Acca f5 - Study guides, Class notes & Summaries

ACCA F5 - Performance Management UPDATED Exam Questions and CORRECT Answers What is cost accounting? - Correct Answer- analyses past, present and future data for the management accountant to use What is costing? - Correct Answer- the process of determining the costs of products, services or activities. Methods include absorption costing and process costing

ACCA F5 - Performance Management Questions and Answers 2023 with complete solution

What is cost accounting? - Answer- analyses past, present and future data for the management accountant to use What is costing? - Answer- the process of determining the costs of products, services or activities. Methods include absorption costing and process costing. What is absorption costing and what are the steps? - Answer- method of sharing out overheads incurred amongst units produced. 1. Allocation 2. Apportionment 3. Absorption Reasons to use absorption costing? - Answer- 1....

What are the 3+1 stages of absorption costing? - Answer- 1. Allocation 2. Apportionment 3. Absorption = Production Cost 4. Under/over = Non prod OH Why would you use Absorption Costing? - Answer- Valuing Inventory Pricing Decisions Establishing profitability What are pros and cons of absorption and marginal costing? - Answer- *Absorption* -Avoids varying profits if sales are seasonal -Consistent with accounting standards -Recognises Long Run variable costs -Implies OH related to...

QUESTIONS AND ANSWERS

What are the 3+1 stages of absorption costing? correct answer: 1. Allocation 2. Apportionment 3. Absorption = Production Cost 4. Under/over = Non prod OH Why would you use Absorption Costing? correct answer: Valuing Inventory Pricing Decisions Establishing profitability What are pros and cons of absorption and marginal costing? correct answer: *Absorption* -Avoids varying profits if sales are seasonal -Consistent with accounting standards -Recognises Long Run variable costs -...

What is the standard labour cost to include in the standard cost card for the product when there is a learning rate? Standard cost should be the number of hours per unit AFTER LEARNING EFFECT WEARS OFF multiplied by the hourly rate material flow cost accounting (MFCA) = typical costs System costs + Energy costs + material flow + disposal flow How to calculate labour cost when labour is moved from another project? Total cost = direct cost of labour for new product + lost contribu...

What are the 3+1 stages of absorption costing? correct answer: 1. Allocation 2. Apportionment 3. Absorption = Production Cost 4. Under/over = Non prod OH Why would you use Absorption Costing? correct answer: Valuing Inventory Pricing Decisions Establishing profitability What are pros and cons of absorption and marginal costing? correct answer: *Absorption* -Avoids varying profits if sales are seasonal -Consistent with accounting standards -Recognises Long Run variable costs -...

These are notes I took from my F5 class for ACCA.

Define Absorption Costing correct answer: Fixed production overheads included OAR calculation correct answer: Estimated overheads divided by estimated activity level Absorption Costing two advantages correct answer: Selling price made to cover all costs. Complies with IAS 2 Absorption costing two disadvantages correct answer: Profits manipulated by changing production levels. Assumes overheads are volume related. Contribution Calculation correct answer: Fixed costs plus profit...