These are ACCA F2 (MA/FMA) Management Accounting MCQs for Part-B of the Syllabus “Data analysis and statistical techniques”.

These multiple-choice questions (MCQs) are designed to help ACCA F2 (MA) students to better understand the exam format. We aim to instill in students the habit of practicing online for their CBE exams. By doing so, students can reduce exam stress and prepare more effectively.

INFORMATION ABOUT THESE MCQs Test

Course: ACCA – Associations of Chartered Certified Accountants
Fundamental Level: Knowledge, FIA – Foundation in Accounting
Subject: Management Accounting
Paper: F2 – MA/FMA
Chapter: Forecasting, and Summarising and analysing data
Chapter Number: 04 of the Practice and Exam Kit
Syllabus Area: B – Data analysis and statistical techniques
Questions Type: CBE MCQs
Exam Section Type: Section A

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Number of the Questions

There are 45 Questions in this F2 MCQ Test that cover Chapter 4a; Forecasting of ACCA F2 (MA/FMA) Management Accounting Module.

Time

This MCQs test is not time-bound. Take your time and solve them without stress. Pay proper attention and focus. Do not rush or hesitate.

Result

Students will get their F2 CBE MCQ result after they finish the entire test. They will also be able to see the score in percentage, correct and incorrect answers, as well as explanations for the incorrect questions.

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F2 - Chapter 4 - Part B - MCQs

Course: ACCA - FIA
Subject: F2 (MA/FMA) Management Accounting
Chapter: 4 - Forecasting, and Summarising and analysing data
Syllabus Area: B - Data analysis and statistical techniques
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

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1 / 62

A normal distribution has a mean of 650 and a variance of 100.

What is the upper quartile of this distribution?

656.7

717.0

643.3

812.5

2 / 62

Based on the last 15 periods the underlying trend of sales is y = 345.12 – 1.35x. If the 16th period has a seasonal factor of –23.62, assuming an additive forecasting model, what is the forecast for that period, in whole units?

301

325

300

324

3 / 62

A large bag of cement cost $0.80 in 20X3. The price indices are as follows.

20X3	91
20X4	95
20X5	103
20X6	106

How much does a bag of cement cost in 20X6 (to 2 dp)?

$0.93

$0.95

$0.83

$1.00

4 / 62

Using an additive time series model, the quarterly trend (Y) is given by Y = 65 + 7t, where t is the quarter (starting with t = 1 in the first quarter of 20X5). If the seasonal component in the fourth quarter is –30, what is the forecast for the actual value for the fourth quarter of 20X6, to the nearest whole number?

546

5 / 62

The following data relates to a company's overhead cost.

Time(units)	Output	Overhead cost ($)	Price index
2 years ago	1,000	3,700	121
Current year	3,000	13,000	155

Using the high low technique, what is the variable cost per unit (to the nearest $0.01) expressed in current year prices?

$3.22

$4.13

$4.65

$5.06

6 / 62

A company sells and manufactures product SX. The selling price of the product is $10 per unit and estimates of demand and variable costs of sales are as follows.

Probability	Demand Units	Probability	Variable cost per unit $
0.1	5,000	0.1	3.00
0.6	6,000	0.5	3.50
0.3	8,000	0.3	4.00
		0.1	4.50

The unit variable costs do not depend on the volume of sales.
Fixed costs will be $30,000.

What is the EV of demand?

______ units

7 / 62

Production of aluminium tubes is normally distributed with a mean length of 50 cm and a standard deviation of 5 cm.

The percentage of tubes at least 57 cm long is closest to which of the following?

58%

92%

42%

8 / 62

Which TWO of the following are necessary if forecasts obtained from a time series analysis are to be reliable?

The same pattern of seasonal variation must continue as in the past

Extrapolation must not be used

The trend must not be increasing or decreasing

The trend must continue as in the past

9 / 62

Which of the following are common applications of spreadsheets used by management accountants?

Variance analysis
Cash flow budgeting and forecasting
Preparation of financial accounts

(ii) and (iii) only

(i) and (iii) only

(i), (ii) and (iii)

(i) and (ii) only

10 / 62

A normal distribution has a mean of 150 and a variance of 6,944.

What percentage of the population is less than 210? (to two decimal places.)

11 / 62

A normal distribution has a mean of 60 and a variance of 25.

What is the probability of a score of 72 or more? (to 4 decimal places)

12 / 62

A factory employs staff in four departments for which the average (mean) wage per employee per week is as follows.

Department	W	X	Y	Z
Mean wage	$50	$100	$70	$80
Number of employees	20	5	10	5

What is the average (mean) wage per employee per week in this factory?

