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ACCOUNTS OFFICER TEST 01

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Account Officer Test 01 - Instructions

Topics Covered: A3 Financial Accounting and A4 Cost Accounting

  • Format: This exam consists of 100 multiple-choice questions. Each question has one correct answer.
  • Answering Questions: Choose the correct answer from the options provided for each question.
  • Scoring:
    • If your answer is correct, the system will mark it as correct and provide a brief explanation.
    • If your answer is incorrect, the system will mark it as wrong and show the correct answer with an explanation.
  • Report Card: At the end of the exam, you'll see a report card that summarizes your performance:
    • Total Questions Attempted: The number of questions you answered.
    • Correct Answers: How many answers were correct.
    • Wrong Answers: How many answers were incorrect.
    • Percentage: The percentage of correct answers.
  • Ongoing Marking: The system will automatically mark your answers as you proceed through the exam, so you will see your results in real-time.
  • Technical Issues: If you encounter any problems, please contact support at business@vedastuswatosha.sbs.

Good luck!

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A3. Financial Accounting Questions

Question 1: What is the primary purpose of accounting?
A) To provide financial information for decision-making
B) To minimize tax liabilities
C) To prepare annual reports
D) To manage employee payroll
Answer: A) To provide financial information for decision-making

Question 2: Which type of accounting focuses on internal management reports?
A) Financial accounting
B) Managerial accounting
C) Tax accounting
D) Cost accounting
Answer: B) Managerial accounting

Question 3: Which of the following is an example of a business entity?
A) Sole proprietorship
B) Partnership
C) Corporation
D) All of the above
Answer: D) All of the above

Question 4: What does the accounting equation represent?
A) Assets = Liabilities + Equity
B) Assets = Revenue - Expenses
C) Assets = Liabilities - Equity
D) Assets = Cash + Inventory
Answer: A) Assets = Liabilities + Equity

Question 5: If a company buys equipment for TZS 500,000 and pays cash, what is the effect on the accounting equation?
A) Assets increase by TZS 500,000
B) Assets decrease by TZS 500,000
C) Liabilities increase by TZS 500,000
D) Equity decreases by TZS 500,000
Answer: A) Assets increase by TZS 500,000

Question 6: What are the primary financial statements?
A) Balance Sheet, Income Statement, Cash Flow Statement
B) Budget Report, Sales Report, Cash Flow Statement
C) Income Statement, Budget Report, Statement of Equity
D) Balance Sheet, Statement of Equity, Purchase Report
Answer: A) Balance Sheet, Income Statement, Cash Flow Statement

Question 7: How are transactions initially recorded in the accounting system?
A) In journals
B) In ledgers
C) In financial statements
D) In balance sheets
Answer: A) In journals

Question 8: What is the purpose of posting transactions to the ledger?
A) To update individual accounts
B) To prepare financial statements
C) To record transactions in chronological order
D) To audit the company's accounts
Answer: A) To update individual accounts

Question 9: If a company buys TZS 20,000 worth of office supplies on credit, which accounts are affected?
A) Office Supplies (Asset) increases, Accounts Payable (Liability) increases
B) Cash (Asset) decreases, Office Supplies (Expense) increases
C) Office Supplies (Expense) decreases, Accounts Payable (Liability) decreases
D) Office Supplies (Liability) increases, Cash (Asset) increases
Answer: A) Office Supplies (Asset) increases, Accounts Payable (Liability) increases

Question 10: What is a trial balance?
A) A statement that lists all ledger balances
B) A report summarizing sales and expenses
C) A report used to prepare the income statement
D) A ledger account summary
Answer: A) A statement that lists all ledger balances

Question 11: At the end of an accounting period, a company’s trial balance shows TZS 10,000 as total debits and TZS 9,500 as total credits. What is the trial balance adjustment needed?
A) TZS 500 Debit
B) TZS 500 Credit
C) TZS 500 Expense
D) TZS 500 Revenue
Answer: A) TZS 500 Debit

Question 12: What is the main purpose of correcting accounting errors?
A) To adjust bank statements
B) To ensure financial statements are accurate
C) To update ledger accounts
D) To prepare tax returns
Answer: B) To ensure financial statements are accurate

