2 Fmaf: Management Accounting Fundamentals

Foundation Level
Management Accounting Fundamentals
2
INSTRUCTIONS TO CANDIDATES Read this page before you look at the questions You are allowed three hours to answer this question paper.
FMAF
21 November 2001 Day 3 afternoon
Answer the ONE question in section A (this has 25 sub-questions, and is on pages 2 8). Answer the ONE question in section B (this is on page 9) Answer ONE question ONLY from section C (these questions are on pages 10 and 11). Write your examination number in the boxes provided on the front of the answer book. Write FMAF on the line marked "Subject" on the front of the answer book. Write your examination number on the special answer sheet for section A. Detach the sheet from the booklet and insert it into your answer book before you hand this in. Do NOT write your name or your student registration number anywhere on your answer book. Tick the appropriate boxes on the front of the answer book to indicate which questions you have answered.
The Chartered Institute of Management Accountants 2001
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SECTION A 50 MARKS ANSWER ALL TWENTY-FIVE SUB-QUESTIONS 2 MARKS EACH

Each of the sub-questions numbered from 1.1 to 1.25 inclusive, given below, has only ONE correct answer. Question One 1.1 A B C D A standard cost is the planned unit cost of a product, component or service in a period. the budgeted cost ascribed to the level of activity achieved in a budget centre in a control period. the budgeted production cost ascribed to the level of activity in a budget period. the budgeted non-production cost for a product, component or service in a period.
1.2 A B C D
The term budget slack refers to the extended lead time between the preparation of the functional budgets and the master budget. difference between the budgeted output and the breakeven output. additional capacity available which can be budgeted for. deliberate over-estimation of costs and under-estimation of revenues in a budget.
The following information is required for sub-questions 1.3 and 1.4 RS Ltd is currently preparing the production budget for Product A and the material purchase budget for material X for the forthcoming year. Each unit of Product A requires 5 kgs of material X. The anticipated opening stock for Product A is 5,000 units and the company wishes to increase the closing stock by 30% by the end of the year. The anticipated opening stock for material X is 50,000 kgs and in order to avoid stockouts the required closing stock has been increased to 60,000 kgs. The Sales Director has confirmed a sales requirement of 70,000 units of Product A. How many units of Product A will need to be produced? 68,500 units. B 71,500 units. C 76,500 units. D 80,000 units.
1.3 A
1.4 A
What will be the purchases budget for material X? 347,500 kgs. B 350,000 kgs. C 357,500 kgs. D 367,500 kgs.
FMAF
November 2001
1.5
S Ltd absorbs overheads on the basis of direct labour hours. Details of budgeted and actual figures for the latest period are as follows: Overheads Output Labour hours Budget 350,000 70,000 units 35,000 hours Actual 400,000 60,000 units 30,000 hours
Which ONE of the following statements is correct? A B C D Overheads were 50,000 over-absorbed. Overheads were 50,000 under-absorbed. Overheads were 100,000 over-absorbed. Overheads were 100,000 under-absorbed.
1.6
PP Ltd has recorded the following distribution costs during the last three months: Month 1 2 3 Volume units 32,000 40,000 50,000 Total cost 100,000 120,000 145,000
What will be the distribution costs (to the nearest ) in month 4 when the expected activity level is 42,500 units? A 126,250. B 127,500. C 129,861. D 132,813.
The following information is required for sub-questions 1.7 and 1.8 ZK Ltd has been asked to quote a price for a special job that must be completed within one week. The job requires a total of 100 skilled labour hours and 50 unskilled labour hours. The current employees are paid a guaranteed minimum wage of 525 for skilled workers and 280 for unskilled workers for a 35-hour week. Currently, skilled labour has spare capacity amounting to 75 labour hours each week and unskilled labour has spare capacity amounting to 100 labour hours each week. Additional skilled workers and unskilled workers can be employed and paid by the hour at rates based on the wages paid to the current workers. The materials required for the job are currently held in stock at a book value of 5,000. The materials are regularly used by ZK Ltd and the current replacement cost for the materials is 4,500. The total scrap value of the materials is 1,000. What is the total relevant cost to ZK Ltd of using skilled and unskilled labour on this job? Nil. B 375. C 775. D 1,540.
1.7 A
1.8 A
What is the relevant cost to ZK Ltd of using the materials in stock on this job? 1,000. B 3,500. C 4,500. D 5,000.
November 2001
FMAF
1.9 A B C D
Which ONE of the following statements is true? The total variable cost varies with a measure of activity. A variable cost is an unavoidable cost. A variable cost is not relevant for decision-making. A variable cost becomes fixed in the long run.
1.10
ABC Ltd operates an integrated cost accounting system. The fixed production overhead account at 31 July 2001, which is ABC Ltds year end, showed the following information: Fixed production overhead account Trade creditors Bank Depreciation Salaries Materials 50,000 20,000 5,000 40,000 10,000 125,000 Work-in-progress ? 120,000 5,000
125,000
The 5,000 credit entry represents the value of the transfer to the A B C D profit and loss account for the under-recovery of fixed production overheads. profit and loss account for the over-recovery of fixed production overheads. work-in-progress account for the under-recovery of fixed production overheads. following period.
1.11
The following budgeted information is available for a company that manufactures four types of specialist paints: Product W per litre 2000 960 360 680 12 Product X per litre 1500 600 300 600 10 Product Y per litre 1500 960 2.10 330 7 Product Z per litre 1750 850 210 690 11
Selling price Variable overhead Fixed overhead Profit Machine hours per unit
All four products use the same machine. In a period when machine hours are in short supply, the product that makes the most profitable use of machine hours is A product W. B product X. C product Y. D product Z.
FMAF
November 2001
1.12
For decision-making purposes, which of the following are relevant costs? (i) (ii) (iii) (iv) Avoidable cost Future cost Opportunity cost Differential cost
A B C D
(i), (ii), (iii) and (iv). (i) and (ii) only. (ii) and (iii) only. (i) and (iv) only.
The following information is required for sub-questions 1.13 to 1.15 A company produces a single product that passes through two processes. The details for process 1 are as follows: Materials input Direct labour Production overheads 20,000 kg at 250 per kg 15,000 150% of direct labour
Normal losses are 15% of input in process 1 and without further processing any losses can be sold as scrap for 1 per kg. The output for the period was 18,500 kg from process 1. There was no work-in-progress at the beginning or end of the period.
1.13
What value (to the nearest ) will be credited to the process 1 account in respect of the normal loss? Nil. B 3,000. C 4,070. D 5,250.
1.14
What is the value (to the nearest ) of the abnormal loss/gain for the period for process 1? 6,104. B 6,563. C 7,257. D 7,456.
1.15 A
What is the value (to the nearest ) of the output to process 2? 88,813. B 90,604. C 91,956. D 94,063.
November 2001
FMAF
1.16
A joint product is (i) (ii) (iii) the incidental product produced as a result of a process. not saleable at the point of separation and must always be processed further. one of two or more products separated during processing, each having a significant sales value.
Which of the above is/are correct? A B C D (iii) only. (i) and (iii) only. (ii) and (iii) only. (i), (ii) and (iii).
1.17
BH Ltd is currently undertaking a contract to build an apartment block. The contract commenced on 1 January 2001 and is expected to take thirteen months to complete. The contract value is 54 million. The contractors financial year ends on 30 September. The contract account for the building of the apartment block indicates the following situation at 30 September 2001: Value of work certified Costs incurred to date Future costs to completion 30 million 20 million 28 million
The amount of profits to be recognised is based on the value of work certified to date. It is company policy not to recognise profit on contracts unless the value certified is at least 50% of the total contract value. The maximum amount of profit/loss for the contract that can be taken to the profit and loss account for the year ended 30 September 2001 is A nil. B 199 million. C 333 million. D 555 million.
1.18
XX Ltd absorbs overheads based on units produced. In one period, 23,000 units were produced, actual overheads were 276,000 and there was 46,000 under-absorption.
The budgeted overhead absorption rate per unit was A 10. B 12. C 13. D 14.
FMAF
November 2001
1.19
RD Limited uses the LIFO system for valuing material issues from stores to production. The Materials account had an opening value of 850 on 1 October 2001: 500 units at 120 purchased 12 September 2001 200 units at 125 purchased 27 September 2001 The following receipts and issues were recorded during October: 8 October 2001 20 October 2001 29 October 2001 Receipts 600 units Receipts 600 units Issues 130 per unit 150 per unit 1,500 units
What was the total value (to the nearest ) of the issues on 29 October? A 1,930. B 1,969. C 1,997. D 2,050.
1.20 A B C D
During a period of rising prices, which ONE of the following statements is correct? The LIFO method will produce lower profits than the FIFO method, and lower closing stock values. The LIFO method will produce lower profits than the FIFO method, and higher closing stock values. The FIFO method will produce lower profits than the LIFO method, and lower closing stock values. The FIFO method will produce lower profits than the LIFO method, and higher closing stock values.
1.21 A B C D
The economic order quantity is the order quantity which minimises the total of stock ordering and holding costs. the order quantity used for special ordering purposes. the order quantity used for buffer stock. the order quantity used to avoid stock outs.
1.22
In a standard cost bookkeeping system, when the actual material price exceeds the standard price, the double entry to record the difference in price is debit the material price variance account and credit the raw material control account. credit the material price variance account and debit the raw material control account. debit the material price variance account and credit the work-in-progress account. credit the material price variance account and debit the work-in-progress account.
A B C D
November 2001
FMAF
1.23 A B C D
An overhead absorption rate is used to allocate overhead costs to cost centres. attribute overheads to products. spread indirect cost across a number of cost centres. control overheads.
1.24
A company operates a premium bonus system by which employees receive a bonus of 75% of the time saved compared with a standard time allowance (at the normal hourly rate). Details relating to employee X are shown below: Employee X Actual hours worked Hourly rate of pay Output achieved Standard time allowed (per unit of Y) 42 hours 10 400 units of product Y 7 minutes
The bonus payable (to the nearest ) to employee X is A 35. B 47. C 70. D 82.
1.25
HD Ltd currently uses absorption costing to calculate profit. During the last period, the fixed production overhead absorption rate was 25 per unit. There were 500 units of opening stock for the period and 350 units of closing stock.
If marginal costing principles had been used, the profit for the period compared to the absorption costing profit would have been A B C D 3,750 lower. 3,750 higher. 8,750 lower. 8,750 higher.
(Total = 50 marks)
FMAF
November 2001
Examination Question and Answer Book

