Accounting 9706 · AS & A Level
Activity based costing (ABC)
31 practice questions on Activity based costing (ABC), with worked solutions and instant marking.
Read Source B1 from the Insert.
Feb/March 2019
Refer to Source B in the insert. Additional information: Simran was worried about the large number of units being returned. She thought that the workers were not paying enough attention when assembling the products. She considered fitting a system of surveillance cameras in the factory so that the workers could be watched. She believed that this would completely remove the returns. Simran would rent the camera system for a fixed period of three years. The cost of renting and monitoring the cameras would amount to $18000$ per annum. Simran decided that this would be added to the cost of the quality inspections. The higher total would then be allocated using the same basis as before.
Feb/March 2023
Read Source A in the insert. The company is thinking about beginning production of a third product, Z. This would have an impact on both costs and revenues.
Feb/March 2025
Chetna operates a business that prints logos onto sweatshirts. The sweatshirts are produced in two categories, Standard and Superior. Selling price is fixed at cost plus $30\%$.
May/June 2016
Explorer Limited makes two products, Y and Z, and is thinking about adopting activity based costing (ABC).
May/June 2016
Chetna operates a business that prints logos onto sweatshirts. The sweatshirts are sold in two categories, Standard and Superior. The selling price is fixed at cost plus 30%.
May/June 2016
Ahmed makes two products and applies Activity Based Costing (ABC) to spread overhead costs.
May/June 2017
Ahmed produces two products and has begun applying Activity Based Costing (ABC).
May/June 2017
B Limited makes two products, Alpha and Omega. The budgeted data are shown below.
May/June 2018
B Limited produces two products: Alpha and Omega.
May/June 2018
Refer to Source B2 in the Insert.
May/June 2020
Read Source B2 from the Insert.
May/June 2020
Section B: Cost and Management Accounting. Refer to Source B1 in the insert.
May/June 2021
Read Source B1 from the insert.
May/June 2022
Consult Source B1 in the insert.
May/June 2022
Look at Source A in the insert.
May/June 2024
Look at Source B in the insert.
May/June 2024
Look at Source A in the insert. The directors are thinking about ways to cut the costs of Product A so that its selling price can be lowered. They are weighing up two possibilities.
May/June 2024
The quotation says that what matters is the reason for a cost, rather than whether that cost is fixed or variable. Haruka Limited makes one product only and runs for 5 days each week over 50 weeks in a year, with one batch of 200 units made each day. Overheads come to $79000 a year.
Oct/Nov 2016
Source B1: F Limited is intending to launch two new products, Product X and Product Y.
Oct/Nov 2018
Source B1 concerns Young, who makes two products, Product X and Product Y.
Oct/Nov 2019
Look at Source B1 in the insert.
Oct/Nov 2020
Read Source B1 from the insert.
Oct/Nov 2020
Look at Source B2 in the insert.
Oct/Nov 2021
Read Source B1 from the insert.
Oct/Nov 2021
Please read Source B2 in the insert.
Oct/Nov 2022
Refer to Source B2 in the insert.
Oct/Nov 2022
Consult Source A in the insert.
Oct/Nov 2023
Refer to Source B in the insert.
Oct/Nov 2024
Refer to Source B in the insert.
Oct/Nov 2025
Use Source B from the insert.
Oct/Nov 2025