Question 13: Why is a trial balance prepared?
A) To calculate the company’s profit
B) To prepare tax returns
C) To verify that total debits equal total credits
D) To finalize the financial statements
Answer: C) To verify that total debits equal total credits

Question 14: If the trial balance does not balance, what is a common procedure to locate the error?
A) Repost transactions to the journals
B) Review the bank reconciliation statement
C) Conduct a physical inventory count
D) Recalculate each ledger account
Answer: D) Recalculate each ledger account

Question 15: What should be done if errors are found in the trial balance?
A) Ignore the errors and prepare financial statements
B) Prepare a new set of books
C) Correct the errors and adjust the trial balance
D) Post the errors to the income statement
Answer: C) Correct the errors and adjust the trial balance

Question 16: What is a common method for correcting errors discovered after posting to the ledger?
A) Recalculate the trial balance
B) Use a journal entry to adjust the error
C) Remove the erroneous entries
D) File an amendment with tax authorities
Answer: B) Use a journal entry to adjust the error

Question 17: If an error is discovered in a journal entry where the amount was recorded as TZS 1,000 instead of TZS 2,000, what is the correction required?
A) Record an additional TZS 1,000 in the correct account
B) Adjust the original entry by removing TZS 1,000
C) Add TZS 2,000 to the journal entry
D) Record TZS 1,000 in a suspense account
Answer: A) Record an additional TZS 1,000 in the correct account

Question 18: How should errors affecting both the debit and credit sides be corrected?
A) Repost the transactions in reverse
B) Record an adjusting entry to correct both sides
C) Adjust the bank reconciliation
D) Prepare a new set of financial statements
Answer: B) Record an adjusting entry to correct both sides

Question 19: What is the primary purpose of a bank reconciliation?
A) To record bank fees and interest
B) To calculate the company's net income
C) To ensure the company's cash balance matches the bank statement
D) To prepare tax returns
Answer: C) To ensure the company's cash balance matches the bank statement

Question 20: What typically causes differences between the cash book and the bank statement?
A) Errors in the trial balance
B) Incorrect ledger balances
C) Unrecorded transactions
D) Outstanding checks and deposits in transit
Answer: D) Outstanding checks and deposits in transit

Question 21: If a company’s cash book shows TZS 50,000, and the bank statement shows TZS 45,000, what should be done to reconcile the balance?
A) Adjust the cash book to match the bank statement
B) Record the difference as a bank charge
C) Identify and account for outstanding checks or deposits in transit
D) Prepare a new cash book
Answer: C) Identify and account for outstanding checks or deposits in transit

Question 22: What is the purpose of control accounts?
A) To record daily transactions
B) To summarize and verify subsidiary ledger balances
C) To prepare financial statements
D) To calculate inventory values
Answer: B) To summarize and verify subsidiary ledger balances

Question 23: If the accounts receivable control account shows TZS 100,000 and the subsidiary ledger shows TZS 95,000, what action should be taken?
A) Investigate and reconcile the discrepancy
B) Write off the difference as bad debt
C) Adjust the subsidiary ledger to match the control account
D) Prepare a new control account
Answer: A) Investigate and reconcile the discrepancy

Question 24: Which method is used to separate fixed and variable components of semi-variable costs?
A) High-Low Method
B) Absorption Costing
C) Marginal Costing
D) Standard Costing
Answer: A) High-Low Method

Question 25: If a company’s cash book balance is TZS 200,000 and the bank statement balance is TZS 210,000, what is a likely cause of the difference?
A) Unrecorded sales
B) Unrecorded bank charges
C) Error in recording transactions
D) Unrecorded purchase returns
Answer: B) Unrecorded bank charges

Question 26: A company’s accounts receivable ledger shows a balance of TZS 500,000. After posting all journal entries, the control account shows TZS 495,000. What should be the first step to resolve the discrepancy?
A) Write off the difference as bad debt
B) Investigate and reconcile the discrepancy
C) Adjust the control account to match the subsidiary ledger
D) Ignore the difference
Answer: B) Investigate and reconcile the discrepancy

Question 27: What is the purpose of preparing a trial balance?
A) To calculate net profit
B) To prepare a balance sheet
C) To ensure that debits equal credits
D) To determine the value of assets
Answer: C) To ensure that debits equal credits

