Management accounting exam prep
Sit an original two-hour paper laid out as ACCA's study guide describes the exam: 35 two-mark objective test questions and three 10-mark multi-task questions. Every answer is marked when you hand in, with the working for each question.
| Our free paper | 38 questions, 100 marks, 2 hours |
|---|---|
| Our Section A | 35 two-mark questions: multiple choice, multiple response and number entry |
| Our Section B | Budgeting, standard costing and performance measurement questions |
| Pass mark | 50%, as in the real exam |
Each Section A question earns its 2 marks only when every part of the answer is right, so a multiple-response question needs every right option ticked. Each Section B box earns the marks written beside it.
If you are not ready for two hours, start with the free 15-question diagnostic. It shows the topic to fix first.
Expenditure variance against a flexed budget
Ingleby Co budgets its machine maintenance cost as $2,000 a month plus $4.95 per machine hour. The budget for March was based on 7,000 machine hours.
In March 7,200 machine hours were worked and maintenance cost $40,650.
What is the expenditure variance when the actual cost is compared with the flexed budget? (2 marks)
| Answer | |
|---|---|
| Variance ($) | |
| Favourable or adverse |
Economic order quantity
Halden Co uses 14,400 units of a component each year, at a constant rate. Each order costs $50 to place and receive.
The cost of holding one unit in inventory for a year is $4.
The economic order quantity is EOQ = √(2 × Co × D ÷ Ch), where Co is the cost of placing one order, D is annual demand and Ch is the cost of holding one unit for a year.
What is the economic order quantity, to the nearest whole unit? (2 marks)
Operating statements
Wexford Co uses standard absorption costing. Budgeted profit of $48,000 for the month. The variances were:
| Variance | $ | |
|---|---|---|
| Sales price | 1,850 | F |
| Sales volume | 1,500 | A |
| Materials price | 1,500 | A |
| Materials usage | 650 | F |
| Labour rate | 2,250 | F |
| Labour efficiency | 2,450 | A |
| Fixed overhead expenditure | 2,650 | F |
There was no fixed overhead volume variance and no change in inventory.
What was the actual profit for the month? (2 marks)
Yes. Practice exam 1 here is free: an original two-hour paper with 38 questions and 100 marks, marked against the 50% pass mark.
ACCA says its Study Hub, with practice and revision questions, is free to students through MyACCA.
50 of the 100 marks.