ACCA F2

Topics: Net present value, Cost, Costs Pages: 69 (3568 words) Published: January 26, 2014
Management
Accounting
Specimen Exam applicable from June 2014

Time allowed: 2 hours
This paper is divided into two sections:
Section A – ALL 35 questions are compulsory and MUST
be attempted
Section B – ALL THREE questions are compulsory and MUST
be attempted
Formulae Sheet, Present Value and Annuity Tables are on
pages 16, 17 and 18.
Do NOT open this paper until instructed by the supervisor.
This question paper must not be removed from the examination hall.

The Association of Chartered Certified Accountants

Paper F2

Fundamentals Level – Knowledge Module

Section A – ALL 35 questions are compulsory and MUST be attempted Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.

Each question is worth 2 marks.
1

A manufacturing company benchmarks the performance of its accounts receivable department with that of a leading credit card company.
What type of benchmarking is the company using?
A
B
C
D

2

Which of the following BEST describes target costing?
A
B
C
D

3

Internal benchmarking
Competitive benchmarking
Functional benchmarking
Strategic benchmarking

Setting
Setting
Setting
Setting

a
a
a
a

cost by subtracting a desired profit margin from a competitive market price price by adding a desired profit margin to a production cost cost for the use in the calculation of variances
selling price for the company to aim for in the long run

Information relating to two processes (F and G) was as follows: Process
F
G

Normal loss as
% of input
8
5

Input
(litres)
65,000
37,500

Output
(litres)
58,900
35,700

For each process, was there an abnormal loss or an abnormal gain? A
B
C
D

4

Process F
Abnormal gain
Abnormal gain
Abnormal loss
Abnormal loss

Process G
Abnormal gain
Abnormal loss
Abnormal gain
Abnormal loss

The following budgeted information relates to a manufacturing company for next period: Production
Sales

Units
14,000
12,000

Fixed production costs
Fixed selling costs

The normal level of activity is 14,000 units per period.
Using absorption costing the profit for next period has been calculated as $36,000. What would be the profit for next period using marginal costing? A
B
C
D

$25,000
$27,000
$45,000
$47,000

2

$
63,000
12,000

5

The Eastland Postal Service is government owned. The government requires it to provide a parcel delivery service to every home and business in Eastland at a low price which is set by the government. Express Couriers Co is a privately owned parcel delivery company that also operates in Eastland. It is not subject to government regulation and most of its deliveries are to large businesses located in Eastland’s capital city. You have been asked to assess the relative efficiency of the management of the two organisations.

Which of the following factors should NOT be allowed for when comparing the ROCE of the two organisations to assess the efficiency of their management?
A
B
C
D

6

in
in
in
in

prices charged
objectives pursued
workforce motivation
geographic areas served

Under which sampling method does every member of the target population has an equal chance of being in the sample?
A
B
C
D

7

Differences
Differences
Differences
Differences

Stratified sampling
Random sampling
Systematic sampling
Cluster sampling

A Company manufactures and sells one product which requires 8 kg of raw material in its manufacture. The budgeted data relating to the next period are as follows:
Sales
Opening inventory of finished goods
Closing inventory of finished goods
Opening inventory of raw materials
Closing inventory of raw materials

Units
19,000
4,000
3,000
Kg
50,000
53,000

What is the budgeted raw material purchases for next period (in kg)? A
B
C
D

141,000
147,000
157,000
163,000

3

[P.T.O.

8

Up to a...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • F2 Acca Essay
  • Acca Essay
  • Acca F9 Essay
  • ACCA F5 notes Essay
  • Essay about ACCA
  • ACCA Essay
  • Acca Essay
  • ACCA F4 Law notes 2 Essay

Become a StudyMode Member

Sign Up - It's Free