Question 28: What is the main reason for preparing bank reconciliation statements?
A) To identify and correct discrepancies between the cash book and the bank statement
B) To determine the value of cash in hand
C) To prepare financial statements
D) To reconcile customer accounts
Answer: A) To identify and correct discrepancies between the cash book and the bank statement

Question 29: In the context of financial accounting, what does the term "accruals" refer to?
A) Expenses and revenues that are recognized before cash is exchanged
B) Expenses and revenues that are recognized after cash is exchanged
C) Only revenues recognized before cash is exchanged
D) Only expenses recognized before cash is exchanged
Answer: A) Expenses and revenues that are recognized before cash is exchanged

Question 30: A company identifies an error in recording TZS 10,000 as revenue instead of an expense. How should this be corrected?
A) Debit Revenue TZS 10,000; Credit Expense TZS 10,000
B) Debit Expense TZS 10,000; Credit Revenue TZS 10,000
C) Debit Cash TZS 10,000; Credit Revenue TZS 10,000
D) Debit Revenue TZS 10,000; Credit Cash TZS 10,000
Answer: B) Debit Expense TZS 10,000; Credit Revenue TZS 10,000

Question 31: What is the effect of not adjusting for depreciation at year-end?
A) Overstated assets and understated profit
B) Overstated assets and overstated profit
C) Understated assets and overstated profit
D) Understated assets and understated profit
Answer: B) Overstated assets and overstated profit

Question 32: When preparing financial statements, what is the primary purpose of the income statement?
A) To show the financial performance over a period of time
B) To show the financial position at a point in time
C) To show changes in equity
D) To show the cash flows
Answer: A) To show the financial performance over a period of time

Question 33: If a company’s sales are TZS 500,000 and cost of goods sold is TZS 300,000, what is the gross profit?
A) TZS 200,000
B) TZS 300,000
C) TZS 500,000
D) TZS 800,000
Answer: A) TZS 200,000
Answer: B) TZS 5,000

Question 35: Which financial statement provides information about a company's liquidity and solvency?
A) Income Statement
B) Balance Sheet
C) Cash Flow Statement
D) Statement of Retained Earnings
Answer: B) Balance Sheet

Question 36: If a company uses the perpetual inventory system, which of the following accounts is continually updated?
A) Inventory
B) Purchases
C) Cost of Goods Sold
D) Sales
Answer: A) Inventory

Question 37: Which accounting principle states that expenses should be matched with revenues?
A) Revenue Recognition Principle
B) Cost Principle
C) Matching Principle
D) Full Disclosure Principle
Answer: C) Matching Principle

Question 38: What type of account is "Accumulated Depreciation"?
A) Asset
B) Contra Asset
C) Liability
D) Expense
Answer: B) Contra Asset

Question 39: Which of the following is considered a current liability?
A) Mortgage Payable
B) Bonds Payable
C) Accounts Payable
D) Retained Earnings
Answer: C) Accounts Payable

Question 40: What does the current ratio measure?
A) A company’s profitability
B) A company’s liquidity
C) A company’s solvency
D) A company’s operational efficiency
Answer: B) A company’s liquidity

Question 41: How is working capital calculated?
A) Current Assets - Current Liabilities
B) Total Assets - Total Liabilities
C) Total Equity - Total Liabilities
D) Current Assets + Current Liabilities
Answer: A) Current Assets - Current Liabilities

Question 42: What is the primary purpose of the statement of cash flows?
A) To show the cash inflows and outflows during a period
B) To show the profitability of a company
C) To show the financial position of a company
D) To show the changes in equity
Answer: A) To show the cash inflows and outflows during a period

Question 43: What is "amortization"?
A) The allocation of the cost of an intangible asset over its useful life
B) The allocation of the cost of a tangible asset over its useful life
C) The repayment of a loan
D) The reduction of a debt
Answer: A) The allocation of the cost of an intangible asset over its useful life

Question 44: In financial accounting, what does "goodwill" represent?
A) The value of a company’s brand name
B) The excess of purchase price over the fair market value of net assets acquired
C) The value of a company’s reputation
D) The value of a company’s customer base
Answer: B) The excess of purchase price over the fair market value of net assets acquired

Question 45: What is the formula for calculating the return on assets (ROA)?
A) Net Income / Total Assets
B) Net Income / Total Equity
C) Net Income / Net Sales
D) Net Sales / Total Assets
Answer: A) Net Income / Total Assets