Write here your full examination number Centre Code: Hall Code: Desk Number:
Foundation Level
2
INSTRUCTIONS TO CANDIDATES
Read this page before you look at the questions
FMAF
22 May 2002 Day 3 afternoon
THIS QUESTION PAPER BOOKLET IS ALSO YOUR ANSWER BOOKLET. Sufficient space has been provided for you to write your answers, and also for workings where questions require them. For section B questions, you must write your answers in the shaded space provided. Additional blank pages (19-22) are included towards the back of this booklet if you require more space for notes or workings. Please note that you will NOT receive marks for your workings. Do NOT remove any sheets from this booklet: cross through neatly any work that is not to be marked. Avoid the use of correction fluid. You are allowed three hours to answer this question paper. All questions are compulsory. Answer the ONE question in section A (this has 25 sub-questions and is on pages 2-12) Answer the THREE questions in section B (these are on pages 14-18) You are advised to spend 10 minutes reading through the paper before starting to answer the questions. You should spend no more than 85 minutes in total answering the ONE question in section A, which has 25 sub-questions. You should spend no more than 85 minutes in total answering the THREE questions in section B. Hand this entire booklet to the invigilators at the end of the examination. You are NOT permitted to leave the examination hall with this booklet. Do NOT write your name or your student registration number anywhere on this booklet. TURN OVER
For office use only

Marks awarded (First marker) for each question Marks awarded (Second marker) for each question
Total
One
Two
Three
Four

Each of the sub-questions numbered from 1.1 to 1.25 inclusive, given below, has only ONE correct answer. REQUIRED: Place a circle O around the letter A, B, C or D that gives the correct answer to each sub-question. If you wish to change your mind about an answer, block out your first answer completely and then circle another letter. You will NOT receive marks if more than one letter is circled. Please note that you will NOT receive marks for any workings to these sub-questions. Sufficient space has been provided for you to do your workings where these sub-questions require them.
Question One 1.1 A B C D Which ONE of the following would be classified as direct labour? Personnel manager in a company servicing cars. Bricklayer in a construction company. General manager in a DIY shop. Maintenance manager in a company producing cameras.
1.2 A B C D
The principal budget factor is the factor which limits the activities of the organisation and is often the starting point in budget preparation. budgeted revenue expected in a forthcoming period. main budget into which all subsidiary budgets are consolidated. overestimation of revenue budgets and underestimation of cost budgets, which operates as a safety factor against risk.
For office use only

