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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Costing | 25% | - Cost estimation techniques - Cost classification and behaviour - Overhead allocation, apportionment and absorption - Marginal and absorption costing - Job, batch, process and service costing |
| Topic 2: The Context of Management Accounting | 10% | - Role and purpose of management accounting - Role of CIMA and professional ethics - Characteristics of useful financial information - Global Management Accounting Principles |
| Topic 3: Decision Making | 35% | - Cost-volume-profit analysis - Pricing decisions - Risk and uncertainty analysis - Investment appraisal techniques - Relevant costing for short-term decisions |
| Topic 4: Planning and Control | 30% | - Budgeting concepts and preparation - Standard costing and variance analysis - Performance measurement and reporting - Budgeting methods and techniques |
1. A company produces a single product for which the following cost data are available.
Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs.
What is the marginal cost per unit?
A) $9
B) $7
C) $8
D) $6
2. Refer to the exhibit.
A departmental budgetary control report for the latest period includes the following information.
The budgeted variable production cost per unit is
A) $10
B) $16
C) $12
D) $17
3. Refer to the Exhibit.
Zepher Ltd. manufactures three products, which require the same type of machine. The following fixed cost and profit per unit is available:
In a period in which machine hours are in short supply, which of the following options is the rank order of production?
Answer is:
A) Option A
B) Option B
C) Option C
D) Option D
4. A standard hour is:
A) The standard time taken to produce one unit
B) A measure of output
C) The actual time taken to produce one unit
D) A measure of time
5. The standard labour hours for all products manufactured by a company include an allowance for idle time. Idle time is budgeted to be 5% of total hours worked. Each unit of product G requires an input of 9.5 active labour hours. The labour rate is $12 per hour.
The standard labour cost shown on the standard cost card for one unit of product G will be
A) $119.70
B) $10.00
C) $114.00
D) $120.00
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: D |
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