Question 46: Which costing method is most suitable for industries where production is continuous?
A) Process Costing
B) Job Order Costing
C) Activity-Based Costing
D) Standard Costing
Answer: A) Process Costing

Question 47: Which costing method assigns costs to each specific job?
A) Process Costing
B) Activity-Based Costing
C) Standard Costing
D) Job Order Costing
Answer: D) Job Order Costing

Question 48: Which of the following would be classified as a financing activity on the statement of cash flows?
A) Purchasing equipment
B) Issuing shares of stock
C) Paying salaries
D) Selling goods
Answer: B) Issuing shares of stock

Question 49: What does the term "double-entry accounting" mean?
A) Transactions are recorded twice to ensure accuracy
B) Each transaction is recorded in two sets of books
C) Each transaction affects at least two accounts and is recorded with equal debits and credits
D) Each transaction affects only two accounts
Answer: C) Each transaction affects at least two accounts and is recorded with equal debits and credits

Question 50: Which principle requires that revenue be recognized in the accounting period in which it is earned?
A) Revenue Recognition Principle
B) Consistency Principle
C) Matching Principle
D) Full Disclosure Principle
Answer: A) Revenue Recognition Principle

A4. Cost Accounting Questions

Question 51: A company produces 1,000 units of a product with total costs of TZS 80,000, including TZS 20,000 in fixed costs. What is the variable cost per unit?
A) TZS 60
B) TZS 50
C) TZS 40
D) TZS 70
Answer: A) TZS 60

Question 52: A company has budgeted production costs of TZS 120,000, of which TZS 30,000 are fixed. If the actual production costs are TZS 130,000, what is the amount of the over or under-absorption of overheads?
A) TZS 10,000 under-absorption
B) TZS 20,000 over-absorption
C) TZS 10,000 over-absorption
D) TZS 20,000 under-absorption
Answer: A) TZS 10,000 under-absorption

Question 53: A company uses process costing. If the total cost of production is TZS 200,000 and there were 5,000 units produced, what is the cost per equivalent unit if there are 1,000 units in ending work-in-process with 50% completion?
A) TZS 40
B) TZS 36
C) TZS 60
D) TZS 80
Answer: B) TZS 36

Question 54: A company is considering whether to accept a special order. The order requires 500 units at a selling price of TZS 30 each. The variable cost per unit is TZS 20, and fixed costs allocated to the order are TZS 4,000. What is the contribution margin of the order?
A) TZS 3,000
B) TZS 5,000
C) TZS 2,500
D) TZS 6,000
Answer: B) TZS 5,000

Question 55: What is the primary difference between job costing and batch costing?
A) Job costing applies to individual jobs, while batch costing applies to groups of identical products
B) Job costing is used for production in large quantities, while batch costing is for customized orders
C) Job costing only includes direct costs, while batch costing includes both direct and indirect costs
D) Job costing uses standard costs, while batch costing uses actual costs
Answer: A) Job costing applies to individual jobs, while batch costing applies to groups of identical products

Question 56: A company is using the high-low method to determine variable and fixed costs. The highest activity level is 10,000 units with a total cost of TZS 80,000, and the lowest activity level is 2,000 units with a total cost of TZS 20,000. What is the estimated variable cost per unit?
A) TZS 7.5
B) TZS 4
C) TZS 8
D) TZS 5
Answer: A) TZS 7.5

Question 57: A company’s actual overhead costs were TZS 120,000, while the applied overhead costs were TZS 115,000. What is the amount of under-applied overhead?
A) TZS 15,000
B) TZS 10,000
C) TZS 5,000
D) TZS 20,000
Answer: C) TZS 5,000

Question 58: A company has the following data for a product: Selling price per unit = TZS 50, Variable cost per unit = TZS 30, Fixed costs = TZS 40,000. What is the break-even point in units?
A) 2,000 units
B) 2,500 units
C) 1,500 units
D) 3,000 units
Answer: A) 2,000 units

Question 59: A manufacturing company uses a standard costing system. If the standard cost for direct materials is TZS 8 per unit and 1,000 units were produced with actual direct material costs of TZS 7,800, what is the material price variance?
A) TZS 200 favorable
B) TZS 200 unfavorable
C) TZS 300 favorable
D) TZS 300 unfavorable
Answer: A) TZS 200 favorable

