Certified Accounting Technician Examination
Certified ACCounting teChniCiAn exAminAtion
SAmple multiple ChoiCe queStionS – June 2009
Paper T7 Planning Control and Performance Management
Section A only All questions are compulsory Note: Section B of the actual exam paper will contain four written questions
FOR FREE ACCA & CAT RESOURCES VISIT: http://kaka-pakistani.blogspot.com
the following questions are typical of those that will appear in Section A of the examination paper from June 2009 onwards. there will be a total of ten questions in section A. All questions in Section A will be worth two marks each.
1
Four years ago material X cost $5 per kg and the price index most appropriate to the cost of material X stood at 150. The same index now stands at 430. What is the best estimate of the current cost of material x per kg? A B C d $1.74 ($5 × 150 ÷ 430) $9.33 ($5 × (430 – 150) ÷ 150 $14.33 ($5 × 430 ÷ 150) $21.50 ($5 × 430 ÷ 100) (2 marks)
2
Which of the following is the best description of a rolling budget? A B C d A budget that is continuously updated by adding a further accounting period when the earliest accounting period has expired. A budget that is adjusted for known changes in volume during the accounting period. A budget that, by recognising cost behaviour patterns, is designed to change as volume of activity changes. A budget that is prepared by higher levels of management and then communicated to lower levels of management. (2 marks)
3
In the last year a division’s controllable return on investment was 25% and its controllable profit was $80,000. The cost of finance appropriate to the division was 18% per annum. What was the division’s controllable residual income in the last year? A B C d $5,600 $22,400 $74,400 $76,400 $80,000 × (0.25 – 0.18) $80,000 – ($80,000 ÷ 0.25 × 0.18) $80,000 – ($80,000 × (0.25 – 0.18) $80,000 – ($80,000 × 0.25 × 0.18)) (2 marks)
4
The standard raw material cost for a unit of production is 2 kg at $4.00 per kg. Purchases for a period
SAmple multiple ChoiCe queStionS – June 2009
Paper T7 Planning Control and Performance Management
Section A only All questions are compulsory Note: Section B of the actual exam paper will contain four written questions
FOR FREE ACCA & CAT RESOURCES VISIT: http://kaka-pakistani.blogspot.com
the following questions are typical of those that will appear in Section A of the examination paper from June 2009 onwards. there will be a total of ten questions in section A. All questions in Section A will be worth two marks each.
1
Four years ago material X cost $5 per kg and the price index most appropriate to the cost of material X stood at 150. The same index now stands at 430. What is the best estimate of the current cost of material x per kg? A B C d $1.74 ($5 × 150 ÷ 430) $9.33 ($5 × (430 – 150) ÷ 150 $14.33 ($5 × 430 ÷ 150) $21.50 ($5 × 430 ÷ 100) (2 marks)
2
Which of the following is the best description of a rolling budget? A B C d A budget that is continuously updated by adding a further accounting period when the earliest accounting period has expired. A budget that is adjusted for known changes in volume during the accounting period. A budget that, by recognising cost behaviour patterns, is designed to change as volume of activity changes. A budget that is prepared by higher levels of management and then communicated to lower levels of management. (2 marks)
3
In the last year a division’s controllable return on investment was 25% and its controllable profit was $80,000. The cost of finance appropriate to the division was 18% per annum. What was the division’s controllable residual income in the last year? A B C d $5,600 $22,400 $74,400 $76,400 $80,000 × (0.25 – 0.18) $80,000 – ($80,000 ÷ 0.25 × 0.18) $80,000 – ($80,000 × (0.25 – 0.18) $80,000 – ($80,000 × 0.25 × 0.18)) (2 marks)
4
The standard raw material cost for a unit of production is 2 kg at $4.00 per kg. Purchases for a period