Setting cost targets once at product launch

A continuous cost improvement philosophy seeking incremental reductions in costs over the product's life through small, ongoing improvements

Only applicable to Japanese manufacturers

Free Questions › ACCA › Performance Management

Free ACCA Performance Management Practice Questions & Answers

400 exam-style Performance Management questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.

100% free · No login to start

Question 31

When calculating a product's life cycle cost, which of the following should be included?

Select an option first.

Question 32

Which of the following is a variable cost?

Select an option first.

Question 33

What is the purpose of a profit-volume (PV) chart?

Select an option first.

Question 34

The relevant range in cost behaviour refers to:

Select an option first.

Question 35

What is the difference between a cost centre and a profit centre?

Select an option first.

Get the full ACCA question bank — free

Drop your email and we'll send you fresh ACCA practice questions, fully worked solutions and exam-deadline reminders. No spam — unsubscribe in one click.

Want to save your score and take a full mock exam? Create a free account →

Question 36

In a service business, the cost unit is typically:

Select an option first.

Question 37

Kaizen costing is:

Select an option first.

Question 38

Fixed costs per unit decrease as output increases. This is because:

Select an option first.

Question 39

What is the difference between prime cost and total production cost?

Select an option first.

Question 40

A business has: Revenue 900,000; Direct materials 270,000; Direct labour 180,000; Variable overheads 90,000; Fixed overheads 200,000. Calculate contribution and profit.

Select an option first.

Question 41

Under marginal costing, closing inventory is valued at:

Select an option first.

Question 42

Opportunity cost in management accounting is:

Select an option first.

Question 43

What is a predetermined overhead absorption rate (OAR) and why is it used?

Select an option first.

Question 44

The total factory cost in throughput accounting (TFC) includes:

Select an option first.

Question 45

When a product is discontinued, which of the following costs must stop if the discontinuation is to improve profit?

Select an option first.

Question 46

What is the purpose of calculating a product's cost per unit?

Select an option first.

Question 47

Variable cost per unit remains constant when:

Select an option first.

Question 48

What is the formula for calculating profit under absorption costing?

Select an option first.

Question 49

Which of the following BEST describes a relevant cost for a non-current asset currently owned and used?

Select an option first.

Question 50

The difference between absorption and marginal costing profit is caused by:

Select an option first.

Question 51

Using the high-low method: 500 units costs 8,000; 1,200 units costs 15,200. Calculate variable cost per unit and fixed cost.

Select an option first.

Question 52

Budgeted production 8,000 units, fixed overhead 48,000. Actual production 9,000 units, actual overhead 50,000. Calculate over/under absorption.

Select an option first.

Question 53

A product has: selling price 60, variable cost 36, fixed costs 120,000. Find break-even units and margin of safety if budgeted sales are 7,000 units.

Select an option first.

Question 54

Production 12,000 units; sales 10,000 units. Fixed overhead 60,000; variable cost 20/unit; selling price 50/unit. Reconcile absorption and marginal costing profits.

Select an option first.

Question 55

A product's current cost is 55. Target selling price is 70 and required profit margin is 20% on selling price. Calculate the target cost and cost gap.

Select an option first.

Question 56

Life cycle: R&D year 0: 400,000. Production years 1-3: 25/unit, 20,000 units/year at 60 each. End of life disposal: 80,000. Calculate total life cycle profit.

Select an option first.

Question 57

Two products share a bottleneck. Product M: throughput contribution 40, 2 hrs on bottleneck. Product N: throughput contribution 30, 1 hr. Which should be prioritised?

Select an option first.

Question 58

A company produces X and Y with only 4,000 kg of material. X: contribution 15/unit, 3 kg/unit, max demand 800. Y: contribution 10/unit, 1 kg/unit, max demand 3,000. Find optimal production plan.

Select an option first.

Question 59

Environmental management accounting identifies environmental costs in four categories. Which of the following is an external failure cost?

Select an option first.

Question 60

The throughput accounting (TA) ratio is:

Select an option first.

Before you go, can we ask you one thing?

Thank you

Free ACCA Performance Management Practice Questions & Answers

Privacy Preference

Before you go, can we ask you one thing?

Thank you