Cost accounting practice exam with answers
A full practice exam covering contribution margin, break-even, cost-plus and process costing, overhead allocation, special orders, make or buy and variances. Answer online and get it checked at once, or print it with or without worked answers. New exams with different numbers come with a free account.
8 questions · 54 points · about 85 minutes
Question 1
6 pointsTask
A firm makes three products. Total fixed costs are £474,000.00. Work out the total contribution and the operating result.
Product Price Variable cost/unit Quantity A £144.00 £57.50 3,900 B £35.00 £26.00 2,700 C £48.00 £33.50 3,200 Total contribution in £
£Operating result in £ (loss with a minus)
£Which product contributes most to covering fixed costs?
Amounts like 12,500 or 12500.50; percentages as a number (12.5). Round to the penny or 2 decimal places.
Question 2
8 pointsTask
Flexible budgeting (full costs): planned activity 3,100 hours, budgeted cost £140,300.00, of which fixed £100,000.00. Actual activity 3,410 hours, actual cost (at standard prices) £145,930.00. Variances: positive = costs too high.
Flexed budget (allowed cost) in £
£Absorbed cost in £
£Spending (efficiency) variance in £
£Volume variance in £
£Amounts like 12,500 or 12500.50; percentages as a number (12.5). Round to the penny or 2 decimal places.
Question 3
6 pointsTask
The total cost of an order is £2,443.00. The quote adds a 24% profit mark-up, allows a 2% cash discount and a 10% trade discount. Work out the prices (each rounded to the penny).
Cash price in £
£Invoice price before cash discount in £
£List price (net) in £
£Amounts like 12,500 or 12500.50; percentages as a number (12.5). Round to the penny or 2 decimal places.
Question 4
6 pointsTask
Price £25.00, variable cost £14.50 per unit, fixed costs £27,825.00. How many units must be sold for a profit of £1,575.00?
Quantity in units
Amounts like 12,500 or 12500.50; percentages as a number (12.5). Round to the penny or 2 decimal places.
Question 5
8 pointsTask
The service cost centre "vehicle fleet" has primary overheads of £13,760.00. It is reapportioned to the main cost centres by kilometres driven.
Main cost centre Primary overheads Fleet km Materials £14,900.00 20,000 Production £8,600.00 15,000 Selling £7,300.00 8,000 Share reapportioned to production in £
£Production overheads after reapportionment in £
£Amounts like 12,500 or 12500.50; percentages as a number (12.5). Round to the penny or 2 decimal places.
Question 6
6 pointsTask
5,500 units were made and 4,200 sold; the rest goes into stock. Production costs £181,170.00, administration and selling costs £47,880.00. Use two-stage process costing.
Production cost per unit in £
£Total cost per unit in £
£Increase in stock (at production cost) in £
£Amounts like 12,500 or 12500.50; percentages as a number (12.5). Round to the penny or 2 decimal places.
Question 7
6 pointsTask
A component can be bought for £14.00 each. Making it adds fixed costs of £20,000.00 a year and variable costs of £6.00 per unit. 3,650 units are needed.
Break-even (indifference) quantity in units
Cost of making at the required quantity in £
£Decision
Amounts like 12,500 or 12500.50; percentages as a number (12.5). Round to the penny or 2 decimal places.
Question 8
8 pointsTask
For a machine: replacement value £64,000.00, useful life 8 years (straight line), purchase cost £41,000.00, imputed interest rate 8%, floor space 34 m² at £9.00 per m² per month, maintenance £1,000.00 a year, power 24 kW at £0.35 per kWh. Running time 1,500 hours a year.
Imputed depreciation per year in £
£Imputed interest per year in £
£Machine hour rate in £ per hour
£Amounts like 12,500 or 12500.50; percentages as a number (12.5). Round to the penny or 2 decimal places.
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