Question 60: In a standard costing system, the standard direct labor cost for producing one unit of product is TZS 15. If 500 units were produced with an actual direct labor cost of TZS 7,800, what is the labor efficiency variance?
A) TZS 300 unfavorable
B) TZS 300 favorable
C) TZS 400 unfavorable
D) TZS 400 favorable
Answer A) TZS 300 unfavorable

Question 61: A company has the following cost data: Direct materials = TZS 20,000, Direct labor = TZS 15,000, Manufacturing overhead = TZS 10,000. If the company produced 500 units, what is the total cost per unit?
A) TZS 70
B) TZS 60
C) TZS 80
D) TZS 90
Answer: D) TZS 90

Question 62: What is the main objective of using absorption costing in managerial accounting?
A) To allocate all manufacturing costs to products
B) To track only variable costs associated with production
C) To evaluate product profitability without considering fixed costs
D) To segregate direct costs from indirect costs
Answer: A) To allocate all manufacturing costs to products

Question 63: A company has a budgeted overhead rate of TZS 50 per direct labor hour. If actual direct labor hours are 1,200 and actual overhead costs are TZS 60,000, what is the overhead variance?
A) TZS 10,000 favorable
B) TZS 10,000 unfavorable
C) TZS 5,000 favorable
D) TZS 5,000 unfavorable
Answer: B) TZS 10,000 unfavorable

Question 64: Calculate the break-even point in sales revenue for a product with a selling price of TZS 80, variable costs of TZS 50 per unit, and fixed costs of TZS 90,000.
A) TZS 320,000
B) TZS 400,000
C) TZS 180,000
D) TZS 270,000
Answer: A) TZS 320,000

Question 65: Which of the following is not a characteristic of a flexible budget?
A) It adjusts for changes in activity levels
B) It helps in performance evaluation
C) It remains fixed regardless of actual activity levels
D) It provides a more accurate cost analysis
Answer: C) It remains fixed regardless of actual activity levels

Question 66: A company’s standard cost for direct labor is TZS 12 per hour. If the actual labor cost for 500 hours is TZS 6,000, what is the labor rate variance?
A) TZS 1,000 favorable
B) TZS 1,000 unfavorable
C) TZS 500 favorable
D) TZS 500 unfavorable
Answer: A) TZS 1,000 favorable

Question 67: If a company’s actual cost for a batch of 1,000 units is TZS 25,000 and the budgeted cost was TZS 22,000, what is the cost variance for this batch?
A) TZS 3,000 favorable
B) TZS 3,000 unfavorable
C) TZS 2,000 unfavorable
D) TZS 2,000 favorable
Answer: B) TZS 3,000 unfavorable

Question 68: In cost accounting, what does the term 'contribution margin' refer to?
A) The amount remaining after subtracting variable costs from sales revenue
B) The total sales revenue of a company
C) The fixed costs of a company
D) The net profit of a company
Answer: A) The amount remaining after subtracting variable costs from sales revenue

Question 69: A company produces 1,500 units of a product at a total cost of TZS 75,000. If the fixed costs are TZS 20,000, what is the variable cost per unit?
A) TZS 35
B) TZS 30
C) TZS 40
D) TZS 25
Answer: A) TZS 35

Question 70: What does the term 'cost behavior' describe in cost accounting?
A) How costs change in relation to changes in activity levels
B) The allocation of fixed costs across different products
C) The method of budgeting for overhead costs
D) The process of financial reporting and analysis
Answer: A) How costs change in relation to changes in activity levels

Question 71: A company has direct materials costing TZS 50,000 and direct labor costing TZS 30,000. The company produces 1,000 units and the manufacturing overhead is TZS 20,000. What is the total cost per unit?
A) TZS 100
B) TZS 80
C) TZS 70
D) TZS 60
Answer: A) TZS 100

Question 72: In a job costing system, what costs are accumulated for each job?
A) Direct materials, direct labor, and overhead
B) Only direct materials and direct labor
C) Direct materials and administrative costs
D) Direct labor and overhead only
Answer: A) Direct materials, direct labor, and overhead

