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| Section | Objectives |
|---|---|
| Topic 1: Cost Accounting Fundamentals | - Role and purpose of cost accounting - Introduction to management accounting |
| Topic 2: Costing Methods | - Job costing and batch costing - Overhead allocation and absorption costing - Process costing basics |
| Topic 3: Cost Classification and Behaviour | - Fixed, variable, and semi-variable costs - Cost behaviour patterns and analysis |
| Topic 4: Budgeting and Planning | - Introduction to budgeting - Basic forecasting techniques |
A fixed budget is:
Correct Answer: C 🗳️
In an integrated cost and financial accounting system, the accounting entries for PAYE deducted from gross wages would be:
Correct Answer: B 🗳️
Refer to the exhibit.
The profit/volume graph below has been prepared for a product for which the following data are available for a period:
Selling price - $28 per unit
Variable cost - $23 per unit
Fixed cost - $4 per unit
Forecast sales volume is 1,000 units each period.
The value of P in units is:
Correct Answer:
800
The net present value (NPV) of an investment is as follows.
NPV at 14% = $6,320
NPV at 18% = ($4,600) negative
The internal rate of return (IRR) of the investment is closest to
Correct Answer: B 🗳️
A company operates an absorption costing system. Overheads are absorbed using a pre-determined absorption rate using labour hours. In the period actual labour hours were 10,600, 400 hours below budget. Actual overheads for the period were £234,680 and there was an under-absorption of overheads of £1,480.
What was the budgeted level of overheads?
Correct Answer: A 🗳️
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