted to $2,500.  There was no work in progress
at the start of June. 
 
At the end of June, 350 kg of Bud were transferred to finished goods.  The remaining work in
progress was 100% complete with respect to materials and 80% complete with respect to
conversion costs.
What are the equivalent units for conversion at the end of the month?
380 kg
400 kg
470 kg
 500 kg
A large hospital is in the process of budgeting for the heating costs of its various cost centres.
Which of the following is the BEST basis for apportioning the heating costs to the cost
centres?
Number of patients per cost centre
Value of machinery in each cost centre
Number of employees per cost centre 
Cubic metres per cost centre
Which department is responsible for preparing a goods received note?
Quality control
Stores
Accounts
Purchasing