Here are key points for ACCA F2/US CMA Management Accounting topics:
A. The Nature, Source, and Purpose of Management Information
- *Management Information*: Data for planning, control, and decision-making
- *Sources*: Internal (accounting, production) and external (market research)
- *Purpose*: Support decision-making, planning, and control
B. Data Analysis and Interpretation
- *Data Types*: Quantitative and qualitative
- *Analysis Techniques*: Ratio analysis, trend analysis, variance analysis
- *Interpretation*: Identifying trends, patterns, and anomalies
C. Costing Methods and Systems
- *Cost Classification*: Fixed, variable, direct, indirect
- *Costing Methods*: Job costing, process costing, marginal costing
- *Systems*: Standard costing, budgetary control
D. Budgeting and Forecasting
- *Budgeting*: Planning and controlling financial resources
- *Types*: Sales, production, cash budgets
- *Forecasting*: Techniques like moving averages, regression
E. Decision Making Techniques
- *Cost-Volume-Profit (CVP) Analysis*: Break-even analysis, margin of safety
- *Decision Making*: Relevant costs, limiting factors, make-or-buy decisions
F. Standard Costing and Variance Analysis
- *Standard Costing*: Setting standards, calculating variances
- *Variance Analysis*: Identifying causes, investigating variances
G. Performance Measurement and Control
- *Performance Measures*: Financial (profit, ROI) and non-financial (customer satisfaction)
- *Control*: Monitoring, reporting, and corrective action
Here are 50 ACCA F2 (Management Accounting) Exam-Level MCQs with small caselets . These reflect the scenario-based style used in the ACCA MA (F2) ,US CMA computer-based exam.
ACCA F2 – 50 Exam Level MCQs (Caselet Based)
Section 1 – Cost Classification
1
A manufacturing company produces wooden tables. During the month, the company paid ₹80,000 for wood used directly in production and ₹20,000 for factory electricity.
Which of the following represents direct cost?
A. Factory electricity
B. Wood used in production
C. Factory supervisor salary
D. Machine depreciation
Answer:
2
A factory rent of ₹120,000 per year remains constant regardless of production levels.
This cost is:
B. Fixed cost
D. Direct cost
Answer:
3
A company pays a salesperson a salary of ₹10,000 plus ₹5 per unit sold.
This cost is:
A. Fixed cost
B. Variable cost
C. Semi-variable cost
D. Step cost
Answer:
4
A factory supervisor oversees production of multiple products and cannot trace their salary to a specific product.
The supervisor salary is:
A. Direct cost
B. Indirect cost
C. Variable cost
D. Prime cost
Answer:
5
A company produces chairs. Wood costs ₹300 per chair and wages are ₹150 per chair.
What is the prime cost per chair?
A. ₹300
B. ₹150
C. ₹450
D. ₹600
Answer:
Section 2 – Absorption Costing
6
Budgeted overhead =?
Budgeted machine hours =?
What is the overhead absorption rate per machine hour?
A. ₹2
B. ₹5
C. ₹10
D. ₹20
Answer
7
A product requires 3 machine hours.
OAR = ₹5 per machine hour.
Overhead absorbed per unit = ?
A. ₹5
B. ₹10
C. ₹15
D. ₹20
Answer:
8
Actual overhead = ₹210,000
Overhead absorbed = ₹200,000
This represents:
A. Over-absorption
B. Under-absorption
C. No variance
D. Fixed variance
Answer:
9
Which cost is included in absorption costing but excluded in marginal costing?
A. Direct labour
B. Variable overhead
D. Direct material
Answer:
10
Which costing method values inventory higher when production exceeds sales?
A. Marginal costing
B. Absorption costing
C. Standard costing
D. Job costing
Answer:
Section 3 – Marginal Costing
11
A product sells for ₹80. Variable cost is ₹50.
Contribution per unit = ?
A. ₹20
B. ₹30
C. ₹40
D. ₹50
Answer:
12
Fixed costs = ₹120,000
Contribution per unit = ₹30
Break-even units = ?
A. 3,000
B. 4,000
C. 5,000
D. 6,000
Answer:
13
Sales = ₹400,000
Contribution = ₹160,000
Contribution ratio = ?
A. 20%
B. 30%
C. 40%
D. 50%
Answer:
14
Break-even sales = ₹300,000
Actual sales = ₹420,000
Margin of Safety = ?
A. ₹120,000
B. ₹300,000
C. ₹420,000
D. ₹720,000
Answer:
15
Contribution = ₹200,000
Fixed cost = ₹150,000
Profit = ?
A. ₹50,000
B. ₹150,000
C. ₹200,000
D. ₹350,000
Answer:
Section 4 – Budgeting
16
A company plans to sell 10,000 units next month. Opening inventory is 2,000 units and desired closing inventory is 3,000 units
Production budget units = ?
A. 9,000
B. 10,000
C. 11,000
D ,12,000
17
Which budget is prepared first?
