Practice test

Below are questions that I encounter when I was doing practice paper from ACCA.

1) What mean by responsibility centre? cost, profit, revenue and investment centre?

and Which TWO of the following statements about responsibility centres are true?

A. The performance of a profit centre is measured by its return on capital

B. A cost which is not controllable by a junior manager may be controllable by a senior manager

C. Managers of cost centres should be accountable for controllable cost only

D. There are only two types of responsibility centre

2) A company rents its factory for $90,000 per annum. This year 60,000 units have been manufactured in the factory utilising 75% of its total capacity. Next year the plan is to manufacture 100,000 units by using the existing factory at the full capacity and by renting just sufficient additional capacity. The additional capacity is available at the same rental cost per square metre as the existing factory.

To calculate the total rental cost for next year,
60,000/0.75=80,000 the existing factory capacity can manufacture 80,000 units

$90,000/80,000=$1.125/unit, therefore rent for the outstanding 20,000=20,000*1.125=22500

So the rental cost for next year is $90,000+$22,500=$112,500
Is it correct??

Thanks!