Question 73: A company estimates its fixed costs at TZS 100,000 and variable costs at TZS 40 per unit. If the company expects to sell 2,000 units, what is the break-even point in units?
A) 1,000 units
B) 2,000 units
C) 2,500 units
D) 4,000 units
Answer: B) 2,000 units

Question 74: What is the purpose of a cost statement in cost accounting?
A) To summarize the costs of production and provide cost information for decision making
B) To record daily transactions of the company
C) To calculate the company’s net profit
D) To analyze sales revenue and expenses
Answer: A) To summarize the costs of production and provide cost information for decision making

Question 75: In process costing, if there is a normal loss of 5% in a process with 1,000 units started, how many units are expected to be completed if the loss is accounted for?
A) 960 units
B) 950 units
C) 1,000 units
D) 1,050 units
Answer: B) 950 units

Question 76: A company’s standard cost for direct labor is TZS 15 per hour, but the actual cost is TZS 18 per hour. If the company worked 200 hours, what is the labor cost variance?
A) TZS 600 unfavorable
B) TZS 600 favorable
C) TZS 300 unfavorable
D) TZS 300 favorable
Answer: A) TZS 600 unfavorable

Question 77: In marginal costing, which of the following costs are excluded from the cost of production?
A) Fixed manufacturing costs
B) Variable manufacturing costs
C) Direct materials costs
D) Direct labor costs
Answer: A) Fixed manufacturing costs

Question 78: What is the main difference between absorption costing and marginal costing?
A) Absorption costing includes both fixed and variable costs, while marginal costing includes only variable costs
B) Absorption costing includes only direct materials costs, while marginal costing includes all costs
C) Marginal costing includes all overhead costs, while absorption costing excludes them
D) Absorption costing is used for internal management decisions only
Answer: A) Absorption costing includes both fixed and variable costs, while marginal costing includes only variable costs

Question 79: A company produces 2,000 units of a product. The total variable cost is TZS 80,000, and the fixed costs are TZS 40,000. What is the variable cost per unit?
A) TZS 40
B) TZS 30
C) TZS 50
D) TZS 60
Answer: A) TZS 40

Question 80: If a company’s budgeted sales are TZS 200,000 and the actual sales are TZS 180,000, what is the sales variance?
A) TZS 10,000 favorable
B) TZS 20,000 unfavorable
C) TZS 20,000 favorable
D) TZS 10,000 unfavorable
Answer: B) TZS 20,000 unfavorable

Question 81: What is the primary purpose of budgeting in cost accounting?
A) To plan and control financial performance and allocate resources effectively
B) To determine the cost of goods sold
C) To prepare the company's tax returns
D) To evaluate employee performance
Answer: A) To plan and control financial performance and allocate resources effectively

Question 82: A company uses activity-based budgeting. Which of the following is a benefit of this approach?
A) It simplifies budgeting by using standard rates
B) It provides more accurate cost allocation based on activities
C) It focuses solely on fixed costs
D) It reduces the need for variance analysis
Answer: B) It provides more accurate cost allocation based on activities

Question 83: What is the main difference between zero-based budgeting and incremental budgeting?
A) Zero-based budgeting starts from a base of zero each period, while incremental budgeting adjusts previous budgets
B) Incremental budgeting is used only for capital expenditures
C) Zero-based budgeting is used for financial forecasting
D) Incremental budgeting requires detailed cost analysis
Answer: A) Zero-based budgeting starts from a base of zero each period, while incremental budgeting adjusts previous budgets

Question 84: A company estimates a cost of TZS 500,000 for material and TZS 200,000 for labor to produce 1,000 units. What is the total cost per unit?
A) TZS 700
B) TZS 600
C) TZS 650
D) TZS 550
Answer: A) TZS 700

Question 85: If a company’s actual overhead costs are TZS 150,000 and the budgeted overhead costs are TZS 120,000, what is the overhead variance?
A) TZS 30,000 unfavorable
B) TZS 30,000 favorable
C) TZS 20,000 unfavorable
D) TZS 20,000 favorable
Answer: A) TZS 30,000 unfavorable

Question 86: A company calculates its cost of goods sold to be TZS 200,000 and its gross profit to be TZS 50,000. What is the total sales revenue?
A) TZS 250,000
B) TZS 200,000
C) TZS 150,000
D) TZS 300,000
Answer: A) TZS 250,000

