快速查题-ACCA英国注册会计师试题

Can you think of a service organisation that could apply standard costing? 

ABC carries out routine office work in a sales order processing department, and all tasks in the department have been given standard times. There are 40 clerks in the department who work on average 140 hours per month each. The efficiency ratio of the department is 110%. 

Required 

Calculate the budgeted output in the department. 

What problems do you think could occur when standards are being set? 

The budgeted and actual results of Crunch Co for September were as follows. The company uses a marginal costing system. There were no opening or closing inventories. 

Required  

Prepare a budget that will be useful for management control purposes. 

 Choose the appropriate words from those highlighted. 

The greatest/least benefit from the use of standard costing can be gained if there is a degree of repetition in the production process. 

Standard costing is therefore most/less suited to organisations which produce to customer demand and requirements and most/less suited to mass production. 

Fill in the blanks. 

Standard costing is difficult in times of inflation but it is still worthwhile. 

(a) ........................ and .............................. variances will still be meaningful. 

(b) Inflation is .............................. : there is no reason why its effects cannot be removed. 

(c) Standard costs can be .............................. , as long as this is not done ........................... . 

 Provide three reasons why standard costing conflicts with schemes of continuous improvement and cost reduction programmes. 

With what kind of standards is practical capacity associated? 

Fill in the gaps. 

A flexible budget is a budget which, by recognising ..................... , is designed to ........................  as the level of activity changes.  

 Fill in the blanks. 

A well-organised system of control should have the following features. 

(a) A hierarchy of .................. 

(b) Clearly identified .................. for achieving budget targets (c) Responsibilities for ................... , ................... and .....................