Learn or revise key terms and concepts for your ACCA exams using OpenTuition interactive ACCA Flashcards
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See also ACCA F2 flashcards: Set 2 | Set 3 | Set 4
Define the labour idle time ratio
Idle time ratio = idle hours / total hours x 100%
What is the definition of the Internal Rate of Return (IRR)?
The IRR is the rate of interest at which the Net Present Value of the project is zero.
In process costing, how are abnormal losses or gains valued?
Abnormal gains and losses are valued at full cost per unit.
How is the Residual Income (RI) calculated?
RI = profit less notional interest on the capital invested
What does the sales volume variance measure?
The sales volume variance measures the effect on the budgeted profit of the difference between the actual sales volume and the budgeted sales volume.
What is top-down budgeting?
Top-down budgeting is where the budgets are prepared by high-level management and then communicated to lower levels.
Lower level management do not participate in the budget process.
A Paasche price index number uses base year or current year quantities. Which?
A Paasche index number uses current year quantities.
In process costing, what is meant by an abnormal gain?
An abnormal gain is the amount by which the actual loss is less than the normal (or expected) loss.
Define the labour production volume ratio (activity ratio)
The labour production volume ratio = expected hours to produce actual output / total hours available (budgeted) x 100%
If the linear equation y = a + bx, were to be drawn on a graph, what would be the gradient of the line?
The gradient of the line would be ‘b’.
In the linear equation y = a + bx, where y is the total cost and x is the total production, what is the variable cost per unit?
The variable cost per unit is ‘b’ in the equation
In the linear equation y = a + bx, which is the dependent variable?
The dependent variable is y
If we have an equation relating the total sales revenue to the total advertising spend, which would be the dependent variable?
The dependent variable would be the sales revenue (it depends on the amount of advertising expenditure.)
When sampling, what is meant by a ‘sampling frame’?
A sampling frame is a numbered list of all items in a population
What is a ‘semi-variable cost’?
A semi-variable cost is a combination of variable and fixed costs.
Describe a ‘pie chart’?
A pie chart is a circle that is divided into segments representing each type of observation. The size of each segment is proportional to the proportion of the total that are within each type of observation.
In the linear equation y = a + bx, where y is the total cost and x is the total production, what is the fixed cost?
The fixed cost is ‘a’ in the equation
What is meant by ‘indirect costs (or overheads)’?
Indirect costs are those costs which cannot be specifically identified with a specific cost unit or cost centre.
What is meant by a ‘line of best fit’?
The line that most nearly goes through all the points when the data is plotted on a graph.
What is meant by ‘quota sampling’?
The population is stratified and a sample of each strata is restricted to a fixed number.
What are the purposes of costing (i.e. calculating the cost of producing a product or service)?
To enable a selling price to be set
To calculate a profit per unit
To value inventory
What is the purpose of management accounting?
To help management run the business in a way that achieves the objectives of the business.
if there is no cash flows given ,can you use the savings as the cash flows
I have no idea what topic of which flashcard you are referring to 🙂
thank you to open tuition, I managed to clear F2 using you notes and lectures. Got 52% first attempt
Congratulations – that is great news 🙂
QuEstion 7 Chapter 4 An organisation operates a piecework system of remuneration, but also guarantees its employees 80% of a time-based rate of pay which is based on $20 per hour for an eight hour working day. Three minutes is the standard time allowed per unit of output. Piecework is paid at the rate of $18 per standard hour. If an employee produces 200 units in eight hours on a particular day, what is the employee’s gross pay for that day? A $128 eB $144 C $160 D $180
200×(3÷60)×18=180
Can someone please help me understand what method was used.?
The standard time is 3 minutes per unit.
200 units were produced, so the standard time for those units is 200 x 3 = 600 minutes (or 10 hours).
They are paid $18 per standard hour, so a total of 10 a $18 = $180.
(The guaranteed minimum is 8hours x $20 = $160, but $180 is above the minimum)
In future, please ask questions like this in either the general F2 forum, or in the F2 Ask the Tutor Forum.
It has nothing to do with the Flashcards.
Sir in the flash cards it’s explained that residual income is profit less notional interest on the capital invested … so now whats the difference between RI and Net profit
sir, i was very fed up about my F2 exam.. i did the exam in November CBE.. i do not have any idea about the FMA and i’m planning to do resit on january.. please provide me a help to get through the exam or the syllabus.. nothing is there i have understood in the F2 syllabus.. 🙁
Did you watch F2 lectures on this website??
Hello,
all syllabus is found on OPentuition including examiners reports.Please check you will found it.
With investment appraisals how do you compute the the internal rate of return when you are not given the cash flows the periods
You can’t (unless the NPV’s have already been calculated for you)!!
Have you watched my free lectures on investment appraisal?
