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Which of the following is NOT a characteristic of useful operational level information?

A.

Sufficiently accurate.

B.

Focused on the decision to be made.

C.

Available immediately.

D.

Governed by financial reporting standards.

Which of the following is NOT a valid purpose of budgeting?

A.

To communicate targets to managers.

B.

To comply with financial reporting requirements.

C.

To coordinate the different activities of an organisation.

D.

To authorise managers to incur expenditure.

The International Federation of Accountants (IFAC) stated that it was important that “accountants in business” should understand what the drivers of stakeholder value are. Which of the following statements is valid?

A.

Anyone with an interest in an organisation can be considered to be one of its stakeholders.

B.

Stakeholders must be external to the organisation.

C.

Only an organisation’s shareholders and employees can be considered to be its stakeholders.

D.

Only an organisation’s shareholders can be considered to be its stakeholders.

Data for the latest period for a company which makes and sells a single product are as follows:

There were no budgeted or actual changes in inventories during the period.

The sales volume contribution variance for the period was:

A.

$6,220 adverse.

B.

$9,267 adverse.

C.

$16,000 adverse.

D.

$5,666 adverse.

A company uses full cost pricing. The unit costs for product Z are given below.

What price per unit should be charged in order to achieve a profit margin of 20%?

Give your answer to the nearest cent.

Which THREE of the following are parts of the master budget? (Choose three.)

A.

Finished goods inventory budget.

B.

Budgeted statement of profit or loss.

C.

Cash flow budget.

D.

Sales budget.

E.

Administration overhead budget.

F.

Budgeted statement of financial position.

A company has two production departments and two service departments (Maintenance and Stores). The overhead costs of each of the departments are as follows.

The following equations represent the reapportionment of each of the service department overheads to the other.

M = 4,700 + 0.1S

S = 5,800 + 0.2M

Where M = total Maintenance overhead after reapportionment from Stores

S = total Stores overhead after reapportionment from Maintenance

60% of the total Maintenance overhead and 50% of the total Stores overhead are to be apportioned to Production Department 1.

The total production overhead for Production Department 1 after reapportionment of the service departments’ overhead costs is closest to:

A.

$71,672

B.

$75,500

C.

$70,720

D.

$71,821

Which THREE of the following are included in the Global Management Accounting Principles? (Choose three.)

A.

Accountability

B.

Influence

C.

Value

D.

Professional behaviour

E.

Relevance

F.

Integrity

Which of the following would NOT require taking into account the time value of money?

A.

Deciding to make a long-term investment in a project on the basis of its payback period.

B.

Selecting an investment project on the basis that it has a positive net present value (NPV).

C.

Calculating the present value of a five-year annuity.

D.

Taking a long-term investment decision on the basis of the project’s internal rate of return (IRR).

A sales manager has analysed a sample of 350 sales transactions from the latest period. The manager wishes to investigate:

how many customers made their purchase online using the internet and how many purchased by telephone.

how many were new customers and how many were placing repeat orders.

The following table shows the results of the analysis.

If the pattern of sales occurs next period, the probability of a particular sale being a repeat order placed online is closest to:

A.

0.11

B.

0.40

C.

0.16

D.

0.35