快速查题-ACCA英国注册会计师试题

 The following statements have been made about ABC and cost drivers. 

(1) A cost driver is any factor that causes a change in the cost of an activity.

 (2) For long-term variable overhead costs, the cost driver will be the volume of activity. 

(3) Traditional absorption costing tends to under-allocate overhead costs to low-volume products. 

Which of the above statements is/are true? 

 The following statements have been made in relation to activity-based costing: 

(1) A cost pool is an activity which consumes resources and for which overhead costs are identified and allocated. 

(2) The overhead absorption rate (OAR) is calculated in the same way as the absorption costing OAR, and the same OAR will be calculated for each activity. 

Which of the above statements is/are true? 

 The management accountant of a business has identified the following information: 

       Activity level                             800 units                     1,200 units 

        Total cost                                 $16,400                         $23,600 

The fixed costs of the business step up by 40% at 900 units. 

What is the fixed cost at 1,100 units? 

 Caroline has recently developed a new product. The nature of Caroline’s work is repetitive, and it is usual for there to be an 80% learning effect when a new product is developed. The time taken for the first unit was 22 minutes. An 80% learning effect applies. 

What is the time to be taken for the fourth unit in minutes? 

 Which of the following accounting procedures are used for controlling costs conditional on a given volume of production? 

When considering setting standards for costing, which of the following would NOT be appropriate? 

 Which of the following strategies would be immediately acceptable methods to reduce an identified cost gap? 

 Which of the following techniques is NOT relevant to target costing? 

The following statements relate to the justification of the use of life cycle costing: 

(i) Product life cycles are becoming increasingly short. This means that the initial costs are an increasingly important component in the product’s overall costs. 

(ii) Product costs are increasingly weighted to the start of a product’s life cycle, and to properly understand the profitability of a product these costs must be matched to the ultimate revenues. 

(iii) The high costs of (for example) research, design and marketing in the early stages in a product’s life cycle necessitate a high initial selling price. 

(iv) Traditional capital budgeting techniques do not attempt to minimise the costs or maximise the revenues over the product life cycle. 

Which of these statements are substantially true? 

 Company B is about to being developing a new product for launch in its existing market. They have forecast sales of 20,000 units and the marketing department suggest a selling price of $43/unit. The company seeks to make a mark-up of 40% product cost. It is estimated that the lifetime costs of the product will be as follows:

 (1) Design and development costs $43,000. 

(2) Manufacturing costs $15/unit. 

(3) Plant decommissioning costs $30,000. 

The company estimates that if it were to spend an additional $15,000 on design, manufacturing costs/unit could be reduced. 

What is the life cycle cost?