Marks awarded (First marker) for each sub-question Marks awarded (Second marker) for each sub-question
FMAF 2
Total
1.1
1.2
May 2002
1.3
R Ltd absorbs overheads based on units produced. In one period 110,000 units were produced and the actual overheads were 500,000. Overheads were 50,000 over-absorbed in the period. The overhead absorption rate was
400 per unit.
450 per unit.
500 per unit.
550 per unit.
Space for workings to 1.3
1.4
X Ltd operates an integrated cost accounting system. The Work-in-Progress Account at the end of the period showed the following information: Work-in-Progress Account Stores ledger a/c Wage control a/c Factory overhead a/c 100,000 75,000 50,000 225,000 ? Balance c/d 200,000 25,000 225,000
The 200,000 credit entry represents the value of the transfer to the A B C D Cost of sales account. Material control account. Sales account. Finished goods stock account.
TURN OVER
For office use only

Total
1.3
1.4
May 2002
FMAF
1.5
X Ltd operates a standard costing system and absorbs overheads on the basis of standard machine hours. Details of budgeted and actual figures are as follows: Overheads Output Machine hours Budget 1,250,000 250,000 units 500,000 hours Actual 1,005,000 220,000 units 450,000 hours
Which ONE of the following statements is correct? A B C D Overheads were 95,000 over-absorbed. Overheads were 95,000 under-absorbed. Overheads were 120,000 over-absorbed. Overheads were 120,000 under-absorbed. Space for workings to 1.5
For office use only

FMAF 4
Total
1.5
May 2002
The following information is required for Questions 1.6 and 1.7

P Ltd uses the FIFO system for valuing material issues from stores to production. The Materials Account had an opening value of 12,000 on 1 April 2002: 1,000 units @ 1,000 units @ 580 Purchased 22 March 2002 620 Purchased 23 March 2002
The following receipts and issues were recorded during April: 2 April 2002 15 April 2002 30 April 2002 Receipts Receipts Issues 5,000 units 630 per unit 8,000 units 625 per unit 9,000 units
Space for workings to 1.6 and 1.7
1.6 A
Using the FIFO method, what was the value of the closing stock on 30 April? 37,200 B 37,400 C 37,500 D 37,600
1.7 A
If P Ltd had used LIFO, instead of FIFO, the value of the material issued would have been 100 lower. B 100 higher. C 300 lower. D 300 higher.
1.8
In an integrated bookkeeping system, when the actual production overheads exceed the absorbed production overheads, the accounting entries to close off the production overhead account at the end of the period would be debit the production overhead account and credit the work-in-progress account. debit the work-in-progress account and credit the production overhead account. debit the production overhead account and credit the profit and loss account. debit the profit and loss account and credit the production overhead account.
A B C D
TURN OVER For office use only Marks awarded (First marker) for each sub-question Marks awarded (Second marker) for each sub-question
May 2002 5
Total
1.6
1.7
1.8
FMAF
1.9
X Ltd currently uses marginal costing to calculate profit. There were 10,000 units of opening stock and 12,000 units of closing stock for the period. If absorption costing principles had been used and the fixed overhead absorption rate was 30 per unit, the absorption costing profit for the period compared to the marginal costing profit would have been
30,000 lower.
30,000 higher.
60,000 lower.
60,000 higher.
The following information is required for Questions 1.10 to 1.12

The following data relate to stock item PR7: Average usage Minimum usage Maximum usage Average lead time Minimum lead time Maximum lead time EOQ 1,000 units per day 600 units per day 1,300 units per day 75 days 5 days 10 days 40,000 units Space for workings to 1.10 to 1.12
1.10 The reorder level is A 3,000 units. B 7,500 units. C 9,750 units. D 13,000 units.
1.11 The maximum stock level is A 40,000 units. B 44,500 units. C 46,750 units. D 50,000 units.
1.12 The minimum stock level is A 2,250 units. B 3,000 units. C 5,500 units. D 8,000 units.
Additional space for workings to 1.10 to 1.12
For office use only Marks awarded (First marker) for each sub-question Marks awarded (Second marker) for each sub-question
FMAF 6
Total
1.9
1.10
1.11
1.12
May 2002
1.13 A company operates a differential piece-rate system and the following weekly rates have been set: 1 500 units 501 600 units 601 units and above 020 per unit in this band 025 per unit in this band 055 per unit in this band
Details relating to employee A are shown below: Employee A Actual output achieved Actual hours worked 800 units 45
There is a guaranteed minimum wage of 5 per hour for a 40-hour week paid to all employees. The amount payable (to the nearest ) to employee A is A 200 B 235 C 435 D 440
1.14 Overtime premium is A B the additional amount paid for hours worked in excess of the basic working week. the additional amount paid over and above the normal hourly rate for hours worked in excess of the basic working week. the additional amount paid over and above the overtime rate for hours worked in excess of the basic working week. the overtime rate.
May 2002 7
Total
1.13
1.14
FMAF

X Ltd has two production departments, Assembly and Finishing, and one service department, Stores. Stores provide the following service to the production departments: 60% to Assembly and 40% to Finishing. The budgeted information for the year is as follows: Budgeted fixed production overheads: Assembly 100,000 Finishing 150,000 Stores 50,000 Budgeted output 100,000 units
1.15 The budgeted fixed production overhead absorption rate for the Assembly Department will be A 100 per unit. B 130 per unit. C 250 per unit. D 300 per unit.
1.16 At the end of the year, the total of all of the fixed production overheads debited to the Finishing Department Fixed Production Overhead Control Account was 130,000, and the actual output achieved was 100,000 units. The overheads for the Finishing Department were A B C D 20,000 under-absorbed. 20,000 over-absorbed. 40,000 under-absorbed. 40,000 over-absorbed.
FMAF 8
Total
1.15
1.16
May 2002
1.17 R Ltd has been asked to quote for a job. The company aims to make a profit margin of 20% on sales. The estimated total variable production cost for the job is 125. Fixed production overheads for the company are budgeted to be 250,000 and are recovered on the basis of labour hours. There are 12,500 budgeted labour hours and this job is expected to take 3 labour hours. Other costs in relation to selling and distribution, and administration are recovered at the rate of 15 per job. The company quote for the job should be A 200. B 222. C 240. D 250.
1.18 Which of the following would NOT be included in a cash budget? (i) (ii) (iii) Depreciation Provisions for doubtful debts Wages and salaries
A B C D
(i) and (ii) only (ii) and (iii) only (iii) only (i) only
May 2002 9
Total
1.17
1.18
FMAF

