快速查题-ACCA英国注册会计师试题

A company manufactures and sells a single product. For this month the budgeted fixed production overheads are $48,000, budgeted production is 12,000 units and budgeted sales are 11,720 units.

The company currently uses absorption costing.

If the company used marginal costing principles instead of absorption costing for this month, what would be the effect on the budgeted profit?

A company has established a marginal costing profit of $72,300. Opening inventory was 300 units and closing inventory is 750 units. The fixed production overhead absorption rate has been calculated as $5/unit.

What was the profit under absorption costing?

What would the budgeted profit be if a marginal costing system were used?

 Assume that at the end of the first month unit variable costs and fixed costs and selling price for the month were in line with the budget and any inventory was valued at the same unit cost as in the above budget.

However, if production was actually 700 and sales 600; what would be the reported profit using absorption costing?

A new company has set up a marginal costing system and has a budgeted contribution for the period of $26,000 based on sales of 13,000 units and production of 15,000 units. This level of production represents the firm's expected long-term level of production. The company's budgeted fixed production costs are $3,000 for the period.

What would the budgeted profit be if the company were to change to an absorption costing system?

Which of these statements are true of marginal costing?

(i) The contribution per unit will be constant if the sales volume increases.

(ii) There is no under- or over-absorption of overheads.

(iii) Marginal costing does not provide useful information for decision making.

In a period, a company had opening inventory of 31,000 units of Product G and closing inventory of 34,000 units. Profits based on marginal costing were $850,500 and profits based on absorption costing were $955,500.

If the budgeted fixed costs for the company for the period were $1,837,500, what was the budgeted level of activity?

In a given period, the production level of an item exactly matches the level of sales.

How would the profit differ if marginal or absorption costing was used?

The following statements relate to the justification of the use of life cycle costing: 

(i) Product life cycles are becoming increasingly short. This means that the initial costs are an increasingly important component in the product’s overall costs. 

(ii) Product costs are increasingly weighted to the start of a product’s life cycle, and to properly understand the profitability of a product these costs must be matched to the ultimate revenues. 

(iii) The high costs of (for example) research, design and marketing in the early stages in a product’s life cycle necessitate a high initial selling price. 

(iv) Traditional capital budgeting techniques do not attempt to minimise the costs or maximise the revenues over the product life cycle. 

Which of these statements are substantially true? 

 Company B is about to being developing a new product for launch in its existing market. They have forecast sales of 20,000 units and the marketing department suggest a selling price of $43/unit. The company seeks to make a mark-up of 40% product cost. It is estimated that the lifetime costs of the product will be as follows:

 (1) Design and development costs $43,000. 

(2) Manufacturing costs $15/unit. 

(3) Plant decommissioning costs $30,000. 

The company estimates that if it were to spend an additional $15,000 on design, manufacturing costs/unit could be reduced. 

What is the life cycle cost?