ACCA Management Accounting 4

Question 1

In a balanced scorecard, which perspective focuses on measures such as employee satisfaction and skills development?

Accepted Answer

Learning and growth perspective

Answer

The learning and growth perspective of the balanced scorecard addresses employee capabilities, information systems, and organizational culture.

Question 2

What is the purpose of a rolling budget?

Accepted Answer

To continuously update the budget by adding a new period as the most recent period ends

Answer

A rolling (continuous) budget is regularly updated by extending it by one period as each period passes, keeping the planning horizon constant.

Question 3

Which of the following would cause an adverse labor efficiency variance?

Accepted Answer

Workers took longer than the standard time to produce actual output

Answer

An adverse labor efficiency variance occurs when more hours are worked than the standard hours allowed for the actual output produced.

Question 4

A company has sales of $500,000, variable costs of $300,000, and fixed costs of $150,000. What is the margin of safety as a percentage of sales?

Accepted Answer

25%

Answer

Contribution = $200,000; breakeven sales = $150,000 ÷ ($200,000/$500,000) = $375,000; MOS% = ($500,000 − $375,000) ÷ $500,000 = 25%.

Question 5

Environmental management accounting differs from traditional management accounting primarily because it:

Accepted Answer

Identifies and allocates environmental costs that are often hidden in overheads

Answer

Environmental management accounting makes environmental costs visible by separating them from general overhead rather than hiding them in overhead pools.

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA Management Accounting 4