X Ltd is preparing its budgets for the forthcoming year. The estimated sales for the first four months of the forthcoming year are as follows: Month 1 Month 2 Month 3 Month 4 6,000 units 7,000 units 5,500 units 6,000 units
40% of each months sales units are to be produced in the month of sale and the balance is to be produced in the previous month. 50% of the direct materials required for each months production will be purchased in the previous month and the balance in the month of production. The direct material cost is budgeted to be 5 per unit.
1.19 The production budget in units for Month 1 will be A 2,400 units. B 5,200 units. C 6,000 units. D 6,600 units.
1.20 The material cost budget for Month 2 will be A 29,750 B 30,500 C 31,750 D 35,000
FMAF 10
Total
1.19
1.20
May 2002
1.21 When calculating the material purchases budget, the quantity to be purchased equals A B C D material usage + materials closing stock materials opening stock material usage materials closing stock + materials opening stock material usage materials closing stock materials opening stock material usage + materials closing stock + materials opening stock
1.22 The following extract is taken from the overhead budget of X Ltd: Budgeted activity Budgeted overhead 50% 100,000 75% 112,500
The overhead budget for an activity level of 80% would be A 115,000 B 120,000 C 136,000 D 160,000
1.23 Which of the following would be included in the cash budget, but would not be included in the budgeted profit and loss account? (i) (ii) (iii) A B C D Repayment of a bank loan Proceeds from the sale of a fixed asset Bad debts write off
(i) and (ii) only (i) and (iii) only (ii) and (iii) only (i), (ii) and (iii)
May 2002 11
Total
1.21
1.22
1.23
FMAF
1.24 Sales Total cost
Fixed cost Level of activity This graph is known as a A B C D semi-variable cost chart. conventional breakeven chart. contribution breakeven chart. profit volume chart.
1.25 The following details have been extracted from the creditors records of X Limited: Invoices paid in the month of purchase Invoices paid in the first month after purchase Invoices paid in the second month after purchase Purchases for July to September are budgeted as follows: July August September 250,000 300,000 280,000 25% 70% 5%
For suppliers paid in the month of purchase, a settlement discount of 5% is received. The amount budgeted to be paid to suppliers in September is A 227,500 B 240,000 C 289,000 D 292,500
(Total = 50 Marks)
End of Section A
FMAF 12
Total
1.24
1.25
May 2002

Foundation Level
2
INSTRUCTIONS TO CANDIDATES Read this page before you look at the questions
FMAF
20 November 2002 Day 3 afternoon
THIS QUESTION PAPER BOOKLET IS ALSO YOUR ANSWER BOOKLET. Sufficient space has been provided for you to write your answers, and also for workings where questions require them. For section B questions, you must write your answers in the shaded space provided. Please note that you will NOT receive marks for your workings. Do NOT remove any sheets from this booklet: cross through neatly any work that is not to be marked. Avoid the use of correction fluid. You are allowed three hours to answer this question paper. All questions are compulsory. Answer the ONE question in section A (this has 25 sub-questions and is on pages 2-10) Answer the THREE questions in section B (these are on pages 11-16) You are advised to spend 10 minutes reading through the paper before starting to answer the questions. You should spend no more than 85 minutes in total answering the ONE question in section A, which has 25 sub-questions. You should spend no more than 85 minutes in total answering the THREE questions in section B. Hand this entire booklet to the invigilators at the end of the examination. You are NOT permitted to leave the examination hall with this booklet. Do NOT write your name or your student registration number anywhere on this booklet.

Question One 1.1 Y
X Level of activity
The difference in the values () between point X and point Y on the profit volume chart shown above represents A B C D contribution. profit. breakeven. loss.
FMAF
November 2002
1.2
Level of activity The shaded area on the conventional breakeven chart shown above represents A B C D loss. fixed cost. variable cost. profit.
1.3 A B C D
In a standard cost bookkeeping system, when the actual material usage has been greater than the standard material usage, the double entry to record this is Debit the material usage variance account Credit the raw material control account
Credit the material usage variance account Debit the raw material control account Debit the material usage variance account Credit the work-in-progress account
Credit the material usage variance account Debit the work-in-progress account
1.4
R Ltd makes one product, which passes through a single process. Details of the process account for period 1 were as follows: Material cost 20,000 kg Labour cost Production overhead cost Output Normal losses 26,000 12,000 5,700 18,800 kg 5% of input
There was no work-in-progress at the beginning or end of the period. Process losses have no value. The cost of the abnormal loss (to the nearest ) is A 437 B 441 C 460 D 465
November 2002
FMAF
1.5
JJ Ltd is preparing a quote for a job. The job requires 500kg of material X. There are 400kg of material X currently held in stock at a book value of 2 per kg. JJ Ltd uses material X regularly and the current market price is 250 per kg. The material has a scrap value of 1 per kg. The relevant cost of using the materials for this job is
850
1,000
1,050
1,250
The following information is required for sub-questions 1.6 to 1.12

