Fundamentals Pilot Paper ¨C Knowledge Module
Management
Accounting
Pilot Paper from December 2011 onwards
Time allowed: 2 hours
ALL 50 questions are compulsory and MUST be attempted.
Formulae Sheet, Present Value and Annuity Tables are on
pages 16, 17 and 18
Do NOT open this paper until instructed by the supervisor.
This question paper must not be removed from the examination hall.
The Association of Chartered Certified Accountants
ALL 50 questions are compulsory and MUST be attempted
Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to
each multiple choice question.
Each question is worth 2 marks.
1 A manufacturing company benchmarks the performance of its accounts receivable department with that of a leading
credit card company.
What type of benchmarking is the company using?
A Internal benchmarking
B Competitive benchmarking
C Functional benchmarking
D Strategic benchmarking
2 Which of the following BEST describes target costing?
A Setting a cost by subtracting a desired profit margin from a competitive market price
B Setting a price by adding a desired profit margin to a production cost
C Setting a cost for the use in the calculation of variances
D Setting a selling price for the company to aim for in the long run
3 Information relating to two processes (F and G) was as follows:
Process Normal loss as Input Output
% of input (litres) (litres)
F 8 65,000 58,900
G 5 37,500 35,700
For each process, was there an abnormal loss or an abnormal gain?
Process F Process G
A Abnormal gain Abnormal gain
B Abnormal gain Abnormal loss
C Abnormal loss Abnormal gain
D Abnormal loss Abnormal loss
4 The following budgeted information relates to a manufacturing company for next period:
Units $
Production 14,000 Fixed production costs 63,000
Sales 12,000 Fixed selling costs 12,000
The normal level of activity is 14,000 units per period.
Using absorption costing the profit for next period has been calculated as $36,000.
What would be the profit for next period using marginal costing?
A $25,000
B $27,000
C $45,000
D $47,000
5 A company has a budgeted material cost of $125,000 for the production of 25,000 units per month. Each unit is
budgeted to use 2 kg of material. The standard cost of material is $2¡¤50 per kg. Actual materials in the month cost
$136,000 for 27,000 units and 53,000 kg were purchased and used.
What was the adverse material price variance?
A $1,000
B $3,500
C $7,500
D $11,000
6 Under which sampling method does every member of the target population have an equal chance of being in the
sample?
A Stratified sampling
B Random sampling
C Systematic sampling
D Cluster sampling
7 The following statements refer to spreadsheets:
(1) A spreadsheet is the most suitable software for the storage of large volume of data
(2) A spreadsheet could be used to produce a flexible budget
(3) Most spreadsheets contain a facility to display the data within them in a graphical form
Which of these statements are correct?
A 1 and 2 only
B 1 and 3 only
C 2 and 3 only
D 1, 2 and 3
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8 Up to a given level of activity in each period the purchase price per unit of a raw material is constant. After that point |
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a lower price per unit applies both to further units purchased and also retrospectively to all units already purchased. |
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Which of the following graphs depicts the total cost of the raw materials for a period? |
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