F2 (MA/FMA) – Chapter 03 – PART A – CBE MCQs – ACCA

These are ACCA F2 (MA/FMA) Management Accounting MCQs for Part-A of the Syllabus “The nature, source and purpose of management information”.

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.


Course: ACCA – Associations of Chartered Certified Accountants
Fundamental Level: Knowledge, FIA – Foundation in Accounting
Subject: Management Accounting
Paper: F2 – MA/FMA
Chapter: Cost classification, and Cost behaviour
Chapter Number: 03 of the Practice and Exam Kit
Syllabus Area: A – The nature, source and purpose of management information
Questions Type: CBE MCQs
Exam Section Type: Section A

Benefits of Practicing Online on AGlobalBox.com

  1. Authentic Exam Experience:
    Practicing online allows ACCA students to experience an environment closely resembling the actual exam. The MCQs on our platform are designed to mirror the format, difficulty level, and question types found in ACCA exams. This familiarity helps students become more comfortable and confident when facing the real exam.
  2. Comprehensive Question Bank:
    We provided comprehensive question banks covering various topics across the syllabus. By practicing online, students gain access to a wide range of MCQs that thoroughly test their knowledge and understanding in each area.
  3. Enhanced Learning and Retention:
    The interactive nature of online practice enhances learning and improves information retention. Students can actively engage with the MCQs, select answers, and receive immediate results. This approach aids in reinforcing concepts and identifying areas that require further study, thereby maximizing learning outcomes.
  4. Time Management Skills:
    Practicing online helps students develop essential time management skills required for ACCA exams. By adhering to time limits while answering MCQs, students learn to allocate their time effectively and improve their speed and accuracy. This skill is invaluable for completing the actual exam within the given time constraints.
  5. Performance Tracking and Progress Evaluation:
    Students can monitor their results, track their strengths and weaknesses, and identify areas that need improvement.

Number of the Questions

There are 12 Questions in this F2 MCQ Test that cover Chapter 3a; Cost classification of ACCA F2 (MA/FMA) Management Accounting Module.


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.


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.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all answers that seem correct or incorrect, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)”.
Dropdown: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

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F2 - Chapter 3 - Part A - MCQs

Course: ACCA - FIA
F2 (MA/FMA) Management Accounting
Chapter: 3 - Cost classification, and Cost behaviour
Syllabus Area: A - The nature, source and purpose of management information
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit


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1 / 32

The overhead expenses of a company are coded using a five digit coding system, an extract from which is as follows:

Cost centre Code no Types of expense Code no
Machining 10 Indirect materials 410
Finishing 11 Depreciation of production machinery 420
Packing 12 Indirect wages 430
Stores 13 Maintenance materials 440
Maintenance 14 Machine hire costs 450
Depreciation of non-production equipment 460

The coding for the hire costs of a packing machine is 12450.

Which is the coding for the issue of indirect materials issued from stores to the machining department?

2 / 32

Which of the following best describes a period cost?

3 / 32

A total cost is described as staying the same over a certain activity range and then increasing but remaining stable over a revised activity range in the short term.

What type of cost is this?

4 / 32

Which one of the above graphs illustrates the costs described below!
"A semi-variable cost – when the vertical axis represents cost incurred."

5 / 32

A company employs four supervisors to oversee the factory production of all its products.

How would the salaries paid to these supervisors be classified?

6 / 32

Which of the following describes a cost centre?

7 / 32

Which TWO of the following would be classed as indirect labour?

8 / 32

When total purchases of raw material exceed 30,000 units in any one period then all units purchased, including the initial 30,000, are invoiced at a lower cost per unit.

Which of the following graphs is consistent with the behaviour of the total materials cost in a period?

9 / 32

A company incurs the following costs at various activity levels:

Total cost Activity level
$ Units
250,000 Β  5,000
312,500 Β  7,500
400,000 10,000

Using the high-low method what is the variable cost per unit? (to the nearest whole number)


10 / 32

A company manufactures and sells toys.