X Ltd operates a standard marginal costing system. The following budgeted and standard cost information is available: Budgeted production and sales Selling price Direct material cost 3 kg x 10 Direct labour cost 5 hours x 8 Variable production overheads 5 hours x 4 Actual results for the period were as follows: Production and sales Sales value Direct material 36,000 kg Direct labour 52,000 hours Variable production overheads 10,000 units per unit 250 30 40 20 11,500 units 2,817,500 342,000 468,000 195,000
FMAF
November 2002
1.6 A
The direct material price variance is 18,000 adverse. B 3,000 adverse. C 3,000 favourable. D 18,000 favourable.
1.7 A
The direct material usage variance is 15,000 adverse. B 14,250 adverse. C 14,250 favourable. D 15,000 favourable.
1.8 A
The direct labour rate variance is 52,000 adverse. B 8,000 adverse. C 8,000 favourable. D 52,000 favourable.
1.9 A
The direct labour efficiency variance is 49,500 adverse. B 44,000 adverse. C 44,000 favourable. D 49,500 favourable.
1.10 The variable production overhead expenditure variance is A 35,000 adverse. B 13,000 adverse. C 13,000 favourable. D 35,000 favourable.
1.11 The variable production overhead efficiency variance is A 22,000 adverse. B 20,625 adverse. C 20,625 favourable. D 22,000 favourable.
1.12 The total sales contribution variance is A 240,000 adverse. B 182,500 adverse. C 182,500 favourable. D 240,000 favourable.
You may use this space for workings for sub-questions 1.6 1.12 (no marks are awarded for these workings)
November 2002
FMAF
1.13 Y Ltd operates a standard absorption costing system. The following fixed production overhead data is available for the latest period: Budgeted output Budgeted fixed production overhead Actual fixed production overhead cost Total fixed production overhead cost variance The actual level of production for the period is A 115,000 units. B 120,000 units. C 135,000 units. D 140,000 units. 100,000 units 500,000 650,000 50,000 Adverse
1.14 X Ltd manufactures a product called the "ZT". The original budget for next year was: Annual sales Selling price Variable cost Fixed costs Profit 10,000 units per unit 20 14 3 3
If the selling price of the ZT were reduced by 10%, the sales revenue that would be needed to generate the original budgeted profit would be A 90,000 B 135,000 C 180,000 D 270,000
FMAF
November 2002
1.15 A Ltd operates a standard costing system and absorbs overheads on the basis of standard labour hours. There were 500,000 labour hours budgeted and the budgeted production overheads were 300,000 for the forthcoming year. The company budgeted to produce 125,000 units. The actual results for the period were as follows: Overheads Output Labour hours 350,000 130,000 units 450,000 hours
Which ONE of the following statements is correct? A B C D Overheads were 38,000 over-absorbed. Overheads were 38,000 under-absorbed. Overheads were 80,000 over-absorbed. Overheads were 80,000 under-absorbed. Space for workings to 1.15
1.16 Z Ltd produces a single product. The management currently uses marginal costing, but is considering using absorption costing in the future. The budgeted fixed production overheads for the period are 250,000. The budgeted output for the period is 1,000 units. There were 400 units of opening stock for the period and 250 units of closing stock. If absorption costing principles were applied, the profit for the period compared to the marginal costing profit would be A 37,500 higher. B 37,500 lower. C 62,500 higher. D 62,500 lower.
November 2002
FMAF
1.17 Which of the following terms best describes an abnormal loss? (i) (ii) (iii) A (i) only. Controllable cost Unavoidable cost Expected cost B (i) and (ii) only. C (ii) and (iii) only. D (i) and (iii) only.
1.18 The audit fee paid by a manufacturing company would be classified by that company as A B C D a production overhead cost. a selling and distribution cost. a research and development cost. an administration cost.
1.19 A purchase requisition is used to A B C D order goods or services specifying quantities, prices, delivery dates and order terms. instruct the buying office to purchase goods or services, stating their quantity and description. authorise the issue from stores of a specified quantity of material. record goods or services at the point of receipt.
1.20 The following information relates to stock item 007: Price of stock item 007 Cost of placing an order Annual storage costs Monthly usage of 007 20 per unit 15 3% of purchase price 7,500 units per month
Where Co Ch D = = = Note: EOQ basic model: EOQ = 2C oD Ch cost of placing an order cost of holding 1 unit in stock for 1 year annual demand
The economic order quantity for 007 (to the nearest unit) is A 463 units B 612 units C 1,604 units D 2,121 units
FMAF
November 2002
1.21 Wage payments for idle time within a production department are classified as A B C D direct labour cost. prime cost. administration overhead. factory overhead.
1.22 Z Ltd operates a standard absorption costing system. The following fixed production overhead data is available: Actual output Actual fixed production overhead cost Total fixed production overhead cost variance The fixed production overhead absorption rate is A 125 per unit. B 135 per unit. C 160 per unit. D 185 per unit. 500,000 units 800,000 125,000 favourable
1.23 Retention monies are A B C D agreed proportions of a contract price held as security. interim payments made on a contract. deposit payments made to secure a contract. payments made on a contract on a regular basis.
November 2002
FMAF
The following information is required for sub-questions 1.24 and 1.25

R Ltd has the following year-end information regarding one of its long-term contracts: 2,500,000 750,000 1,875,000 2,200,000 220,000
Value certified Profit recognised Cash received Costs to date Future costs to completion
R Ltd uses the following formula to calculate the amount of profit to be recognised on the contract: Profit to be recognised = Notional profit to date x Value of work certified to date Total contract value
1.24 The cost of work certified was A 1,750,000 B 1,980,000 C 2,200,000 D 2,420,000
1.25 The value of the contract debtor is A 105,000 B 325,000 C 545,000 D 625,000
(Total = 50 Marks)
FMAF
10
November 2002

Foundation Level
2
FMAF
21 May 2003 Wednesday afternoon
THIS QUESTION PAPER BOOKLET IS ALSO YOUR ANSWER BOOKLET. Sufficient space has been provided for you to write your answers, and also for workings where questions require them. For section B questions, you must write your answers in the shaded space provided. An additional blank page (22) is included if you require more space for notes or workings. Please note that you will NOT receive marks for your workings. Do not exceed the stated number of words. Do NOT remove any sheets from this booklet: cross through neatly any work that is not to be marked. Avoid the use of correction fluid. You are allowed three hours to answer this question paper. All questions are compulsory. Answer the ONE question in section A (this has 25 sub-questions and is on pages 2-12) Answer the THREE questions in section B (these are on pages 14-21) You are advised to spend 10 minutes reading through the paper before starting to answer the questions. You should spend no more than 85 minutes in total answering the ONE question in section A, which has 25 sub-questions. You should spend no more than 85 minutes in total answering the THREE questions in section B. Hand this entire booklet to the invigilators at the end of the examination. You are NOT permitted to leave the examination hall with this booklet. Do NOT write your name or your student registration number anywhere on this booklet.
Question One
1.1 W plc uses the economic order quantity (EOQ) as part of its materials control policy. The objective of the EOQ is to ensure that the company never runs out of stock, except in exceptional circumstances. the cost of being out of stock is minimised. the combined cost of ordering and holding stock is minimised. stock is purchased from suppliers at the cheapest price.
A B C D
1.2
The effect of using the last in, first out (LIFO) method of stock valuation rather than the first in, first out (FIFO) method in a period of rising prices is to report lower profits and a lower value of closing stock. to report higher profits and a higher value of closing stock. to report lower profits and a higher value of closing stock. to report higher profits and a lower value of closing stock.
A B C D
FMAF
May 2003

Costs & Revenues ($) Total revenue
m Total cost f
n p k 0 g h Output & sales (units) The company expects to sell h units in the next accounting period.
1.3 A
The margin of safety is shown on the diagram by k B m C n D p
1.4 A B C D
The effect of an increase in fixed costs, with all other costs and revenues remaining the same, will be an increase in m. an increase in k . an increase in f. a reduction in p.
1.5
A company uses the repeated distribution method to reapportion service department costs. The use of this method suggests the companys overhead rates are based on estimates of cost and activity levels, rather than actual amounts. there are more service departments than production cost centres. the company wishes to avoid under- or over-absorption of overheads in its production cost centres. the service departments carry out work for each other.
A B C D
May 2003
FMAF
1.6
The management accountants report shows that fixed production overheads were over-absorbed in the last accounting period. The combination that is certain to lead to this situation is Production activity and and and and and Fixed overhead expenditure higher than budget higher than budget as budgeted lower than budget
A B C D
lower than budget higher than budget as budgeted higher than budget
1.7
Which ONE of the following costs would NOT be classified as a production overhead cost in a food processing company? The cost of renting the factory building. The salary of the factory manager. The depreciation of equipment located in the materials store. The cost of ingredients.
A B C D
1.8
The output of a process consists of two joint products, Jointpro A and Jointpro B, and a by-product. Jointpro B could go through a further process in order to increase its sales value. To assist management in making the decision whether to carry out further processing, which ONE of the following is relevant? The share of the total processing cost which has been allocated to Jointpro B. The sales value of Jointpro A and the by-product. The physical quantities of all three products at separation point. The cost of further processing Jointpro B and the increase in sales value that will result.
A B C D
FMAF
May 2003
The following information is required for sub-questions 1.9 to 1.11

