Integrated Case based questions ⁉️

 Here are integrated, case-based questions (MCQ, Fill-in-the-Blank, Drag & Drop style) covering Budgetary Control, Variance Analysis, Relevant Costing, Internal Control, Risk Assessment, Governance, AIS, Job Order Costing, ABC, and Strategic Management — CMA/CIA level difficulty.

🔹 CASE 1 – Budgetary Control & Variance Analysis

Scenario:

A company budgeted production of 10,000 units.

Standard material: 5 kg per unit @ $4/kg

Actual production: 9,000 units

Actual material used: 48,000 kg

Actual price: $4.50/kg

Q1 (MCQ)

Material Price Variance is:

A. $24,000 U

B. $24,000 F

C. $20,000 U

D. $20,000 F

Answer: 

Q2 (Fill in the Blank)

Material Usage Variance = ________ (F/U)

Answer: $.....

Q3 (MCQ – Control Concept)

The MOST appropriate control to prevent material usage variance is:

A. Segregation of duties

B. Standard cost revision

C. Engineering efficiency review

D. External audit

Answer: 

🔹 CASE 2 – Relevant Costing Decision

Scenario:

A division has idle capacity. Variable cost per unit = $30.

Fixed costs = $200,000 (unavoidable).

Special order price = $35 for 5,000 units.

Regular selling price = $50.

Q4 (MCQ)

Should the company accept the special order?

A. Yes, because contribution = $25,000

B. No, because price < regular price

C. No, because fixed cost per unit exceeds price

D. Yes, because fixed cost is relevant

Answer: 

Q5 (Fill in the Blank)

The relevant cost per unit is ________.

Answer: $....

Q6 (MCQ – Strategic Angle)

Rejecting the order WITHOUT considering idle capacity violates which principle?

A. Goal congruence

B. Relevant costing

C. Agency theory

D. Responsibility accounting

Answer: 

🔹 CASE 3 – Internal Control & Risk Assessment

Scenario:

ABC Ltd. allows the same employee to:

Approve vendors

Record purchases

Process payments

Q7 (MCQ)

This represents violation of:

A. Authorization control

B. Segregation of duties

C. Preventive control

D. Detective control

Answer: 

Q8 (Fill in the Blank)

This weakness increases risk of ________ fraud.

Answer: 

Q9 (MCQ – Risk Response)

The BEST immediate control improvement is:

A. External audit

B. Vendor rotation

C. Segregating authorization and payment functions

D. Increasing budget

Answer: 

🔹 CASE 4 – Job Order Costing

Scenario:

Job 101:

Direct Material = $20,000

Direct Labor = $15,000

OH rate = 150% of Direct Labor

Q10 (Fill in the Blank)

Applied overhead = ________.

150% × ...... = ...... 

Answer: $..,.......

Q11 (MCQ)

Total Job Cost =

A. 57,500

B. 52,500

C. 35,000

D. 22,500

Total = ......... + ........ + .......= ........

Answer: 

Q12 (MCQ – Control Perspective)

Underapplied overhead indicates:

A. Overestimation of activity

B. Inefficient labor

C. Actual overhead > applied overhead

D. Budget variance only

Answer: 

🔹 CASE 5 – Activity Based Costing (ABC)

Scenario:

Two products:

Product X (high volume)

Product Y (low volume, complex setup)

Traditional costing allocates overhead based on labor hours. ABC uses setup hours and inspection hours.

Q13 (MCQ)

Under traditional costing, which product is MOST likely overcosted?

A. Product Y

B. Product X

C. Both equally

D. Neither

Answer: 

Q14 (Fill in the Blank)

ABC improves costing accuracy by identifying ________.

Answer: 

Q15 (MCQ – Strategic Decision)

ABC is MOST useful when:

A. Overhead is insignificant

B. Product diversity is low

C. Overhead is high and products vary

D. Only one product is produced

Answer: 

🔹 CASE 6 – Governance & Strategic Management

Scenario:

The Board of Directors approves risk appetite but does not monitor risk exposure reports.

Q16 (MCQ)

This reflects weakness in:

A. Risk identification

B. Risk assessment

C. Risk monitoring

D. Risk avoidance

Answer: 

Q17 (Fill in the Blank)

Approving risk appetite is part of ________ governance responsibility.

Answer: 

Q18 (MCQ – Agency Issue)

Failure to monitor management increases:

A. Moral hazard

B. Diversification

C. Operating leverage

D. Contribution margin

Answer: 

🔹 CASE 7 – Accounting Information System (AIS)

Scenario:

Company uses batch processing. Errors are detected after month-end.

Q19 (MCQ)

Switching to real-time processing would improve:

A. Detective controls

B. Preventive controls

C. Timeliness of information

D. Audit trail elimination

Answer: 

Q20 (Drag & Drop – Match Control Type)

Match the control to type:

Control Type

Password authentication Preventive

Bank reconciliation Detective

Backup server Corrective

Internal audit Detective

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