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Cost Elements, Classification and Cost Curves · CAPE Accounting Unit 2

46 past-paper questions on Cost Elements, Classification and Cost Curves, part of Module 1: Costing Principles, from every CAPE Accounting Unit 2 paper on Quelpr.

Practise Cost Elements, Classification and Cost Curves
  1. 1(b)(i)7 marks· CAPE Accounting Unit 2 · 2002 · Paper 2Calculate the total relevant costs of EACH job.
  2. 1(b)(ii)3 marks· CAPE Accounting Unit 2 · 2002 · Paper 2Calculate the incremental profit or loss associated with the acceptance of the Portland job.
  3. 1(b)(iii)3 marks· CAPE Accounting Unit 2 · 2002 · Paper 2Calculate the incremental profit or loss associated with the acceptance of the Westmoreland job.
  4. 1(b)(iv)5 marks· CAPE Accounting Unit 2 · 2002 · Paper 2Discuss TWO additional factors which the company should consider in deciding whether to accept or reject these jobs.
  5. 1(a)(i)4 marks· CAPE Accounting Unit 2 · 2006 · Paper 2Compute the total variable costs incurred for the current period.
  6. 1(a)(ii)3 marks· CAPE Accounting Unit 2 · 2006 · Paper 2Compute the total fixed costs incurred for the current period.
  7. 1(b)(i)6 marks· CAPE Accounting Unit 2 · 2006 · Paper 2Assuming fixed costs remain constant between 800 and 1300 dinette sets, determine whether the order should be accepted. Show supporting workings.
  8. 1(b)(ii)3 marks· CAPE Accounting Unit 2 · 2006 · Paper 2List THREE qualitative factors that should be considered by a company when evaluating whether or not to accept a special order.
  9. 1(a)(i)2 marks· CAPE Accounting Unit 2 · 2008 · Paper 2Compute total direct materials.
  10. 1(a)(v)2 marks· CAPE Accounting Unit 2 · 2008 · Paper 2Compute total period cost.
  11. 1(a)(vi)2 marks· CAPE Accounting Unit 2 · 2008 · Paper 2Compute total variable manufacturing cost.
  12. 1(b)(i)2 marks· CAPE Accounting Unit 2 · 2008 · Paper 2Assuming that Cox Manufacturing Company has the production capacity to fill this order without affecting existing production, list the categories of costs that are relevant to the decision.
  13. 1(b)(ii)3 marks· CAPE Accounting Unit 2 · 2008 · Paper 2Cox Manufacturing will not accept the order if the company will be worse off financially by so doing. Calculate the minimum price that Cox Manufacturing Company can charge for the order.
  14. 3(c)(i)3 marks· CAPE Accounting Unit 2 · 2008 · Paper 2Determine the amount of raw materials (in kg) needed to produce ONE unit of EACH product.
  15. 1(a)5 marks· CAPE Accounting Unit 2 · 2009 · Paper 2Classify each cost item (2 to 11) as being either a product (inventoriable) cost or a period (non-inventoriable) cost, using the provided table format.
  16. 1(a)(i)7.5 marks· CAPE Accounting Unit 2 · 2010 · Paper 2Classify EACH of the listed costs (items 2 to 16) as either variable or fixed with respect to volume or activity level.
  17. 1(a)(ii)7.5 marks· CAPE Accounting Unit 2 · 2010 · Paper 2Classify EACH of the listed costs (items 2 to 16) as either a selling and administrative cost or a product cost.
  18. 1(b)(i)3 marks· CAPE Accounting Unit 2 · 2011 · Paper 2Identify THREE major elements in the cost of a manufactured product.
  19. 1(b)(ii)6 marks· CAPE Accounting Unit 2 · 2011 · Paper 2Explain EACH of the following types of costs and give ONE example of EACH: a) Product cost b) Period cost c) Mixed cost
  20. 1(b)(iii)2 marks· CAPE Accounting Unit 2 · 2011 · Paper 2Distinguish between prime cost and conversion cost.
  21. 1(b)(iv)1 mark· CAPE Accounting Unit 2 · 2011 · Paper 2Identify ONE method that is used to separate mixed cost into its components.
  22. 1(b)(i)1 mark· CAPE Accounting Unit 2 · 2012 · Paper 2Classify sales commissions as EITHER fixed OR variable in relation to the number of units produced and sold.