The incomplete process account relating to period 4 for a company which manufactures paper is shown below: Process account Material Labour Production overhead Units 4,000 $ 16,000 8,125 3,498 Finished goods Normal loss Work in progress Units 2,750 400 700 $ 700
There was no opening work in process (WIP). Closing WIP, consisting of 700 units, was complete as shown: Material Labour Production overhead 100% 50% 40%
Losses are recognised at the end of the production process and are sold for $175 per unit.
1.9
Given the outcome of the process, which ONE of the following accounting entries is needed to complete the double entry to the process account? Debit Abnormal Loss account Process account Abnormal Gain account Process account Credit Process account Abnormal Loss account Process account Abnormal Gain account
A B C D
1.10 The value of the closing WIP was A $3,868. B $4,158. C $4,678. D $5,288.
1.11 The total value of the units transferred to finished goods was A $21,052 50. B $21,587 50. C $22,122 50. D $22,656 50.
May 2003
FMAF
1.12 A machine operator is paid $1020 per hour and has a normal working week of 35 hours. Overtime is paid at the basic rate plus 50%. If, in week 7, the machine operator worked 42 hours, the overtime premium paid to the operator would be A $28 20. B $35 70. C $71 40. D $10710.
1.13 An engineering firm operates a job costing system. Production overhead is absorbed at the rate of $8 50 per machine hour. In order to allow for non-production overhead costs and profit, a mark up of 60% of prime cost is added to the production cost when preparing price estimates. The estimated requirements of job number 808 are as follows: Direct materials Direct labour Machine hours $10,650 $3,260 140
The estimated price notified to the customer for job number 808 will be A $22,256. B $22,851. C $23,446. D $24,160.
1.14 The diagram represents the behaviour of a cost item as the level of output changes: Total cost ($)
Output
Which ONE of the following situations is described by the graph? A B C D Discounts are received on additional purchases of material when certain quantities are purchased. Employees are paid a guaranteed weekly wage, together with bonuses for higher levels of production. A licence is purchased from the government which allows unlimited production. Additional space is rented to cope with the need to increase production.
FMAF
May 2003
1.15 A hospitals records show that the cost of carrying out health checks in the last five accounting periods have been as follows: Period 1 2 3 4 5 Number of patients seen 650 940 1,260 990 1,150 Total cost $ 17,125 17,800 18,650 17,980 18,360
Using the high-low method and ignoring inflation, the estimated cost of carrying out health checks on 850 patients in period 6 is A $17,515. B $17,570. C $17,625. D $17,680.
1.16 The principal budget factor for a footwear retailer is A B C D the cost item taking the largest share of total expenditure. the product line contributing the largest amount to sales revenue. the product line contributing the largest amount to business profits. the constraint that is expected to limit the retailers activities during the budget period.

Extracts from the budget of H Ltd, a retailer of office furniture, for the six months to 31 December 2003 show the following information: Sales Purchases Closing stock finished goods Opening stock finished goods Opening debtors Opening creditors $ 55,800 38,000 7,500 5,500 8,500 6,500
Debtors and creditors are expected to rise by 10% and 5% respectively by the end of the budget period.
1.17 The estimated cash receipts from customers during the budget period are A $54,825. B $54,950. C $55,475. D $56,125.
1.18 The profit mark-up, as a percentage of the cost of sales (to the nearest whole number) is A 32%. B 47%. C 55%. D 64%.
May 2003
FMAF
1.19 The following actions are possible responses to an anticipated cash shortage: (i) (ii) (iii) (iv) issue additional shares; request additional bank overdraft facilities; sell machinery currently working at half capacity; postpone the purchase of plant and machinery.
Which of the above actions are appropriate if the cash shortage is thought to be temporary? A B C D (ii) only. (ii) and (iv) only. (ii), (iii) and (iv) only. (i), (ii), and (iv) only.

A company manufactures three products, X, Y and Z. The sales demand and the standard unit selling prices and costs for the next accounting period, period 1, are estimated as follows: X 40 $ per unit 28 Y 55 $ per unit 22 Z 70 $ per unit 30
Maximum demand (000 units)
Selling price Variable costs: Raw material ($1 per kg) Direct labour ($12 per hour)
5 12
4 9
6 18
1.20 If supplies in period 1 are restricted to 90,000 kgs of raw material and 18,000 hours of direct labour, the limiting factor would be A B C D direct labour. raw material. both direct labour and raw material. neither direct labour nor raw material.
FMAF
May 2003
1.21 In period 2 the company will have a shortage of raw materials, but no other resources will be restricted. The standard selling prices and costs and the level of demand will remain unchanged. In what order should the materials be allocated to the products if the company wants to maximise profit? 1 Z
st
A B C D
2 X Z Y X
nd
3 Y X X Z
rd
Y Z Y
1.22 Performance standards which have remained unchanged over a long period of time are known as A B C D ideal standards. current standards. basic standards. long-term standards.

