Fundamentals Pilot Paper – Knowledge Module
Fundamentals Pilot Paper – Knowledge Module
Time allowed: 2 hours
ALL 50 questions are compulsory and MUST be attempted.
Formulae Sheet, Present Value and Annuity Tables are on pages 16, 17 and 18
Do NOT open this paper until instructed by the supervisor.
This question paper must not be removed from the examination hall.
Paper F2
Management
Accounting
Pilot Paper from December 2011 onwards
The Association of Chartered Certified Accountants
ALL 50 questions are compulsory and MUST be attempted
Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.
Each question is worth 2 marks.
1 A manufacturing company benchmarks the performance of its accounts receivable department with that of a leading credit card company.
What type of benchmarking is the company using?
A Internal benchmarking
B Competitive benchmarking
C Functional benchmarking
D Strategic benchmarking
2 Which of the following BEST describes target costing?
A Setting a cost by subtracting a desired profit margin from a competitive market price
B Setting a price by adding a desired profit margin to a production cost
C Setting a cost for the use in the calculation of variances
D Setting a selling price for the company to aim for in the long run
3 Information relating to two processes (F and G) was as follows:
Process Normal loss as Input Output
% of input (litres) (litres)
F 8 65,000 58,900
G 5 37,500 35,700
For each process, was there an abnormal loss or an abnormal gain?
Process F Process G
A Abnormal gain Abnormal gain
B Abnormal gain Abnormal loss
C Abnormal loss Abnormal gain
D Abnormal loss Abnormal loss
4 The following budgeted information relates to a manufacturing company for next period:
Units $
Production 14,000 Fixed production costs 63,000
Sales 12,000 Fixed selling costs 12,000
The normal level of activity is 14,000 units per period.
Using absorption costing the
Time allowed: 2 hours
ALL 50 questions are compulsory and MUST be attempted.
Formulae Sheet, Present Value and Annuity Tables are on pages 16, 17 and 18
Do NOT open this paper until instructed by the supervisor.
This question paper must not be removed from the examination hall.
Paper F2
Management
Accounting
Pilot Paper from December 2011 onwards
The Association of Chartered Certified Accountants
ALL 50 questions are compulsory and MUST be attempted
Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.
Each question is worth 2 marks.
1 A manufacturing company benchmarks the performance of its accounts receivable department with that of a leading credit card company.
What type of benchmarking is the company using?
A Internal benchmarking
B Competitive benchmarking
C Functional benchmarking
D Strategic benchmarking
2 Which of the following BEST describes target costing?
A Setting a cost by subtracting a desired profit margin from a competitive market price
B Setting a price by adding a desired profit margin to a production cost
C Setting a cost for the use in the calculation of variances
D Setting a selling price for the company to aim for in the long run
3 Information relating to two processes (F and G) was as follows:
Process Normal loss as Input Output
% of input (litres) (litres)
F 8 65,000 58,900
G 5 37,500 35,700
For each process, was there an abnormal loss or an abnormal gain?
Process F Process G
A Abnormal gain Abnormal gain
B Abnormal gain Abnormal loss
C Abnormal loss Abnormal gain
D Abnormal loss Abnormal loss
4 The following budgeted information relates to a manufacturing company for next period:
Units $
Production 14,000 Fixed production costs 63,000
Sales 12,000 Fixed selling costs 12,000
The normal level of activity is 14,000 units per period.
Using absorption costing the