$50

$70

$65

$75

13 / 62

Unemployment numbers actually recorded in a town for the second quarter of the year 2000 were 4,700. The underlying trend at this point was 4,300 people and the seasonal factor is 0.92. Using the multiplicative model for seasonal adjustment, what is the seasonally-adjusted figure (in whole numbers) for the quarter?

14 / 62

A company must decide between two projects – Project A and Project B. The profits that might be generated from each project are as follows.

	Project A			Project B
Probability		Profit $	Probability		Profit/(loss) &
0.45		4,000	0.64		8,000
0.55		2,000	0.36		(1,000)

Which project should be chosen and what is the associated expected value of profit?

Project B; Expected Profit $4,760

Project B; Expected Profit $5,480

Project A; Expected Profit $2,900

Project A; Expected Profit $3,000

15 / 62

A company is bidding for three contracts which are awarded independently of each other. The board estimates its chances of winning Contract A as 50%, of winning Contract B as 1 in 5 and of winning Contract C as 1 in 3. The profits from A, B and C are estimated to be $500,000, $800,000 and $900,000 respectively.

The expected value to the company of the profits from all three contracts will be closest to which of the following?

$300,000

$900,000

$733,000

$710,000

16 / 62

The following spreadsheet shows part of a time series analysis of a company’s sales.

Year	Quarter	Sales (unit)	Four quarter moving total (unit)
2014	1	1,100

	2	1,700
			7,000
	3	1,900
			9,000
	4	2,300
			11,000
2015	1	3,100
			13,200
	2	3,700

	3	4,100

What is the four quarter centred moving average of sales units for quarter 4, 2014?

2,500

10,000

5,000

5,025

17 / 62

Monthly sales have been found to follow a linear trend of y = 9.82 + 4.372x, where y is the number of items sold and x is the number of the month. Monthly deviations from the trend have been calculated and follow an additive model. In month 24, the seasonal variation is estimated to be plus 8.5.

What is the forecast number of items to be sold in month 24? (to the nearest whole number.)

123

115

106

152

18 / 62

A normal distribution is to be split into four equal areas, two to the right of Z = 0 and two to the left of Z = 0 (Z = 0 at the mean).

Using normal distribution tables, the |Z| value that splits the area in this way is closest to which of the following?

0.675099

0.3333

0.1915

0.0987

19 / 62

The following data represents a time series:

X 36
Y 41 34 38 42

A series of three point moving averages produced from this data has given the first two values as 38 and 39.

What are the values of (X, Y) in the original time series?

(38, 39)

(40, 38)

(38, 40)

(39, 38)

20 / 62

The following information is available for the price of materials used at P Co.

Laspeyre index for price in 20X5 (with base year of 20X0)	150.0
Corresponding Paasche index	138.24

What is Fisher's ideal index?

12.00

288.24

16.98

144.00

21 / 62

The following statements relate to Paasche and Laspeyre indices.

Constructing a Paasche index is generally more costly than a Laspeyre index
With a Laspeyre index, comparisons can only be drawn directly between the current year and the base year

Which statements are True?

(ii) is true and (i) is false

(i) is true and (ii) is false

Both statements are true

Both statements are false

22 / 62

The following scores are observed for the times taken to complete a task, in minutes.

12, 34, 14, 15, 21, 24, 9, 17, 11, 8

What is the median score? (two decimals 00.00)

23 / 62

The arithmetic mean of the following ten invoice values is $20:

$X,

$15,

$22,

$14,

$21,

$15,

$20,

$18,

$27,

$X.

What does $X equal?

$24

$48

$15

$19

24 / 62

A company sells and manufactures product SX. The selling price of the product is $10 per unit and estimates of demand and variable costs of sales are as follows.

Probability	Demand Units	Probability	Variable cost per unit $
0.1	5,000	0.1	3.00
0.6	6,000	0.5	3.50
0.3	8,000	0.3	4.00
		0.1	4.50

The unit variable costs do not depend on the volume of sales.
Fixed costs will be $30,000.

What is the EV of profit?

$______

25 / 62

Which of the following is a feasible value for the correlation coefficient?

+1.2

-1.2

-2.0

26 / 62

The coefficient of variation is used to measure which of the following?

The percentage variation in one variable caused by variation in another.

Relative dispersion.

The correlation between two variables.

The strength of a relationship between two variables.

27 / 62

A normal distribution has a mean of 150, and a standard deviation of 20.

80% of the distribution is below which of the following (approximately)?