W Ltd makes leather purses. It has drawn up the following budget for its next financial period: Selling price per unit Variable production cost per unit Sales commission Fixed production costs Fixed selling and administration costs Sales $11 60 $3 40 5% of selling price $430,500 $198,150 90,000 units
1.23 The margin of safety represents A B C D 56% of budgeted sales. 83% of budgeted sales. 11 6% of budgeted sales. 14 8% of budgeted sales.
1.24 The marketing manager has indicated that an increase in the selling price to $12 25 per unit would not affect the number of units sold, provided that the sales commission is increased to 8% of the selling price. These changes will cause the breakeven point (to the nearest whole number) to be A 71,033 units. B 76,016 units.
9
79,879 units.
87,070 units.
FMAF
May 2003
1.25 An engineering firm has surplus capacity and wishes to secure a short-term contract to supply components. It has decided to bid for a contract at a price which will just cover all relevant costs. Which ONE of the following costs should be included in the calculation of the minimum price it can bid? A B C D The cost of a research project undertaken last year which has resulted in an improved method of manufacturing the components. The cost of hiring a supervisor to oversee the contracts progress. The cost of labour which will be transferred to the contract from another production line where it is currently idle. The depreciation charge on existing machinery owned by the firm which will be used to manufacture the components.
(Total = 50 Marks)
End of Section A
FMAF
10
May 2003

Write your full examination number, your contact ID and your name on a double-sided card, which must be attached to this booklet here.
Foundation Level
2
FMAF
19 November 2003 Wednesday afternoon
THIS QUESTION PAPER BOOKLET IS ALSO YOUR ANSWER BOOKLET. Sufficient space has been provided for you to write your answers, and also for workings where questions require them. For section B questions, you must write your answers in the shaded space provided. Please note that you will NOT receive marks for your workings. Do not exceed the stated number of words. Do NOT remove any sheets from this booklet: cross through neatly any work that is not to be marked. Avoid the use of correction fluid. You are allowed three hours to answer this question paper. All questions are compulsory. Answer the ONE question in section A (this has 25 sub-questions) Answer the THREE questions in section B) You are advised to spend 10 minutes reading through the paper before starting to answer the questions. You should spend no more than 85 minutes in total answering the ONE question in section A, which has 25 sub-questions. You should spend no more than 85 minutes in total answering the THREE questions in section B. Hand this entire booklet to the invigilators at the end of the examination. You are NOT permitted to leave the examination hall with this booklet. Do NOT write your name or your contact ID anywhere on this booklet.

Question One
1.1 The benefits of using a computerised budget system as opposed to a manual one are: (i) (ii) (iii) (iv) (v) A B C D data used in drawing up the budget can be processed more quickly; budget targets will be more acceptable to the managers responsible for their achievement; changes in variables can be incorporated into the budget more quickly; the principal budget factor can be identified before budget preparation begins; continuous budgeting is only possible using a computerised system.
(i) and (iii) only (i), (ii) and (iii) only (i), (iii) and (iv) only (i), (iii) and (v) only
1.2
A firm calculates the material price variance when material is purchased. The accounting entries necessary to record a favourable material price variance in the ledger are: Debit Credit Material variance account Material variance account Material control account Work-in-progress control account
A B C D
Material control account Work-in-progress control account Material variance account Material variance account
FMAF
November 2003
1.3
The accounting entries necessary to record an adverse labour efficiency variance in the firms ledger are: Debit Credit Labour variance account Wages control account Work-in-progress control account Labour variance account
A B C D
Wages control account Labour variance account Labour variance account Work-in-progress control account
1.4
The following graph shows the wages earned by an employee during a single day:
Wages ($)
Output
Which ONE of the remuneration systems listed below does the graph represent? A B C D Differential piecework. A flat rate per hour with a premium for overtime working. Straight piecework. Piecework with a guaranteed minimum daily wage.
November 2003
FMAF
1.5
J Ltd uses standard absorption costing and absorbs production overheads on the basis of standard machine hours. The following budgeted and actual information applied in its last accounting period: Budget Production overhead Machine hours Units produced $180,000 50,000 40,000 Actual $178,080 48,260 38,760
At the end of the period, production overhead will be reported as A B C D under-absorbed by $4,344. under-absorbed by $3,660. over-absorbed by $4,344. over-absorbed by $3,660.
1.6
The Management Accountant of H Ltd has calculated the following variances for the last accounting period: Total sales margin variance Material usage variance Labour rate variance Fixed overhead volume variance Fixed overhead expenditure variance Variable overhead expenditure variance All other variances were zero. $ 11,245 (F) 6,025 (F) 3,100 (A) 5,075 (F) 3,800 (A) 2,415 (A)
If the budgeted profit for the period was $475,000, the actual profit reported was A B C D $461,970. $465,685. $488,030. $497,345.
FMAF
November 2003
Use the following data to answer questions 1.7 and 1.8 below
E Ltds stock purchases during a recent week were as follows: Day 1 2 3 4 5 Price per unit ($) 145 160 175 180 190 Units purchased 55 80 120 75 130
There was no stock at the beginning of the week. 420 units were issued to production during the week. The company updates its stock records after every transaction. 1.7 A B C D Using a first in, first out (FIFO) method of costing stock issues, the value of closing stock would be $5800 $7000 $7200 $7600
1.8
If E Ltd changes to the weighted average method of stock valuation, the effect on closing stock value and on profit for the week compared with the FIFO method will be Closing stock value Gross profit Higher Higher Lower Lower
A B C D
Higher Lower Lower Higher
November 2003
FMAF
The diagram shows the profit-volume chart of Z Ltd for its last accounting period. The company made a profit of $w during the period. Profit ($) u 0 Sales units r Loss ($) 1.9 A B C D An increase in the fixed costs per period (assuming the selling price per unit and the variable cost per unit remain unchanged), will result in a reduction in r. an increase in w. a reduction in t. no change in u. t w
1.10 The following results were achieved in the last accounting period: r = $50,000 w = $16,000 t = 800 units u = 2,500 units
The company expects to make and sell an additional 1,400 units in the next accounting period. If variable cost per unit, selling price per unit and total fixed costs remain unchanged, the effect on profit will be A B C D an increase of $10,500. an increase of $21,210. an increase of $28,000. an increase of $87,500.
FMAF
November 2003
1.11 A manufacturer of cell phones is considering the following actions. Which of these is likely to increase the manufacturers C/S (contribution/sales) ratio? (i) (ii) (iii) (iv) (v) taking advantage of quantity discounts for bulk purchases of material; introducing training programmes designed to improve labour efficiency; following the actions of a competitor who has cut prices substantially; reducing exports to countries where there is intense price competition; offering retailers a lower price if they display the product more prominently.
A B C D
(ii), (iii) and (v) (i), (ii) and (iv) (i), (iii) and (iv) (ii), (iv) and (v)
1.12 An advertising agency uses a job costing system to calculate the cost of client contracts. Contract A42 is one of several contracts undertaken in the last accounting period. Costs associated with the contract consist of: Direct materials Direct expenses $5,500 $14,500
Design staff worked 1,020 hours on contract A42, of which 120 hours were overtime. One third of these overtime hours were worked at the request of the client who wanted the contract to be completed quickly. Overtime is paid at a premium of 25% of the basic rate of $2400 per hour. The prime cost of contract A42 is A B C D $41,600. $44,480. $44,720. $45,200.
November 2003
FMAF
The following data are to be used to answer questions 1.13 and 1.14 below.
The following estimates have been prepared for a retailers next budget period: Sales Opening debtors Closing debtors Opening stock Closing stock $ 160,000 27,500 19,400 16,600 18,700
The gross profit margin on sales is budgeted at 55%. 1.13 The cash which the retailer expects to receive from customers during the budget period amounts to A B C D $88,000. $151,900. $157,900. $168,100.
1.14 The value of purchases made by the retailer during the budget period is expected to be A B C D $69,900. $74,100. $85,900. $90,100.
1.15 V Ltd buys IT support services from an outside agency. In its last four accounting periods, the charges made by the agency have been as follows: Period 1 2 3 4 Usage (hours) 3,700 4,900 3,250 5,800 Charge for services $ 16,700 20,300 15,350 23,000
The agency did not increase its charging rates in periods 1 to 4. It has notified V Ltd that, in period 5, it will increase the fixed element of the charge by 5% and the variable element by 10%. If V Ltd estimates its level of usage at 5,500 hours in period 5, the expected charge for IT support services will be A B C D
FMAF
$23,485. $24,030. $25,020. $26,010.

