Practice Test From myacca

Question-1 Which of the following are included in an administration overheads budget? A)Payroll department salaries B)Production supervisors salary C)Factory rates D)Postage and stationery Answer-A and D Question-2 Which of the following budget are advantages of a flexible budgeting? 1)Useful for control purposes as it is based on the original budgeted level of activity 2)Facilitates control by recognising different cost behavior patterns. 3)Budgeted and actual figures reflect the same level of activity A)2 and 3 B)1,2,3 C)3 only D)1 and 2 Answer-D Question-3 Which two of the following regarding startified random sampling are correct? A)It is cheap administratively easy method to use B)The method can result in an increase in selection bias C)The trial sample selected will be representative of each sub group in the population D)It requires prior knowledge of each item in the population Answer-B and D Question-4 Which of the following are advantages of marginal costing compared with absorption costing? 1)Provides data that is useful for short term decision making 2)Over/Under absorption is avoided 3)The accruals concept is applied fully A)1,2,3 B)2 and 3 C)1 and 3 D)1 and 2 Answer-D Question-5 Which of the following are features of process accounting? 1)Valuation of closing work in process 2)Loss in process due to wastage 3)Output from one process becomes input for the next A)2 and 3 B)1 and 3 C)1,2,3 D)1 and 2 Answer-B Question-6 Which of the following is most likely to result in fixed overhead over absorption? A)Actual activity being less than budget. B)Actual overhead being less than budget C)Absorbed overhead being less than budget D)Absorption based on actual overhead and actual activity. Answer-D Question-7 For which of the following tasks would a computer spreadsheet useful? 1)Performing what-if analysis 2)Sorting data into order 3)Automatically producing content pages for reports A)3 only B)1 only C)1 and 2 D)2 only Answer-D