Management Accounting Tuition by Experienced Accounting Tutor in Singapore

1. A profit centre is best defined as:

A. a unit within an enterprise with responsibilities for revenues, costs and capital investment
B. a unit within an enterprise with responsibilities for revenue and costs
C. a unit within an enterprise where costs are collected before being analysed further
D. a uni within an enterprise whose performance is the responsibility of a specific manager

2. A company produces components for washing machines. Each component has a raw material input of $20 and labour input that costs $10. The company must also pay the rent of the factory totalling $20,000 per annum, production supervisor's costs of $25,000 per annum and the managing director's salary of $35,000 per annum. The budgeted output is 10,000 units per annum.

The fixed production cost is:

A. $45,000
B. $75,000
C. $80,000
D. $115,000

3. A variable cost is one which:

A. increases in direct proportion to output
B. remains constant irrespective of the level of output
C. can be attributed directly to a unit of output
D. varies throughout the year

4. A particular cost is classified as 'semi-variable'

What effect would a 15% reduction in activity have on the unit cost?

A. increase by less than 15%
B. increase by 15%
C. reduce by less than 15%
D. remain constant

5. If a company is using the FIFO method for material issues at a time when material prices are rising, this will mean which of the following?

1. Profits will be higher than if LIFO was used
2. Profits will be higher than if weighted average pricing was used
3. The closing inventory valuation will be lower than if LIFO is used

A. All of the statements are true
B. Statements 1 and 2 are true, statement 3 is false
C. Statements 2 and 3 are true, statement 1 is false
D. All of the statements are false

Do you have problems understanding how to prepare, process and present basic cost information to support management in planning and decision making in a variety of business contexts?

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1. Understanding concepts and application of concept to questions
2. Developing graphing skills
3. Identifying exam trends and skills (questions spotting)
4. Practicing variety of questions to prepare you for your exam
5. Simplifying difficult questions
6. Identifying and improving your weakness

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