8 November 2003
A newly-formed company has drawn up the following budgets for its first two accounting periods: Sales units Production units (equivalent to normal capacity) The following budgeted information applies to both periods: Selling price per unit Variable cost per unit Fixed production overhead per period 1.16 In period 1, the budgeted profit will be A B C D the same under both absorption costing and marginal costing. $750 higher under marginal costing. $750 higher under absorption costing. $1,400 higher under absorption costing. $ 640 360 15,000 Period 1 9,500 10,000 Period 2 10,300 10,000
1.17 In period 2, everything was as budgeted, except for the fixed production overhead, which was $15,700. The reported profit, using absorption costing in period 2, would be A B C D $12,300 $12,690 $13,140 $13,840
1.18 If fixed production overhead is over-absorbed in an accounting period, which ONE of the following combinations could have caused this result? Fixed overhead expenditure variance A B C D $4,200 (A) $3,250 (A) $2,240 (A) $2,980 (F) and Fixed overhead volume variance $3,750 (F) $4,170 (F) $1,870 (A) $3,690 (A)
November 2003
FMAF
1.19 A company undertaking long-term building contracts has a financial year end of 30 April. The following details on the purchase and use of machinery refer to contract A44, which was started on 1 May 2003 and is due for completion after 27 months. 1 July 2003: 1 October 2003: Machine 1 was purchased at a cost of $55,000. It is to be used throughout the contract, and will be sold for $6,400 when the contract finishes. Machine 2 was purchased at a cost of $28,600. The machine will be scrapped at the end of contract A44, and is not expected to have any saleable value.
If the companys policy is to charge depreciation in equal monthly amounts, the balance sheet value of machinery on contract A44 at 30 April 2004 will be A B C D $51,172. $52,500. $55,060. $56,500.
Standard direct labour cost of one unit of product Q (025 hours x $1200 per hour) is $300. The eight employees who make product Q work a seven-hour day. In a recent three-day period, results were as follows: Actual units produced Actual wages cost 650 units $2,275
During this period, there was a power failure. This meant that all work had to stop for 2 hours. 1.20 If the company reports idle time separately, the labour efficiency variance for the period is A B C D $258 (A) $126 (A) $42 (F)
$126 (F)
1.21 The labour rate variance for the period is A B C D $451 (A) $259 (A) $266 (F) $375 (F)
FMAF
10
November 2003
1.22 G Ltd repairs electronic calculators. The wages budget for the last period was based on a standard repair time of 24 minutes per calculator and a standard wage rate of $1060 per hour. Following the end of the budget period, it was reported that: Number of repairs Labour rate variance Labour efficiency variance 31,000 $3,100 (A) Nil
Based on the above information, the actual wage rate during the period was A B C D $1035 per hour. $1060 per hour. $1085 per hour. $1110 per hour.
1.23 Which ONE of the following factors could explain a favourable direct material usage variance? A B C D More staff were recruited to inspect for quality, resulting in a higher rejection rate. When estimating the standard product cost, usage of material had been set using ideal standards. The company had reduced training of production workers as part of a cost reduction exercise. The material price variance was adverse.
1.24 S Ltd makes a single product. The budget for October 2003 contained the following details: Sales volume Selling price per unit Cost per unit 12,000 units $1500 $950
The actions of a competitor and an unexpected fall in material prices meant that actual results were: Sales volume Selling price per unit Cost per unit 10,800 units $1350 $870
The total sales margin variance for October was A B C D $22,800 (A) $14,160 (A) $7,560 (A) $9,600 (F)
November 2003
11
FMAF
1.25 Which of the following is the responsibility of the budget committee? A B C D Taking corrective action to ensure that sales targets are achieved. Ensuring the sales budget is consistent with other budgets. Providing information on sales levels and prices in previous budget periods. Drawing up the sales budget.
(Total for Question One = 50 Marks)
End of Section A
FMAF
12
November 2003

2 Fmaf: Management Accounting Fundamentals

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Foundation Level

Management Accounting Fundamentals

The Chartered Institute of Management Accountants 2001

FOR FREE CIMA, ACCA & CAT RESOURCES VISIT: http://kaka-pakistani.blogspot.com

SECTION A 50 MARKS ANSWER ALL TWENTY-FIVE SUB-QUESTIONS 2 MARKS EACH

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Examination Question and Answer Book

Management Accounting Fundamentals

For office use only

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SECTION A 50 MARKS ANSWER ALL TWENTY-FIVE SUB-QUESTIONS 2 MARKS EACH

For office use only

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400 per unit.

450 per unit.

500 per unit.

550 per unit.

Space for workings to 1.3

For office use only

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For office use only

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The following information is required for Questions 1.6 and 1.7

Space for workings to 1.6 and 1.7

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The following information is required for Questions 1.10 to 1.12

Additional space for workings to 1.10 to 1.12

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Space for workings to 1.13

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The following information is required for Questions 1.15 and 1.16

Space for workings to 1.15 and 1.16

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Space for workings to 1.17

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The following information is required for Questions 1.19 and 1.20

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Space for workings to 1.22

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1.24 Sales Total cost

Space for workings to 1.25

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Examination Question and Answer Book

Management Accounting Fundamentals

The Chartered Institute of Management Accountants 2002

FOR FREE CIMA, ACCA & CAT RESOURCES VISIT: http://kaka-pakistani.blogspot.com

SECTION A 50 MARKS ANSWER ALL TWENTY-FIVE SUB-QUESTIONS 2 MARKS EACH

Question One 1.1 Y

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Space for workings to 1.4

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Space for workings to 1.5

The following information is required for sub-questions 1.6 to 1.12

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Space for workings to 1.13