Fundamentals of Management Accounting Exam Dumps

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Fundamentals of Management Accounting
Question: 70
FL uses an absorption costing system. The overhead absorption rate for production overheads is $8.60 per direct labour
Budgeted production overhead costs for the year were $473,000 and actual costs incurred were $468,000. 56,000
labour hours were used.
Which ONE of the following statements is correct?
A . Overheads were under-absorbed by $5,000
B . Overheads were over-absorbed by $8,600
C . Overheads were under-absorbed by $8,600
D . Overheads were over-absorbed by $13,600
Answer: D
Question: 71
Refer to the Exhibit.
Fabex Ltd manufactures a household detergent called "Clear".
The standard data for one of the chemicals used in production (chemical XTC) is as follows:
(a) 50 litres used per 100 litres of Clear produced
(b) Budgeted monthly production is 1000 litres of Clear.
The closing inventory of chemical XTC for November valued at standard price was as follows:
Actual results for the period during December were as follows:
(a) 500 litres of chemical XTC was purchased for 1300.
(b) 550 litres of chemical XTC was used.
(c) 900 litres of Clear was produced.
It is company policy to extract the material price variance at the time of purchase.
What is the total direct material price variance (to the nearest whole number)?
A . 50 adverse
B . 50 favourable
C . 55 adverse
D . 55 favourable
Answer: A
Question: 72
Refer to the Exhibit.
PJ Ltd has forecast that the relationship between total overheads and machine hours will be as follows:
If the budget is to be based on 4,000 machine hours, the variable overhead absorption rate will be:
*per machine hour.
Give your answer to 2 decimal places.
Answer: 4.46
Question: 73
An overtime premium may be defined as:
A . The rate of pay at which overtime hours are paid
B . A premium paid to workers with special skills
C . The additional payment made during overtime hours
D . The total number of overtime hours worked
Answer: C
Question: 74
A company operates an absorption costing system. Overheads are absorbed using a pre-determined absorption rate
using labour hours. In the period actual labour hours were 10,600, 400 hours below budget. Actual overheads for the
period were 234,680 and there was an under-absorption of overheads of 1,480.
What was the budgeted level of overheads?
A . 242,000
B . 233,200
C . 245,072
D . 224,720
Answer: A
Question: 75
Refer to the exhibit.
Budget information for Crome Ltd is as follows:
The budgeted cost allowance for the sale of 1000 units would be:
A . 25,846
B . 30,000
C . 32,000
D . 48,000
Answer: B
Question: 76
Within a relevant range of output, the variable cost per unit of output will:
A . Increase as output increases
B . Reduce as output increases
C . Remain constant as output increases
D . Be impossible to tell without further information
Answer: C
Question: 77
Which THREE of the following are characteristics of job costing?
A . It is appropriate where homogeneous products are manufactured
B . It is only appropriate in manufacturing environments
C . Costs are traced to separately identifiable cost units
D . It cannot be applied in a public sector or not for profit organization
E . A separate work in progress account is maintained for each cost unit
F . It is a specific order costing system
Answer: C,E,F
Question: 78
SP Limited operates an absorption costing system. It uses a predetermined overhead absorption rate based on machine
hours. Budgeted factory overheads for the year were 1,080,000 but actual overhead incurred was 1,046,000.
Budgeted machine hours were 120,000 and actual machine hours were 119,000.
Overheads for the period were.
A . Under-absorbed by 25,000
B . Under-absorbed by 9,000
C . Over-absorbed by 25,000
D . Over-absorbed by 9,000
Answer: C
Question: 79
A product sells for 10 per unit and has an annual break-even volume of 50,000 units. The annual fixed costs are
The variable cost per unit is:
Give your answer to 2 decimal places.
Answer: 8.03
Question: 80
In an integrated cost and financial accounting system, the accounting entries for the payment of net wages to indirect
production workers would be:
A . Debit: Bank accountCredit: Wages control account
B . Debit: Work in progress control accountCredit: Bank account
C . Debit: Wages control accountCredit: Bank account
D . Debit: Production overhead control accountCredit: Bank account
Answer: C
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32 Reference verify Questions be sure to Ask