(Please ask this sort of question in the Ask the Tutor Forum, and not as a comment on the flashcards)
Dear Sir,
Please confirm the anwser & explain below:
A Company uses standard marginal costing.Last month , when all sales were at the standard selling price, the standard contribution from actual sales was $50 000 and the following variances arose:
Total variable cost variances $ 3500 adverse
Total fixed costs variances $ 1000 favourable
Sales volume contribution variances $ 2000 favorable
What was the actual contribution for last month?
The actual contribution is 50,000 – 3500 + 1000 = 47,500.
The sales volume variance is not relevant because 50,000 is the standard contribution from actual sales. (if you had been given the budgeted contribution, then the sales volume variance would be relevant).
(I don’t know why you have posted this question here – it is not one of the flashcard questions. Better is to ask questions on the Ask the ACCA Tutor Forums – we cannot read every comment, but we always read the Ask the Tutor questions very regularly)
What is a master budget?When it is prepare before the operational budget or After.
What is dysfunctional manager is ?.
In a canned foods manufacturing what term will be used process, batch, job or joint to be used?
What is a service costing?
The master budget usually comprises a budgeted income statement for the year, a budgeted balance sheet, a cash budget, and a capital expenditure budget. (I say usually, because it is up to the individual company to decide whether or not they find all of the above useful for them, and therefore whether or not they prepare them all).
The master budget is prepared after the operational (functional) budgets – they are the budgets for each individual area (e.g. materials usage budget, labour budget etc..)
‘dysfunctional manager’ manager is not a standard term. However a manager who makes dysfunctional decisions is one who makes decisions that are good for him, but not good for the company as a whole.
There is no rule for a canned food manufacturer (or for any business for that matter) as to what type of costing they use – it is whatever the company feels is more appropriate. However, depending on the exact circumstances, process costing is probably more appropriate.
Service costing is costing for a service business (for example, for a hotel, calculating the costs for one room/night in order to be able to decide on what price to charge per night).
Thank you Sir,
hey, where I can find solutions to the tests provided on your syllabus, to check my answers?
I don’t know which tests you mean. If you mean the tests in the Course Notes, then the answers are at the back of the Course Notes.
If you mean the flash cards, then you can see the answer by clicking on the question.
I mean in the course notes. Thank you very much!!!!
OpenTuition we students can’t thank you enough, you are really helping!!!
when i click on ans question is also not available why?
Ur not a real user
If you click on the question then you get the answer. If you click on the answer then you get the question again.
If that does not work for you then it is a problem at your end. Try another browser.
which other browse?
Google chrome
thank you for providing flash cards for f2 can you kindly provide a mock exam and test centre for f2 this would be really appreciated let me know soon
Sorry, but we do not provide mock exams or a test centre for paper f2 at the moment
when would that be possible there is mock exam for F1 & F3 when will there be for F2
We will prepare one during the summer, but it will not be before the June exams.
in the course notes there r some topics not shown like in the syllabus we have job batch and service costing , some aspects of budgeting like cash budgets and capital expenditure budgeting and standard costing what it is and types of standards like ideal , basic etc
We make it clear that (as with all course notes – ours and those published by other companies) they are not meant to replace Study Texts. They do however contain more than enough to pass the exams provided that you get hold of a Revision/Exam Kit and practice lots of questions).
other cards they dont give the ans please help
try another browser. flashcards work fine
I need mobile version !!
Hi, Compliments to the author!
helpful
Admin, when I click on the answers on the flash cards some of them are blank. Why?
No idea why, you don’t even mention what device / browser you ate using ..,
As always you should Try another browser and see if it works
simple and on point
nice notes for FI and F2..we are waiting for f3.
no flash cards for F3
for some flashcards,when i click on the view answers i finf it blank..why so?can sm1 plz help?
yhm, strange, try another browser.
@admin, its stil same
@2ishanisah, sorry, but they work OK from this end. and I can’t replicate your problem,
it;s either your internet connection, but more likely software on your PC or settings that prevent it,..
in the past i used to access video lectures online. this nolonger works for me now, what happened?
I don’t know why/ please check support page for help.
ps. flashcards – are not videos
very usefull, thks very much xxx <3
its more usefull for quick revision…………..
quick reminder 🙂
Good snap shot of this paper content
Fantastic! Helped me to pass, please roll out for all papers 😀
thats very great i went through all the staff. also can ask for f3
Very helpfull,great idea !!
really helpful.. hope gonna have for f3 soon.
Its a quick memory reminder thanks
This is brilliant, went through all the notes today and they were quite helpful. hope we get something for F1 and F3 soon….Thumbs up guys…..
You have F1 Mock exam and tests on the website
this is great for a quick review!
Please introduce these for F3 also
This is helpful,
thanks
this is really when u gonna introduce for f3 and others
awesome
THIS IS SO HELPFUL, THANK YOU