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AAT Budgeting L4 AQ2016 > Accounting Treatment > Flashcards

Flashcards in Accounting Treatment Deck (27)
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1

What’s the appropriate accounting system to deal with:
Manufacturing production process with high overhead sand set up costs?

A - Absorption costing using labour hrs
B - marginal costing
C - Activity based costing
D - absorption costing using machine hrs

C

2

What’s the appropriate accounting system to deal with:
Labour intensive manufacturing industry

A - absorption costing using labour hrs
B - marginal costing
C - activity based costing
D - absorption costing using machine hrs

A

3

What’s the appropriate accounting system to deal with:
Budgeting for a manufacturing organisation where future output level is very uncertain

A - absorption costing using labour hrs
B - marginal costing
C - activity based costing
D - absorption costing using machine hrs

B

4

What’s the appropriate accounting system to deal with:
Machine intensive production process with unknown output levels and long production units

A - absorption costing using labour hrs
B - marginal costing
C - activity based costing
D - absorption costing using machine hrs

D

5

What’s the appropriate accounting system to deal with:
Employers NI for admin staff

A - Activity based charge to production cost centres
B - allocate to admin overheads
C - direct costs
D - allocate to finance overheads
E - allocate to setting and distribution overheads
F - allocate to production overheads

B

6

What’s the appropriate accounting system to deal with:
Material usage for production

A - Activity based charge to production cost centres
B - allocate to admin overheads
C - direct costs
D - allocate to finance overheads
E - allocate to setting and distribution overheads
F - allocate to production overheads

C

7

What’s the appropriate accounting system to deal with:
Rent for office equipment e.g printer

A - Activity based charge to production cost centres
B - allocate to admin overheads
C - direct costs
D - allocate to finance overheads
E - allocate to setting and distribution overheads
F - allocate to production overheads

B

8

What’s the appropriate accounting system to deal with:
Cost of stores department

A - Activity based charge to production cost centres
B - allocate to admin overheads
C - direct costs
D - allocate to finance overheads
E - allocate to setting and distribution overheads
F - allocate to production overheads

A

9

What’s the appropriate accounting system to deal with:
Cost of productive time for production overheads

A - Activity based charge to production cost centres
B - allocate to admin overheads
C - direct costs
D - allocate to finance overheads
E - allocate to setting and distribution overheads
F - allocate to production overheads

C

10

What’s the appropriate accounting system to deal with:
Cost of idle time for production overheads

A - Activity based charge to production cost centres
B - allocate to admin overheads
C - direct costs
D - allocate to finance overheads
E - allocate to setting and distribution overheads
F - allocate to production overheads

F

11

What’s the appropriate accounting system to deal with:
Direct labour idle time

A - Direct production cost
B - allocate to production overheads
C - apportion to indirect costs of production and admin
D - activity based charge to units of production
E - allocate to indirect admin costs
F - allocate to indirect finance costs

B

12

What’s the appropriate accounting system to deal with:
Raw materials usage

A - Direct production cost
B - allocate to production overheads
C - apportion to indirect costs of production and admin
D - activity based charge to units of production
E - allocate to indirect admin costs
F - allocate to indirect finance costs

A

13

What’s the appropriate accounting system to deal with:
Interest on bank loan

A - Direct production cost
B - allocate to production overheads
C - apportion to indirect costs of production and admin
D - activity based charge to units of production
E - allocate to indirect admin costs
F - allocate to indirect finance costs

F

14

What’s the appropriate accounting system to deal with:
Repairs to roof of factory

A - Direct production cost
B - allocate to production overheads
C - apportion to indirect costs of production and admin
D - activity based charge to units of production
E - allocate to indirect admin costs
F - allocate to indirect finance costs

C

15

What’s the appropriate accounting system to deal with:
Costs of running stores department

A - Direct production cost
B - allocate to production overheads
C - apportion to indirect costs of production and admin
D - activity based charge to units of production
E - allocate to indirect admin costs
F - allocate to indirect finance costs

D

16

What’s the appropriate accounting system to deal with:
Interest on machine acquired on lease

A - Direct production cost
B - allocate to production overheads
C - apportion to indirect costs of production and admin
D - activity based charge to units of production
E - allocate to indirect admin costs
F - allocate to indirect finance costs

F

17

What’s the appropriate accounting system to deal with:
Direct labour productive time

A - Direct production cost
B - allocate to production overheads
C - apportion to indirect costs of production and admin
D - activity based charge to units of production
E - allocate to indirect admin costs
F - allocate to indirect finance costs

A

18

What’s the appropriate accounting system to deal with:
Maintenance of factory machinery

A - Direct production cost
B - allocate to production overheads
C - apportion to indirect costs of production and admin
D - activity based charge to units of production
E - allocate to indirect admin costs
F - allocate to indirect finance costs

B

19

What’s the appropriate accounting system to deal with:
Employers pension contribution for sales staffs

A - Direct cost
B - allocate to production overheads
C - allocate to selling and distribution overheads
D - capital expenditure
E - allocate to marketing costs
F - allocate to finance costs

C

20

What’s the appropriate accounting system to deal with:
Product design royalties

A - Direct cost
B - allocate to production overheads
C - allocate to selling and distribution overheads
D - capital expenditure
E - allocate to marketing costs
F - allocate to finance costs

A

21

What’s the appropriate accounting system to deal with:
Repairs to factory roof

A - Direct cost
B - allocate to production overheads
C - allocate to selling and distribution overheads
D - capital expenditure
E - allocate to marketing costs
F - allocate to finance costs

B

22

What’s the appropriate accounting system to deal with:
Costs of maintaining production equipment

A - Direct cost
B - allocate to production overheads
C - allocate to selling and distribution overheads
D - capital expenditure
E - allocate to marketing costs
F - allocate to finance costs

B

23

What’s the appropriate accounting system to deal with:
Sick pay for production operatives

A - Direct cost
B - allocate to production overheads
C - allocate to selling and distribution overheads
D - capital expenditure
E - allocate to marketing costs
F - allocate to finance costs

B

24

Describe production overheads

An indirect expense associated with the process of producing the goods or services.

25

What is absorption costing

A system that attempts to determine a full cost for each unit of output. It includes both both direct and indirect costs

26

What is marginal costing

A costing system categorises costs according to their cost behaviour and then divides them into Variable and fixed costs

27

What is activity based costing

Similar to absorption costing but deals mainly with the indirect costs.
Involves examining the costs to determine what causes them and using this info to charge the costs to the units of output.