A. Cash budget
B. Production budget
C. Sales budget
D. Labour budget
Answer:
18
Which budget focuses on expected cash inflows and outflows?
A. Sales budget
B. Cash budget
C. Production budget
D. Materials budget
Answer:
19
Flexible budgets are prepared for:
A. One level of activity
B. Multiple activity levels
C. Past performance
D. Capital investment
Answer:
20
Budgetary control helps management to:
A. Eliminate costs
B. Compare actual vs planned results
C. Avoid planning
D. Reduce production
Answer:
Section 5 – Standard Costing
Standard cost is:
A. Actual cost
B. Predetermined cost
C. Estimated selling price
D. Historical cost
Answer:
22
Standard costing mainly helps in:
A. Tax calculation
B. Variance analysis
C. Inventory valuation only
D. Marketing planning
Answer:
23
Material price variance occurs due to:
A. Wage increase
B. Change in material price
C. Labour efficiency
D. Machine breakdown
Answer:
24
Material usage variance measures:
A. Efficiency of material usage
B. Labour efficiency
C. Sales performance
D. Machine hours
Answer:
25
Labour rate variance arises when:
A. Workers use extra time
B. Actual wage rate differs from standard
C. Machine failure occurs
D. Materials increase
Answer:
Section 6 – Variance Calculations
26
Standard price = ₹10
Actual price = ₹12
Actual quantity = 1,000 units
Material price variance = ?
A. ₹2,000 A
B. ₹2,000 F
C. ₹10,000 A
D. ₹10,000 F
Answer:
27
Standard hours = 500
Actual hours = 550
Standard rate = ₹20
Labour efficiency variance =
A. ₹1,000 A
B. ₹1,000 F
C. ₹10,000 A
D. ₹10,000 F
Answer:
28
A favourable variance means:
A. Cost is higher than expected
B. Cost is lower than expected
C. Sales are lower
D. Profit is lower
Answer:
29
An adverse variance indicates:
A. Better performance
B. Worse performance
C. No difference
D. No cost change
Answer:
30
Variance analysis is used for:
A. Financial reporting
B. Cost control
C. Marketing decisions
D. Advertising
Answer
Section 7 – Inventory Management
31
EOQ helps minimize:
A. Production cost
B. Ordering and holding cost
C. Marketing cost
D. Labour cost
Answer:
32
If ordering cost increases, EOQ will:
A. Increase
B. Decrease
C. Remain same
D. Become zero
Answer:
33
Reorder level ensures:
A. Zero inventory
B. Continuous production
C. No storage cost
D. No purchasing
Answer:
34
FIFO assumes:
A. Latest items sold first
B. Oldest inventory sold first
C. Average cost used
D. Random issue
Answer:
35
Weighted average method calculates:
A. Average unit cost of inventory
B. Highest cost
C. Lowest cost
D. Selling price
Answer:
Section 8 – Decision Making
36
Relevant costs are:
A. Past costs
B. Future incremental costs
C. Sunk costs
D. Historical costs
Answer:
37
Sunk costs are:
A. Future costs
B. Costs already incurred
C. Variable costs
D. Relevant costs
Answer:
38
A company has limited machine hours. Decision should be based on:
A. Selling price per unit
B. Contribution per unit
C. Contribution per limiting factor
D. Total revenue
Answer:
39
A make-or-buy decision compares:
A. Selling price vs cost
B. Internal production cost vs purchase price
C. Profit vs revenue
D. Labour vs material
Answer:
40
A product with highest contribution per limiting factor should be:
A. Discontinued
B. Produced first
C. Outsourced
D. Ignored
Answer:
Section 9 – Performance Measurement
41
Return on Investment (ROI) measures:
A. Profitability of investment
B. Sales growth
C. Market share
D. Customer satisfaction
Answer:
42
Non-financial performance measures include:
A. Profit
B. ROI
C. Customer satisfaction
D. Contribution
Answer:
43
Performance measurement helps managers:
A. Evaluate efficiency
B. Increase taxes
C. Reduce production
D. Avoid planning
Answer:
44
Balanced performance requires:
A. Only financial measures
B. Only non-financial measures
C. Both financial and non-financial measures
D. No measurement
Answer:
45
Key performance indicators (KPIs) are used to:
A. Monitor performance
B. Reduce sales
C. Avoid costs
D. Increase inventory
Answer:
Section 10 – Mixed Topics
46
Which cost remains constant per unit?
A. Fixed cost
B. Variable cost
C. Semi-variable cost
D. Step cost
Answer:
47
Which cost remains constant in total?
A. Variable cost
B. Fixed cost
C. Direct cost
D. Prime cost
Answer:
48
Contribution helps cover:
A. Variable costs
B. Fixed costs and profit
C. Direct materials only
D. Labour only
Answer:
49
If selling price increases while costs remain constant:
Contribution will:
A. Decrease
B. Increase
C. Stay same
D. Become zero
Answer:
50
Management accounting information is mainly used by:
A. External investors
B. Government regulators
C. Internal managers
D. Tax authorities
Answer:
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