F2 (MA/FMA) – Chapter 09 – PART C – CBE MCQs – ACCA

These are ACCA F2 (MA/FMA) Management Accounting MCQs for Part-C of the Syllabus “Cost accounting methods and systems”.

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: Job, batch and service costing, and Alternative costing principles
Chapter Number: 9 of the Practice and Exam Kit
Syllabus Area: C – Cost accounting methods and systems
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 15 Questions in this F2 MCQ Test that cover Chapter 9a; Job, batch and service costing 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 9 - Part A - MCQs

Course: ACCA - FIA
Subject:
F2 (MA/FMA) Management Accounting
Chapter: 9 - Job, batch and service costing, and Alternative costing principles
Syllabus Area: C - Cost accounting methods and systems
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 feedback once you completed the quiz.
  2. Share with ACCA students on social media such as, Facebook Groups, Whatsapp, Telegram, etc.

1 / 22

A chain of coffee shops has implemented a Total Quality Management system to ensure high quality and consistency across all outlets. As part of the scheme, the chain offers a free replacement drink to any customer not completely satisfied with their purchase.

Which of the following BEST describes the cost of providing replacement drinks?

2 / 22

A firm makes special assemblies to customers' orders and uses job costing.

The data for a period are:

Job number
AA10
$
Job number
BB15

$
Job number
CC20
$
Opening WIP 26,800 42,790 0
Material added in period 17,275 0 18,500
Labour for period 14,500 3,500 24,600

The budgeted overheads for the period were $126,000.
Job number BB15 was completed on the last day of the period.

What overhead should be added to job number CC20 for the period?

$_______

3 / 22

The following information is available for a hotel company for the latest thirty day period.

Number of rooms available per night 40
Percentage occupancy achieved 65%
Room servicing cost incurred $3,900

What was the room servicing cost per occupied room-night last period, to the nearest cent? (to two decimals)

4 / 22

Which stage of the product life cycle do the following characteristics refer to?

New competitors
Customer feedback received
New distribution outlets being found
Product quality improvements made

5 / 22

Which of the following would be appropriate cost units for a passenger coach company?

  1. Vehicle cost per passenger-kilometre
  2. Fuel cost for each vehicle per kilometre
  3. Fixed cost per kilometre

6 / 22

Annie is to set up a small hairdressing business at home. She anticipates working a 35-hour week and taking four weeks' holiday per year. Her expenses for materials and overheads are expected to be $3,000 per year, and she has set herself a target profit of $18,000 for the first year.

Assuming that only 90% of her working time will be chargeable to clients, what price should she charge for a 'colour and cut' which would take 3 hours?

7 / 22

A company operates a job costing system. Job number 1012 requires $45 of direct materials and $30 of direct labour. Direct labour is paid at the rate of $7.50 per hour. Production overheads are absorbed at a rate of $12.50 per direct labour hour and non-production overheads are absorbed at a rate of 60% of prime cost.

What is the total cost of job number 1012?

$_______

8 / 22

Which costing method is based around a calculation involving a desired profit margin and a competitive market price?

9 / 22

A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a mark up. Job number Y256 was sold for $1,690 and incurred overheads of $694.

What was the prime cost of the job?

$_______

10 / 22

Last year, Bryan Air carried excess baggage of 250,000 kg over a distance of 7,500 km at a cost of $3,750,000 for the extra fuel.

What is the cost per kg-km?

11 / 22

A new product is being developed. The development will take one year and the product is expected to have a life cycle of two years before it is replaced.

Which of the following statements are true of life cycle costing?

Statement 1: It is useful for assessing whether new products have been successful.
Statement 2: The individual profitability for products is less accurate.

12 / 22

Which of the following are likely to use service costing?

  1. A college
  2. A hotel
  3. A plumber

13 / 22

The following items may be used in costing batches.

  1. Actual material cost
  2. Actual manufacturing overheads
  3. Absorbed manufacturing overheads
  4. Actual labour cost

Which of the above are contained in a typical batch cost?

14 / 22

Which of the following costing methods is most likely to be used by a company involved in the manufacture of liquid soap?

15 / 22

In what stage of the product life cycle are initial costs of the investment in the product typically recovered?

16 / 22

A product is in the stage of its life cycle which is typified by falling prices but good profit margins due to high sales volumes.

What stage is it in?

17 / 22

A company operates a job costing system.

The estimated costs for job 173 are as follows.

Direct materials 5 metres @ $20 per metre
Direct labour 14 hours @ $8 per hour

Variable production overheads are recovered at the rate of $3 per direct labour hour.

Fixed production overheads for the year are budgeted to be $200,000 and are to be recovered on the basis of the total of 40,000 direct labour hours for the year.

Other overheads, in relation to selling, distribution and administration, are recovered at the rate of $80 per job.

What is the total cost of job 173?

$______

18 / 22

The following information relates to a management consultancy organisation:

$
Salary cost per hour for senior consultants 40
Salary cost per hour for junior consultants 25
Overhead absorption rate per hour applied to all hours 20

The organisation adds 40% to total cost to arrive at the final fee to be charged to a client.

Assignment number 789 took 54 hours of a senior consultant's time and 110 hours of junior consultants' time.

What is the final fee to be charged for Assignment 789?

19 / 22

A firm makes special assemblies to customers' orders and uses job costing.

The data for a period are:

Job number
AA10
$
Job number
BB15

$
Job number
CC20
$
Opening WIP 26,800 42,790 0
Material added in period 17,275 0 18,500
Labour for period 14,500 3,500 24,600

The budgeted overheads for the period were $126,000.
Job number BB15 was completed on the last day of the period.

What was the approximate value of closing work-in-progress at the end of the period?

$_______

20 / 22

A truck delivered sand to two customers in a week. The following details are available.

Customer Weight of goods
delivered (kilograms)
Distance covered
(kilometres)
X 500 200
Y 180 1,200
680 1,400

The truck cost $3,060 to operate in the week. Each customer delivery was carried out separately, and the truck made no other deliveries in the week.

What is the cost per kilogram/kilometre of sand delivered in the week (to the nearest $0.001)?

21 / 22

Which of the following would be considered a service industry?

  1. An airline company
  2. A railway company
  3. A firm of accountants

22 / 22

How is target cost calculated?

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