  • Employers habits reference exams by means of contacting a job candidate’s skilled and personal connections. The goal is to stronger remember the candidate’s potential, qualifications and demeanor.
  • Your reference check questions should figure whether a candidate would fit in at your enterprise. They can not pertain to your candidate’s very own counsel.
  • Your enterprise may still advance a technique to ensure consistency among all reference exams and verify which inquiries to ask references.
  • this article is for business owners and hiring managers who're planning to behavior reference tests for potential personnel.
  • A job candidate may additionally ace the interview, however that doesn’t always make them a perfect appoint. which you can better bear in mind an applicant’s compatibility along with your company through checking their references, certainly in case you ask the appropriate questions. We’ll share 32 reference investigate questions that center of attention on a candidate’s efficiency and what it turned into like to manage and work alongside them. These questions can support be certain a a hit hire and a valuable new team member.

    what's a reference investigate?

    A reference examine is when an agency reaches out to individuals who can shed easy on a job candidate’s strengths and talk to their qualifications. These contacts are typically outdated employers but also may encompass institution professors, longtime colleagues and other people regular with the applicant’s work. 

    As an supplier, you may additionally discover that reference exams support paint a full photograph of a potential hire. unfortunately, people lie on their resumes occasionally and latest skills they don’t truly possess. in case you ask your applicant’s knowledgeable references the right questions, you’ll gain knowledge of more about the candidate’s advantage and skills than you may from a traditional job interview alone.

    Reference verify goals include the following: 

  • ascertain the written or verbal assistance the capabilities worker provided.
  • study about the candidate’s abilities and strengths from someone other than the candidate.
  • gather assistance about the applicant’s job efficiency in previous roles to predict their success at your company.
  • With all of this information, make sure you have a simpler time opting for which candidates to move ahead within the hiring technique.

    Reference tests can assist you steer clear of hiring horror reports and expensive personnel and administration headaches.

    What advice if you happen to ask a reference?

    When establishing your listing of reference check questions, remember to assess the advice you want to verify concerning the job candidate. You can be drawn to the references’ insights about the candidate on these themes:

  • Job performance
  • capability to understand and follow directions
  • ability to work well as part of a group
  • standards for office conduct and ethics
  • pastimes, specialties and demeanor
  • potential to supply instructions and ensure that subordinates observe them (if they’re making use of for a leadership position)
  • anything that stands out on the candidate’s resume or emerged all through their job interview
  • Some of these themes are extra appropriate to discuss with skilled references; others could be greater correct to ask very own references. as an instance, a former supervisor can talk to how smartly a candidate operates as part of a team, while an in depth chum or mentor can describe the candidate’s hobbies, specialties and demeanor.

    just as there are specific questions you should not ever ask a job candidate, there are questions which you could’t ask a reference. You have to handiest ask questions that pertain to the job; inappropriate questions can subject your company to discrimination claims. 

    agree with right here frustrating questions you'll want to not ever ask references:

  • anything involving demographics or personal tips: Don’t ask a couple of candidate’s sexuality, age, religion or an identical concerns.
  • anything else concerning personal fitness: Don’t ask a few candidate’s scientific historical past or the existence of disabilities. that you would be able to ask whether the candidate is able to performing the projects the job requires.
  • anything related to credit score scores: besides the fact that children you can request a credit score rating from a job applicant, the reasonable credit score Reporting Act bars you from asking references about an applicant’s credit score rating.
  • anything concerning family: Don’t ask no matter if a candidate has (or plans to have) toddlers or a spouse. in case you be concerned that a job applicant with a family might now not have sufficient time for the job, ask references if they suppose the job’s time demands will go well with the candidate.
  • Gathering references is an important step to making certain you are making the premier hiring selections for your vacant positions. try these other counsel for hiring the ideal personnel to construct your crew as quite simply as viable.

    32 reference check questions to ask

    Now that you simply be aware of what information to request from a reference, you’re able to strengthen your record of reference check questions. beneath are 32 standard reference investigate inquiries to use. You may additionally consider some don’t apply to your business, however be sure to communicate with your hiring manager earlier than putting off any questions.