  23. 1(b)(ii)1 mark· CAPE Accounting Unit 2 · 2012 · Paper 2Classify advertising as EITHER fixed OR variable in relation to the number of units produced and sold.
  24. 1(b)(iii)1 mark· CAPE Accounting Unit 2 · 2012 · Paper 2Classify packaging costs as EITHER fixed OR variable in relation to the number of units produced and sold.
  25. 1(b)(iv)1 mark· CAPE Accounting Unit 2 · 2012 · Paper 2Classify CDs as EITHER fixed OR variable in relation to the number of units produced and sold.
  26. 1(b)(v)1 mark· CAPE Accounting Unit 2 · 2012 · Paper 2Classify salaries of customer support personnel as EITHER fixed OR variable in relation to the number of units produced and sold.
  27. 1(b)(vi)1 mark· CAPE Accounting Unit 2 · 2012 · Paper 2Classify property taxes on the general offices as EITHER fixed OR variable in relation to the number of units produced and sold.
  28. 1(c)(i)3 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Use a diagram and an example to explain fixed cost.
  29. 1(c)(ii)3 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Use a diagram and an example to explain variable cost.
  30. 1(c)(iii)3 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Use a diagram and an example to explain stepped-fixed cost.
  31. 1(b)(i)5 marks· CAPE Accounting Unit 2 · 2014 · Paper 2Determine whether the company should continue to purchase the monitors, showing all workings.
  32. 1(b)(ii)6 marks· CAPE Accounting Unit 2 · 2014 · Paper 2If the factory space used for manufacturing monitors could instead be rented out for $750,000 per month, determine whether the company should make or buy the monitor, showing all workings.
  33. 1(a)10 marks· CAPE Accounting Unit 2 · 2016 · Paper 2State the classification for EACH of the 10 listed cost items.
  34. 1(c)(i)6 marks· CAPE Accounting Unit 2 · 2016 · Paper 2Advise management whether it would be profitable to make or buy Component ABC.
  35. 1(c)(ii)9 marks· CAPE Accounting Unit 2 · 2016 · Paper 2Advise management whether to accept a special offer of $1750 per unit from an outside company for Product XYZ, providing justification.
  36. 1(b)(i)5 marks· CAPE Accounting Unit 2 · 2017 · Paper 2Identify the unit costs which will be relevant to the decision to be made by Orchid Enterprise and calculate the total unit cost.
  37. 1(b)(ii)3 marks· CAPE Accounting Unit 2 · 2017 · Paper 2Should the company accept the special order? Justify your answer.
  38. 1(a)(i)2 marks· CAPE Accounting Unit 2 · 2018 · Paper 2Calculate the number of employees required in the Assembling Department to meet the production target of 1680 units.
  39. 1(b)(i)8 marks· CAPE Accounting Unit 2 · 2018 · Paper 2Prepare a cost comparison for the manufacture and purchase of the subassembly component.
  40. 1(b)(ii)1 mark· CAPE Accounting Unit 2 · 2018 · Paper 2State the decision that Zamore Ltd should make regarding the subassembly component, based on the cost comparison in (b)(i).
  41. 1(b)6 marks· CAPE Accounting Unit 2 · 2019 · Paper 2Explain 'product cost' and 'period cost', giving ONE example of EACH.
  42. 1(c)(ii)4 marks· CAPE Accounting Unit 2 · 2019 · Paper 2Silver Slipper Ltd had the option of purchasing items rather than making them. Distinguish between 'relevant costs' and 'irrelevant costs', giving ONE example of EACH.
  43. 1(b)(i)6 marks· CAPE Accounting Unit 2 · 2022 · Paper 2Insert the correct data into EACH of the spaces labelled A-L in the table.
  44. 1(b)(ii)8 marks· CAPE Accounting Unit 2 · 2022 · Paper 2Sketch a graph of average variable cost, average fixed cost, and average total cost curves using the calculated information on the same axis.
  45. 1(b)(iii)6 marks· CAPE Accounting Unit 2 · 2022 · Paper 2Outline ONE reason for the shape of EACH of the three cost curves sketched.
  46. 2(b)(ii)4 marks· CAPE Accounting Unit 2 · 2022 · Paper 2Explain the difference between a cost centre and a profit centre.

Related topics in Module 1: Costing Principles