158

167

161

170

28 / 62

Quality control of four independent production processes reveals the length of certain parts (in mm) to be as follows.

Process	Mean	Standard deviation
W	100	10
X	40	5
Y	80	8
Z	150	12

Which process has the largest relative variation, as measured by the coefficient of variation?

Process Y

Process Z

Process X

Process W

29 / 62

Under which of the following circumstances would a multiplicative model be preferred to an additive model in time series analysis?

When the trend is increasing or decreasing

When a model easily understood by non-accountants is required

When the trend is steady

When accurate forecasts are required

30 / 62

A company's annual profits have a trend line given by Y = 20t – 10, where Y is the trend in $'000 and t is the year with t = 0 in 20X0.

What are the forecast profits for the year 20X9 using an additive model if the cyclical component for that year is –30?

$160,000

$140,000

$60,000

$119,000

31 / 62

In January, the unemployment in Ruritania is 567,800. If the seasonal factor using an additive time series model is +90,100, what is the seasonally-adjusted level of unemployment? (to the nearest whole number)

567,800

90,100

477,700

657,900

32 / 62

A normal distribution has a mean of 55 and a variance of 14.44.

The probability of a score of 59 or more is approximately which of the following?

0.35

0.85

0.15

0.50

33 / 62

The following information relates to a company’s semi-variable production overheads.

Year unit index	Output	Overhead $	Relevant price
2012	1,000	12,000	130
2013	1,200	14,000	140

What is the variable overhead cost per unit, expressed in 2013 prices?

$5.38

$10.00

$5.00

$11.67

34 / 62

The weights of component X are normally distributed. The mean weight is 5,200kg and the standard deviation is 430kg.

What is the probability of a component X weighing more than 6,000kg?

0.2343

0.4686

0.0314

0.9686

35 / 62

The regression equation Y = 3 + 2X has been calculated from 6 pairs of values, with X ranging from 1 to 10. The correlation coefficient is 0.8. It is estimated that Y = 43 when X = 20.

Which TWO of the following are true?

The estimate is not reliable because X is outside the range of the data

The estimate is not reliable because the correlation is low

The estimate is not reliable because the sample is small

The estimate is reliable

36 / 62

Which of the following explains the essence of quota sampling?

Every element of one definable sub-section of the population is selected

None of the above

Every nth member of the population is selected

Each element of the population has an equal chance of being chosen

37 / 62

In calculating the regression equation linking two variables, the standard formulae for the regression coefficients are given in terms of X and Y.

Which of the following is True?

X must be the variable which will be forecast

It does not matter which variable is which

Y must be the variable shown on the vertical axis of a scatter diagram

Y must be the dependent variable

38 / 62

Six years ago material M cost $10 per kg and the price index most appropriate to the cost of material M was 130. The same index now stands at 510.

What is the best estimate of the current cost of material M per kg?

$29.23

$39.23

$51.00

$2.55

39 / 62

Using data from twelve European countries, it has been calculated that the correlation between the level of car ownership and the number of road deaths is 0.73.

Which TWO of the statements shown follow from this?

73% of the variation in the level of road deaths from one country to the next can be explained by the corresponding variation in the level of car ownership

High levels of car ownership cause high levels of road deaths

There is a strong relationship between the level of car ownership and the number of road deaths

53% of the variation in the level of road deaths from one country to the next can be explained by the corresponding variation in the level of car ownership

40 / 62

A large publishing company awards a 14% salary increase to every employee.

Which of the following statements about the distribution of the company's salaries is/are correct?

The standard deviation will remain unaltered
The standard deviation will increase by 14%
The coefficient of variation will remain unaltered

2 and 3 only

1, 2 and 3

1 and 2 only

1 and 3 only

41 / 62

Which of the following sets of data have the widest spread?

	A	B	C	D
Mean	150	175	200	250
Standard deviation	25	20	25	30

Data B

Data A

Data C

Data D

42 / 62

The following four data pairs have been obtained: (1, 5), (2, 6), (4, 9), (5, 11). Without carrying out any calculations, which of the following correlation coefficients best describes the relationship between x and y?

0.25

–0.98

–0.25

0.98

43 / 62

The following question is taken from the June 2013 exam.

An additive time series has the following trend and seasonal variations:

Trend Y=4,000 + 6X

where Y= sales in units

X is the number of quarters, with the first quarter of 2014 being 1, the second quarter of 2014 being 2 etc.

Seasonal variation

Quarter	1	2	3	4
Quarterly variation (units)	-4	-2	+1	+5

What is the forecast sales volume for the fourth quarter of 2015?