Which TWO of these costs are classified as distribution costs?

11 / 32

Which one of the above graphs illustrates the costs described below!
"A linear variable cost – when the vertical axis represents cost per unit."

12 / 32

Which one of the above graphs illustrates the costs described below!
"A step fixed cost – when the vertical axis represents cost incurred."

13 / 32

Which TWO of the following items might be a suitable cost unit within the credit control department of a company?

14 / 32

Which of the following best describes a controllable cost?

15 / 32

The following information for advertising and sales has been established over the past six months:

Month Sales revenue Advertising expenditure
$'000 $'000
1 155 3
2 125 2.5
3 200 6
4 175 5.5
5 150 4.5
6 225 6.5

Using the high-low method which of the following is the correct equation for linking advertising and sales from the above data?

16 / 32

Fixed costs are conventionally deemed to be which of the following?

17 / 32

The following data relate to the overhead expenditure of a contract cleaners at two activity levels.

Square metres cleaned 13,500 15,950
Overheads $84,865 $97,850

What is the estimate of the overheads if 18,300 square metres are to be cleaned?


18 / 32

Which one of the above graphs illustrates the costs described below!
"A fixed cost – when the vertical axis represents cost incurred."

19 / 32

A production worker is paid a salary of $650 per month, plus an extra 5 cents for each unit produced during the month.

How is this type of labour cost best described?

20 / 32

Which TWO of the following is the manager of a profit Centre likely to have control?

21 / 32

A company has recorded the following data in the two most recent periods.

Total costs of production Volume of production
$ Units
13,500 700
18,300 1,100

What is the best estimate of the company's fixed costs per period?


22 / 32

Which one of the above graphs illustrates the costs described below!
"A linear variable cost – when the vertical axis represents cost incurred."

23 / 32

A manufacturing firm is very busy and overtime is being worked.

How would the amount of overtime premium contained in direct wages normally be classed?

24 / 32

The total cost of production for two levels of activity is as follows:

Level 1 Level 2
Production (units) 3,000 5,000
Total cost ($) 6,750 9,250

The variable production cost per unit and the total fixed production cost both remain constant in the range of activity shown.

What is the level of fixed costs? (to the nearest whole number)


25 / 32

A firm has to pay a 20c per unit royalty to the inventor of a device which it manufactures and sells.

How would the royalty charge be classified in the firm's accounts?

26 / 32

The following observations of output and cost have been made:

Output Cost
Units $
Β  8,000 39,400
20,000 68,000

It is known that at output levels above 15,000 units, variable cost per unit drops by $1 per unit for all subsequent units produced.

What is the variable cost for each unit of output above 15,000 units?

27 / 32

An organization manufactures a single product. The total cost of making 4,000 units is $20,000 and the total cost of making 20,000 units is $40,000. Within this range of activity the total fixed costs remain unchanged.

What is the variable cost per unit of the product (to 2 dp)?

$ _____

28 / 32

What type of cost is supervisor salary costs, where one supervisor is needed for every ten employees added to the staff?

29 / 32

The following diagram represents the behaviour of one element of cost:

Which of the following statements is consistent with the above diagram?

30 / 32

A company has prepared flexed budgets at two activity levels. The cost per unit of three costs is given below. All three costs behave in a linear manner with respect to activity.

Β Activity level (units)
10,000 15,000
X $3.0 per unit $2.0 per unit
Y $1.0 per unit $1.0 per unit
Z $3.5 per unit $3.0 per unit

Is each of the costs variable, semi-variable or fixed?

31 / 32

The following shows the total overhead costs for given levels of a company's total output.

Cost Output
$ Units
4,000 1,000
7,000 2,000
10,000 3,000
9,500 4,000

A step up in fixed costs of $500 occurs at an output level of 3,500 units.

What would be the variable overhead cost per unit (to the nearest $0.01) using the high-low technique?

32 / 32

A company makes chairs and tables.

Which TWO of the following items would be treated as an indirect cost?

Your score is

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