Q’s That Were Wrong Flashcards
(27 cards)
Standard controls can deal with all transactions
True or false
False
Are overheads and general admin costs relevant costs?
No
Assets are recognised when it is ________ that _________ will flow to the entity and when the cost can be ____________.
(1) Probable
(2) Future economic benefits
(3) Reliably measured
Do you include write off obsolete inventory in cash flow forecast? 
No
If someone is pushing infantry invoices into the following period to lower stock, what is that called?
Unethical windowdressing 
How do you calculate marginal costing?
It is the cost to produce one additional unit, so any direct variable costs not overheads or fixed costs 
What is cost behaviour? 
Whether a cost is variable, fixed, stepped fixed costs, or semi variable 
What is classifying cost by function? 
When costs are split into production or non-production costs 
What are the three types of costs when classifying by element?
Materials, labour and expenses 
What are the two type of costs,when classifying by nature?
Direct and indirect costs 
What are the four different types of standard costs?
Ideal standard, attainable standard,basic standard and current standard
How do you complete total direct material variance?
Select the budget and look at the variance between actual and flexed
What are the three categories of non-financial performance indicators?
Customer satisfaction
Productivity efficiency
Quality
What are the four categories in a balance scorecard?
The financial perspective
The customer perspective
The internal business perspective
The innovation and learning perspective
How do you calculate the overhead absorption rate?
Production overhead
——————————
Activity level
How do you calculate contribution?
Selling price - variable costs
How do you calculate the difference in profit when looking at absorption and marginal costing?
The difference in profit is equal to
Movement in inventory X fixed 0AR
How do you calculate activity based costing?
Identify the categories of overheads
Then work out the cost per each category i.e. cost per set up
Then calculate this based on the set ups needed for each unit
What is the linear regression formula?
Y = ax + b
How do you calculate index values?
Price now
————————- x 100
price in base period
What are the six things to consider when investigating a variance?
The size of the variance
Interrelationship between variances
Trends in the variance
Type of standard cost used
Cost of investigation
Controllability of the variance
What is the formula for value added?
Sales value minus the cost of purchased materials and bought in services
What are the four stages of the product life cycle?
Introduction
Growth
Maturity
Decline
What are the four purposes of management information i.e. budgets?
Planning
Control
Budgetary control reports
Decision-making