4,029

4,048

4,043

4,053

44 / 62

Four years ago material X cost $5 per kg and the price index most appropriate to the cost of material X stood at 150.

The same index now stands at 430.

What is the best estimate of the current cost of material X per kg?

$9.33

$14.33

$21.50

$1.74

45 / 62

A normal distribution has a mean of 75 and a variance of 25.

What is the upper quartile of this distribution?

71.65

78.35

58.25

91.75

46 / 62

A company uses regression analysis to establish a total cost equation for budgeting purposes.

Data for the past four months is as follows:

Month	Total cost	Quantity produced
	$'000	$'000
1	57.5	1.25
2	37.5	1.00
3	45.0	1.50
4	60.0	2.00
	200.0	5.75

The gradient of the regression line is 17.14.

What is the value of a?

48.56

101.45

74.64

25.36

47 / 62

If Σx = 12, Σy = 42, Σx² = 46, Σy² = 542, Σxy = 157 and n = 4, what is the correlation coefficient?

0.008

0.98

0.26

-0.98

48 / 62

Over an 18-month period, sales have been found to have an underlying linear trend of y = 7.112 + 3.949x, where y is the number of items sold and x represents the month. Monthly deviations from trend have been calculated and month 19 is expected to be 1.12 times the trend value.

What is the forecast number of items to be sold in month 19?

49 / 62

What is the median of the scores 34, 23, 78, 12, 56, 43, 28, 9, 24 and 87?

50 / 62

Regression analysis is being used to fine the line of best fit (y = a + bx) from eleven pairs of data. The calculations have produced the following information:

Σx = 440, Σy = 330, Σx² = 17,986, Σy² = 10,366 and Σxy = 13,467

What is the value of 'a' in the equation for the line of best fit? (to 2 decimal places)

0.69

5.33

2.33

0.63

51 / 62

A company's management accountant is analysing the reject rates achieved by 100 factory operatives working in identical conditions. Reject rates, Y%, are found to be related to months of experience, X, by this regression equation: Y = 20 – 0.25X. (The correlation coefficient was r = –0.9.)

Using the equation, what is the predicted reject rate for an operative with 12 months' experience?

20%

19%

23%

17%

52 / 62

Which TWO of the following are necessary if forecasts obtained from a time series analysis are to be reliable?

The model used must fit the past data

There must be no seasonal variation

The trend must be increasing

There must be no unforeseen events

53 / 62

A car travels 20 miles at 30 mph, then 10 miles at 60 mph.

What is the mean speed for the whole journey of 30 miles?

54 / 62

The trend for monthly sales ($Y) is related to the month (t) by the equation Y = 1,500 – 3t where t = 1 in the first month of 20X8.

What are the forecast sales (to the nearest dollar) for the first month of 20X9 if the seasonal component for that month is 0.92 using a multiplicative model?

$1,462

$17,904

$1,377

$1,344

55 / 62

A normal distribution is to be split into eight equal areas, four to the right of Z = 0 and four to the left of Z = 0 (Z = 0 at the mean).

Using normal distribution tables, the |Z| value that splits the area in this way is closest to which of the following?

0.34

0.28

0.32

0.30

56 / 62

A regression equation Y = a + bX is used to forecast the value of Y for a given value of X.

Which TWO of the following increase the reliability of the forecast?

A large sample is used to calculate the regression equation

A correlation coefficient numerically close to 1

Forecasting for values of X outside the range of those used in the sample

Working to a higher number of decimal places of accuracy

57 / 62

What is the purpose of seasonally adjusting the values in a time series?

To obtain an instant estimate of the trend

To ensure that seasonal components total zero

To obtain an instant estimate of the degree of seasonal variation

To take the first step in a time series analysis of the data

58 / 62

Singers Co is launching a new sewing machine. With television advertising, sales are estimated to achieve the following levels, with associated probabilities.

Sales unites	Probability
1,000	0.3
4,000	0.5
8,000	0.2

What is the expected level of sales?

4,333

4,000

3,900

13,000

59 / 62

A spreadsheet is unlikely to be used for which of the following tasks?

Monthly sales analysis by market

Cash flow forecasting

Writing a memo

Calculation of depreciation

60 / 62

A group of shoppers were interviewed and asked how many loaves of bread they would need to buy from the bakers over a one-week period. The results are as follows.

Number of loaves	Number of shoppers
0	2
1	22
2	32
3	2
4	34
5	6
6	12

What is the mode of the number of loaves needed per shopper in a one-week period?

61 / 62

A company sells and manufactures product SX. The selling price of the product is $10 per unit and estimates of demand and variable costs of sales are as follows.