Q1 Under which sampling method does every member of the target population has an equal chance of being in the sample?

Random sampling

Q2 The following budgeted information relates to a manufacturing company for next period: Production (Units)14,000 Fixed production costs N63,000 Sales (Units)12,000 Fixed selling costs N12,000 The normal level of activity is 14,000 units per period. Using absorption costing the profit for next period has been calculated as N36,000 What would be the profit for next period using marginal costing?

N27,000

Q3 A project requires an initial outlay of N2.8m. with a life span of 5 years. Depreciation is at the rate of 20%. The cash profit from the project is expected to be N900,000, N970,000, N950,000, N830,000 and N790,000 for years 1 to 5 respectively. The companyô€³¦??s cost of capital is 18%. What is the payback period of the project?

2 years 10 months

Q4 A company makes a single product with a sales price of N10 and a marginal cost of N6. Fixed costs are N60,000 per annum. If the taxation rate is 40%, how many units will be needed to be sold to make an after tax profit of N20,000

33333

Q5 A company makes a single product with a sales price of N10 and a marginal cost of N6. Fixed costs are N60,000 per annum. The Units for a target Profit of N20,000 is:

15,000 units

Q6 The budget committee comprises of the following except:

Board of Directors

Q7 The primary purpose of a cash budget is to:

Enable management to know the cash implications of policy decisions and the budgeted trading activities

Q8 In management accounting, some of the non-routine decisions an accountant must make include all of the following except:

To select absorption costing or marginal costing approach

Q9 A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead 3 Selling price per unit is N10. Other fixed overheads is N20,000If half of the manufacturing overhead is fixed, what would be the profit from 15,000 activity level?

N40,000

Q10 A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead 3 Selling price per unit is N10. Other fixed overheads is N20,000If half of the manufacturing overhead is fixed, what would be the total variable cost?

N60,000

Q11 A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead 3 Selling price per unit is N10. Other fixed overheads is N20,000What is the profit from this activity?

N60,000

Q12 A company makes a single product on a normal activity level of 20,000 units. The following costs are incurred on a single product per unit of activity: Cost per unit (N) Director material 2 Direct Labour 1 Manufacturing Overhead 3 Selling price per unit is N10. Other fixed overheads is N20,000How much is the total marginal cost?

N60,000

Q13 One of these statements is true

A limiting factor is a scarce resource that limits the activity of an organization

Q14 The principal budget factor is also known as:

Limiting factor

Q15 One of these is the foundation on which other budgets are built

Sales budget

Q16 The importance of budgetary control includes all of the following except

It results in rigid adoption of budget figures o r targets

Q17 A master budget is:

A summary of quantitative expectations r egarding future cash flows, net profit and financial status of the organisation

Q18 One of these statements is not true. Budget participation:

Saves time during prepa ration

Q19 For a cost to be relevant to a decision, one of these conditions must be met

It must make a difference between two alternative decisions

Q20 Which of these is a relevant cost, a manager would consider when making a decision:

Futuristic