    Introductory reference examine questions
  • Is there any assistance you and/or your enterprise are unwilling or unable to supply me about the candidate?
  • in case you can’t share any tips with me, can you join me with any former employees who labored carefully with the candidate?
  • are you able to ascertain the candidate’s employment start and end dates, revenue and job title?
  • what is your relationship to the candidate, and the way did you first meet?
  • Reference assess questions for attending to understand the reference
  • for how lengthy have you labored at your company?
  • for a way lengthy have you had your present job title?
  • for how lengthy did you work with the candidate, and in what capacities?
  • can you think of any causes I should still be speaking with an additional reference instead of your self?
  • efficiency-linked reference investigate questions
  • What positions did the candidate have while at your business?
  • In what roles did the candidate beginning and end?
  • What did these roles entail?
  • What had been probably the most challenging materials of the candidate’s roles at your enterprise?
  • How did the candidate face these challenges and different limitations?
  • What are the candidate’s professional strengths, and the way did they benefit your company?
  • In what areas does the candidate want development?
  • Do you suppose the candidate is qualified for this job, and why or why now not?
  • Reference investigate inquiries to ask managers
  • for a way long did you at once or in some way manipulate the candidate?
  • In what approaches turned into managing the candidate handy, and in what ways become it challenging?
  • How did the candidate grow during their time working under you?
  • What assistance do you have got for managing this candidate?
  • Reference check inquiries to ask personnel who mentioned to your candidate
  • for the way long did the candidate manipulate you, and in what ability?
  • What did you like most and least concerning the candidate’s administration fashion?
  • How did the candidate’s management style assist you develop and learn?
  • How might the candidate have greater managed you and your co-people?
  • Reference assess inquiries to ask co-workers
  • for how long had been you among the candidate’s colleagues, and in what ability?
  • What did you like most and least about working with the candidate?
  • How did you develop and be taught whereas working with the candidate?
  • How did the candidate support you and your different colleagues?
  • In what approaches might the candidate were an improved co-employee to you and your colleagues?
  • Reference investigate questions on ethics and behavior
  • Why did the candidate depart your enterprise?
  • Did this candidate’s behavior lead to any office conflicts or cases of questionable ethics?
  • If the possibility arose, would you be willing and/or capable of rehire the candidate, and why or why now not?
  • simply as you could communicate along with your hiring manager about doubtlessly removing certain questions from this listing, that you could discuss including other questions. so long as any extra questions shed easy on how your candidate would operate throughout employment together with your company and also you don’t ask for private counsel, there’s a great opportunity you’re asking the right questions.

    Some candidates may wish more scrutiny than others. Some employers conduct history exams to determine job candidates and their credentials.

    the way to habits a reference examine

    in case you decide to check references for brand spanking new hires, implement a formal system at your enterprise. this will streamline the process of obtaining your candidates’ references. From start to conclude, your hiring group should comply with these steps to habits a thorough reference examine:

  • make a decision how many references to gain from every applicant. Two or three should suffice.
  • consist of a section for references in each job utility. Ask candidates to consist of their references’ full names, phone numbers, electronic mail addresses and relationship to the candidate.
  • Get permission to contact the reference. include a clause on your job software that the applicant signals to give you permission to contact their references. make sure you additionally e-mail a reference to get their permission to ask them questions about the candidate.
  • decide whether you’ll conduct your reference assessments by using phone or electronic mail. whereas sending questions by e mail will keep your enterprise time — particularly you probably have a common record of questions you send to all references — verbal exams by means of cell or video chat, or even in-grownup conferences, can provide you with a clearer realizing of a candidate.
  • increase an inventory of reference investigate questions. consider the list above to assess abilities questions.
  • watch out for crimson flags. not each candidate is completely truthful on their resume, so do your analysis before contacting a reference.
  • set up a typical be aware-taking process. Don’t are expecting to bear in mind every single component you discussed during a reference check. Work along with your hiring crew to enhance a notice-taking layout and method the whole group can be aware and use.
  • If an agency discovers that a job candidate misrepresented their skills or lied on their resume, they could rescind the job present.

    Reference assessments assist employers make respectable hiring choices

    Reference checks give you an opportunity to fill gaps that come up while you’re attending to be aware of a candidate during the interview process. speaking to an applicant’s own references can tell you if they’re the right healthy and support you stay away from a costly bad appoint. by means of permitting you to find the candidate’s administration trend or making a choice on how they’ll reply under power, reference exams can let you know tons greater than an interview by myself. 

    once you’ve conducted reference assessments on all your job candidates, make sure to have all of the suggestions you need to come to a decision which one is surest for the job and attain out with a proper job present letter. If the candidate accepts, congratulate them and yourself — and start your onboarding procedure.

    Natalie Hamingson contributed to this article.


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