快速查题-ACCA英国注册会计师试题

Life cycle costing is the profiling of cost over a product's production life

 Life cycle costing is particularly useful for products with a short expected life cycle. 

When are the bulk of a product's life cycle costs normally determined? 

Which of the following is NOT a way of maximising return over a product life cycle? 

 The following statements have been made about life cycle costing.

 (1) Life cycle costing is needed in order to plan for the maximum length of commercial life for new products. 

 (2) Life cycle costing is particularly suited to businesses that manufacture products with long life cycles and who have significant research and development costs. 

Which of the above statements is/are true? 

 This question appeared in the June 2015 exam. 

The following statements have been made about life cycle costing: 

(1) It focuses on the short-term by identifying costs at the beginning of a product's life cycle 

(2) It identifies all costs which arise in relation to the product each year and then calculates the product's profitability on an annual basis 

(3) It accumulates a product's costs over its whole life time and works out the overall profitability of a product 

(4) It allocates costs to each stage of a product's life cycle and writes them off at the end of each stage 

Which of the above statements is/are correct? 

What are the correct ledger entries to record an acquisition of a non-current asset on credit?

Debit Credit

Alpha sells machine B for                    $50,000

cash on 30 April 20X4.

Machine B cost                                     $100,000

when it was purchased and has a carrying amount of $65,000 at the date of disposal. What are the journal entries to record

the disposal of machine B?

Which of the following statements are correct?

1 IAS 16 Property, plant and equipment requires entities to disclose the purchase date of each asset.

2 The carrying amount of a non-current asset is the cost or valuation of that asset less accumulated depreciation.

3 IAS 16 Property, plant and equipment permits entities to make a transfer from the revaluation surplus to retained earnings

for excess depreciation on revalued assets.

4 Once decided, the useful life of a non-current asset should not be changed.

Gusna Co purchased a building on 31 December 20X1 for $750,000. At the date of acquisition, the useful life of the building

was estimated to be 25 years and depreciation is calculated using the straight-line method. At 31 December 20X6, an

independent valuer valued the building at $1,000,000 and the revaluation was recognised in the financial statements.

Gusna’s accounting policies state that excess depreciation arising on revaluation of non-current assets can be transferred

from the revaluation surplus to retained earnings.

What is the depreciation charge on the building for the year ended 31 December 20X7?