Practice Test From myacca

Qn-1 Sean is offering advice to a business as to whether service costing is most appropriate to its circumstances .Which two of the following features of the output of a business providing a haircut service?
A. Perishability
B. Sequential production and consumption
C. Heterogeneity
D .Tangibility
Ans -A and D

Qn-2 Which of the following statement is correct in respect of a company using absorption costing?
A.A factory wide overhead absorption rate is calculated by adding each of departmental overhead rates together and dividing by the number of department
B.Apportionment means all department get an eqal share of overheas
C.Closing inventory is valued at full production cost
D.Any over or under absorption of overheads is carried forward to the following month
Ans-A

Qn-3 Which of the following are features of top-down budgeting?
A.Goal congruence is most likely to be achieved
B.Budget holders are unlikely to be motivated to achieve the targets
C.Lower level manager do not participate in the budget setting process
D.Budget slack(budgetary bias) may result in targets that are easier to achieve
Ans-C

Qn-4 Which two of the following are objectives of budgeting?
A.To set the long-term objectives of the organization
B.To coordinate the activities of different parts of the organization
C.To produce information for external financial reporting
D.To establish a system of control
Ans-D

Qn-5 The following statements compare regression analysis with the high-low method.
1)Like the high low method,regression analysis is used to predict a linear relationship between two variables
2)Unlike the high-low method ,regression analysis uses all available past data to calculate the line of best fit
A.Statement 1 only
B.Statement 2 only
C.Both statements
D.Neither statements
Ans-C

Qn-6 Which of following is the best definition of functional benchmarking?
A.The comparision of internal function’s current performance with its historic performance
B.The comparision of internal functions with those of other operating units in the same company
C.The comparision of internal functions with those pf direct companies
D.The comparision of internal functions with those o he best external practitioners regardless of their industry
Ans-C

Qn-7 Which of the following business would most likely use service costing?
1.Veternary practice
2.Electricity company
3.Hotel restaurant
4.University
A.1 and 3
B.1,2,3, and 4
C.1,2 and 4
D.3 and 4
Ans-B

Not sure if I am correct.Thanks in advance 🙂