Question 87: If the fixed cost of a product is TZS 80,000 and the variable cost per unit is TZS 20, and the selling price per unit is TZS 50, how many units need to be sold to break even?
A) 1,600 units
B) 2,000 units
C) 1,200 units
D) 2,500 units
Answer: A) 1,600 units

Question 88: What is the formula for calculating the margin of safety in cost-volume-profit analysis?
A) Margin of Safety = Sales Revenue - Break-even Sales
B) Margin of Safety = Actual Sales - Break-even Sales
C) Margin of Safety = Fixed Costs / Variable Costs per Unit
D) Margin of Safety = Contribution Margin / Fixed Costs
Answer: B) Margin of Safety = Actual Sales - Break-even Sales

Question 89: A company uses a standard costing system. If the standard cost for direct materials is TZS 10 per unit and the actual cost is TZS 12 per unit, with 500 units produced, what is the total materials variance?
A) TZS 1,000 unfavorable
B) TZS 1,000 favorable
C) TZS 500 unfavorable
D) TZS 500 favorable
Answer: A) TZS 1,000 unfavorable

Question 90: In the context of cost accounting, what is the primary goal of variance analysis?
A) To identify the differences between budgeted and actual performance
B) To prepare the financial statements
C) To calculate depreciation costs
D) To determine the company's income tax liability
Answer: A) To identify the differences between budgeted and actual performance

Question 91: A company’s overhead costs include TZS 50,000 of fixed costs and TZS 20,000 of variable costs. If the company produces 1,000 units, what is the overhead cost per unit?
A) TZS 70
B) TZS 60
C) TZS 80
D) TZS 90
Answer: A) TZS 70

Question 92: In a cost-volume-profit analysis, if the selling price per unit is TZS 100, the variable cost per unit is TZS 60, and the total fixed costs are TZS 120,000, what is the contribution margin ratio?
A) 40%
B) 50%
C) 60%
D) 30%
Answer: A) 40%

Question 93: A company's direct labor costs are TZS 200,000 for 500 units produced. If the standard direct labor cost per unit is TZS 350, what is the direct labor efficiency variance?
A) TZS 75,000 favorable
B) TZS 50,000 unfavorable
C) TZS 50,000 favorable
D) TZS 75,000 unfavorable
Answer: B) TZS 50,000 unfavorable

Question 94: If the selling price of a product is TZS 150, and the total cost per unit is TZS 120, what is the profit margin per unit?
A) TZS 30
B) TZS 20
C) TZS 40
D) TZS 50
Answer: A) TZS 30

Question 95: In a standard costing system, if the standard cost of direct materials is TZS 10 per unit and the actual cost is TZS 12 per unit for 500 units, what is the total materials price variance?
A) TZS 1,000 favorable
B) TZS 1,000 unfavorable
C) TZS 600 favorable
D) TZS 600 unfavorable
Answer: B) TZS 1,000 unfavorable

Question 96: If the fixed costs of a company are TZS 80,000 and the variable cost per unit is TZS 25, and the selling price per unit is TZS 75, how many units must be sold to achieve a target profit of TZS 40,000?
A) 2,400 units
B) 2,000 units
C) 3,200 units
D) 2,800 units
Answer: A) 2,400 units

Question 97: What is the main advantage of using a flexible budget over a static budget?
A) It adjusts for changes in activity levels and provides more accurate performance evaluations
B) It is easier to prepare and requires less data
C) It is used only for short-term planning
D) It eliminates the need for variance analysis
Answer: A) It adjusts for changes in activity levels and provides more accurate performance evaluations

Question 98: A company’s sales are TZS 500,000 and its cost of goods sold is TZS 300,000. What is the gross profit margin percentage?
A) 40%
B) 50%
C) 60%
D) 30%
Answer: A) 40%

Question 99: In a cost accounting system, what is the purpose of a cost center?
A) To accumulate and control costs related to a specific area or function
B) To track sales revenue
C) To prepare financial statements
D) To allocate indirect costs
Answer: A) To accumulate and control costs related to a specific area or function

Question 100: A company’s total production cost includes TZS 60,000 for fixed costs and TZS 40,000 for variable costs. If the company produces 2,000 units, what is the total cost per unit?
A) TZS 50
B) TZS 40
C) TZS 60
D) TZS 70
Answer: A) TZS 50

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