Question No 9:
A company uses the repeated distribution method to reapportion service department costs. The use of this method suggests
A. The company’s overhead rates are based on estimates of cost and activity levels, rather than actual amounts
B. There are more service departments than production cost centres
C. The company wishes to avoid under- or over-absorption of overheads in its production cost centres
D. The service departments carry out work for each other
Answer: D
Sunday, 31 May 2015
Sunday, 24 May 2015
Cima C01 Exam Question No 8
Question No 8:
Cost centres are?
A. Units of output or service for which costs are ascertained.
B. Functions or locations for which costs are ascertained.
C. A segment of the organisation for which budgets are prepared.
D. Amounts of expenditure attributable to various activities.
Answer: B
Cost centres are?
A. Units of output or service for which costs are ascertained.
B. Functions or locations for which costs are ascertained.
C. A segment of the organisation for which budgets are prepared.
D. Amounts of expenditure attributable to various activities.
Answer: B
Sunday, 17 May 2015
Cima C01 Exam Question No 7
Question No 7:
The audit fee paid by a manufacturing company would be classified by that company as:
A. A production overhead cost
B. A selling and distribution cost
C. A research and development cost
D. An administration cost
Answer: D
The audit fee paid by a manufacturing company would be classified by that company as:
A. A production overhead cost
B. A selling and distribution cost
C. A research and development cost
D. An administration cost
Answer: D
Sunday, 10 May 2015
Cima C01 Exam Question No 6
Question No 6:
ABC absorbs fixed production overheads in one of its departments on the basis of machine hours. There were 100,000 budgeted machine hours for the forthcoming period. The fixed production overhead absorption rate was £2·50 per machine hour.
During the period, the following actual results were recorded:
Standard machine hours 110,000
Fixed production overheads $300,000
Which ONE of the following statements is correct?
A. Overhead was $25,000 over-absorbed
B. Overhead was $25,000 under-absorbed
C. Overhead was $50,000 over-absorbed
D. No under- or over-absorption occurred
Answer: B
ABC absorbs fixed production overheads in one of its departments on the basis of machine hours. There were 100,000 budgeted machine hours for the forthcoming period. The fixed production overhead absorption rate was £2·50 per machine hour.
During the period, the following actual results were recorded:
Standard machine hours 110,000
Fixed production overheads $300,000
Which ONE of the following statements is correct?
A. Overhead was $25,000 over-absorbed
B. Overhead was $25,000 under-absorbed
C. Overhead was $50,000 over-absorbed
D. No under- or over-absorption occurred
Answer: B
Sunday, 3 May 2015
Cima C01 Exam Question No 5
Question No 5:
Which THREE of the following statements about CIMA are true?
A. CIMA was established over 90 years ago
B. CIMA members may only work in the UK
C. CIMA members and students must comply with the CIMA code of ethics
D. CIMA members work mainly on the production of financial accounts
E. CIMA members are not qualified to work as finance directors
F. CIMA members work in all areas of business
Answer: A,C,F
Which THREE of the following statements about CIMA are true?
A. CIMA was established over 90 years ago
B. CIMA members may only work in the UK
C. CIMA members and students must comply with the CIMA code of ethics
D. CIMA members work mainly on the production of financial accounts
E. CIMA members are not qualified to work as finance directors
F. CIMA members work in all areas of business
Answer: A,C,F
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