ACCA Applied Knowledge (BT, MA, FA) · Management Accounting (MA)

Management information and cost classification

8 practice questions, each with the answer and an explanation.

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Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 8 questions

  1. Which of the following best describes the purpose of management accounting information?
  2. A company records the cost of a delivery vehicle's fuel that varies with distance travelled. How is this cost classified in terms of behaviour?
  3. The monthly cost of supervising a production line is £8,000 for up to 10,000 units. If output exceeds 10,000 units, a second supervisor is needed and the cost rises to £16,000 for up to 20,000 units.…
  4. A company is deciding whether to accept a special order. An earlier purchase of machinery for £50,000 is already paid for and cannot be sold. How should this £50,000 be treated in the decision?
  5. A company can use material that it already owns, bought for £6 per kg, in a special order. It has no other use for it except selling it as scrap at £2 per kg. The replacement cost is £9 per kg. What i…
  6. Which one of the following is an example of a direct cost of producing a wooden table?
  7. The following costs were incurred at two activity levels: 4,000 units cost £36,000 and 7,000 units cost £48,000. Using the high-low method, what is the variable cost per unit?
  8. Using the high-low data in which 4,000 units cost £36,000 and 7,000 units cost £48,000, what is the estimated total cost of producing 5,500 units?

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