快速查题-ACCA英国注册会计师试题

 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? 

Which two of the following characteristics of services make it difficult to establish target costs for services? 

(a) Intangibility                             (d) Variability 

(b) Perishability                           (e) Simultaneity 

(c) No transfer of ownership 

Are the following statements about target costing true or false? 

(1) When applying target costing to a product in the design stage of development, the production specification may be changed in order to  achieve the target cost. 

(2) Target costing must take into consideration all the expected lifetime costs of the product. 

 A company has developed a new product and has estimated the costs as follows.

 • Direct materials: 50kg required at a cost of $2.50 per kg

 • Direct labour: 25% chance that each unit will take 1.5 hours, 30% chance that each unit will take 2 hours and 45% chance that each unit will take 2.5 hours

 • Labour is paid at a rate of $15 per hour.

 • Variable overheads will be incurred at a rate of $8 per labour hour

 • The company believes it will be able to sell the product at $200 per unit and it requires a profit margin of 25%. 

What is the value of the cost gap for this product? 

 A furniture manufacturer wants to calculate a target cost for a new table. The table will be priced at $600. The company requires a 7% profit margin on sales. 

What is the target cost of the table? 

The selling price of Product X is set at $550 for each unit and sales for the coming year are expected to be 800 units. 

A return of 30% on the investment of $500,000 in Product X will be required in the coming year. 

What is the target cost for each unit of Product X? 

Cost gap = ________ – ________ 

Which of the following statements about target costing is not true? 

Which two of the following costs are likely to rise when just in time (JIT) manufacturing is introduced?