AAT L4 Applied Management Accounting 2

Question 1

A company uses activity-based costing.
The cost driver for 'machine setups' is number of setups.
Total setup costs are £48,000 and there are 160 setups in the period.
Product A requires 40 setups.
What is the setup cost allocated to Product A?

Accepted Answer

£12,000

Answer

£7,200

Answer

£9,600

Answer

£16,000

Question 2

A business has fixed costs of £120,000 and a contribution to sales ratio (C/S ratio) of 40%. What is the breakeven sales revenue?

Accepted Answer

£300,000

Answer

£200,000

Answer

£48,000

Answer

£168,000

Question 3

Using a standard costing system, actual material used was 5,200 kg at £4.80 per kg. The standard was 5,000 kg at £5.00 per kg for actual production. What is the material usage variance?

Accepted Answer

£1,000 Adverse

Answer

£960 Adverse

Answer

£960 Favourable

Answer

£1,000 Favourable

Question 4

A limiting factor analysis shows that Product X contributes £18 per unit and requires 3 machine hours, while Product Y contributes £20 per unit and requires 5 machine hours. Machine hours are the binding constraint. Which product should be prioritised?

Accepted Answer

Product X, as it has higher contribution per machine hour

Answer

Product Y, as it has higher contribution per unit

Answer

Product Y, as it uses more machine hours

Answer

Both equally, as the difference is immaterial

Question 5

A company operates a JIT (Just-in-Time) production system. Which of the following is a key characteristic of JIT?

Accepted Answer

Producing goods only when required by the customer

Answer

Maintaining high buffer stocks to prevent production stoppages

Answer

Batch producing to achieve economies of scale

Answer

Holding large raw material inventories to secure bulk discounts

Question 6

The balanced scorecard includes four perspectives. Which perspective focuses on measures such as cycle time, defect rates, and process efficiency?

Accepted Answer

Internal business process perspective

Answer

Financial perspective

Answer

Customer perspective

Answer

Learning and growth perspective