F2 (MA/FMA) – Chapter 04 – PART B – CBE MCQs – ACCA

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

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 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.

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 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

INSTRUCTIONS

  1. If you are using mobile, turn on the mobile rotation and solve the MCQs on wide screen for better experience.

REQUEST

  1. Please rate the quiz and give us a feedback once you completed the quiz.
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1 / 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?

2 / 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?

3 / 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

4 / 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?

5 / 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?

6 / 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)

7 / 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)?

8 / 62

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

  1. Variance analysis
  2. Cash flow budgeting and forecasting
  3. Preparation of financial accounts

9 / 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?

10 / 62

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

11 / 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?

  1. The standard deviation will remain unaltered
  2. The standard deviation will increase by 14%
  3. The coefficient of variation will remain unaltered

12 / 62

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

13 / 62

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

14 / 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?

15 / 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?

16 / 62

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

17 / 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?

18 / 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?

19 / 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?

20 / 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?

21 / 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?

22 / 62

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

What is the upper quartile of this distribution?

23 / 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?

24 / 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?

25 / 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?

26 / 62

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

27 / 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.)

28 / 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?

29 / 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)

30 / 62

Which TWO of the following statements are true?

31 / 62

Which of the following explains the essence of quota sampling?

32 / 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?

33 / 62

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

34 / 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?

35 / 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?

36 / 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?

37 / 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)

38 / 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?

39 / 62

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

40 / 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?

41 / 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?

42 / 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?

43 / 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?

44 / 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?

$______

45 / 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?

46 / 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?

47 / 62

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

48 / 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?

49 / 62

The following statements relate to Paasche and Laspeyre indices.

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

Which statements are True?

50 / 62

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

What is the upper quartile of this distribution?

51 / 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?

52 / 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

53 / 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)

54 / 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)?

55 / 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?

56 / 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?

57 / 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.)

58 / 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?

59 / 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 unit variable costs?

$______  (to 2 decimal places)

60 / 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?

61 / 62

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

62 / 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?

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